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Puerto Cabezas and other points on the east coast of Nicaragua was that it is the duty of the Nicaraguan Government to protect Americans and other foreigners in Nicaragua. This Government sent vessels to the sea port to give protection there while the Guardia was unable to do so, but emphasis was continually put on the obligation of Nicaragua to provide for the protection of persons and property in Nicaragua. It was for this reason that the Guardia was estab lished. The Guardia has no aviation force. The Standard Fruit and Steamship Company, which controls the Bragmans Bluff Lumber Company, was not satisfied with the protection accorded it by the Guardia. On the other hand, this Government did not feel that it forces should be used for this purpose. The Company then offered to pay for the equipment, transportation to Puerto Cabezas, and maintenance there of fifty addition [al] Guardia Nacional. The Com pany also desired the protection of an airplane and offered to supply one. This suggestion of the Company was accepted by the Depart ment of State after the American Minister in Managua had discussed the matter with the Commander of the Guardia and the Nicaraguan authorities, and the plan had met with their approval.

The private secretary of President Moncada approved on his behalf this project in a letter to the American Minister dated May 19. On May 8, the American Minister informed the Department that he had discussed this matter with General Matthews who said that "the em ployment of an airplane presents some difficulties but it is believed the plan can be made to work to the mutual interests of the Company and the Guardia Nacional. The operator and mechanic will of course be required to sign a contract of engagement with the Guardia Nacional, agreeing that all military operations shall come under the strict control of the Guardia Nacional. The operator will be required to be licensed and satisfy the Jefe Director as to his skill and training in the operation of military aircraft." General Matthews' views. as above set forth, were transmitted to you in this Department's letter of May 11.43

I feel, therefore, that the plan should be carried out as agreed to. The fact that the Guardia Nacional will operate a plane, provided by the Company, in the Puerto Cabezas area, is another step toward the complete policing of the country by the Guardia Nacional. If this plane is able to control the situation in the Puerto Cabezas area. the Marine planes will be relieved to that extent.

Yours very sincerely,

"Not printed.

HENRY L. STIMSON

817.1051/550

The Minister in Nicaragua (Hanna) to the Acting Secretary of State No. 456

Managua, August 3, 1931. [Received August 29.]

SIR: With reference to my telegram No. 107 of June 13, 10 [7] a. m.," reporting that this Government had furnished General Matthews with pay for the Guardia Nacional for the month of June and maintenance for the month of July, I have the honor to report that General Matthews now informs me that the Government has subsequently furnished him with $90,485.13 for the following purposes:

Pay for the Guardia Nacional for July, 1931 . . .
Maintenance for Guardia Nacional for August,

1931

Maintenance for Military Academy for August,

1931 ..

Maintenance of prisons and penitentiaries for
August, 1931

Total

$50, 168. 30

33, 733. 50

3,250.00

3,333.33

$90, 485. 13

In this connection, General Matthews has also informed me that the deposit slips furnished by the Banco Nacional of Nicaragua show that the following amounts have been allotted for the Guardia from the $1,000,000 loan of February 5, 1931:

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The arrangement set forth in the "Statement of Policy in Nicaragua" dated February 5, 1931, contemplated that $17,000 per month would be necessary for the increase in the Guardia and the Military Academy, and that this amount would be made available beginning with the month of February, 1931. Funds necessary for the initial equipment of the increase in the Guardia made under that arrangement amounting to approximately $20,000 were to be "taken out of the first monthly payments", the supposition being that there would be a short delay in putting the plan into operation. It might be considered, therefore, that from February to July inclusive there have been available six monthly payments of $17,000 totaling $102,000. It would therefore appear from the above item totaling $83,783.05 that there is

“Not printed.

Nicaraguan citizens for appointment as junior officers in the Guardia Nacional de Nicaragua. This procedure not only would be designed to obviate the resentment which follows direct participation in the administration of police functions by American officers, but would constitute an important and necessary step in the nationalization of the Guardia in anticipation of the eventual withdrawal from Nicaragua of the present armed assistance of this Government.

I am [etc.]

For the Secretary of State:
FRANCIS WHITE

817.1051/346: Telegram

The Chargé in Nicaragua (Beaulac) to the Secretary of State

MANAGUA, January 7, 1930-4 p. Π [Received 7:11 p. m.]

3. Department's instruction number 614, of December 27, 1929, second paragraph. Do I understand correctly that the Department does not consider banditry a military offense?

BEAULAC

817.1051/346: Telegram

The Acting Secretary of State to the Chargé in Nicaragua (Beaulac

WASHINGTON, January 10, 1930—noon.

2. Legation's 3, January 7, 4 p. m. The Department understands that a military offense coming within the purview of a court martial is an offense committed by a member of the military forces (in this case the Guardia) in violation of military laws or regulations.

COTTON

817.1051/351: Telegram

The Chargé in Nicaragua (Beaulac) to the Secretary of State

MANAGUA, January 15, 1930-3 p. m. [Received 5:05 p. m.]

8. Department's instruction No. 614 December 27, 1929 and Depart ment's telegram 2 January 10, noon. I have discussed the above communication with the Commanding General Second Brigade and with the Jefe Director of the Guardia Nacional. They are both of the opinion that cases involving organized armed resistance in areas where the Nicaraguan Government has declared martial law should be tried by extraordinary courts martial composed of Nicaraguan officers sitting under authority of the articles for the government of the Guardis Nacional de Nicaragua. The specific cases in mind are members of

organized bandit groups captured in the field. Ordinary police cases would continue to be tried by city.

It should be borne in mind that in the departments where martial law exists the city is not functioning except in cases of minor offenses. Cases of armed resistance such as those referred to above have in the past been handled by the Nicaraguan Government under military law through military courts. It is understood that Escamilla and his volunteers last year tried bandits freely and executed some of them. The Commanding General of the Marine Brigade considers "that the opinion of the Secretary of State as expressed in his instruction. No. 614 of December 27, 1929, is correct as to territory where there is no martial law decreed, but that in areas where there is armed revolt against the established authority of the Nicaraguan Government and where martial law has been duly decreed by the Nicaraguan Government on account of such conditions, the law of war unquestionably sanctions the employment of military commissions and provost courts for the trial of such offenders."

The Commanding General considers that the outlaws operating in the northern area and generally referred to as bandits are in "armed revolt against the established authority of the Nicaraguan Government."

There is no doubt in my mind that from the military point of view it is essential that proper machinery be established for the punishment of members of organized bandits engaged in armed resistance against the Government. Their trial by civil courts in areas where martial law exists appears to be quite impracticable. Their trial by military courts outside the Guardia presents serious difficulties and is considered generally undesirable.

I have not yet discussed this matter with President Moncada.

BEAULAC

817.1051/350: Telegram

The Chargé in Nicaragua (Beaulac) to the Secretary of State

MANAGUA, January 15, 1930-4 p. m. [Received 5: 10 p. m.]

9. Legation's despatch No. 1214 October 31, 1929.48 A Guardia court of arbitration [court martial?] consisting of three American officers and four Nicaraguan officers will try Sergeant Larios for mutiny, sedition, murder, and menaces and threats toward his subordinates. Date for trial not finally set but it will probably begin within a week. BEAULAC

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817.1051/351: Telegram

The Acting Secretary of State to the Chargé in Nicaragua (Beaula)

WASHINGTON, January 16, 1930–6 p.

4. Your 8, January 15, 3 p. m. The Department's objection is based on considerations of policy. So long as the Guardia is directed by United States marine officers such officers will necessarily share the responsibility for the actions of any courts established under that insti tution. The Department is willing to have American officers assume responsibility for training the Guardia and temporarily, because of special conditions, to have them take part in operations for the mainte nance of order. It is not willing to have them exercise judicial furetions with respect to Nicaraguan civilians.

So far as the Department is informed there is no legal reason why bandits cannot be dealt with by the civil courts in areas where martia law exists. If this is true the Department feels that the Nicaraguar Government should assume responsibility for seeing that proper courts are established. The Department assumes that the Supreme Court would be willing to assist the executive in this so far as appointments are concerned, and that the Nicaraguan Congress, which is now in session, could pass new legislation if any were needed. Is there any insuperable obstacle to action by the Nicaraguan Government which would result in the establishment of civil courts which had sufficient authority and sufficient courage to deal with this situation? The Department feels that the executive, legislative, and judicial powers in Nicaragua must do their part toward the reestablishment of order if the United States Government is to continue the assistance which it has been rendering.

Please report fully on this matter by air mail after discussing i with the military authorities and the Nicaraguan Government.

COTTON

817.1051/350: Telegram

The Acting Secretary of State to the Chargé in Nicaragua (Beaulac WASHINGTON, January 17, 1930-5 p.

5. Your 9, January 15, 4 p. m. As the case of Sergeant Larios is one of discipline of a member of the Guardia the Department will not insist that American officers should not sit on the court.

For your information. This whole matter has been gone over thoroughly with the Major General Commandant of the Marine Corps who is in hearty accord with the Department's position as set forth i instruction 614, December 27, 1929, and telegram No. 4, January 16 6 p. m. He is so advising the Brigade Commander in Nicaragua. He

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