Show NEARING A CRISIS Diplomatic Relations Between This Country and Nicaragua to be Severed Washington Indication are that diplomatic relations between this country and Nicaragua are nearing n crisis resulting from the failure ot President Zolnya to adjust the Emery claim The reticence of the state dtit mont In regard to tho case Indicates that the situation Is grave and that there Is little possibility of any settlement settle-ment on the basis proposed by Sec rotary Knox A significant fact Is that J H Gregory the American charge daf falres who recently reached here from Nicaragua Is not expected to I return to tho Central American repub lie |