State Department Policy in Regard to the Nicaraguan Election of 1924

Abstract

N ICARAGUA, largest of the Central American states, occupies a strategic position in the Caribbean area. Its proximity to the Panama Canal, the natural interoceanic highway providing a potential water route from the Atlantic to the Pacific Ocean, the resources alnd investment opportunities have all contributed to bring this republic under the strong influence of the United States. Following the overthrow of the dictator and Liberal party leader, Jose Santos Zelaya, in December, 1909, the Department of State of the United States intervened actively in Nicaragua's political and economic life. At that time, the United States, concerned over the maintenance of peace and order in the vicinity of the Panama Canal, stepped in to assist Nicaragua in establishing a stable, financially sound government. Under the loan contracts and financial plans negotiated, with the assistance of the Department of State, by Nicaragua and a syndicate of New York bankers, a collector-general, approved by the secretary of state, controlled Nicaragua's customs.' Colonel Clifford D. Ham, formerly of the Philippine customs service, held the position of collector-general of customs in Nicaragua from December, 1911, until his resignation in June, 1928. The secretary of state also appointed two of the