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United States occupation of Nicaragua

1912–1933 occupation as part of the Banana Wars

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Sandino's Flag. Nicaragua, 1932. (Marine Corps) EXACT DATE SHOT UNKNOWN NARA FILE #: 127-N-516038 WAR & CONFLICT BOOK #: 376
Unknown author Unknown author · Public domain

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Through United Kingdom, Cuba and Headquarters

Nicaragua assumed a quasi-protectorate status under the 1916 Bryan–Chamorro Treaty. President Herbert Hoover (1929–1933) opposed the relationship. On January 2, 1933, Hoover ended the American intervention.

Tension between the United States and Nicaragua

Already during the mandate of Theodore Roosevelt, the United States government had decided to remove the Nicaraguan president José Santos Zelaya, of the Liberal Constitutional Party. Zelaya, a corrupt though reformist dictator, had held power since the 1890s, a period during which the United Kingdom ceded the Mosquito Coast, which until then had been under its protection. In 1894, and with U.S. assistance, Zelaya managed to reincorporate the eastern coast and eliminate British influence. When Roosevelt assumed the U.S. presidency, relations with Nicaragua were good. The country viewed Americans as liberators from British influence, and U.S. investors flocked there. At the time, the government offered them advantages in the hope that they would help develop the national economy. In 1894, according to estimates by the U.S. ambassador to Nicaragua and Costa Rica, between 90% and 95% of foreign investment in Nicaragua came from the United States. Zelaya hoped that the U.S. would build the interoceanic canal in Nicaragua, but the U.S. decision to build it in Panama, among other factors, soured bilateral relations. The disillusioned Zelaya became a fierce nationalist, determined to end U.S. influence in the region. The measures he adopted, such as imposing higher taxes on U.S. companies and even resorting to piracy, led Washington to consider acting against him. To this end, both Roosevelt and his successor Taft employed various methods and instruments: mainly the Navy, but also their influence in neighboring countries such as Costa Rica, which they encouraged to overthrow the Nicaraguan president.

In the rivalry between Nicaraguan liberals and conservatives, the U.S. government clearly sided with the latter, despite estimating that they had five times less support than their rivals. Secretary of State Philander Knox wished to have the power to intervene at will in the region, as the U.S. could already do in Cuba since the Spanish–American War thanks to the Platt Amendment. From the moment he took office, Knox set out to overthrow Zelaya, using the leverage provided by U.S. private investments. Among other actions that worsened relations between Washington and Managua was U.S. intervention in the United Kingdom to sabotage a loan that the Nicaraguan government was trying to obtain there in 1908. The increase in tension throughout 1909 led the U.S. government to begin studying plans to intervene in Nicaragua. Naval officers, who since Roosevelt’s time had acted autonomously by stirring discontent against Zelaya and plotting his overthrow, played a crucial role in the process. The center of opposition to the president lay in the region that bore his name, populated mainly by Miskito Indians, poorly connected with the rest of the country and dissatisfied with the loss of the autonomy they had enjoyed under the British. The establishment of certain monopolies by the president without regard for the region’s interests increased his unpopularity there. In 1899, the region had been the cradle of the uprising led by Juan Pablo Reyes, supported by U.S. residents but suppressed on 27 February. It was one of several uprisings that Zelaya crushed with ease. Thereafter, relations with the United States—whom Zelaya believed to be behind the failed rebellion—continued to deteriorate, and Zelaya increased discriminatory commercial measures against the disaffected region. At the beginning of 1909, and in response to Zelaya’s attempts to unify the region in his favor—he tried to overthrow the Salvadoran government—Mexican and U.S. warships patrolled the Central American Pacific coast to prevent possible expeditions by Zelaya.

The main cause of friction between Zelaya and U.S. investors was his granting to the Bluefields Steamship Company—of which the United Fruit Company, though only a minor player in Nicaraguan banana trade despite its regional influence, held 51% of the shares—the monopoly on banana transport along the Escondido River, where the plantations were concentrated. This monopoly had ruined plantation owners, rivals of United Fruit, and turned them against Zelaya, who in turn charged ten thousand dollars for the transport concession in addition to the fifteen thousand the company paid to the state. When the plantation owners—four hundred of whom formed an association to negotiate with the Bluefields Steamship Company—launched violent protests, Zelaya declared a state of siege in the banana region. The Bluefields Steamship Company refused to negotiate with the plantation owners, who boycotted it, and both sides requested intervention by the U.S. government. The latter dispatched the USS Tacoma (CL-20) to the area. The dispute between plantation owners and the Bluefields Steamship Company later had repercussions in the uprising against Zelaya: while the former largely sided against the president, the latter supported him.

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