Taft’s Rationale for the First Nicaraguan war, 1909-1912 Edward Scheirer America’s Small Wars Dr. Ferrell 4/2/15 1 Abstract This paper explores the rationale behind the U.S. intervention in Nicaragua from 1909 to 1912 (the First Nicaraguan War). It first details the legacy of the Spanish American War in its effects on creating an American focus on foreign policy in Latin America. It then looks at both President Theodore Roosevelt’s and President William Howard Taft’s general strategic thinking. These are described both to explicate Taft’s agenda and to put it in a historical context which emphasizes a shift from Roosevelt’s security-focused agenda to an economically focused agenda. Then an overview of the Nicaraguan conflict is provided for illustrative purposes. The central point of this paper is that while Taft had an over-arching foreign policy agenda in Latin America, his public statements make it clear that the U.S. intervened in Nicaragua for the maintenance of regional political stability in order to secure the U.S.’s economic interests in the Panama Canal zone. 2 The Spanish American War expanded the horizons of U.S. interests in the Western Hemisphere. The permanent absorption of Puerto Rico into U.S. political control and the temporary administration of Cuba (1898 to 1902) demonstrate the strength of the ties the U.S. had with states within the Americas. Under the presidency of Theodore Roosevelt these interests were security ones, as the concern for conflicting European interests in the region, embodied by the Monroe Doctrine, was high. President William Howard Taft replaced this security emphasis with an economic one, as a concern for economic security and the production of excess goods in the U.S. pushed the U.S. to open new markets in the independent states of South America. The first Nicaraguan War from 1909 to 1912 was indirectly the result of this new emphasis. Through state of the union addresses and public speeches, Taft and his cabinet members made the rationale for intervention into Nicaragua clear. The U.S. would behave towards its southern neighbors in a way that would bring about economic prosperity. The economic interest of U.S. policy placed the decade-long construction of the Panama Canal in a central position as it became the keystone to Taft’s foreign policy in the region. Taft made clear that the stability of the Central American region was imperative to the canal’s construction. While the Nicaraguan war fit into Taft’s broader foreign policy agenda, the economic interests the U.S. had vested in the successful completion of the Panama Canal and the necessity for the existence of stability in the region to protect that asset explains more accurately the intervention into Nicaragua. The Spanish American War placed the U.S. on a world stage. The U.S. fought the disintegrating empire of Spain in 1898 in military engagements isolated to the island of Cuba and the Philippines. Scholars debate the causes of this war and explain them through various perspectives ranging from humanitarianism to an emerging imperialist agenda. 1 What is clear is 1 Jeffrey Bloodworth, “For Love or for Money?: William McKinley and the Spanish American War,” White House Studies 9, no. 2 (September, 2009), 135. 3 that the war resulted in the U.S. incorporating a number of territories like Puerto Rico and the Philippines under U.S. sovereignty. These new possessions expanded U.S. political and economic interests in both the Pacific and the Americas. The U.S. became more connected with the international world as its political and economic interests extended beyond its borders most visibly in the form of its territories. To protect them the U.S. became intimately concerned with the wider world in the regions where it held these new territories and saw its own security linked to the actions of other states. Lester Langley, a prolific scholar on U.S. Caribbean policy at the turn of the 20th century, describes the contemporary sentiment for empire and the legacy of the Spanish American War, saying, The United States in 1898 was not considered, nor did it consider itself, an imperial power, but the nation lived in a world of competing dynamic empires…in some minds the fear was not of European encirclement nor of further European encroachment against weak Latin American states but of American unwillingness to stake out its own empire…the empire was not created by the triumph of 1898; rather, the experience of war and the exultation of victory seemed to sweep away doubts about America’s special role in the Caribbean.2 Prior to the war, some in the U.S. believed that America’s security depended on its achieving empire in the few regions left for conquest. The war quelled fears that the U.S. would not achieve this and expanded emphasis on the Caribbean. The war set up interest forming circumstances, in the form of territories, where the U.S. would have to become heavily involved in the Caribbean. Taft expresses this understanding. He begins his state of the Union address of 1912 with an unusually long and detailed introduction: The foreign relations of the United States actually and potentially affect the state of the Union to a degree not widely realized and hardly surpassed by any other factor in the welfare of the whole Nation. The position of the United States in the moral, intellectual, and material relations of the family of nations should be a matter of vital interest to every patriotic citizen. The 2 Lester D. Langley, The United States and the Caribbean, 1900-1970 (Athens: University of Georgia Press, 1980,) 4 and 13. 4 national prosperity and power impose upon us duties which we cannot shirk if we are to be true to our ideals. The tremendous growth of the export trade of the United States has already made that trade a very real factor in the industrial and commercial prosperity of the country. With the development of our industries the foreign commerce of the United States must rapidly become a still more essential factor in its economic welfare.3 The U.S.’s expanding economic interests at the beginning of the 20th century offered new challenges from the actions of other states, and thus foreign affairs had become the most important factor “in the welfare of the whole nation.” The U.S.’s new economic and political interests in the Caribbean opened up a new mindset of interconnection in foreign affairs thinking. The war turned the United States into a nominal empire which the government and public had to focus on. Regardless of its size, this small empire had an effect on foreign policy. The U.S. became more concerned with Asia, China in particular. The push to open up trade with China under President William McKinley’s secretary of state John Hay developed into a policy known as the “Open Door Policy.”4 These expanded interests drew the U.S. into conflict with Chinese “Boxer rebels” (1898 to 1901) who waged war against all foreigners on Chinese land in a xenophobic, bloody, and fruitless conflict. The Qing Empress Dowager Cixi’s tacit support for this rebellion also resulted in tensions with the Chinese state. The threat to U.S. nationals and their property in China, as well as the potential risk of losing future profitable trade with China, resulted in a U.S. expeditionary force landing on mainland China to put down this “Boxer rebellion.”5 In the Caribbean, a similar increase in concern prompted a more engaged policy in the region for years to come, for instance, during the Venezuelan debt crisis of 1901 the U.S. 3 William Howard Taft, "State of the Union Address, December 3, 1912,” The American Presidency Project, accessed February 24, 2015, http://www.presidency.ucsb.edu/ws/index.php?pid=29553. 4 The Open Door Policy was designed to open up China’s closed society to free trade and American goods, and to reduce interference with rival European trading nations by respecting spheres of influence. Thomas Schoonover, Uncle Sam’s War of 1898 and the Origins of Globalization (Lexington: University Press of Kentucky, 2003), 112. 5 Ibid. 109-11. 5 threatened war with Germany.6 To ensure U.S. dominance and regional stability in the Caribbean the U.S. took control of the Dominican Republic’s custom houses in 1905.7 In 1915, the U.S. intervened in Haiti to ensure that government’s stability, to protect U.S. trade, and to sort out the problem of Haiti’s large foreign debt.8 After the U.S. went to war with Spain in 1898, the U.S. became an integrated participant in the Caribbean and Asia. The U.S.’s new territorial possessions gained after the war with Spain placed the U.S. deeply into a geopolitical arena where the U.S. had to consider ramifications of other states actions to protect its far-flung interests. During the presidency of Theodore Roosevelt (1901 to 1909), the U.S. followed a Latin American policy focused on ensuring the security for the U.S. The U.S. viewed European powers like Germany as potential threats to U.S. security and interests in the Caribbean. Since the Americas were one of the few places in the world no longer extensively colonized and not under the control of European powers, it was of natural interest to those powers who desired to expand their economic and political power through an expansion of colonial possessions. German desires for the economic and political benefits of empire primarily illustrate this thinking. It was a desire which concerned the U.S. as David Healy, a scholar of U.S. foreign policy at the turn of the 20th century, writes, Contemporary Americans were united in their opposition to European expansion in the New World, and after 1900 they came quickly to focus their strongest fears and suspicions, no longer on France or Great Britain, but on the rising power of Germany…Germany, like the United States, was a fast-rising industrial power and a relative newcomer to the imperial scramble for colonies. Also like the United States, it had recently entered the international competition to become a leading naval power…americans 6 David Healy, Drive to Hegemony: The United States in the Caribbean, 1898-1917 (London: University of Wisconsin Press, 1988), 102-4. 7 Lester Langley, The Banana Wars: United States Intervention in the Caribbean, 1898-1934 (Wilmington, DE: Scholarly Resources, 2002), 60. 8 Walter H. Posner, “Marines in Haiti, 1915-1922,” The Americas 20, no. 3 (January, 1964), 231-5. 6 perceived another kind of threat, as Germany’s economic penetration of Latin America and success in selling its exports there identified her as a leading trading rival.9 The German desire for colonies in a colonized world drove it to seek out opportunities and influence in the Caribbean. Roosevelt was concerned for U.S. security in Latin America based on European expansion into the region. European involvement came primarily in the form of European loans to financially weak South American states. The British were the largest lenders, however France and Germany also held a significant portion of Latin American state bonds.10 The U.S. feared that the inability to pay off this debt would result in the European’s taking harsh measures, explicitly forceful manipulation and potential colonization.11 The debt would provide European powers with a justifiable pretext for invasion. This fear contributed to an extension of the Monroe Doctrine known as the “Roosevelt Corollary.” This policy statement focused on maintaining the status quo of the American states. In Roosevelt’s State of the Union for 1905, he outlined this new interpretation of the Monroe Doctrine, explaining, It must be understood that under no circumstances will the United States use the Monroe Doctrine as a cloak for territorial aggression…in some State unable to keep order among its own people, unable to secure justice from outsiders and unwilling to do justice to those outsiders who treat it well, may result in our having to take action to protect our rights…moreover…if a republic to the south of us commits a tort against a foreign nation…then the Monroe Doctrine does not force us to interfere to prevent punishment of the tort, save to see that the punishment does not assume the form of territorial occupation in any shape…on the one hand, this country would certainly decline to go to war to prevent a foreign government from collecting a just debt; on the other hand, it is very inadvisable to permit any foreign powers to take possession, even temporarily of the custom houses of an American Republic in order to enforce the payment of its obligations; for 9 Healy, Drive to Hegemony, 72-3 and 75. Ibid. 14. 11 Ibid. 196-7; Dexter Perkins, A History of the Monroe Doctrine (Boston: Little, Brown and Company, 1941), 2289. 10 7 such temporary occupation might turn into a permanent occupation.12 The U.S. would seek to protect its “rights” in Latin America (without seeking territorial expansion) and, while respecting the repayment of foreign debt, would not accept the use of that debt for the colonization of any Latin American republic. A reemphasis and reinterpretation of the Monroe doctrine underlined Roosevelt’s security concerns in Latin America. Active European colonialism was an implicit security threat because it placed a heightened and expanding European state close to the United States’ own territories in the region. The protection of U.S. interests (In the form of its territories and future economic penetration) in the Caribbean and South America thus came into greater focus because European involvement might spell war for the United States. The primary state which Roosevelt feared was Germany, which sought to gain an empire of its own in a world carved up by the other European powers.13 These fears came closest to conflict in the climax of the Venezuelan debt crisis in 1902. When Germany and England were on the cusp of war to enforce the repayment of European loans totaling 5.25 million pounds, Roosevelt responded strongly, threatening war if the two European powers took military action.14 Because the U.S. saw a threat coming from across the sea the long-term U.S. emphasis on naval development continued. The navy would serve as a first line of defense in the event of a war with a European power.15 This emphasis occurred during a burgeoning naval arms race which would climax later in the century. Roosevelt thus built up the navy in the form of his Great White Fleet, which sailed the globe to demonstrate U.S. military power. This military context shows the severity of the German threat 12 Theodore Roosevelt, "State of the Union Address, December 5, 1905,” The American Presidency Project, accessed March 4, 2015, http://www.presidency.ucsb.edu/ws/index.php?pid=29546. 13 Healy, Drive to Hegemony, 72-3. 14 Ibid. 101-4. 15 Ibid. 97-8. 8 as, in 1906, the Germans had twenty dreadnoughts and the U.S. had twenty dreadnoughts.16 The U.S. and Germany were expanding power peers searching for dominance in the only region of the world which remained un-colonized. Germany was thus an active and capable threat which the Roosevelt Corollary hoped to mitigate. The Roosevelt presidency followed a Latin American policy which emphasized the security of the United States. The U.S. fought the Nicaraguan war from 1909 to 1912 for the immediate goal of ensuring stability in Nicaragua. The president of Nicaragua, Jose Santos Zelaya, was in power from 1893 to 1909. Under his leadership Nicaragua attempted an expansionist strategy in a region rife with instability.17 In 1907, Zelaya invaded Honduras to little effect hoping to gain agriculturally rich territory.18 As a result of these expansionist actions, the U.S. did not view Zelaya favorably. Langley speaks to this point, arguing, Control of Nicaragua’s finances offered the key to American success, and Knox avidly pursued an adjustment with that country. The first task, he believed, was ridding the country of Zelayista influence. Zelaya had been opposed to foreign meddling in isthmian affairs; his followers, presumably, felt the same way.19 The U.S. did not approve of Zeleya’s expansionist policies which brought instability to the region and questioned the legitimacy of U.S. involvement in the Canal Zone. Internally, Zelaya had favored Nicaraguan controlled businesses and was opposed to U.S. dominated fruit and railroad companies.20 He contracted a large national debt to the sum of 17 million pounds which was owed to the English.21 Zelaya’s foreighn policies conflicted with U.S. policies in the region. Zelaya’s domestic policies isolated the foreign merchants of the port city of Blue Fields 16 Ibid. 98. Langley, The Banana Wars: United States Intervention in the Caribbean, 52. 18 Ibid. 52-3. 19 Ibid. 61. 20 Ibid. 56. 21 Ibid. 61. 17 9 and their native beneficiaries, who, the regional governor Juan J. Estrada led in a rebellion in 1909.22 This rebellion destabilized the country and placed U.S. lives and property at risk. When Zelaya’s forces executed two U.S. citizens fighting for the rebels, the U.S. publicly chastised the regime and sent the navy to surround the country’s Pacific and Caribbean coasts. In his 1909 State of the Union President Taft recalls this emotional event, stating, I need not rehearse here the patient efforts of this Government to promote peace and welfare among [Central American] Republics, efforts which are fully appreciated by the majority of them who are loyal to their true interests. It would be no less unnecessary to rehearse here the sad tale of unspeakable barbarities and oppression alleged to have been committed by the Zelaya Government. Recently two Americans were put to death by order of President Zelaya himself. They were reported to have been regularly commissioned officers in the organized forces of a revolution which had continued many weeks and was in control of about half of the Republic, and as such, according to the modern enlightened practice of civilized nations, they were entitled to be dealt with as prisoners of war. At the date when this message is printed this Government has terminated diplomatic relations with the Zelaya Government…and is intending to take such future steps as may be found most consistent with its dignity, its duty to American interests, and its moral obligations to Central America and to civilization.23 The execution of the two Americans was the event which spurred the U.S. to desire officially a break with the Zelaya government and to work towards its demise. In 1909, U.S. marines landed to protect the Blue Fields rebels by ensuring that advancing government forces did not take control over the port and the custom house at Blue Fields.24 While Zelaya still had popular support, Estrada and his lieutenant, Adolfo Diaz, forced his resignation with American support in 1909.25 After Zelaya’s resignation, a supporter, Dr. Jose Madriz, took power until Estrada 22 Ibid. 56. William Howard Taft, "State of the Union Address, December 7, 1909,” The American Presidency Project, accessed February 24, 2015, http://www.presidency.ucsb.edu /ws/index. php?pid=29551. 24 Langley, The Banana Wars, 57-8. 25 Ibid. 59. 23 10 marched on the capital, Manangua, in 1910 and took control of the country.26 In 1911, Estrada lost power to the U.S.-favored Diaz who immediately faced a Zelayista revolt from the state military which General Luis Mena led in 1912.27 This power struggle produced political chaos which prompted a U.S. intervention consisting of 1,100 marines (who sustained 37 casualties with seven killed).28 The U.S. intervention against the Mena rebellion was quick and successful. However, its aim was stability in the region. To ensure this, the U.S. maintained a marine contingent in Nicaragua to supervise elections and to ensure the once-expansionist state’s stability.29 The U.S. maintained a contingent there until 1925 but was quickly re-deployed after a second Nicaraguan war erupted in that year.30 The immediate goal of the U.S. intervention in Nicaragua from 1909 to 1912 was the maintenance of that state’s stability. Taft’s foreign policy had a distinctly economic focus. After the industrial revolution and the panic of 1893, it became a popular viewpoint that the U.S. needed to expand trade. This idea was a product of the belief that U.S. industry was over-producing for its contemporary needs and so needed to expand its commercial interests.31 Taft emphasized this concern for trade expansion in a speech in Los Angeles in October 1909, explaining, I do not know that the increase in the merchant marine is essential to your enjoyment of great benefits from that Canal. I do not think it is. I think if we were to go on as we are now you still would derive immense benefits by the trade brought in here by foreign vessels and…vessels of the United States. Nevertheless, you are on the Pacific; you are on the great ocean surrounded by the Orient on the one side, by the west coast of South America and by the west coast of North America…in which the great commercial progress of the world is to be manifested…it is undoubtedly true it is shown in our South American trade that the control by the flag of the ships that carry the trade greatly influences the trade in favor of the 26 Ibid. 60. Ibid. 63-5. 28 Ibid. 70. 29 Ibid. 70 and 165. 30 Ibid. 177-8. 31 Healy, Drive to Hegemony, 146. 27 11 country that owns that flag and owns those ships…you say we are going to help along a selfish private corporation…Well we are, because the private corporation is the instrument by which we wish to accomplish a great public good.32 The Panama Canal will provide great economic benefits, but will not be essential to the Californians Taft speaks to because they have great opportunities for trade with the Orient and the west coasts of the Americas. Taft desired to expand trade using U.S.-flagged ships and private companies as this trade was imperative to the U.S. and was thus providing a public good. Taft saw an expanding trade as an important aspect of U.S. foreign policy and had a clear plan to see that it developed. Expanding trade with South America was imperative given the geo-political situation at the time. Though the U.S. had extensive trade with Europe, the home countries could easily shield their imperial systems from foreign trade and effectively block U.S. trade with them.33 Empire gave the home states the possibility of trade exclusivity in these colonies while pushing U.S. goods out, the result of which was that only the Europeans would receive the economic benefits of trade. However, there remained one large area of the globe to which the U.S. could confidently expand its trade interests, South America. To this end Taft followed a policy dubbed “Dollar Diplomacy.” Its emphasis was not on the use of the army to impose the U.S.’s desires upon South America, but to use the coercive power of U.S. loans to influence South American states. Taft explicated clearly this policy in his 1912 state of the union address, explaining, To-day, more than ever before, American capital is seeking investment in foreign countries, and American products are more and more generally seeking foreign markets. As a consequence, in all countries there are American citizens and American interests to be protected, on occasion, by their Government. These movements of men, of capital, and of commodities 32 William Howard Taft, “Speech on the Panama Canal and Merchant marine: Los Angeles, California, October 11, 1909,” The Collected Works of William Howard Taft, edited by David H. Burton (Athens: Ohio University Press, 2002), 3: 272. 33 Ibid. 77. 12 bring peoples and governments closer together and so form bonds of peace and mutual dependency…the resultant situation inevitably imposes upon this Government vastly increased responsibilities. This Administration, through the Department of State and the foreign service, is lending all proper support to legitimate and beneficial American enterprises in foreign countries.34 The U.S. government under Taft aimed to protect and promote the expansion of trade into Latin America. The goal was to produce stability in the region through loans and financial reform to prepare the way for productive commerce and trade. Taft’s secretary of state, Philander C. Knox, explains the administration’s rationale in a public speech saying, In Central America the [Taft] administration seeks to substitute dollars for bullets by arranging, through American bankers, loans for the rehabilitation of the finances of Nicaragua and Honduras. The conventions with those countries…will take the customs houses out of politics so that every ambitious revolutionist shall not seize them to squander the resources of his country to impose himself as dictator.35 The U.S. would ensure stability and economic prosperity by exerting economic influence through U.S. bank loans and ensure the repayment of those loans through U.S. control of the politically turbulent custom houses. To this end, U.S. policy necessitated the expulsion of European banking interests from the region. Taft viewed the European bankers as solely motivated by the repayment of their debt.36 The European states did not care whether the governments of South America fell, so long as they received their money, which broke from Roosevelt’s policy which assumed colonial intentions. The U.S. had an interest in maintaining the proper functioning of these states. This policy is evident in Taft’s dealings with Nicaragua. Knox brokered deals to satisfy the English bankers’ monetary demands and opened up American 34 Taft, "State of the Union Address, December 7, 1909.” Philander C. Knox, “Toledo Speech, 1912,” as quoted in Langley, The Banana Wars, 63. 36 Dana Gardner Munro, “Dollar Diplomacy in Nicaragua, 1909-1913,” Hispanic American Historical Review 38, no. 2 (May 1958), 211. 35 13 loans to the Nicaraguan government to stabilize the Estrada (and later Diaz) governments.37 The U.S. also took over the custom houses to provide stability to the state and to guarantee that Nicaragua repaid the U.S. loans.38 The goal was to produce stability in the once expansionist and revolutionary state of Nicaragua through control of custom houses and the production of financial stability. Taft’s foreign policy had a distinctive economic focus in relation to South America. The Panama Canal was a central motivating factor for the U.S. intervention in Nicaragua from 1909 to 1912. The importance of the Panama Canal in U.S. Caribbean policy cannot be overstated. Under Roosevelt, plans for the canal went into consideration in defining key security challenges as its defense was imperative.39 The canal would be a source of economic and military strength. It would thus be a target for European powers and so needed protection. One solution was to expand the number of U.S. naval bases, like that of Guantanamo Bay in Cuba, which guarded the key straits into the Caribbean Sea.40 However, Roosevelt preferred a less direct, less costly, and less imperialist option. Ultimately, he decided that in the event of a war with a European power the navy could capture land adjacent to these straits and produce the same tactical effect.41 For Taft, the canal’s construction was also imperative. However, Taft viewed it primarily in an economic light. The canal was needed to promote U.S. economic expansion. The canal would cut down transport costs from the East and West coasts and from the West Coast to the Caribbean. The cost of the canal also made it an important policy point for the United States. In 1910, the construction of the canal cost 57 million dollars, which was 37 Langley, The Banana Wars, 61. Ibid., 39 Healy, Drive to Hegemony, 81. 40 Ibid. 98-9. 41 Ibid., 38 14 equivalent to eight percent of the entire federal budget for that year.42 This was a big project that needed protection, and Taft continued it as a central part of his economically focused policy agenda. However, the new focus on overall economic expansion was not the central reason for intervention in Nicaragua. Nicaragua was part of a foreign policy in which the Panama Canal was at the center. Since the canal was key to Taft’s goal of economic expansion through increased trade, the protection of this canal was vital. Under Roosevelt, it was a central strategic concern for the navy but now U.S. leadership viewed it primarily economically. Taft argued that stability in the central Americas was integral to the security of the Canal. He said in his first State of the Union Address in 1909 that, it is very apparent that the considerations of geographic proximity to the Canal Zone and of the very substantial American interests in Central America give to the United States a special position in the zone of these Republics and the Caribbean Sea. I need not rehearse here the patient efforts of this Government to promote peace and welfare among these Republics, efforts which are fully appreciated by the majority of them who are loyal to their true interests.43 America’s policy in Central America was determined by Central America’s geographic proximity to the Panama Canal, and resulted in the promotion of stability to protect U.S. interests in Panama. The Zelaya regime’s expansionist tendencies and the revolution of 1909 and revolt of 1912 all had consequences which could have spilled into neighboring states. Taft referenced this possibility in his 1912 state of the Union Address, explaining, In the recent revolution in Nicaragua, which, it was generally admitted, might well have resulted in a general Central American conflict but for the intervention of the United States, the Government of Honduras was especially menaced; but fortunately peaceful conditions were maintained within the borders of that Republic44 42 William Howard Taft, "State of the Union Address, December 6, 1910,” The American Presidency Project, accessed February 24, 2015, http://www.presidency.ucsb.edu /ws/index. php?pid=29551. 43 Taft, "State of the Union Address, December 7, 1909.” 44 Taft, "State of the Union Address, December 3, 1912.” 15 The fear of instability in Central America prompted U.S. action. The Nicaraguan war can be explained through Taft’s overall economically focused foreign policy, as it followed the general practices of “Dollar Diplomacy.” However, based on Taft’s public statements, it is more accurate to say that the protection of the Panama Canal (the centerpiece of Taft’s policy thinking) through the maintenance of stability in Central America, was the most immediate reason for the intervention into Nicaragua from 1909-1912. The Spanish American War integrated the U.S. into a global system of nations where the U.S. had expanding important interests in both Asia and Latin America. This new situation presented the U.S. with the challenge of dealing with the implications of foreign actions. To deal with this new situation, Roosevelt took a security-focused perspective where deterring European threats to U.S. interests in Latin America was key to his Latin American foreign policy. The First Nicaraguan War from 1909 to 1912 was the result of Taft’s new economic-focused foreign policy in the region whose immediate goal in Nicaragua was the insurance of stability. Taft’s desire to expand trade in the region placed the construction of the Panama Canal at the keystone position in his Latin American policy. Due to the canal’s strategic economic importance, the stability of the geographically proximate Central American states like Nicaragua became key to the security of the Panama Canal. In this light, and based on Taft’s policy statements, the First Nicaraguan war is most accurately described as a war aimed at maintaining the stability of Central America for the security of the economically significant Panama Canal. 16 Bibliography Primary Sources Barrett, John. Panama Canal: What It Is What It Means. Washington DC: Pan American Union, 1913. The Collected Works of William Howard Taft. Edited by W. Carey McWilliams, Frank X. Gerrity, and David H. Burton. 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