San Albino Gold Mines.

June 21, 1927.
 
General Sandino, a young man of about 30, appeared at my office at San Albino about a year ago, seeking a position in a clerical capacity, stating that he had just come down from Guatemala where he had been employed in the office of a mining company. I gave him employment as a file clerk in the store at $25 per month. He was neither brilliant nor apt at the work. He spoke considerable English.
 
During an interval of probably three months, he busied himself by recruiting miners and other employees of the company into a skeleton force of revolutionaries. All this was unbeknown to me, till one fine morning he disappeared with a small group of my men and took to the woods, where he was rapidly joined by others of the Liberal party, and in some manner he was shortly afterwards supplied with sufficient arms to enable him to attack the government troops at Jicaro, where both sides claimed the victory.

Shortly thereafter the government troops were gradually withdrawn from [the] Jicaro district, since which time they have never returned and he became known as the Sacasa representative in Segovia. Some months later, he claimed to have made a trip to Puerto Cabezas and brought up supplies of arms and ammunition, via the Coco River, which were freely distributed through the district, after which the whole district was completely under his dominion and later under Moncada's orders he marched to Jinotega. He remained in the active service of Moncada for some months.
 
Not being willing to lay down his arms, he returned to the district, well supplied with money, the best of arms and ammunition, well dressed and well mounted, and declared himself enemy of the Americans and of Moncada as well.
 
On arrival at San Albino, about the end of May, he appeared with a troop of about 50 men, stating that he had come for powder and to kill Americans. He demanded from me, upon pain of death, the delivery to him of 500 lbs. of dynamite, 1500 caps and 200 feet of fuse, with the repeatedly expressed object of killing Americans. I was obliged to furnish these articles. He thoroughly frightened our entire white staff.

This statement of killing the Americans was in line with all his private statements, which I later ascertained he had made continually while in my employ. That all the Americans should be killed or driven out of the country. This statement seemed to have emanated from Mexico, where he claims he was an officer in revolutionary force for 11 years, and constantly preached the doctrine of Boshevikism always carrying with him the black and red flag with skull and cross bones which he declares to be the emblem of bolshevekism.
 
He is a socialist and a fanatic. He [is] constantly preaching the brotherhood of man and claiming that there are no officers in his army, but all comrades, and continually repeating and emphasizing the friendship that they should have for Mexico, because of the contribution of arms and ammunitions which he claims was a free gift of that country to enable them to fight off the Americans influence always patting their rifles as he handed it to the man who volunteered, as a gift from Mexico to the Nicaraguan soldiers to enable him to gain his freedom from imperialistic Americans. "Mexico our friend, America our enemy, always."

When calmly talked to, he would state that he didn't intend to kill unoffending Americans but only American soldiers, but this is a distinction which his men cannot be expected to draw. He has with him Mexican officers. One of his bugler was rather well educated. He states I came from Mexico to prepare this district to take part in the revolution. As soon as my mission is over, I shall return. Of course he had full knowledge of the impending revolution aided by Mexico and has taken an active part.
 
/s/ Charles Butters.

NA127/198/GN-2 File 1928