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During the conversations which I have had with officials of the Government of the United States, careful consideration was given to the routing of the Inter-American Highway between Sebaco in Nicaragua and the Honduran frontier. It was generally agreed that in deciding this question there should be taken into account both the international character of the proposed road and the needs of Nicaragua's economy, with neither of these two factors being given exclusive weight. On this basis, it is the proposal of my Government that the Inter-American Highway between the points mentioned be constructed so as to pass through the towns of Matagalpa, Jinotega and Condega, with the definitive routing between those points subject to final survey.

I take pleasure in availing myself of this opportunity to present to you the assurances of my highest consideration.

The Honorable

SUMNER WELLES,

MARIANO ARGÜELLO

Acting Secretary of State of the United States

The Acting Secretary of State to the Nicaraguan Minister of Foreign

Affairs

DEPARTMENT OF STATE

WASHINGTON
April 8, 1942

55 Stat. 860.

EXCELLENCY:

I have the honor to acknowledge receipt of Your Excellency's kind note of April 8, 1942 in which you requested the cooperation of the United States Government in the construction of the Inter-American Highway in Nicaragua.

I take pleasure in informing Your Excellency that the assurances which you offer meet the requirements of Public Law 375 of the Congress of the United States of December 26, 1941. It is consequently the intention of this Government, as soon as the subsidiary agreement which you mention has been concluded between the United States Public Roads Administration and the appropriate Nicaraguan officials, to extend to the Nicaraguan Government the cooperation envisaged in the above-mentioned Law, subject to the appropriation of the necessary funds by the Congress of the United States and to the receipt of the necessary assurances from the other Republics mentioned in the Law.

My Government has given careful consideration to the route proposed by Your Excellency's Government for the highway between Sebaco and the Honduran frontier and is in agreement therewith. Preliminary surveys have shown that a practicable route exists via Matagalpa, Jinotega, and Condega although in the case of Jinotega, it is indicated that the highway itself will pass somewhat to the north and east of the town, and a short approach road will be required.

My Government is gratified that through this cooperative undertaking it will be possible to complete the Inter-American Highway through Nicaragua. Transportation facilities will be improved, new lands and new natural resources developed, additional markets opened, and local economic conditions benefitted through the useful expenditure of money which this project envisages. Both of our countries should happily profit therefrom. I sincerely trust that the highway will serve not only as a link to increase material intercourse between our nations but also as another bond in the close friendship which unites us.

Accept, Excellency, the renewed assurances of my highest consid eration.

SUMNER WELLES
Acting Secretary of State of the

United States of America

His Excellency

Dr. MARIANO ARGUELLO,

Minister of Foreign Affairs of Nicaragua.

September 9 and October 26, 1942 [E. A. S. 296]

Agreement between the United States of America and Honduras respecting the Inter-American Highway. Effected by exchange of notes signed at Washington September 9 and October 26, 1942.

The Honduran Minister to the Secretary of State

LEGACIÓN DE HONDURAS

WASHINGTON, D. C.

SEÑOR SECRETARIO DE ESTADO:

SEPTIEMBRE 9, 1942.

Por la presente tengo el honor de ratificar los términos de mis conversaciones anteriores con referencia a la participación de mi Gobierno en la construcción de la Carretera Interamericana. En tal virtud, séame permitido referirme a la Ley Número 375 de 26 de Diciembre de 1941, que provee la cooperación de los Estados Unidos de América con los Gobiernos de las Repúblicas de Centro América, para la construcción de la mencionada Carretera Interamericana, y de que solicite, en cumplimiento de instrucciones y especial autorización de mi Gobierno, que las disposiciones de cooperación de la mencionada Ley se hagan extensivas a la República de Honduras. Para presentar las garantías que dicha Ley requiere, y a fin de recibir la cooperación provista en dicha Ley, mi Gobierno ha hecho arreglos para asumir una tercera parte a lo menos de los gastos en que incurran él mismo y el Gobierno de los Estados Unidos en el trazo y construcción de la Carretera, dentro de las fronteras de Honduras.

Con ese objeto, mi Gobierno ha negociado, de acuerdo con el Decreto número 52 del Congreso Nacional de Honduras, de fecha 11 de Febrero de 1942, ratificado por el Poder Ejecutivo el 18 de Febrero del mismo año, y de conformidad con las facultades y disposiciones del Decreto Legislativo Número 69 de 5 de Marzo de 1942, publicado en la Gaceta número 11652 de 10 de Marzo de 1942, y lo someterá, tan luego como sea posible a la ratificación del Congreso Nacional, un Contrato con el Export-Import Bank de Washington para un Crédito de Un Millón de Dólares que, según los términos de dicho Contrato, no se invertirá sin el consentimiento del Banco, y para ningún otro propósito que no sea el de la construcción de la Carretera Interamericana; habiendo tomado nota de la disposición de que, según los términos de la Ley Número 375, el trazo y trabajo de construcción que dicha Ley autoriza, estarán bajo la administración de la Public Roads Administration, Federal Works Agency, y que se están haciendo los arreglos subsidiarios con la Public Works Administration para la realización del contrato de referencia.

Al dejar bajo la elevada consideración de Vuestra Excelencia lo anteriormente expuesto, aprovecho la oportunidad para renovar el testimonio de mi más alta y distinguida consideración.

Excelentísimo Señor CORDELL HULL,

Secretario de Estado de los Estados Unidos,

Washington, D.C.

JULIAN R. CÁCERES

Oct. 26, 1942

LEGATION OF HONDURAS

[Translation]

WASHINGTON, D.O.

MR. SECRETARY OF STATE:

SEPTEMBER 9, 1942.

I have the honor hereby to confirm the terms of my previous conversations with reference to my Government's share in the construction of the Inter-American Highway. Accordingly, may I be permitted to refer to Law No. 375 of December 26, 1941,['] which provides for the cooperation of the United States of America with the Governments of the Republics of Central America for the construction of the abovementioned Inter-American Highway, and to request, in execution of instructions and special authorization from my Government, that the cooperative provisions of the said law be extended to include the Republic of Honduras. To present the guaranties which the said law requires and in order to receive the cooperation provided for in the said law, my Government has made arrangements to assume at least one third of the expenses incurred by it and the United States Government in the tracing and construction of the Highway within the boundaries of Honduras.

To this end my Government, in accordance with Decree No. 52 of February 11, 1942 of the National Congress of Honduras, approved by the Executive Power February 18 of the same year, and in accordance with the powers and provisions of Legislative Decree No. 69 of March 5, 1942, published in the Gaceta no. 11652 of March 10, 1942, has negotiated, and will submit, as soon as possible, for approval by the National Congress, a contract with the Export-Import Bank of Washington for a credit of one million dollars, which, according to the terms of the said contract, shall not be invested without the consent of the bank or for any purpose other than the construction of the Inter-American Highway-note having been taken of the provision that, under the terms of Law No. 375, the tracing and work of construction which the law authorizes shall be under the direction of the Public Roads Administration, Federal Works Agency, and that subsidiary arrangements are being made with the Public Works Administration for the carrying out of the contract in question.

While submitting what is above set forth to Your Excellency's high consideration, I avail myself of the opportunity to renew the assurances of my highest and most distinguished consideration.

JULIAN R. CÁCERES

His Excellency

CORDELL HULL,

Secretary of State of the United States,
Washington, D.C.

1 [55 Stat. 860.]

65714°-43—PT. II- -48

SIR:

The Secretary of State to the Honduran Minister

DEPARTMENT OF STATE

WASHINGTON
October 26, 1942

55 Stat. 860.

I have the honor to acknowledge receipt of your kind note of September 9, 1942, in which you, under the instructions and with the authorization of your Government, requested the cooperation of the Government of the United States in the construction of the InterAmerican Highway in Honduras, and offered the assurances required by Public Law 375 of December 26, 1941 in connection with such cooperation.

I take pleasure in informing you that the assurances which you offered are satisfactory to this Government. It is consequently the intention of this Government to extend to the Honduran Government the cooperation envisaged by the law, subject to the ratification by the Honduran Congress of the contract mentioned in your note. I understand that the Honduran Congress is to convene December 5, and that the loan contract will be presented to it for ratification immediately thereafter.

As your note indicates, the survey and construction work authorized by the law shall be under the administration of the Public Roads Administration, Federal Works Agency. It is understood that the competent Honduran authorities will make a subsidiary agreement with the Administration to carry out this provision of the law.

I am much gratified at the prospect that through this cooperative undertaking it will be possible to complete the Inter-American Highway through Honduras. Transportation facilities will be improved, new lands and new natural resources developed, additional markets opened, and local economic conditions benefitted through the useful expenditure of money which this project envisages. Both of our countries should happily profit therefrom. I sincerely trust that the Highway will serve not only as a link to increase material intercourse between our nations but also as another bond in the close friendship which unites us.

Accept, Sir, the renewed assurances of my highest consideration.
For the Secretary of State:
SUMNER WELLES

The Honorable

Señor Dr. Don JULIAN R. CACERES,

Minister of Honduras.

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