HEADQUARTERS, NORTHERN AREA,
OCOTAL, NICARAGUA.
8 APRIL, 1929.
 
INTELLIGENCE REPORT, R - 2.
FROM: 0000 23 March, 1929
TO: 2400 7 April, 1929. ...

[March 27]  ... From Capt. Stockes, Mar. 27: After my departure from Somoto received message from [Honduran Expeditionary Chief Juan B.] Mendoza that he would confer with me in Calpules. He moved North along the border and arrived here 2300 yesterday. Hakala column cleared Santa Emilia 0400 and arrived here via border trails at 1030. Stockes column cleared Yaraje at 0430 via Jocomico and arrived here 1100. Conference immediately with Gen. Mendoza who has 50 men and is camped here on the Honduran side. Col. Abie Vallodarez [Ballardes] had conference with Salgado [EDSN General Carlos Salgado] yesterday. He was representing Mendoza and offered Salgado a guarantee in Honduras if he would surrender with his force. Salgado has 50 armed men. He requested 8 days armistice in which to decide and expressed a desire to have a conference with my column. Vallodarez told him no armistice could be arranged until after he had talked with me. Salgado left following the border trail North toward Bado Grande. Neither Mendoza nor I believe Salgado is sincere. He is in a bad way and only trying to get us off the trail for the time being. We move after him, Mendoza stating he will continue to operate along the border on the Honduran side. Patrol dispatched from Yaraje yesterday captured commandant of Bandit Civicos of Las Cabullas. Have also taken into custody several other bandit supporters and turned over to Mendoza list of suspects who have fled to Honduras. ... [ p. 4 ]
 
[March 27] ... [From Lt. Hamas] 27 March, 1929. Las Manos. Arrived at 12:30 a.m., native agent reports Salgado at Pedregalito, Ortez at Las Limas, Area Commander notified. ... [p. 9 ]
 
[March 27]  ... From C.O., G.N., Dipilto, Mar. 27: Native reported that Salgado is in Pedregalito, Honduras, according to same report Ortez is at Las Limas, Honduras. Ortez was seen passing through Las Manos with cargo of coffee at midnight March 23. Lt. Hamas' patrol has searched El Naranjo and El Poste, La Laguna, Cabo Blanco in Las Manos area. Request further instructions at Las Manos. Hamas. ... [ p. 5 ]
 
[March 28] ... Lt. Hamas and 15 Guardias patrolled Suyatal, El Horno, Buenas Aires Area, captured Cypiano Salgado [Cipriano Salgado], armed with 38 revolver, Pedro Calix [Pedro Calis] was captured also, near Suyatal. Cypiano Salgado suspected of being a recruiter for the bandit force, he also states that bandits are at Las Champas and Las Limas. Miguel Angel Ortez bandit leader reported at Las Manos at the home of Alejandro Ballardes. Bansillio Sauceda, Guadalupe Umanzor, David Umanzor, great bandit supporters at Las Manos. Sabino Galindo, Ortez's agent lives in a home of Alejandro Ballardes, all this information furnished by two intelligence agents. Hamas patrol at Las Manos at 7:30 p.m., left for Suyatal arrived at Suyatal at 11:00 p.m. ... [ p. 10 ]
 
[March 28]  ... From Stockes-Flores Column, 100 yds. South of Pedregalito, Mar. 28: Arrived here 0700 today. Hakala column will arrive later today from Zapotal from Sapilde and Las Planos. Honduran patrol has not yet arrived. Expect them this afternoon. Salgado cleared here about 1400 yesterday heading toward Suyatal where Ortez is reported. Salgado is obtaining his food etc. from Honduras, inhabitants of Pedregalito and Suyatal, are well known supporters of Ortez and Salgado. ... [ p. 8 ]
 
[March 28] ... From Div. Cmndr., G.N., Ocotal, Mar. 28: Two natives reported that at 9:00 p.m. Mar. 23rd 20 bandits came to the house of Celso Paguaga and tied up the above mentioned man. Ortez was jefe, one man named Baquezana [Verbonico Vaquedano] was recognized in the group. Ortez told these men that at that time Salgado was attacking Dipilto and had by that time captured the place. Also said that they were not to tell anyone that he was jefe of this group, but to tell the Marines that they (the bandits) would be at Milote, they had the mules captured in the coffee raid a few days before, loaded these mules with 2,000 lbs. of coffee taking the other mule also from the owner to help carry the coffee, the telegraph line was cut between Dipilto and Honduras. It seems according to the dope that Ortez does not care for contacts right now but is interested in getting some money out of this coffee before it is all moved. ... [ p. 4 ]
 
[March 29]  ... At 6:00 a.m. Lt Hamas saw one bandit armed with rifle at the home of Paulino Lopez, about 500 yds. in Honduras at Las Champas and about 10 more men not armed but mounted. At 6:30 a.m. Lt. Hamas and 12 men left to patrol El Ayote, destroyed two main, and one small bandit camp on top of El Ayote, found and destroyed on cususera [moonshine still], also found a large supply of corn stored in small shack near bandit camp. ... [ p. 10 ]
 
[March 30] ... From Stockes-Flores Column, Mar. 30: Just after plane made pick up yesterday conflicting reports re route taken by Salgado were received. It is now certain Salgado split his force in two sections here. One section about 25 men heading toward Oropoli, Honduras, a town about 40 houses, 12 miles West of Pedregalito. The other section following the border trail East toward Suyatal. Commandant here claims Salgado paid for all supplies in Honduras, also that the Commandant to Alauca was notified promptly that Salgado with a large armed group was in Honduran territory near Pedregalito. Mendoza with patrol has not yet arrived. If he intends to cooperate he will probably show up today. Hakala-Castillo Column will clear here at 0830 today for vicinity of Mata de Platano following the border trail. Stockes-Flores will remain here in an attempt to get in touch with Mendoza. Conflicting information about Ortez some claiming he effected junction here with Salgado others that he had talked with Salgado then left in direction Northeast. If latter is true then he was at that time two and a half days ago undoubtedly camped in Honduras between Alauca and Suyatal. I believe he had conference here with Salgado but is now operating independently. All well. Stockes. ... [ p. 8 ]
 
[March 31]  ... From Capt. Stockes, 100 yds. South of Pedregalito, Mar. 31: Following received from Hakala 0730 today by native runner. Quote One and one half miles West of Boujie 1640 30th of March, 1929, to Capt. Stockes. At about 1200 today near Chinampa we captured suspect who states (a) He was a member of Salgado's band but had been left behind to spy on our movements, (b) That both Salgado and Ortez with approximately 80 are in vicinity of Brujil, (c) That Salgado wants to quit and go to Tegucigalpa accompanied by Maldonado arms to be turned over to either Ortez or Honduran authorities, (d) That both Salgado and Ortez left Pedregalito about 1500 Mar. 28 traveling East through Honduran territory, (e) That Salgado had ordered him (the prisoner) to tell Carcamo Salgado wanted to see him about laying down their arms (Adan Carcamo), jefe Bandit Civicos at Santa Maria. We will move immediately into Brujil our prisoner as guide in order to force a contact. Prisoner states he is willing to pay with his life if bandits are not in that vicinity. Hakala. Unquote. So far no contact here with Mendoza here or other Honduran troops. Unless such contact is gained by 1300 today we move East toward Suyatal and unless Hakala has had contact with enemy he will retrace his route to Pedregalito. Hakala and I will pace the border between here and Suyatal for the next few days. All well, Stockes. ... [ p. 5 ]
 
[April 1]  ... From Capt. Stockes Column, Brujil, Apr. 1: Native just reported that about 2000 yesterday large group of bandits were camped at Las Limones, Honduras. Las Limones is midway between Las Manos and Paraiso. Report believed true. Stockes. ... [ p. 6 ]
 
[April 1] ... From Stockes-Flores Column, Brujil, Apr. 1: Group Salgado and Ortez definitely located night of 30-31st in Honduras occupying positions between Las Limas and Suyatal. Las Limas is one league North of Masa de Plausas. Stockes-Flores cleared Pedregalito at 1230 yesterday and arrived Brujil 1940. Conferred with Skidmore on the trail just East of Pedregalito. In view location of enemy Skidmore moved from Santa Maria to Pedregalito yesterday afternoon covering that part of the border. Hakala-Castillo cleared Brujil at 0540 today for Pedregalito via border trail. Upon arrival of Hakala column Skidmore will move to Zapotal (on Rio Zapotal) moving via Bado Grande and border route. No repeat no cooperation by Honduran troops. Apparently Mendoza turned South from Calpules instead of operating with my column. It is definitely known that Salgado has been traveling Honduras since being chased out of Rio Negro district. Prisoner captured by Hakala has been with Salgado for the past 6 months. Salgado wants to quit Ortez is holding out and from what is picked up here and there Ortez claims he will never quit and to native here stated if necessary he will go to the Malacate Mountains in Jalapa district and establish a second Chipote. All well. Stockes. ... [ p. 6 ]
 
[April 1]  ... From Lt. Hakala's Column, Pedregalito, Apr. 1: Juan Pablo Maradiaga member of Salgado's band captured at Chinampa at 1200 30 Mar. Salgado has 55 men 2 horses 3 mules 1 Lewis M.G. with 18 drums. Jefes are Escalante, Jose Maria Cruz and Antonio Maldonado. Inez Hernandez deserted Salgado at Calpules camped at Las Limas on 29th Suyatal on 30th. Adan Carcamo is commandant for Salgado at Sabana Redonda in Honduras Northeast of Pedregalito. Salgado sent Maradiaga to get Carcamo to discuss advisability of laying down arms together with Ortez. But Carcamo did not show up the conference did not take place. Salgado is desirous of surrendering arms, Ortez did not express any opinion on this subject. Salgado and Ortez contemplate going Eastward toward Las Manos but had received notice of approximate location of Hamas and Hakala and went Westward and then South, all travel performed in Honduran territory. Salgado has no sick or wounded with him. His men get very little to eat. All purchases made in Honduras are paid for in money. Ortez has 25 men about 10 horses or mules, no automatic weapons. Now operating with Salgado. Second jefe is Vaquedano. Many of his men wear hob nail shoes. Hakala. ... [ p. 6 ]
 
[April 2]  ... From Stockes-Flores Column, Suyatal, Apr. 2: Arrived here at 0730 today from Brujil. Situation relative to enemy remains the same. The Air Service has daily combed the border. The work of the kind performed by Howard, Sanderson, Britt, etc., in cooperation with our patrols will keep the main enemy groups in Honduras. Until further reliable dope is received Stokes-Flores will base Suyatal sending sub-patrols daily to Brujil and Mata de Platano. Hakala-Castillo will remain Pedregalito sending sub-patrols to Sabana Grande and Chinampa. Former is three miles East of Pedregalito latter five miles, both on border trail. All well. Stockes. ... [ p. 7]
 
[April 3] ... From Lt. Hakala's Column, 500 yds. South of Pedregalito, 3 Apr: Received native report that Salgado traveled Westward in Honduras, passing the house of Juan Alberto Matuca (Honduran), over camino Juan Alberto, one kilometer Northwest of Chinampa at 1000 1 Apr. This appears to check with yesterdays information that Salgado was at El Portillo de Lapa (one half league of Chinampa) at 0800 the same date. Also a native report that a group of Honduran troops under command of one Gen. Flores were at Oropoli on 1 Apr. Hakala. ... [ p. 7]
 
[April 3]  ... Las Manos: Lt. Blanchard and 10 enlisted cleared for Suyatal at 8:00 a.m. to inform Capt. Stockes about the conference with Honduran delegates. Native agent reports Sabino Galindo agent of Ortez prepared food at home of Alejandro Ballardes on 2nd April, Ortez's bandits peeled coffee on the morning of 3 Apr. in the same home. ... [ p. 10 ]
 
[April 4] ... From Lt. Hakala, 4 Apr: Native information received stating that Salgado accompanied by 6 unarmed men had been seen traveling toward El Puercal on 2 Apr. El Puercal is Northwest of Pedregalito. Also that Salgado's band has been broken up through large numbers of desertions, and that many of his deserters are at Oropoli and Alauca. Hakala. ... [ p. 7 ]
 
[April 6] ... From Lt. Hamas, G.N., Dipilto, Apr. 6: Native who has returned from Alauca to Las Manos today, received information from the natives to the North of Las Manos that on Easter Sunday, 20 men, believed to be part of Ortez group, were observed proceeding to Las Canas, Honduras via El Poste with one sub-Thompson and the others armed with rifles and pistols. ... [ p. 8]
 
[April 6]  ... Las Manos: Intelligence agent reports General Jose Sanchez after disarming his troops let Salgado go free, and Salgado alone armed with pistol heading for Pedregalito, the report of 5 April and 6 April took place at Las Partidas. On 5 April Alejandro Ballardes enlisted in the Honduran army under the name of Luis Ramon Rodriguez. ... [ p. 10 ]

 
3. ENEMY SUPPLY AND EQUIPMENT:
 
(a) Having been driven across the border by our patrols, Salgado buried his arms in the mountains of Honduras, near Alauca, where they were recovered by Gen. Jose A. Sanchez, Expeditionary Chief of Yuscaran, Honduras, on Apr. 3rd. Gen. Sanchez reported to Capt. Stokes, at a conference in Las Manos that he had in that manner captured the following arms and ammunition from Salgado:

In addition to the above listed arms, Salgado is reliably reported to have had two Thompsons, sub machine guns which were turned over to Ortez. ... [ pp. 8-9]
 
... The outstanding event of military importance of recent weeks was the elimination of Salgado, one of Sandino's best field jefes, in addition, he was generally regarded as the best recruiter among the bandit forces and an organizer of no mean ability. It was he who recruited and organized the Guardia Civicos of Northwestern Nueva Segovia prior to the elections.
 
The capture of his arms was accomplished by finally goading the Honduran border officials into action. Five of our patrols cornered the bands of Salgado and Ortez and drove them into Honduras near Las Manos. They then camped on the border while the Commander, Northern Area, repeatedly informed the Honduran officials of the location of these bandit groups and urgently requested appropriate action. General Sanchez moved Southward from Yuscaran with a force of about a hundred men, whereupon, Salgado hid his arms and disbanded his group on Apr. 1st. The arms cached were found by the Honduran commander two days later. ... [ p. 9 ]
 
 ... A field message received from Capt. Stockes [no date, probably April 7]: Although I have sent messages to Mendoza and he personally assured me he would operate with us and that he had control over the border from Espinal to El Poste, we have been unable to gain contact with him since leaving Calpules. Things are not working out just as planned or expected. I am convinced Mendoza is sincere but is up against a tough proposition as there seems little doubt but that practically all border officials holding minor positions are in sympathy with Salgado and Ortez. Possibly they reap benefits, from sale of mules, cattle etc. driven across the border by bandits. Of course groups of both Ortez and Salgado are about four fifths Hondurans, largely recruited along the frontier, with family connections, etc. I feel certain at this writing both Salgado and Ortez are in Honduras and am going to remain near the border until such belief is disproved.
 
(Note: (1) The Mendoza referred to is Gen. Juan B. Mendoza, Expeditionary Chief of San Marcos, Honduras, who promised to cooperate by marching along the border parallel to our column.) ...
 
6. MISCELLANEOUS:

ATTITUDE OF CERTAIN HONDURAN OFFICIALS

(a) That Honduras is and has been the asylum for Nicaraguan bandits becomes more apparent as the campaign progresses. That certain responsible officials of Honduras are in collusion with the bandits is certain. This is not peculiar to the incumbent regime in that country --- it was true during the Conservative administration as well. Our recent experience near Las Manos, when Salgado lost his arms to the Honduran general, Sanchez, seems at first sight to be indicative of future cooperation but is in no way reassuring. A careful survey of the incidents connected with this operation will lead to the belief that the Honduran border officials cooperated only so far as they were forced to by urgent circumstances, and only then because, right or wrong, they believed that invasion of Honduras by out troops in pursuit of bandit forces was imminent. Some of the circumstances tending to establish this as a fact are as follows:

(1) To begin with, Honduras has not suffered from banditry in Nicaragua. her citizens along the Nicaraguan-Honduran border are prosperous and undisturbed, where the Nicaraguan side of the line has been desolated by bandit ravages. A large percentage of these outlaws are Hondurans who rustle cattle and horses, rob coffee, etc. in Nicaragua and sell them in their own country. (Four fifths of Salgado's force which disbanded on Apr. 1st is said by natives to have been composed of Hondurans.) Certain Honduran officials and their agents do a lucrative business by purchasing stolen property from the bandits, selling them arms, ammunition, etc.
 
(2) Information is available from sources believed reliable that certain controlling members of the Liberal party of Honduras are indebted to Sandino, through a working agreement entered into prior to the elections in that country. (Sandino had agreed to join the projected revolution in Honduras in case the Liberals in that country lost the election).
 
(3) Many of Sandino's best jefes came from Honduras. Among these are [Simon] Montoya, a former Chief-of-Staff; [Porfirio] Sanchez, another former Chief-of-Staff who succeeded Giron [General Jose Manuel Giron Ruano]; [Simon] Gonzalez and [Carlos] Quesada.
 
(4) Porfirio Sanchez, former Chief-of-Staff to Sandino, is creditably reported to be a cousin of Gen. Jose A. Sanchez, Expeditionary Chief of Yuscaran who recently recovered the arms from Salgado.
 
(5) Honduran officials have failed to apprehend bandit jefes and agents who crossed into that country on missions for Sandino, and whose whereabouts was reported by us. Among these are Col. [Carlos] Quesada who has spent much time in Danli; Generals [Simon] Montoya and [Porfirio] Sanchez and Colonels Rufino and Pastor Ramirez and Colonel [Victor] Lagos. Gen. Sanchez together with the Ramirez brothers are now in Tegucigalpa where they were granted amnesty by their government about two weeks ago.
 
(6) There is now, by what is considered reliable information, a Sandinista club in Tegucigalpa.
 
(7) Gen. Mendoza, Expeditionary Chief of San Marcos who commands the border patrol from Pedregalito to the Gulf of Fonseca, admits being an old friend of Salgado.
 
(8) The Commandant of Arms, Paraiso, Honduras, was advised by us during our operations the past weeks that a bandit force was at Munoz, Honduras, only a few miles from his garrison. He replied that a search revealed the presence of no outlaws. Private but reliable information is to the contrary.
 
(9) Ortez has lived for the better part of last month with a woman in the house of Alejandro Ballardes in Las Manos, Honduras. Some of his soldiers secured food at this house while Lt. Hamas was in position on the border, only a few hundred yards away. The same Ballardes is now an officer in the force of Gen. Sanchez, who commands the border patrol from Pedregalito to Cifuentes.
 
(10) There is a report that Gen. Jose A. Sanchez had a conference with Salgado before the latters arms are supposed to have been found in a cache. This lends a suspicion to the whole proceeding. Moreover, Ortez was permitted to escape without any perceptible gesture against him.
 
(11) The reason which actuated Gen. Sanchez in a measure of cooperation against Salgado may be inferred from the following messages:  "From Commandant of Arms, Yuscaran, Honduras, Mar. 31: I have instructions from my government to attack all Nicaraguan forces who penetrate Honduras no matter which troops they are. Regulars or revolutionary. Our laws do not permit intrusion of this kind. Sincerely. /s/ J. A. Sanchez."
 
"From Commandant of Arms, Oropoli, Apr. 2: Following instructions of my government, I left in the character of Chief Expeditionary with a respectable column to patrol the border. All foreign forces who trespass through our Honduran territory will be dislodged from our ground and if it be necessary I'll attack the most convenient way to make our National Sovereignty respected. Sincerely, /s/ J. A. Sanchez, Chief Expeditionary , Commandant of Arms." ...

... There are evidences that he [Sandino] is hiding in Honduras. His woman, Teresa Villatoro, was in Danli, Honduras about two weeks ago. His new Chief-of-Staff, Porfirio Sanchez, together with [Simon] Gonzalez, another member of his staff, is in Tegucigalpa --- reported to have quit. Sanchez has been granted amnesty by the Honduran Government. Honduras has denied us permission to enter the disputed territory. Too, Sandino worked along the Patuca [Poteca] River, in the disputed territory several years ago and is said to have friends there. ...

/s/ L. B. REAGAN
Captain, U.S. Marine Corps

IR29.04.08. RG127/209/1