815.24/155: Telegram The Minister in Honduras (Lay) to the Secretary of State TEGUCIGALPA, April 19, 1931-noon. [Received 3:55 p. m.] 62. The President of Honduras has requested that the Legation enquire of the Department if the Government of the United States will sell it one bombing aeroplane or will authorize the export of such a plane from the United States. The intention of the Honduran Government is to man this plane with an American pilot and assistant to throw bombs against insurrectionary forces.21 I believe the President made this request as well as plan of one for bombs against his own wish and at the insistence of the generals in his entourage. LAY 815.24/155: Telegram The Secretary of State to the Minister in Honduras (Lay) WASHINGTON, April 20, 1931-6 p. m. 26. Your 62, April 19, noon. You may say to President Mejia Colindres that although the Government of the United States will not sell a bombing airplane to the Government of Honduras, it will be disposed upon receipt of application to grant a license for the export of such military aircraft acquired from commercial sources and consigned to the Government of Honduras. However it would be opposed to American citizens operating it in connection with civil disturbances and carrying on bombing operations. Keep Department informed on this score as it will want to make a statement regarding Americans who undertake such operations. STIMSON 815.00 Revolutions/21: Telegram The Minister in Honduras (Lay) to the Secretary of State TEGUCIGALPA, April 23, 1931-5 p. m. [Received 10:20 p. m.] 70. Honduran Government informs me that its military operations are greatly handicapped by a dearth of rifle ammunition. It advises me confidentially that the average of rifle ammunition for all its forces is not over 30 rounds per man and that some have much less than this. It is placing orders for ammunition with firms in the United States but delivery cannot be made here for several weeks. "See pp. 555 ff. Therefore it requests that in order to meet the very urgent immediate need the United States Government lend it ammunition for its rifles and/or rifles with ammunition from the stocks of the United States in Nicaragua. Honduran Government promises to return these arms as soon as possible. It is presumed that these munitions would be transported by truck through Chinadega and Choluteca. Quantity requested is as much as can be spared and the cartridges needed for the Honduran Government's rifles are Remington 7 and 11 millimeters and Enfield 7.62 millimeters. In my opinion, unless the Honduran Government forces press hard the rebel groups in the next week or two, the latter may make good their retirement into the mountains and there will result guerrilla warfare or wholesale banditry lasting for months or years similar to that in the Segovias of Nicaragua. The Honduran Government feels certain that Ferrera is now the supreme leader of the insurrectionists in the Departments of Cortes and Santa Barbara. If he succeeds in organizing his Indians, the Honduran Government will be confronted with a very serious problem. The key to the present situation is for the Honduran Government to strike hard and soon which it avers it cannot do because of the present shortage of rifle ammunition. I therefore recommend that this request be granted and promptly. LAY 815.00 Revolutions/30: Telegrain The Secretary of State to the Minister in Honduras (Lay) WASHINGTON, April 24, 1931-6 p. m. 28. Legation's 70, April 23, 5 p. m. The Department considers it inadvisable to attempt to furnish arms and ammunition to the Honduran Government from Nicaragua. It is referring the matter to the War Department and upon receipt of its advices will communicate with you further. STIMSON 815.24/159: Telegram The Minister in Honduras (Lay) to the Secretary of State TEGUCIGALPA, April 25, 1931-noon. [Received 4: 15 p. m.] 73. Honduran Government has ordered 450,000 cartridges for army rifles from the Remington Arms Company to be shipped from New York to Tela consigned Minister of War Government Honduras. Referring to Department's instruction No. 117, March 20, license for export should be approved. LAY 815.00 Revolutions/36: Telegram The Secretary of State to the Minister in Honduras (Lay) WASHINGTON, April 25, 1931—2 p. m. 29. Department's 28, April 24, 6 p. m. It appears improbable that arms or ammunition can be furnished the Honduran Government from official supplies of this Government, although definite statement cannot yet be made. The Department understands that the California Arms Company has communicated with the Honduran Legation here regarding the sale of military supplies, including machine guns, rifles and ammunition. Please report. 815.00 Revolutions/38: Telegram STIMSON The Minister in Honduras (Lay) to the Secretary of State TEGUCIGALPA, April 27, 1931-1 p. m. [Received 5:20 p. m.] 77. Department's telegram number 29, April 25, 2 p. m. Honduran Government has ordered munitions from Remington Arms Company, see my telegram 73, April 25, noon. Understand a few riot guns are to be shipped next steamer from New Orleans by another American firm. Believe the Honduran Government will not deal with California Arms Company. 815.24/143: Telegram The Secretary of State to the Minister in Honduras (Lay) LAY WASHINGTON, May 4, 1931-8 p. m. 36. Please report by telegraph results of any representations made by you in compliance with the Department's instruction No. 90, dated January 22. 815.24/167: Telegram STIMSON The Minister in Honduras (Lay) to the Secretary of State TEGUCIGALPA, May 5, 1931-3 p. m. [Received 9:08 p. m.] 85. Department's number 36, May 4, 8 p. m. In February and March had conversation with President and others in Government on the subject with little result. Turned matter over to Naval Attaché to suggest a practical plan likely to be acceptable but Attaché absent in Guatemala, Salvador and Nicaragua until lately. Present not propitious time discuss matter further. Congress opposed to constabulary mainly on ground would be used for political purposes. After present insurrection will take up matter again when, especially if Ferrera loots more towns, the advantages of establishing a constabulary will be more apparent. LAY HUNGARY REFUSAL OF THE DEPARTMENT OF STATE TO ENDEAVOR TO SECURE FINANCIAL ASSISTANCE FOR HUNGARY 864.51/600 Memorandum by the Assistant Secretary of State (Rogers) of a Telephone Conversation With the Hungarian Chargé (De Végh), July 16, 1931 [WASHINGTON, undated.] The Hungarian Chargé called me from Newport explaining that he had been unable to reach Mr. Castle who was reported engaged at the White House. He said his Government had requested him to use every effort to facilitate the proposed financial support to Hungary from a group of banks; that the arrangement had been left uncompleted and there was acute danger of collapse in Hungary. In response to my question he said that Speyer and the National City were the American bankers involved in the advance. He wanted to know what he could or should do and I understood he was speaking in the presence of his New York Consul who, he said, was thoroughly acquainted with the matter. The Chargé said the Speyer firm had told him the arrangement was suspended pending the developments of the German situation. He said he understood there was a connection between the Federal Reserve Bank and the Government through which we could aid their difficulties. I said that the difficulties were banking matters in which our Government had no authority or proper part; that the Federal Reserve system was independent of the Executive Department, and that we had no authority or control over them and no connection except such exchange of information and contact as was natural for governmental agencies. I made it clear we were unwilling and unable to control or play any part in banking transactions of this sort. I said that I could understand that the German situation had produced an uncertainty regarding all the other financial problems in Europe, but that there was a general spirit of cooperation and mutual helpfulness in financial circles which was very marked, in view of which Hungary would get consideration among the banks. The Chargé said he would report my comment to his Government but was manifestly disappointed that we took no affirmative attitude. J[AMES] G[RAFTON] R[OGERS] 1 William R. Castle, Jr., Under Secretary of State. 864.51/594: Telegram The Ambassador in France (Edge) to the Acting Secretary of State [Paraphrase] PARIS, [undated.] [Received July 17, 1931-8:30 a. m.] At the request of the American Minister at Budapest the following telegram, which was sent for the Secretary of State, is repeated to the Department: 4 p. m., July 16th. The Hungarian Prime Minister, Count Bethlen, has asked that the substance of a talk which I had with him this morning be transmitted to Mr. Stimson as a personal message from him. This conversation was in substance the following: "The Hungarian financial situation is desperate. If it is impossible to obtain credits in the next 10 days the collapse of the currency and of the financial machinery of the Government and the failure of numerous banks cannot be avoided. Ten days ago an agreement for a 5 million-pound credit was made with René Charron, representing the B. I. S., the Bank of France, and the Bank of England. The Hungarian Government in turn agreed to undertake a reorganization of its finances on drastic lines. Two and one-half million pounds of the above credit was to come from a group of French banks and from banks in the United States, England, and Hungary. For political reasons the French Government has tied up this credit with the credits to Germany, and up to the present it has refused permission to the French banks concerned to carry out their share of the arrangement. However, the American and English groups involved have let it be known to Count Bethlen that they will take part in the credit only in case the French group joins in. Should the deadlock which has thus been caused continue for a week or 10 days longer it will be too late to save the finances of Hungary. Consequently, Bethlen personally asks Mr. Stimson to point out to Briand the gravity of the Hungarian situation and the importance of not dragging out a decision as to the action to be taken in the case of Hungary as has been done in the German case.' In reply to this request I said that I would be glad to pass on this personal message to the Secretary of State but that the most I could do would be to lay the matter before him; and I expressed doubt that, under the circumstances, he would be able to do anything about it. Yesterday, the Hungarian Prime Minister appealed to the French Minister to intervene in behalf of Hungary with his Government. For the information of Mr. Stimson, I have kept the Department fully informed of the Hungarian crisis, which I hold to be just as serious as it is represented by the Prime Minister. Roosevelt. It is requested that the above be repeated to the Department. 'Bank for International Settlements. EDGE |