B-2 Report
Managua, Nicaragua
24 September 1928

... Information obtained from a former Sandino Jefe concerning past operations follows:
 
"I was connected with Jose Leon Diaz during the months of February, March, and April. I was for some time a Jefe in charge of carrying out orders and plans of Diaz in the Cinco Pinos - Rio Negro area, also visited Tegucigalpa, Choluteca, and San Marcos [Honduras] on business several times. During this period Diaz was engaged in running arms and supplies from Honduras to Sandino, also charged with seeing that other supplies (from Leon, Esteli, etc.) got safely through to Sandino.
 
"Armed groups were maintained throughout the country to pass these supplies etc. along. Diaz usually remained in the San Lucas-Santa Rosa-Espino district. Another Jefe was located in the Condega-Yali area. Ferrera [Miguel Angel Ortez] was there for a while but I think was relieved by Quesada during February. Up until about April 15th Sandino was in the immediate vicinity of Los Dantes (Murra Mines district). About this time Sandino moved to the Coast, establishing his headquarters near [Laguna de] Perlas, which is about 100 miles, more or less, north of Bluefields. I do not know the country between Murra district and the Coast, but Diaz told me Sandino made it in ten days; that probably no other man would have attempted the same route. Rivers, swamps, and marshes comprise the area. There were many desertions reported.
 
"There was no need for further work so Diaz, myself, and certain others took a vacation. I went to Tegucigalpa and Diaz to Choluteca. Carlos Salgado was in Honduras, but Jose Antonio Salgado (different family) was with Sandino on the Coast. During February and March, Carlos Salgado had a habit of hanging around the Pataste-Malpaso area with fifteen or twenty men.
 
"Diaz sent word to Salgado that his presence caused frequent Marine patrols and interfered with his (Diaz) mission. Salgado did not disband immediately so Diaz gave him ten hours to leave the territory. Verbonico Vaquedano (now with Ferrera) carried the message. Salgado disbanded and his men drifted around, some to Honduras, some to Ferrera and others to their homes. Diaz told me as late as May 15th, 1928 he had never been in action against the Marines. All of his Jefes were cautioned to avoid Marine patrols unless Diaz was present. I scattered my men and we always went into hiding when patrols left Somotillo, San Francisco, Limay, or other towns headed for my territory.
 
"Regarding Ferrera I will tell you all about his quarrel with Diaz, also his fight with the Marines at Colorado Ranch the next time we have a talk. I can truthfully tell you that no one gives Jose Leon Diaz orders except Sandino. He is chief supply officer for Sandino, has been since the revolution and is today unless he is dead, which I have reason to believe. He has been following the profession of revolutionist for twenty years or more. As you know, I never touch liquor and Diaz, being a hard drinker, likes men around him who never touch it. About the first week in May, Diaz sent word to me to come and see him at once. With about ten men he was located in the hills between Sonis and Las Lajas (about 8 or 9 miles from Somoto). I took four or five men with me and went to see him. He had received a letter from Sandino, then at Perlas, asking him to come there as soon as possible and to bring certain of his men with him. My name was included and Diaz told me Sandino wanted me in particular because of my knowledge of automatic weapons. The letter also stated Carlos Salgado was enroute to join him (Sandino). I explained to Diaz I had definitely made up my mind to make / p. 2 / will take place. However if Tosta and Ferrera join fores, it is said that a revolution would be successful." ...
 
[ Continues with B-2 Report, 8 October 1928, p. 6; presumed to be the same informant: ]
 
... A bandit prisoner now at Somoto, a captured jefe under Escalante, states Ortez has two machine guns and one sub-Thompson, one being a Lewis and the other a Vickers. His machine gun instructor is Maldonado who is said to be a graduate of a military school in Tegucigalpa and later had three years experience in guerrilla warfare in Mexico. This informant further states that Ortez has recently secured the services of a second man from the same military school, a young man who, it is declared, operates the sub-Thompson.
 
The Thompson sub-machine gun in question was smuggled across the border west of Las Manos about August 6th, 1928 according to a report received by a member of the Nicaraguan Repatriation Mission, who was then at Danli, Honduras. Ortez has had two machine guns for about three months but was without ammunition until recently, according to a reliable source. ...

IR28.09.24: 9-10, IR28.10.08: 6, NA127/43A/3