12 MARCH 1927, Page 2

The State Department at Washington is evidently still hesitating about

its action in Nicaragua. Seilor Diaz, the Conservative President, is nevertheless showing a renewed activity which suggests that he is confident of further backing from the United States. As the Washing- ton correspondent of the Times points out, if Senor Diaz were left to his own resources he would quickly be thrown from power by Dr. Sacasa and his Liberal following, who are Much stronger than Washington had estimated. Before long the State Department will have to decide whether to go on or to draw back. It could easily bring it about, if it wished to do so, that no Cent American Government could survive without the saner of the United States.

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