Evening star., 1928-11-22
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

The expert points to the turbulent con-
ditions of Nicaragua, to the impertectly
developed resources, to the war debts
which that government must pay for its
recent internal condition and to the
very great possibilities of development
of public works and industries, which
cannot be handled without financial aid,
but aid which cannot be given under
the circumstances without securities.
Nicaragua first called upon the United
States for aid in 1911, asking for mill
stabulary, or police force. The De-
partment of State (under President
Taft acceded to the request so far as
to recommend q competent man, but
that official found the peace of the land
so disturbed that he abandoned the un-
dertaking. The request was renewed
in 1928 and American instructors were
again recommended. In 1925, q guard
Of Marines, numbering 100, was sta
toned to protect our legation from ban
ditry.
When President Diaz assumed office,
the revolution had so disturbed the
land that he requested military aid and
the good offices of the United States
in insuring peaceful election in 1928.
This Government then sent 970 Marines
and the Nicaraguan government ap-
propriated fund of 100000, out of
which to maintain the American force
The Diaz administration came into
power with an almost empty treasury,
and DiaZ asked authority to obtain
loans in the United States, not only to
support the defensive military action
against the revolutionists, but to build
railroad crossing the country to the
Atlantic coast. This was refused by
our Department OF State, but Diaz sue
ceeded In obtaining 100000 from the
National Bank of Nicaragua, owned by
the Nicaraguan government, which
fund was consumed in military defense
against the revolutionists.
On December 8, 1925, the Department
OF State informed President Diaz that
the fact that we had recognized him
did not imply that the United States
assumed any obligation to protect his
government by physical means EARNED
forces or loans) and declared that GER
tain forced payments to the revolu-
tionlstS extracted from American lum-
Der companies must be stopped. For
that purpose the American forces were
1ncreased-not for protection to the
Nlcaraguan government.
X X X
President Coolidge in a message to
Congress in January, 1927. said of the
financing of Diaz through the Mica
raguan National Bank by New York
financierS:
Under this financial plan the
finances of Nicaragua have been re-
habilitated in very satisfactory man
ner. OF the $3744,000 of internal
customs bonds issued in 1917 about
5000 900 have been paid OF the eXter-
nal debt bonds issued in 1909, amount
ing to f1 100000, there now remain only
about f770000. The total public debt
of Nicaragua has been reduced from
$22,000,000 in 1917 to $6,625 ,203 in 1926
Furthermore, the country in time of
peace has ample revenues for It's ordi-
nary budget expenses and a surplus
which has been used in extensive pub
| lie improvements. The Nicaraguan Ma
tional Bank and the National Railroad
controlling interests in which were
formerly owned by American bankers
were repurchaSed by the Nicaraguan
government in 1920 and 1924 and are
now wholly owned by that govern
! ment. American and foreign
bondholderS will undoubtedly look to
the United States for the protection of
Ltlelr interests.
X X X
1t is pointed out by high officials Of
the United States that the American
policy has been clearly expressed from
the days of Chief Justice Marshall 10
these of the Coolidge administration
and that it absolutely disavows any de-
sire to extend sway over additional ter
ritory in the Western Hemisphere. This
Nation has cordially indorsed the prin-
ciples set forth by jurists of Latin
America at the first session of the
American institute of International Law
One OF these pronouncementS says:
Every nation has the right to inde-
pendence in the sense that it has the
right to the pursuit of happiness and
is free to develop itself without inter-
ference or control from other States.
provided that in SO doing 1t does not
interfere with or violate the rights of
other States"
tc0pyr.sat. isa by Paul v, colHas.l