While conditions in Nicaragua and the action of this government pertaining thereto have in general been made public, I think the time has arrived for me officially to inform the Congress more in detail of the events leading up to the present disturbances and conditions which seriously threaten American lives and property, endanger the stability of all Central America, and put in jeopardy the rights granted by Nicaragua to the United States for the construction of a canal.

It is well known that in 1912 the United States intervened in Nicaragua with a large force and put down a revolution, and that from that time to 1925 a legation guard of American Marines was, with the consent of the Nicaragua government, kept in Managua to protect American lives and property. In 1923 representatives of the five Central American countries, namely, Costa Rica, Guatemala, Honduras, Nicaragua, and Salvador, at the invitation of the United States, met in Washington and entered into a series of treaties.

These treaties dealt with limitation of armament, a Central American tribunal for arbitration, and the general subject of peace and amity. The treaty last referred to specifically provides in Article II that the governments of the contracting parties will not recognize any other government which may come into power in any of the five republics through a coup d’etat, or revolution, and disqualifies the leaders of such coup d’etat, or revolution, from assuming the presidency or vice-presidency. . . .

The United States was not a party to this treaty, but it was made in Washington under the auspices of the secretary of state, and this government has felt a moral obligation to apply its principles in order to encourage the Central American states in their efforts to prevent revolution and disorder. The treaty, it may be noted in passing, was signed on behalf of Nicaragua by Emiliano Chamorro himself, who afterwards assumed the presidency in violation thereof and thereby contributed to the creation of the present difficulty.

In October 1924 an election was held in Nicaragua for president, vice-president, and members of the Congress. This resulted in the election of a coalition ticket embracing Conservatives and Liberals. Carlos Solorzano, a Conservative Republican, was elected president, and Juan B. Sacasa, a Liberal, was elected vice-president. This government was recognized by the other Central American countries and by the United States. It had been the intention of the United States to withdraw the Marines immediately after this election, and notice was given of the intention to withdraw them in January 1925. At the request of the president of Nicaragua, this time was extended to Sept. 1, 1925. Pursuant to this determination and notice, the Marines were withdrawn in August 1925…

Notwithstanding the refusal of this government and of the other Central American governments to recognize him, General Chamorro continued to exercise the functions of president until Oct. 30, 1926. In the meantime a revolution broke out in May on the east coast in the neighborhood of Bluefields and was speedily suppressed by the troops of General Chamorro. However, it again broke out with considerable more violence. The second attempt was attended with some success, and practically all of the east coast of Nicaragua fell into the hands of the revolutionists. Throughout these events, Sacasa was at no time in the country, having remained in Mexico and Guatemala during this period.

Repeated requests were made of the United States for protection, especially on the east coast, and on Aug. 24, 1926, the secretary of state addressed to the secretary of the navy the following communication:

I have the honor to suggest that war vessels of the Special Service Squadron proceed as soon as possible to the Nicaraguan ports of Corinto and Bluefields for the protection of American and foreign lives and property in case that threatened emergencies materialize. The American chargé d’affaires at Managua has informed the department that he considers the presence of war vessels at these ports desirable, and the American consul at Bluefields has reported that a warship is urgently needed to protect life and property at that port. An attack on The Bluff and Bluefields is expected momentarily.

Accordingly, the Navy Department ordered Admiral Latimer, in command of the Special Service Squadron, to proceed to Bluefields. Upon arriving there he found it necessary for the adequate protection of American lives and property to declare Bluefields a neutral zone. This was done with the consent of both factions, afterwards, on Oct. 26, 1926, reduced to a written agreement, which is still in force. In October 1926 the good offices of the United States were sought by both parties for the purpose of effecting a settlement of the conflict. Admiral Latimer, commanding the Special Service Squadron, brought about an armistice to permit of a conference being held between the delegates of the two factions. The armistice was originally for fifteen days and was later extended for fifteen days more.

At the request of both parties; Marines were landed at Corinto to establish a neutral zone in which the conference could be held. Doctor Sacasa was invited to attend this conference but refrained from doing so and remained in Guatemala City. The United States government did not participate in the conference except to provide a neutral chairman; it simply offered its good offices to make the conference possible and arranged a neutral zone at Corinto at the request of both parties during the time the conference was held. I understand that at this conference General Chamorro offered to resign and permit the Congress to elect a new designate to assume the presidency. The conference led to no result, since, just at the time when it seemed as though some compromise agreement would be reached, the representatives of Doctor Sacasa suddenly broke off negotiations. . . .

The Nicaraguan constitution provides in Article 106 that in the absence of the president and vice-president the Congress shall designate one of its members to complete the unexpired term of president. As President Solorzano had resigned and was then residing in California, and as the vice-president, Doctor Sacasa, was in Guatemala, having been out of the country since November 1925, the action of Congress in designating Señor Díaz was perfectly legal and in accordance with the constitution. Therefore, the United States government on Nov. 17 extended recognition to Señor Díaz. . . .

Immediately following the inauguration of President Díaz, and frequently since that date, he has appealed to the United States for support, has informed this government of the aid which Mexico is giving to the revolutionists, and has stated that he is unable solely because of the aid given by Mexico to the revolutionists to protect the lives and property of American citizens and other foreigners.

When negotiations leading up to the Corinto conference began, I immediately placed an embargo on the shipment of arms and ammunition to Nicaragua. The Department of State notified the other Central American states, to wit, Costa Rica, Honduras, Salvador, and Guatemala, and they assured the department that they would cooperate in this measure. So far as known, they have done so. The State Department also notified the Mexican government of this embargo and informally suggested to that government like action. The Mexican government did not adopt the suggestion to put on an embargo but informed the American ambassador at Mexico City that in the absence of manufacturing plants in Mexico for the making of arms and ammunition the matter had little practical importance.

As a matter of fact, I have the most conclusive evidence that arms and munitions in large quantities have been, on several occasions since August 1926, shipped to the revolutionists in Nicaragua. Boats carrying these munitions have been fitted out in Mexican ports, and some of the munitions bear evidence of having belonged to the Mexican government. It also appears that the ships were fitted out with the full knowledge of and, in some cases, with the encouragement of Mexican officials and were in one instance, at least, commanded by a Mexican naval reserve officer.

At the end of November, after spending some time in Mexico City, Doctor Sacasa went back to Nicaragua, landing at Puerto Cabezas, near Bragmans Bluff. He immediately placed himself at the head of the insurrection and declared himself president of Nicaragua. He has never been recognized by any of the Central American republics nor by any other government, with the exception of Mexico, which recognized him immediately. As arms and munitions in large quantities were reaching the revolutionists, I deemed it unfair to prevent the recognized government from purchasing arms abroad, and, accordingly, the secretary of state notified the Díaz government that licenses would be issued for the export of arms and munitions purchased in this country. It would be thoroughly inconsistent for this country not to support the government recognized by it while the revolutionists were receiving arms and munitions from abroad.

During the last two months the government of the United States has received repeated requests from various American citizens, both directly and through our consuls and legation, for the protection of their lives and property. The government of the United States has also received requests from the British chargé at Managua and from the Italian ambassador at Washington for the protection of their respective nationals. Pursuant to such requests, Admiral Latimer, in charge of the Special Service Squadron, has not only maintained the neutral zone at Bluefields under the agreement of both parties but has landed forces at Puerto Cabezas and Rio Grande and established neutral zones at these points where considerable numbers of Americans live and are engaged in carrying on various industries. He has also been authorized to establish such other neutral zones as are necessary for the purposes above mentioned.

For many years numerous Americans have been living in Nicaragua, developing its industries and carrying on business. At the present time there are large investments in lumbering, mining, coffee growing, banana culture, shipping, and also in general mercantile and other collateral business. All these people and these industries have been encouraged by the Nicaraguan government. That government has at all times owed them protection, but the United States has occasionally been obliged to send naval forces for their proper protection. In the present crisis such forces are requested by the Nicaraguan government, which protests to the United States its inability to protect these interests and states that any measures which the United States deems appropriate for their protection will be satisfactory to the Nicaraguan government.

In addition to these industries now in existence, the government of Nicaragua, by a treaty entered into on the 5th of August 1914, granted in perpetuity to the United States the exclusive proprietary rights necessary and convenient for the construction, operation, and maintenance of an oceanic canal. . . .

There is no question that if the revolution continues, American investments and business interests in Nicaragua will be very seriously affected, if not destroyed. The currency, which is now at par, will be inflated. American as well as foreign bondholders will undoubtedly look to the United States for the protection of their interests. It is true that the United States did not establish the financial plan by any treaty, but it nevertheless did aid through diplomatic channels and advise in the negotiation and establishment of this plan for the financial rehabilitation of Nicaragua.

Manifestly, the relation of this government to the Nicaraguan situation and its policy in the existing emergency are determined by the facts which I have described. The proprietary rights of the United States in the Nicaraguan canal route, with the necessary implications growing out of it affecting the Panama Canal, together with the obligations flowing from the investments of all classes of our citizens in Nicaragua, place us in a position of peculiar responsibility. I am sure it is not the desire of the United States to intervene in the internal affairs of Nicaragua or of any other Central American republic. Nevertheless, it must be said that we have a very definite and special interest in the maintenance of order and good government in Nicaragua at the present time, and that the stability, prosperity, and independence of all Central American countries can never be a matter of indifference to us.

The United States cannot, therefore, fail to view with deep concern any serious threat to stability and constitutional government in Nicaragua tending toward anarchy and jeopardizing American interests, especially if such state of affairs is contributed to or brought about by outside influences or by any foreign power. It has always been and remains the policy of the United States in such circumstances to take the steps that may be necessary for the preservation and protection of the lives, the property, and the interests of its citizens and of this government itself. In this respect I propose to follow the path of my predecessors.

Consequently, I have deemed it my duty to use the powers committed to me to ensure the adequate protection of all American interests in Nicaragua, whether they be endangered by internal strife or by outside interference in the affairs of that republic.