17is thought that company, or any other American company accoptable to the Department of the Navy, might be ontrusted with this work and the money advanced to such company to promote the interests or the United States since it will serve as a war measure necessary to destroy Gorman propaganda. a) The same pian might be extended to all Latin American countries as soon as convenient. 3)
Naval Base Rights: en This Department for reasons of policy, and the Navy Department for military reasons, showed an interest in acquiring the right to establish naval bases along the Pacific Coast of Central America. The Navy Department supported its desires by letter dated December and lotter dated these referred to obtaining the rights to establish naval bases in Fonseca and Nicoya bays. Rights have been obtained from Nicaragua to establish a naval base on its territory within Fonseca Bay, but negotiations have not been undertaken with Honduras or Salvador, the two remaining countries facing on this bay. a) recommend that negotiations be initiated to secure from Honduras rights similar to those granted us by Nicaragua for the right to establish a naval base on its territory within Fonseca Bay. b) recommend that no official Jovertures by mado to Salvador, until we 800 what attitude sho assumes towards Honduras and us after negotiations with the former have been begun, or, until a change in the Presidency of Salvador takes place as a result of the regular election to be held at the end of this year. c) Opportunity will no doubt develop at a later date for negotiating with Costa Rica for the rights desired in Nicoya Bay by the Navy.
la) think it might be well to let Salvador and Costa Rica know, in an informal way, that we will be willing to negotiate similar treaties with them later and to present our intentions