In 1909, a conservative revolt broke out in Nicaragua against the liberal dictator-president Jose Santos Zelaya (1853-1919), whose bellicose actions and interference in other Central American nations were oposed by the United States; two US citizens aiding the rebels were captured and executed, causing an angry protest by US secretary of state Philander C. Knox (1853-1921). When Zelaya was forced to resign on December 16, 1909, Nicaragua was in a state of near anarchy, and a power struggle between conservative and liberal factions ensued. In May 1911, the conservative Adolfo Diaz (1874-1964) became provisional president and promptly requested US aid. A treaty was reached between the United States and Nicaragua, whereby New York banks made loans to furnish working capital for Nicaragua, and an American customs collectorship was instituted to retire domestic and foreign debts. When the US Senate rejected the treaty, President William Howard Taft (1857-1930) enacted the plan by executive agreement, but the loans were restricted.
Dictionary of Wars, 328.
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