Taft was against an aggressive response and so instructed the territorial governor.[91]
Nicaragua's president, José Santos Zelaya, wanted to revoke commercial concessions granted to American companies,[j] and American diplomats quietly favored rebel forces under Juan Estrada.[95] Nicaragua was in debt to foreign powers, and the U.S. was unwilling to let an alternate canal route fall into the hands of Europeans. Zelaya's elected successor, José Madriz, could not put down the rebellion as U.S. forces interfered, and in August 1910, the Estrada forces took Managua, the capital. The U.S. compelled Nicaragua to accept a loan, and sent officials to ensure it was repaid from government revenues. The country remained unstable, and after another coup in 1911 and more disturbances in 1912, Taft sent troops to begin the United States occupation of Nicaragua, which lasted until 1933.[96][97]
Treaties among Panama, Colombia, and the United States to resolve disputes arising from the Panamanian Revolution of 1903 had been signed by the lame-duck Roosevelt administration in early 1909, and were approved by the Senate and also ratified by Panama. 