Treaty Proposed

Some 6,000 U. S. marines held all the important Nicaraguan cities except Matagalpa and Granada last week.

The British Government sent the cruiser Colombo to anchor off Corinto, but gave notice that it would not transgress the Monroe Doctrine by landing troops.

President Juan Sacasa of Nicaragua (recognized by Mexico) was hard pressed in the Interior by troops of President Diaz of Nicaragua (recognized by the U. S.). Sacasa forces had been pressing hard early in the week, upon Diaz troops defending the cities Chinandega, Leon and loma. When these cities were occupied by U. S. marines, their onetime defenders were able to rally and rout the attacking troops. The instant was ripe for President Diaz, synchronous with U. S. financial interests, to propose the further subordination of his country to the U. S.

At Managua, the Capital of Nicaragua, President Diaz presented to Parliament for approval a proposed treaty with the U. S. While marines stood on guard about the Parliament House the treaty text was commended by a vote of confidence and cabled to Washington. It provides: 1) that the U. S. undertake to preserve peace in Nicaragua and the continuity of the Nicaraguan Government; 2) that accordingly the right of intervention in Nicaragua be extended to the U. S. by mutual consent; 3) that a U. S. financial adviser and receiver-general of revenues assume the task of rehabilitating the finances of Nicaragua with dictatorial powers; 4) that a loan of $20,000,000 from exclusively U. S. sources is declared indispensable for rehabilitating Nicaragua; 5) that all military paraphernalia now possessed by Nicaraguans be handed over to a new constabulary, trained by and under the command of U. S. officers for ten years; 6) that all the foregoing considerations show that the arrangement Nicaragua desires, so far from forming part of an imperialistic scheme of U. S. aggrandizement in Central America, is nothing less than a highly humanitarian project sought by Nicaragua and not by the U. S.

Nicaraguans should thereby have the certainty that their country will not be exploited in a predatory manner by foreign capital.

Scattered Nicaraguans of no identifiable faction became so incensed that they fired in the general direction of a trainload of U. S. marines moving from Chinandega to Leon. No hair of a U. S. head was injured but U. S. news organs favorable to the Coolidge-Kellogg policy began to whoop up war: "American marines run the gauntlet of a leaden hail. . . . Bullets plowed through the wooden coaches of the train. . . . The marines' commander organized a punitive expedition and instructed his men to chase, shoot or capture the attackers."