Marine Detachment, Ocotal, Nicaragua.
5 September, 1927.

     1.      In compliance with instructions contained in Regimental Commander's despatch 8601-1150, I left OCOTAL with a detail of 24 men at 0630 on 2 September, 1927, for the vicinity of TELPANECA. We followed the mountain trail through AMACAYAN, and found it in exceedingly bad condition. It was narrow, tortuous, steep and stony.
 
     2.      At 11:30, 2 September, I received a report by plane that TELPANECA was occupied by not less than 20 men. At 1300 between CASAS QUYAL and MOJON we received fire from our left and below from two houses, about 12 men in each house. We returned the fire and about 12 men ran from the bush toward the houses. After we fired about 300 rounds at these men they were silenced. WE then moved forward about 200 yards into a saddle, where the point engaged 6 men. While halted here, 12 or 15 men came upon us from our rear and right. They fought stubbornly and retreated slowly, shouting, as I understand it, "Viva Salgedo". [Carlos Salgado] Action ceased at 1355. We suffered no casualties. Saw 4 of the enemy on the hill go down, and one other hit, but could find only one after the fight. 2 mounted men got away on the TELPANECA trail. I am unable to estimate casualties of enemy below, because of the brush, but am certain that we registered well on the houses. At about 1440, we passed MOJON and saw 8 or 10 houses that had just been burned down. Arrived at AMACAYAN about 1640 and camped there.
 
     3.      On September 3, I did not expect the planes as they were over the day before. With this large band in rear and bandits in TELPANECA knowing we were coming, I decided to approach TELPANECA from CIUDAD ANTIGUAS. I took the CIUDAD ANTIGUAS trail and about 0930 sighted the planes. I was then about 5 miles advanced. Tried to lay out panels "XH - EI - II" meaning "attacked on afternoon of second", but signals were interrupted for acknowledgement of planes' message, and became confused. Started to lay out that I was progressing west of TELPANECA, but planes seemed to think I was on the TELPANECA trail and left. Proceeded over exceedingly bad trail, same as on the previous day, to CIUDAD ANTIGUAS. Here the condition of men and animals was so bad that I did not think we could make TELPANECA and back over poor trails. Went 3 miles to SAN FERNANDO and camped.
 
     4.      On September 4, we cleared SAN FERNANDO at 0630 and arrived in OCOTAL at 1300.
 
     5.      On September 2, I received report from planes that there were not less than 20 bandits, and on September 3, about 40 bandits, in TELPANECA, so there was no question of bandit activity in that region. I attempted to get information in CIUDAD ANTIGUAS regarding the identity of the leaders, but could not get it from the natives. They said that bandits had not passed thru there and were unwilling to give information any information.
 
     6.      As evidenced by my report, I did not request planes in TELPANECA at 2:00 p.m., but was signaling that I had been attacked on the afternoon of the second.
 
     7.      We picked up 3 horses after the fight at CASAS QUYAL, which we brought with us to OCOTAL.
 
                               / s / T. J. MCQUADE.

NA127/212/1