UNIVERSITY LIBRARX JX m: ^ Cornell University Library JX 1398.5.S88 1885 Correspondence in re'a»'°" ,|° *|J,f,|S°* 3 1924 007 487 717 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924007487717 CORRESPONDENCE -;* . IN RELATION TO THE PROPOSED INTEROCEANIC CANAL BETWEEN THE ATLANTIC AND PACIFIC OCEANS, CLAYTON-BULWER TREATY AND THE MONROE DOCTRINE, T I : *' '^ BEING A Vv^- REPRINT OS*^SENATE EX. DOCS. No. 112j 46th CONG., •2o SEgS:; No. 194, 47th CONG.,' 1st SESS. ; AND No. 26, 48th CONG., 1st SESS. / WASHINGTOlfr: ;' -? f ', .l"^ aOVEENMBNT PRINTING OPPIO:^.'^ I (. 188.5, \'"^ \ ^t /^CORMELL ;UNfVERSfTYi LIBRARY INTEROCEANIC CANAL. [Senate Ex. Doc. No. 112, 46tli Congress, 2d session.] Message from the President of the United States, in response to Senate resolution of February 11, 1880, covering report of Secretary of State, with accompanying documents, in relation to the proposed interoceanio canal between the Atlantic and Pacific Oceans. March 9, 1880. — Referred to the Committee on Foreign Eelations and ordered to be printed. To the Senate : I transmit herewith the report of the Secretary of State, and the ac- companying papers, in response to the resolution adopted by the Senate on the 11th of February last, requesting " copies of all correspondence between this Government and any foreign Government since February, 1869, respecting a ship-canal across the Isthmus between North ^merica and South America, together with copies of any projet of treaties re- specting the same which the Department of State may have proposed or submitted since that date to any foreign power or its diplomatic rep- resentative." In further compliance with the resolution of the Senate, I deem it proper to state briefly my opinion as to the policy of the United States "with respect to the construction of an interoceanio canal, by any route, across the American Isthmus. The policy of this country is a canal under American control. The United States cannot consent to the surrender of this control to any European power, or to any combination of European powers. If exist- ing treaties between the United States and other nations, or if the rights of sovereignty or property of other nations stand in the way of this policy — a contingency which is not apprehended — suitable steps should be taken by just and liberal negotiations to promote and estab- lish the American policy on this subject, consistently with the rights of, the nations to be affected by it. The capital invested by corporations or citizens of other countries in such an enterprise must, in a great degree, look for protection to one or more of the great powers of the world. No European power can inter- vene for such protection without adopting measures on this continent which the United States would deem wholly inadmissible. If the pro- tection of the United States is relied upon, the United States must qs;- ercise such control as will enable this country to protect its national interests and maintain the rights of those whose private capital is em- barked in the work. An interoceanio canal across the American Isthmus will essentially change the geographical relations between the Atlantic and Pacific coasts of the United States, and between the United States and the rest of the 4 PEOPOSED INTEEOCEANIC CANAL, world. It will be the great ocean thoroughfare between our Atlantic and our Pacific shores, and virtually a part of the coast line of the United States. Our merely commercial interest in it is greater than that of all other countries, while its relations to our power and pros- perity as a nation, to our means of defense, our unity, peace, and safety are matters of paramount concern to the people of the United States. No other great power would, under similar circumstances, fail to assert a rightful control over a work so closely and vitally affecting its interest and welfare. Without urging further the grounds of my opinion, I repeat, in con- clusion, that it is the right and the duty of the United States to assert and maintain such a supervision and authority over any interoceanic canal across the isthmus that connects North and South America as will protect our national interests. This I am quite sure will be found not only compatible with, but promotive of, the widest and most perma- nent advantage to commerce and civilization. EUTHEEFOED B. HAYES. Executive Mansion, March 8, 1880. Depaetment of State, Washington, March 8, 1880. To the President : The Secretary of State, to whom was referred the resolution of the Senate of the 11th ultimo, requesting the President, if not in his opinion incompatible with the public business, " to transmit to the Senate copies of all correspondence between this Government and any foreign Grovern- ment since February, 1869, respecting a ship-canal across the Isthmus between North America and South America, together with copies of any proj6t of treaties respecting the same which the Department of State may have proposed or submitted since that date to any foreign power or its diplomatic representative," and also the resolution of the House of Eepresentatives of the 10th ultimo, on the same subject, has the honor to present to the President a connected view of certain cor- respondence and information called for by said resolutions for trans- mission to Congress, in anticipation of any more full and complete col- lection of the correspondence within the scope of the resolutions that a more careful examination of the files of the Department might enable him to supply. The natural interest of the United States in any connection through the American Isthmus has not only always been emphatically expressed by the Government, but it has been fully and distinctly recognized by other governments from^the earliest period of our national existence. As far back as 1797, when the condition of public affairs in Europe afforded the first indications of those changes in Spanish colonial pos- sessions on this continent which were afterward so completely realized by the establishment of the independence of Mexico and the South and Central American Provinces, a plan was submitted to, and considered by, the Government of Great Britain by which the possession of Louis- iana and Florida was to be given to the United States, and it was further proposed that "The passage of the Isthmus of Panama, as well as that of Lake Nicaragua, will 1^ equally guaranteed for all merchandise be- longing to citizens of the United States of America, and the exportation of all products of South America will be equally encouraged on their CLAYTON-BULWfiR TKEATY, AND MONROE DOCTRINE. 5 commercial vessels — the North Americans becoming, as they ought to be, for us what the Hollanders have for a long time been for ithe North- ern Powers^that is to say, carriers." From that period, as the independence of these republics became established, and as the commercial resources and territory of the United States became extended, the relations of this Government with the States of Central and South America grew closer, and a more direct interest was taken in the possible completion of an interoceanic canal connection. The subject was one to which the attention of the Government was always directed, and while for very many years there was no practical discus- sion of the project, there was at several periods diplomatic communica- tion indicating the general views both of the United States and the governments of those States through whose territories the projected canals would pass. It is unnecessary to do more than refer to this interchange of opinion. The first diplomatic transaction by which the Government of the United States acquired treaty rights and assumed treaty obligations in refer- ence to an Isthmus canal was the treaty between the United States and New Granada, signed at Bogota 12th December, 1846, and ratified by both Governments in 1848. By the thirty -fifth article of this treaty it was stipulated : Article XXXV. The United States of America! and the Republic of New Granada, desiring to make as durableaspossiblethe relations which are to be established between the two parties by virtue of this treaty, have declared solemnly and do agree to the following points : Ist. For the better understanding of the preceding articles, it is and has been stipu- lated between the high contracting parties that the citizens, vessels, and merchandise of the United States shall enjoy-in the ports of New Granada, including those of the part of the Granadian territory generally denominated Isthmus of Panama, from its southernmost extremity until the boundary of Costa Rica, all the exemptions, priyi- leges, and itnmunities concerning commerce and navigation which are now or may hereafter he enjoyed by Granadian citizens, their vessels and merchandise; and that this equality of favors shall be made to extend to the passengers, correspondence, and merchandise of the United States in their transit across the said territory from one sea to the other. The Government of New Granada guarantees to the Government of the United States that the right of way or transit across the Isthmus of Panama, upon any modes of communication that now exist or that may be hereafter constructed, shall be open and free to the government and citizens of the United States, and for the transportation of any articles of produce, manufactures, or merchandise, of lawful commerce, belonging to the citizens of the United States ; that no other tolls or charges shall be levied or collected upon the citizens of the United States, or their said mer- chandise thus passing over any road or canal that may be made by the Government of New Granada, or "by" the authority of the same, than is, under like circumstances, levied upon and collected from the Granadian citizens; that any lawful produce, manufactures, or merchandise belonging to citizens of the United States thus passing from one sea to the other, in either direction, for the purpose of exportation to any other foreign country, shall not be liable to any import duties whatever; or, having paid such duties, they shall be entitled to drawback upon their exportation ; nor shall the citizens of the United States be liable to any duties, tolls, or charges of any kind to which native citizens are not subjected for thus passing the said Isthmus. And, in order to secure to themselves the tranquil and constant enjoyment of these advan- tages, and as an especial compensation for the said advantages, and for the favors they have acquired by the 4th, 5th, and 6th articles of this treaty, the United States guarantee positively and efficaciously to New Granada, by the present stipulation, the perfect neutrality of the before-mentioned Isthmus, with the view that the free transit from the one to the other sea may not be interrupted or embarrassed in any future time while this treaty exists ; and, in consequence, the United States alsq guarantee, in the same manner, the rights of sovereignty and property which New Granada has and possesses over the said territory. 2d. The present treaty shall remain in full force and vigor for the term of twenty years from the day of the exchange of the ratifications ; and from The same day the treatjf that was concluded between the United States and'Colombia on the 3d of Octo- ber, 1824, shall cease to have eifeot, notwithstanding what was disposed in the first point of its Slst article. 3d. Notwithstanding the foregoing, if neither party notifies to the other its intention of reforming any of or all the articles of this treaty twelve months before the expira- tion of the twenty years stipulated above, the said treaty shall eontinue binding on both parties beyond the said twenty years, until twelve months from the time that one of the parties notifies its intention 6f proceeding to a reform. 4th. If any one or more of the citizens of either party shall infringe any of the arti- cles of this treaty, such citizens shall be held personally responsible for the same, and the harmony and good correspondence between the two nations shall not be inter- rupted thereby ; each party engaging in no way to protect the offender or sanction such violation. 5th. If unfortunately any of the articles contained in this treaty should be Violated or infringed in any way whatever, it is expressly stipulated that neither of the two contracting parties shall ordain or authorize any acts of reprisal, nor shall declare war against the other on complaints of injuries or damages, until the said party consider- ing itaelf offended shall have laid before the other a statement of such injuries or damages, verified by competent proofs, demanding justice and satisfaction, and the same shall have been denied, in violation of the laws and of international right. 6th. Any special or remarkable advantages that one or the other power may enjoy from the foregoing stipulation are, and ought to be, always understood in virtue and as in compensation of the obligations they have just contracted, and which have been specified in the first number of this article. This treaty was by its own stipulation to remain in full force and effect for twenty years, and then if neither party gave notice of in- tended termination it was to continue in force, terminable by either party by twelve months' notice. IsTo such noticei on either, side has ever been given, and no other treaty with New Granada on this subject has ever been executed. This treaty is consequently of force, and the canal communication, should it be accomplished in accordance therewith, and with the concurrence of the United States that it is in such accordance, which under this treaty must be deemed essential, would be to-day under the protection and guarantee of the United States, and both its projectors and the Government of New Granada would be authorized in certain contingencies to call upon the Government of the United States for the fulfillment of this obligation. Indeed it is proper to add that on several occasions the Government of the United States has been called on to consider and enforce its guarantee. In 1862 Mr. Seward addressed Mr. Adams at Loudon and Mr. Day- ton at Paris as follows : Mr. Seward to Mr. Adams. No. 296.] , DEPARTMKNTi OF STATE, Washington, July 11, 1862. SlK : The treaty between the United States and the Republic of New Granada, signed on the 12th day of December, 1846, contains a stipulation which it will be seen was made not for any special or peculiar interest or advantage of the United States, but for the benefit and advantage of all nations, and which is in the following words, con- tained in the 3oth article of said treaty : " And in order to secure to themselves the tranquil and constant enjoyment of these advantages, and as an especial compensation for the said advantages, and for the favors they have acquired by the 4th, 5th, and 6th articles of this treaty, the United States guarantee positively and efficaciously to New Granada, by the present stipulation the perfect neutrality of the before-mentioned Isthmus, with the view that the free transit from the one to the other sea may not be interrupted or embarrassed in any future time while this treaty exists ; and, in consequence, the United States also guaranty in the same manner, the rights of sovereignty and property which New Granada has and possesses over the said territory." On the 26th of June last Mr. P. A. Herran, minister plenipotentiary of the Granadian Confederation near the Government of the United States, transmitted to this Depart- ment a note, of which a translation is hereto annexed, marked A. In this note Mr. Herran gave information that Mosquera, a revolutionary chief who is engaged in subverting the Granadian Confederation, had sent an armed force to CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 7 occupy the Isthmus of Panama, which proceefling was opposed by an unavailing pro- test of the governor of Panama, and Mr. Herrau therefore) invoked the interposition of this Government in accordance with the treaty obligations above set forth. ' Simultaneously with the reception of this note of Mr. Herran's, substantially the same information which it gave was received from our consul residing at Panama, and the President therefore instructed our naval commander at that port to take care to protect and guarantee at all hazards, and at whatever cost, the safety of the railroad transit across the Isthmus of Panama. Mr. Herran now insists that, owing to the character of the population on the Isthmus and the revolutionary condition of that region, the security of the transit across the Isthmus cannot be adequately insured by the presence and activity of a mere naval force, and that the Granadian Confedera- tion is entitled, therefore, to the special aid of a land force to be sent from the United States, and suggests that it should be made to consist of three hundred cavalry. This Government has no interest in the matter different from that of other maritime powers. It is willing to interpose its aid in execution of its treaty and for the bene- fit of all nations. But if it should do so it would incur some hazard of becoming in- volved in the revolutionary strife which is going on in that country. It would also incur danger of misapprehension of its objects by other maritime powers if it should act without previous consultation with them. The revolutionary disturbances exist- ing in that quarter are doubtlessly as well known and understood by the Govern- ments of Great Britain and France as they are by this Government, and they are probably also well informed of the proceedings of Mosquera, which has moved Mr. Herran's application to the President. He desires an understanding with these two Governments upon the subject, and you are therefore instructed to submit the matter to Earl Russell, as Mr. Dayton will likewise be instructed to confer with Mr. Thou- venel. The points to be remembered are : First. Whether any proceeding in the matter shall be adopted by the United States with the assent and acquiescence of the British and French Governments. Secondly. What should be the force and extent of the aid to be rendered to the Granadian Confederation. Thirdly. Whether these Governments will unite with the United States in guaran- teeing the safety of the trainsit and the authority of the Granadian Confederation, or either of these" objects, and the form and manner in which the parties shall carry out such agreement. I hardly need say that this Government is not less anxious to avoid any such inde- pendent or hasty action in the matter as would seem to indicate a desire for exclusive or especial advantages in New Granada than the British Government can be that we shall abstain from such a course. I am, &D., &c., WILLIAM H. SEWARD. The same, mutatis mutandis, to Mr. Dayton at Paris, No. 180. Mr. Adams responded as follows : No. 201.] Legation oi' the United States, London, August 1, 1862. Sir : Yesterday I had a conference with Lord Russell at the foreign office, in the course of whichi went over the various subjects whereupon I had received instructions in your late dispatches. I propose to review them in the order in which they came up. # # # jf « * # Lastly I read to his lordship the dispatch No, 296, relating to the claim of Mr. Her- ran for the fiilfillment of the guarantee to New Granada to protect the transit on the Isthmus of Panama. I observed that it must be obvious that the Government of the United States could not desire just at this time to enlarge the field of operation for its forces ; hence that its performance of this obligation would necessarily depend only upon a full conviction of its imperative character. On that point it would be glad to consult with other powers most interested in the transit which it was the object to preserve. His lordship seemed already well i nformed of the facts in tha case. He said that he did not yet perceive the contingency to have occurred which called for interpo- sition. It was true that General Mosquera was in occupation of the territory in resist- ance to the Granadian Government. Such tilings were happening all the time in South America. But there had been no attempt, so fa,r as he knew, to obstruct the free transit across the Isthmus, nor did he understand that any disposition had been shown to do so. Until there should be some manifestation of the sort, any demonstration might have the appearance of interposing to effect a different purpose. His lordship added that on the happening of an actual derangement of the communication the Britisl^ Government would readily co-operate with the United States in the measures that might be thought necessary to make good the privileges secured by the guarantee. 8 PEOPOSED INTEROCEANIC CANAL, I believe this closed all the topics to whioh it liad been made my duty especially to call bis lordship's attention. I then took my leave of him, probably for the season, as he spoke of his departure from town next week, and mentioned that the under secre- tary vrould in his absence attend to the transaction of any business that I might have occasion to propose., # , • # # » *f * I have, &c., ' CHAELES FRANCIS ADAMS. Mr. Dayton responded as follows : No. 185.] FAms, August 29, 1862. StR : I have to-day called the attention of Mr. Thouvenel to your dispatch No. 180, in reference to the application of New Granada for assistance in the preservation of the neutrality of the Isthmus and the sovereignty of that country. Somewhat to my suprise, I found that your dispatch had not been submitted by the minister ad interim to Mr. Thouvenel on his return, and that, in point of fact, he had not yet seen it. He informed me, however, that the same question substantially had been presented to him through Mr. Mercier, and that a written reply had been forwarded some days since, ■which doubtless has been or will be promptly communicated to you. Mr. Thouvenel, however, seemed to think your communication was rather in the nature of a confer- ence as to what you should vmder the circumstances do, than as indicating any fixed determination to act in the premises. He says that in tiie view he took he did not see that it was necessary that you should under the treaty do anything at all. That the neutralityjof the Isthmus was not in question and the railroad had not been distiirbed. He said that whether one party or the other had control of the Government of New Granada did not affect the question. That France had not recognized Mosquera or his Government because there was an opposition in arms against him, or, in other words, there was a civil war between opposing parties. That if the railroad were about to be interrupted or destroyed he would not think it improper for the United States to in- terfere, but if matters remained now as they were a month since, when his advices were received, he thought it uncalled for at this time by any treaty stipulation. He referred, too, to the somewhat anomalous position of Mr. Herran, who made the call for interference, and who, he seemed to think, did not represent the Government actually in power. He further said that a few days since the British ambassador had applied to them to know what view the French Government took of this matter, and he had sent him by way of reply a copy of his late note to Mr. Mercier. That they had not as yet heard what action the British Government had taken upon the question. The above is the substance of our conversation. I should have asked from Mr. Thouvenel (as I had from Mr. Rouher; a written a reply, but for the fact stated that he had already written to Mr. Mercier. If you have occasion to communicate to the Gov- ernment of New Granada the view taken by France, a copy of this note, if asked for will doubtless be supplied by Mr. Mercier. ' I am, &c., WM. L. DAYTON. In 1864 the Government of the United States was called upon to in- terfere, if the necessity should arise, to prevent the importation of troops and munitions of war by Spain across the Isthmus of Panama for the purpose of carrying on war against Peru. And although fortunately the necessity did not arise, the Attorney-General, to whom the case was re- ferred for an opinion, held that under the guarantee of the treaty such interference would be obligatory. (Opinions Attorney-General vol. xi -p. 69.) ' In 1865 the question arose as to the obligation of the United States to comply with the reqfuisition of the President of the United States of Colombia (New Granada) for a force to protect the Isthmus of Panama , from invasion by a body of insurgents of that country. In this case the Government of the United States held, under the opinion of the Attorney- General, and so communicated to its representative at Bogota, that the guarantee of Kew Granada in the sovereignty and property over the territory was only as against other and foreign Governments, and did not authorize the United States to take sides with one or the other party in the intestine troubles of that nation. (Opinions Attorney-Gen- eral, vol. xi, pp. 392-3.) CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 9 Pour years after the signature of this treaty and two years after its ratification the United States and Great Britain, April 19, 1850, exe- cuted the treaty which is generally known as the Clayton-Bulwer treaty. The necessity for this treaty having arisen from the complication of the interests of Great Britain and the United States in Central America, its special provisions were confined to the adjustment of such questions in that region as seemed to threaten the amicable relations of these two powers, and provided that neither Great Britain nor the United States would ever obtain or maintain for itself any exclusive control over a ship-canal through the territory of Central America, erect or maintain any fortification commanding the same or in the vicinity thereof, occupy, fortify, colonize, or assume or exercise any dominion over Nicaragua, Costa Eica, the Mosquito coast, or any part of Central America, nor make use of any alliance, connection, or influence with any of these States to obtain any unequal advantages in regard to commerce or navigation through such canal. These stipulations, it will be observed, were confined to Central Amer- ica, and were finally carried out by negotiations with the states of Cen- tral America themselves. These negotiations were sometimes under the joint recommendation of the United States and Great Britain, some- times separate with Great Britain, but, as I shall have occasion to show hereafter in some detail, were known in their progress to the United States, and, with some differences of opinion, frankly and amicably discussed between the two governments, wepe considered as generally satisfactory. But besides these stipulations, confined to Central America, the 8th article of the Clayton-Bulwer treaty provided : The Governments of the United States and Great Britain having not only desired in entering into this convention to accomplish a partid/ular object, but also toestab- lish a general principle, they hereby agree to extend their protection, by treaty stipu- lation, to any other practicable communications, whether by canal or railway, across the isthmus which connects North and South America, and especially to the luter- ooeanic communications which are now proposed to be established by the way of Tehuantepec and Panama. It is evident from the language of this article that the special stipula- tions in reference to Central America were not thus made obligatory in relation to Mexico and !New Granada, as indeed they could scarcely have been without the diplomatic intervention of those powers themselves. But the United States undertook by this provision to extend to Great Britain such participation in the general benefits of any interoceanic connection which might be opened in these countries as was afforded by the principles of the Clayton-Bulwer treaty; and these were to be secured by "treaty stipulations," to be ipade at the proper time and under such conditions as might appear wisest and best when that time should come. This declaration, therefore, of a general principle to be put in practice, could not and did not modify either the rights or obli- gations which the United States had acquired or assumed by the treaty with New Granada of 1846, and which still exist in all their binding effect. The teoncession, the building, and the administration of the Panama Eailroad are a sufficient Illustration of the correctness of this view. In April, 1856, occurred tjie riot at Panama, by which the lives of many American citizens were sacrificed and a vast amount of valuable property was destroyed by a mob, which, if not instigated, were certainly not restrained, by the New Granadian a,uthorities. 10 PROPOSED INTEKOCEANIC CANAL, This atrocious outrage excited universal indignation, and the Gov- ernment of the United States was forced to consider whether it would not be obliged to assume a position of more direct and vigorous author- ity on the Isthmus. In December, 1856, Mr. Marcy, then Secretary of State, sent two special ministers to Bogota witli instructions to submit to the consider- ation of the ISew Granadian Government the project of a treaty, with the draft of which they were furnished. Those instructions and the project of treaty are herewith submitted to you. (Inclosure No. 1.) The neeessity for this new arrangement, Mr. Marcy explained, sprung from the utter inability or unwillingness of the New Granadian Govern- ment to afi'ord the necetsary protection to the transit of the Isthmus, and the consequent imposition upon the United States of its obligations of guarantee. He proposed the creation of a belt of territory twenty miles broad, running from the Atlantic to the Pacific on lines equidis- tant from the line of the Panama road. The sovereignty of New Gran- ada was to be formally admitted, but the government of the territory was to be placed in the hands of two municipalities, one at the At- lantic, the other at the Pacific terminus of the Panama Railroad. The authorities of these municipalities were to be selected by the inhabi- tants of the territory and charged with the police protection of persons and property. He further proposed that the United States should ac- quire either the possession or control of certain islands in the harbors at each terminus, where they could make naval stations, keep sup- plies, and be in condition to enforce eifectively the guarantee of the Isth- mus. He was careful to disclaim all intention of seeking any commer- cial advantage over other nations, expressed his willingness to admit them to a participation in the benefits of the treaty, and declared his" conviction that the terms of the projected treaty did not conflict with the general and generous principles which the United States had joined Great Britian in declaring. This treaty was unacceptable to the New Granadian Government. In 1868 another attempt was made by Mr. Seward to negotiate a treaty which should more precisely define and regulate the relations between the United States and New Granada. Tou will find herewith [inclo- sure No. 2] his instructions covering a draft of projected treaty, and he was so anxious to conclude some satisfactory arrangement that Mr. Caleb Gushing was sent as special agent to join the minister resident at Bogota and endeavor to procure its adoption. Tou will find herewith [inclosure No. 3] the treaty which was signed, and which appears to be in conformity with his instructions, but for reasons of which I am igno- rant it was not ratified by the Senate. In 1870 another effort was made through Hurlbut to reach the same desirable end, and you will find herewith the treaty which he negotiated and the history of its negotiation [inclosure No. 4]. The treaty was acceptable to the United States, but was so extensively and so seriously modified by the Congress of New Granada, to whom it was in due course submitted for ratification, that it could not be accepted by this Govern- ment. These amendments are included in inclosure No. 4. This was the last effort on the part of the United States to negotiate with New Granada on the subject of an interoceanic canal. Congress abolished the mission to that power in 1876, and diplomatic relations were not renewed until the restoration of the mission and the appoint- ment of the present minister in the summer of 1878. During all this time there have been various concessions by the Colom- bian Government to parties professing the desire and ability to execute CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 11 a canal. I do not deem it necessary to call them specially to your attention. They have the same general character, and do not seem to have ever had any real vitality. But I think it proper to send here- with {inclosureNo.5,) the lastconcession,namely,that to Lieutenant Wyse, made March 28, 1878, and with the consent of the Colombian Govern- ment transferred to Mr. de Lesseps, a distinguished citizen of Prance, and universally known as the projector and founder of the Suez Canal. No treaty relations in reference to an interoceanic canal through the territory of Nicaragua were established by the Government of the United States prior to the execution of the Olayton-Bulwer treaty. The attention of this Government seems for a longperiod to have been given chiefly to such connection by way of the Isthmus of Panama. But as the engineering difficulties of that plan attracted its consider- ation, and the acquisition of territory on the Pacific coast gave more and more practical interest to the completion of some such connection, the importance of the route through Nicaragua seemed to impose upon the Government the necessity of some direct arrangement. The great diffi- culty in the way was, that, owing to circumstances which are too^ well known to need recapitulation, the Government of Great Britain had assumed a protectorate over that part of the coasts of Nicaragua and Costa Eica in which lay the Atlantic terminus of any possible connec- tion through those countries, and have given practical effect to its claim of protectorate by the occupation of the port of St. Juan. Mr. Clayton opened negotiations with the British Government for the purpose of adjusting these differences. The object of the negotiations thus initiated cannot be better set forth than in the language of Mr. Eives, who, under the instructions of Mr. Clayton, submitted the views of the Government of the United States to Lord Palmerston. Mr. Bives to Mr. Calyton. No. 3.] London, (SepiemJer 25, 1849. Sik: Yesterday I called upon Lord Palmerston, at his house in Cailton Gardens, for the purpose of holding the interview with him which had been previously arranged. He gaye me a very cordial reception, and took occasion to say that he had come up to London from the residence of Viscount Melbourne in the country, where he had been passing some days, solely for the sake of seeing and conversing with me. After some conversation of a general nature, I stated to him that there being a sort of interregnum at present in the usual diplomatic relations of the two countries, owing to the de- partflre of Mr. Bancroft and the postponement for a few weeks of Mr. Lawrence's arri- val, you had instructed me, while on my wa,yto Paris, to call upon his Lordship and converse with him on a matter which was more than ordinarily urgent and critical ; that it was quite unnecessary, I persuaded myself, to assure his Lordship that the President was anxious to preserve the most cordial good Understanding with her Bri- tannic Majesty's Government ; that in proportion as that desire was sincerely felt, it was seen with no little concern that there was one question which unless great prudence and caution were observed on both sides might involve the two Governments unwittingly in collision ; that shortly before I left the United States a letter from the British consul at New York had beenpublished, assertingin very positive and unqualified terms an exclu- sive claim for the Mosquito Indians to the ownership and sovereign jurisdiction of the month and lower part of the river San Juan de Nicaragua ; that the United States had no disposition to intermeddle in any pragmatical spirit, or with views in the slightest de- gree unfriendly to Great Britain , with that question, but they were necessarily parties to it in their own right ; that citizens of the United States had entered into a contract with the State of Nicaragua to open, on certain conditions, a communication between the At- lantic and Pacific Oceans by the river San Juan and the Nicaragua Lake ; that the Gov- ernment of the United States, after the most careful investigation of the subject, had come undoubtingly to the conclusion that upon both legal and historical grounds the State of Nicaragua was the true territorial sovereign of the River San Juan as well as of the Nicaragua Lake, and that it was, therefore, bound to give its countenance and sup- port, by all proper and reasonable means, to rights lawfully derived by their citizens under a grant from that sovereign ; that the United States, moreover, as one of the prin- 12 PROPOSED INTEEOCEANIC CAJSTAL, cipal commercial powers of the world, and Mie one nearest to the scene of the proposed communication, and holding, besides, a large doiiiain on the western coast of America, had a special and deep national interest in the free and unobstructed use, in common with other powers, of any channel of intercourse which might be opened from the one sea to the other, and that, moved by a proper regard for that interest, it had probably already concluded, or would soon do so, a treaty with Nicaragua for securing a transit for its commerce and public stores by the route in question, on terms open alike to all other nations. I then proceeded to observe to Lord Palmerston that the Government of the United States was particularly desirous that there should be no misconception ©fits objects and motives in this matter by her Britannic Majesty's Government, and that it was of the highest importance that both Governments should be made ac- quainted frankly with the views and intentions of each other; that it had sometimes happened in military operations that detachments of the same army had gotten en- gaged with each other, in the dark, in bloody strife, and so in civil and political affairs, nations, as well as individuals, iu iguorance of each other's real views, and under the influence of a natural but unfounded distrust, were often committed in serious opposition to each other, when a frank and unreserved communication, in the first instance, of their respective objeQts would have brought them to co-operate heartily in the pursuit of a common end; that the United States sought no exclusive privilege or preferential right of any kind in regard to the proposed communication, and their sincere wish, if it should be found practicable, was to see it dedicated to the common use of all nations on the most liberal terms, and a footing of perfect equality for all, securing it beforehand, by proper stipulations, against unreasonable and > oppressive exactions for the use" of it, either from the States through whose t'erritories it should pass, or the individuals or companies who might be authorized to construct it; that the United States would not, if they could, obtain any exclu- sive right di privilege in a great highway, which naturally belonged to all mankind, for they well knew that the possession of any such privilege would expose them to inevitable jealousies and probable controversies which would make it infinitely more costly than advantageous ; that while they aimed at no exclusive privilege for them- selves they could never consent to see so important a communication fall under the exclusive control of any other great commercial power; that we were far from im- puting to Her Britannic Majesty's Government any views of that kind, but Mosquito possession at the mouth of the San Juan could be considered in no other light ihan British possession, and his lordship would readily comprehend that such a state of things, so long as it was continued, must necessarily give rise to di satisfaction and distrust on the part of other commercial powers. Would it not, then, be wise, I said to Lord Palmerston, that Great Britain and the United States should come to a frank and manly understanding with each other and unite their influence for the accom- plishment of an object of the highest importance to both of them as well as the rest of the world, instead of hazarding the final loss of so great an object by jarring and di- vided councils. * * , * * * * # I have, &c., W. C. EIVES. Mr. Clayton to Mr. Lawrence. No. 4.] Dbpaktment of State, Washington, October 20, 1849. Sir: ***** ^ ^ If, however, the British Government shall reject these overtures on our part and shall refuse to co-operate with us in the generous and philanthropic scheme of render- ing the interoceanic communication by the way of the port and river San Juan, free to all nations upon the same terms, we shall deem ourselves justified in protecting our interests independently of her aid, and despite her opposition or hostility. With a view to this alternative, we have a treaty with the State of Nicaragua a copy of which has been sent to you, and the stipulations of which you should'unre- servedly impart to Lord Palmerston. You will inform him, however, that this treaty was concluded without a power or in- structions from this Government.; that the President had no knowledge of its existence or of the intention to form it until it was presented to him by Mr. Hise, our late charge d' affaires to Guatemala, about the first of September last ; and that consequently we are not bound to ratify it, and will take no step for that purpose if we can, by arrange- ments with the British Government, place our interest upon a just and satisfactory foundation. But if our efforts for this end should be abortive the President will not hesitate to submit this or some other treaty which may be concluded by the present eharg€ d' aft'aires to Guatemala to the Senate of the United States for their advice and consent, with a view to its ratification, and if that enlightened body should approve CLAYTON-BULWEE TREATY, AND MONEOE DOCTEINE. 13 it, lie also will give it his hearty sanction, and -will exert all Ws constitutional power to execute its provisions in good faith, a dertermination in which he may confidently count upon the good will of the people of the United States. I am, &c., JOHN M. CLAYTON. The treaty with Nicaragua, negotiated by Mr. Hise and referred to in the above correspondence, will be found in inclosure No. 6. The negotiation thus opened in London was superseded by the execu- tion in Washington of the Clayton-Bulwer treaty, which will be found herewith (inclosure No. 7). Immediately after the conclusion of this treaty, and for the purpose of securing promptly the execution of its provisions, Mr. Webster and Sir John Crampton agreed upon a draft of treaty to be executed by Nic- aragua and Costa Rica with each other,, by which all questions of limits- between them should be adjusted, and such other provisions adopted as would allow the prompt application of the principles of the Olayton- Bulwer treaty to the construction of the canal. That agreement you will find herewith (inclosure No. 8). Mr. Webster to Mr. Lmvrence. No. 77.] Department oe State, Washington, May 14, 1852. Sir : Your dispatches to No. 176, inclusive, have been received. On the 30th ultimo, as you may have been informed through another channel, Mr. Crampton and myself agreed upon and signed a proposition to Costa Eica and Nica- ragua for the adjustment of their disputes upon the subject of boundary and also for the adjustment of the controversy between Great Britain and Nicaragua in regard to the territory claimed by the Mosquito Indians. If this proposition should be accepted by those republics, a quadripartite treaty will probably be entered into by them, Great Britain, and the United States. A principal impediment to the commencement or successful progress of the ship- canal through Nicaragua will then have been re- moved. Considering that the United States and Great Britain have jointly agreed to protect such a canal, and in consequence of their possessions on the coast of the Pacific and of other obvious causes, have a similar interest in its success, it seems desirable that the capital required for its construction should be advanced by the citizens and sub- jects of both countries. If, however, English capitalists should not be disposed to in- vest their funds in the enterprise, the means for its construction can easily be obtained in this country, whenever our citizens shall be satisfied of its practicability and that it would yield a regular and fair profit. Convinced of the great importance of the work, the Government of the United States would always be disposed to aid in the prosecution thereof to the full extent of its constitutional' power. It is not likely, however, that the canal company will need any such assistance from thjs Govern- ment. I am, &c., &c., DANIEL WEBSTEE. Mr. Kerr, at that time minister resident in Central America, and Mr. Walsh were appointed by the United States, and Consul-General Wyke by Great Britain, as special commissioners to submit this treaty to the States of Costa Eica and Nicaragua for adoption. The negotiations failed, owing to the unwillingness of the latter power, and so much im- portance did this Government attach to their joint action on this sub- ject, that Mr. Everett, as Secretary of State, instructed Mr. Kerr, 30th December, 1852: You will also make known to the Nioaraguan minister that the President cannot consent to renew the discussions with his Government on the subject of interoceanie communication by the Nioaraguan route without a satisfactory explanation of the grounds on which, the Government of Nicaragua peremptorily rejected the proposi- tions which in conjunction with Her Britannic Majesty's minister, the Government of the United States agreed upon for the purpose of removing the obstacles which had existed. 14 PEOPOSED INTEROCEANIC CANAL, The failure to settle the questions by this negotiation left open points of difference between the United States and Great Britain which appear in the discussions and negotiations from that date to 1860, but which do not need particular review, for within that period Great Britain, with the knowledge of the Government of the United States, and as was rec- ognized by General Cass, Secretary of State, and President Buchanan, with due regard to the expressed wishes of our Government, negotiated with Nicaragua, Honduras, and Guatemala three separate treaties, the conclusion of which was thus notified to the Government of the United States by Lord John Russell, H. B. M.'s secretary of state for foreign affairs, August 4, 1860, through Lord Lyons : In my dispatch of the 16th August last I instructed your lordship to communicate to General Cass a copy of the treaty which Her Majesty's Government had concluded ■with the Republic of Guatemala, ix)r defining the boundary between that State and the settlement of Belize, • * » and you were directed to state to General Cass franlcly and without reserve the earnest desire felt by Her Majesty's Government that the controverted questions arising out of the Clayton-Bulwer treaty should be settled, and to explain to him the nature of the instructions with which Sir Charles Wyke had been furnished with that object. ' I have now to instruct your lordship to communicate to General Cass the inclosed copies of treaties which have been concluded by Her Majesty with the Republics of Honduras and Nicaragua. These treaties, as you will perceive, ptovide for the relinquishment of the protect- orate of the Mosquito Indians and for the cession of the Bay Islands to Honduras, and thus, it may be hoped, finally set at rest the questions respecting the interpretation of the Clayton-Bulwer treaty which have been the subject of so much controversy between this country and the United States. At the time of these negotiations General Cass had signed a treaty with the minister of Nicaragua known as the Cass-Yrisarri treaty. This treaty was never ratified, but will be found in inclosure 9, together with such correspondence as is necessary to show how far this treaty and these negotiations accorded in their purpose. In 1866 the following correspondence took place between Mr. Seward and Mr. Adams : No. 1745.] ( Department of State, Washington, April 25, 1866. Sir : Toward the close of Mr. Polk's administration the British Government, dis- turbed perhaps by the recent acquisition of territory by the United States on the Pacific, showed what we thought to be a disposition to contend with the Governments of the Central American States with the ultimate object, as was supposed, of acquir- ing dominion there, and also a control of any ship-canal which might lie made between the two oceans by the way of the San Juan River and Lake Nicaragua. British sub- jects had long before that time lent those Governments money, the interest on which was in arrears, chiefly in consequence of the strife between the States which ensued upon their separation and as a confederacy. War measures were determined upon to recover this interest ; among others, the seizure of the island of Tiger, belonging to Honduras, in the Bay of Fonseoa, was made by a British naval force in. October, 1849. This seizure was protested against by Mr. Squier, the United States charge d'affaires in Nicaragua, and a disavowal of the proceedings by the British Government was required by Mr. Clayton in an instruc- tion to Mr. Abbott Lawrence, at London, of the 29th of December, 1849. Insomuch as one route (by some supposed the best route) for the ship-canal from the lake to the Pacific lay along the Estero Real, which empties into the Bay of Fonseca, near Tiger Island, Mr. Squier deemed himself warranted in incorporating in a general commercial treaty with Honduras, which he signed on the 28th of Septem- , ber, 1849, provisions for acquiring land for naval stations on that island or on the con- tinent in its vicinity. By what is called a protocol of the same date, Honduras ceded Tiger Island to the United States, pending the ratification or rejection of the general treaty, provided that the time should exceed eighteen months. These stipulations were entered into by Mr. Squier without instructions from the Department, and when the treaty and additional articles were received, he was re- proved for tliem. They were never laid before the Senate. It is not to be doubted, hov^ever, that they occasioned uneasiness to the British Government, and in a great degree led to the Clayton-Bulwer treaty of the 19th of April, 1850. AND MONROE DOCTRINE. 15 The preaml)le of that treaty slates that its object was to fix the views and inten- tions of the parties iu regard to the ship-canal. The first article of the treaty, still referring to the ship-canal, stipnlatea that neither party will erect fortifications commanding the same, or in the yicinity thereof, or oc- cupy or fortify or colonize or assume or exercise (lomiuion in any part of Central America. It seems obvious that the renunciation by the parties to this instrument of a right to acquire dominion iu Central America was intended to prevent cither of them from obtaining control over the projjosed ship-canal. At the time the treaty was concluded, there was every prospect that that work would not only soon be begun, but that it would be carried to a successful conclusion. For reasons, however, which it is not necessary to specify, it never was even commenced, and at present there does not ap- pear to be a likelihood of its being undertaken. It may be a question, therefore, sup- posing that the canal should never be begun, ^whether the renunciatory clauses of the, treaty are to have perpetual operation. Technically speaking this question might be decided in the negative. Still, so long as it should remain a question, it would not comport with good f^ith for either party to do anything which might be deemed contrary to even the spirit of the treaty. It is becoming more and more certain every day that not only naval warfare in the future, but also all navigation of war vessels in time of peace must be by steam. This necessity will occasion little or no inconvenience to the principal maritime powers of Europe, and especially to Great Britain, as those powers have possessions in various parts of the globe where they can have stores of coal and provisions for the use of their vessels. We are differently situated. We have no possession beyond the limits of the United States. Foreign colonization has never been favored by statesmen in this country either on general grounds, or as in harmony with our pecular condition. There is no change or likely to be any in this respect. It is indispensable for us, how- ever, to have coaling stations under our own flag for naval observation and police, and for defensive war as well as for the protection of our widely spread commerce when we are at peace ourselves. This want, even for our commercial marine, is no- where more sensibly felt than on the track between Panama and San Francisco. The question then occurs what points beyond our jurisdiction would be most eligible for this purpose. Whatever opinion might be entertained in regard to any other sites, there would be no question that Tiger Island would be exceedingly desirable for that purpose. Under these circumstances, you will sound Lord Clarendon as to the disposition of his Government to favor us in acquiring coaling stations in Central America, notwith- standing the stipulation ecntained in the Clayton-Bulwer treaty. In doing this, how- ever, you will use general terms only, and will by no means allow it to be supposed that we particularly covet Tiger Island. You will execute this instruction at such time and in such way as to you may seem best, and inform the Department of the result so tfiat the United States minister to Honduras may be directed to proceed accordingly. It is supposed that you may probably be able to introduce the subject to the Earl of Clarendon's attention by suggesting that a negotiation with a view to the special end mentioned might be made an element in a general negotiation for settlement of the northwest-boundai'y question and of the conflicting claims of the two countries which have arisen during the late rebellion in the United States. I am, sir, &c., WILLIAM H. SEWARD. Mr. Adams to Mr. Seward. No. 1211.] Legation of the United States, Zondon, June 'i, 1866. (Rec'd 13th June.) Sik: Towards the close of the conversation I had with Lord Clarendon on the 29th of last month, I seized an opening to say something on the subject to which you directed my attention in your dispatch No. 1745, of the 2.ith of April. I did so rather in a casual way, as if it were a matter which had been floating in your mind for some time back in consequence of the inconvenience to which our naval steamers had been put during the war for the want of stations at which to place depots of coal for their use. I alluded rather vaguely to the coast of Central America as among the places in which this want had been moat felt, and to the possibility that the terms of the Clayton-Bulwer treaty might interpose difficulties in the way of securing the most convenient point that we might desire. Whilst I did not feel myself altogether prepared i to enter into, specific questions just then, I desired to throw out the subject for his consideration as one to which I might perhaps presently be directed to return with more definite propositions. His lordship replied by asking some questions as to the precise points contemplated, which I ayoided answering on the ground, which is true, that I have not yet been able to refresh my recollection of the terms of the treaty, and by his remarking that the same thing was true as it respected himself. 16 PEOPOSED INTEEOCEANIC CANAL, He only retamed a general impression of many conferences with one of my prede- cessors, Mr. Buchanan, on the subject and arguments presented by him, which he intimated were tedious enough and not altogether calculated to forward a settlement ; these had been terminated by an arrangement made at Washington. He would look the whole thing over at the same time that I might be doing so too, after which he should be in a condition to consider the subject more maturely. I closed by observing that this was precisely the extent to which I had intended to go to-day. I did not understand that there was any necessity of hurry iu the matter. I hail referred to the topic as one which might call for his lordship's consideration at some future moment, and to that end I thought it would be expedient as a prelimi- nary step to bring it to his attention now. I have, &c., ' CHAELES FEANCIS ADAMS. In 1873, Mr. Fish instructed General Schenck : No. 375.] Department op State, \ Washington, April 26, 1873. SiK : You are aware that a main object of the Clayton-Bulwer treaty, so called, of the 19th of April, 1850, was to provide against obstruction by either party to a ship- canal to the Pacific through Nicaragua. A work of that kind was then deemed spe- cially necessary and desirable for us, as California had recently been acquired, the only practicable way to which was across the Isthmus of Panama, or around Cape Horn. For some time previously to the date of that instrument, and especially during the considerable period when the United States were without a diplomatic representative in Central America, it seemed to be the policy of the British Government to avail itself of what was called its protectorate of the King of Mosquitos to wrest from Nicaragua that part of its territory claimed on behalf ofthat Indian chief, including, of course, the mouths of the San Juan Ei ver, by the way of which it was supposed the proposed ship-canal must pass. The Clayton-Bulwer treaty effectually checked this pretension. It, also, in terms, forbade either party to occupy or fortify iu any part of Central America. The British Government, probably actuated by an apprehension that thisstip- ulatiou might-be construed against their claims at Belize, Honduras, instructed Sir fi. L. Bulwer to make the declaration of 29th of June, 1850, when the ratifications were to be exchanged, to the effect that they did not understand the engagements of the convention to apply to Belize and its dependencies. In a note to Sir Henry of the 4th of July, 1850, Mr. Clayton acknowledged that it was not the purpose of the convention to apply to Belize and its dependencies. A similar acknowledgment is contained in a memorandum of the 5th of July, 1850, signed by Mr. Clayton, which says that he at the same time declined to affirm or deny the British title in their settlement or its alleged dependencies. Among the latter what are called the Bay Islands were claimed to belong. The British Government, however, having converted them into a separate colony, this and the continuance of its protectorate, so called, over the Mosquito Indians, were regarded as virtually such breaches of the Clayton-Bulwer treaty as to call for the remonstrances which Mr. Bu- chanan, and subsequently Mr. Dallas, were instructed to address, and which they did address, to that Government. The answer ofthat Government was in substance that the Clayton-Bulwer treaty was merely designed to provide for the future, and was, not intended to affect any rights or claims which Great Britain may have had in Central America at the time of its conclusion. This pretension was effectually answered by Mr. Buchanan in his reply' to Lord Clarendon's memorandum on the subject, which you will find on the file or record of your legation. Ultimately, on the 17th of October, 1856, what is called the Dallas-Clarendon treaty was signed at Loudon. The object of this instrument was to compose the differences between the two Governments, es- pecially in regard to the Bay Islands and the Mosquito protectorate. When the treaty reached here it must have been obvious to the Executive, that if it accomplished either of those purposes, this was in an incomplete and unacceptable way. Still the treaty was laid before the Senate, which body, though it did not absolutely reject it, appended to it so many and such important amendments that they were not accepted by the British Government, and the whole business proved abortive. The British Government then sought negotiations with Nicaragua, Guatemala, and Honduras, separately, to attain the principal objects which it hoped to compass by means of the Dallas-Clarendon treaty, if it had gone into effect as it was signed. The purposes of that Government were in the main accomplished. On the 28th of January, 1860, a treaty between Great Britain and Nicaragua was signed at Managua. Though this instrument restored to that Eepnblic the nominal sovereignty over that part of its territory which had previously been claimed as belonging to the kingdom of the Mosquitos, it assigned boundaries to the Mosquito Eeservation probably beyond the limits which any member of that tribe had ever seen, even when in chase of wild CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 17 animals. Worst of all, however, it confirmed the grants of land previously made In Mosqnito territory. The similar stipulation on this subject in the Dallas-Clarendon treaty was perhaps the most objectionable of any, as it violated the cardinal rule of all European colonisrs in America, including Great Britain herself, that the aborigines had no title to the soil which they could confer upon individuals. This rule has repeatedly been confirmed by judicial decisions, and especially by the Supreme Court of the United States. It is supposed to be superfluous to add that it is understood the grantees of the Mosquito chief, respecting whose interests the British Government was so solicitous, were the subjects of the latter. It is supposed that the expedition of Walker to Nicaragua made such an unfavorable impression on public opinion there, in respect to this country, as to prepare the way fpr the treaty with Great Britain. A rumor was current in that quarter, and was by many believed to be true, that Walker was an agent of this Government, which, it was supposed, had covertly sent him thiiher to obtain control of the country. This, however, was so far from the truth that everything within its power was done by this Grovernment towards preventing the departure of Walker. Besides the treaty with Nicaragua, jnst adverted to, there was a treaty between Great Britain and Honduras, signed on the 28th November, 1859, the main object of which was the restitution to the latter of the Bay Islands, which had for some time before been converted into a British colony. This treaty also contained stipulations in regard to Mosquito Indians in Honduras territory similar to that in the treaty with Nicaragua. On the 30th of April, 1859, a treaty between Great Britain and Guatemala was also signed, by which the boundaries of the British settlement at Belize, so-called, were extended to the Sarstoon Kiver. This instrument contained provisions for the appoint- ment of commissioners to mark the boundaries, and for the construction of a road from Guatemala to the fittest place on the Ailantio coast near Belize. By a supple- mentary convention between the parties, of the 5th of August, 1863, Great Britain agreed, upon certain conditions, to contribute fifty thousand pounds sterling towards tne construction of the road referred to. From the note of the 4th of December last, addressed to this Department by M. Dar- don, the minister of Guatemala here, a copy of which is inclosed, it appears that when the joint commission for running the boundary line reached the Sarstoon River the British commissioner, finding that his countrymen were trespassing beyond that limit, refused to proceed, and the stipulation on the subject, if not virtually canceled, has, at least, been suspended. The supplementary convention not having been ratified by Guatemala in season, it is stated that the British Government has notified that of Guatemala that it would re- gard the stipulation on the subject of the road contained in the treaty of 1859 as at an end. Other important information on these subjects is contained in the letter and its ac- companiments of Mr. Henry Savage, to this Department of the 16th of October last, a copy of which is inclosed. He is a native of this country and at one time was consul at Guatemala. He has frequently, in the absence of a diplomatic agent of the United States in that quarter, furnished this Department with valuable information in regard to Central American affairs. Mr. Dardon says that his Government also regards its treaty of 1859 with Great Brit- ain at an end, and requests on its behalf the co-operation and support of this Govern- ment toward preventing further encroachments by British subjects on the territory of Guatemala. It is believed that if such encroachments are authorized or countenanced by that Government it will be tantamount to a breach of its engagement not to occupy any part of Central America. Bef6re,however, officially mentioning the subject to Earl Granville, it would he advisable to ascertain the correctness of the representa- tion of Mr. Dardon, as to the cause of the discontinuance of the demarkation of the boundary. If the statement of that gentleman should prove to be correct, you will then for- mally remonstrate against any trespass by British sub^jeots, with the connivance of their Government, upon the territory of Guatemala, as an infringement of the Clayton- Bulwer treaty, which wiU be very iin acceptable in this country. I am, &c., HAMILTON FISH. In 1867 a treaty was executed and ratified between the United States and Nicaragua, the 14th, 15th, 16th, and 17th articles of which relate to an interoceanic canal, and copies of the same are hereto attached (in- closure 10). Negotiations with Nicaragua upon this subject were again opened be- tween Mr. Fish and Senor Cardenas, in 1877, the correspondence in ref- 4909 CONG 2 18 PEOPOSED INTEEOCEANIC CANAL, erence to which was forwarded with a confldeatial circular by the Sec- retary of State to the United States ministers abroad, and they are submitted herewith (inclosure No. 11). In further connection with the relations of the United States and the Central American States in reference to interoceanic communication, it is only necessary to ask your attention to the XIV article of the treaty of 1864, between the United States and Honduras (inclosure 12). I would also cull your attention to a correspondence which has not been incorporated in the foregoing summary, because it was not part of those negofiations, the current history of which I have briefly stated. Its importance, however, as an indication of the general views of the Governments of the United States and Great Britain upon the subject of interoceanic connection entitles it to consideration (inclosure 13). It will be observed from the whole tenor of the correspondence of this Government with the Central American States, and with the United States of Colombia, on the subject of interoceanic transit by railroad or canal, that the United States has constantly and earnestly desired to stimulate and assist these States in the opening of such routes of com- merce through their respective territories. The treaties that have been made with these States, as well as those more vigorous and efficient ones which have been attempted but have failed of consummation, have all shown a fixed policy of this Government to corroborate the inadequate resources of these States by the securitj^ to capital and to commerce which the effective guaranty of the power and faith of this country, in support of these routes, was calculated to give. The purpose of this Government that the benefits of the routes to be opened should be shared upon equal terms and with equal security by the commerce of the world has been equally evident and uniform. Its own relations to the enterprises projected have never been pressed beyond the measure of control commensurate with the res^jonsibilitiea and burdens which the recognized exigencies of the situation required it to assume. The paramount interest of the United States in these projects of in- teroceanic communication across the American Isthmus has seemed quite as indisputable to the European powers as to the States of this continent. The course of their action and correspondence, so far as they have treated the subject, exhibits a clear appreciation of the pub- lic and general motives which had marked, and might be trusted to continue to mark, any dealing by this Government with these great interests of commerce and civilization in the Western hemisphere. Ac- cordingly they have shown no disposition to take part in any political arrangements of this American question, except in accord with the United States, and upon an evident desire of this Government that they should do so. Hitherto no movement of private capital, either at home or in the European markets, has shown any tendenby to embrace the opportuni- ties which the diplomatic efforts of this Government had opened to inter- oceanic trafi&c, except in the instance of the Panama Railroad Company a domestic corporation, which, under the shelter of our treaty with Co- lombia, has established and maintained, with the greatest advantages to commerce, its route for freight and travel across the Isthmus of Panama. The ownership of this route by a domestic corporation, the moderate capital invested in it, and its character and structure as a railroad, have imposed no very onerous responsibilities upon this Government in the observance of its stipulated obligations under the treaty with Colombia. The instances in which our intervention has been asked, and those in CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 19 which it has been given, in connection with the Panama Railroad traffic, in pursuance of this treaty, have been brought to notice in the preced- ing narrative. The recent contract or concession made by the Government of Colom- bia with an association of foreign projectors, the text of which is here- with annexed (inclosure "So. 5), brings to attention some considerations of more or less practical importance, according as we may estimate the feasibility of the project and the financial prospects of the projectors. It does, however, present an occasion for a deliberate indication by the Government of the United States of its relations to enterprises of this natare, both in its position as an American power, and under its spe- cific treaty rights and obligations towards the United States of Co- lombia. In the mere aspect of a contribution of capital, in the motive of profit to the investors, on the one part, and of a proprietary administration by Colombia of the transit through its territory as a source of legitimate revenue and local prosperity, the proposed canal might seem to fall within the ordinary conditions of pecuniary enterprise and internal de- velopment, which the general interests of commerce favor, and which it has been the policy of this Government to stimulate and assist. But this view of the subject 'S quite too narrow and too superficial. It overlooks the direct relations of the other American nations to the contemplated change in the route of water-borne commerce, and the in- direct but equally weighty considerations by which the relations of the American nations to the great powers of Europe will be modified by this change. It does not penetrate the formal character of the contract as between private capital and local administration, and appreciate its real and far-reaching operation upon the commercial and political inter- ests of the American continent. • The United States, therefore, as the great commercial and political power of America, becomes, necessarily, a principal party to any project which shall exhibit such solidity and proportions as to distinguish it from the unsubstantial and illusory schemes which have from time to time proposed to solve the problem of interoceanic transit. The question involved presents itself distinctly to this Governmentas a territorial one, in the administration of which, as such, it must exercise a potential control. While this attitude of the United States to the political and commer- cial problem of an interoceanic canal, at whatever point, would seem to attach to their position on the continent, the particular rights and obligations in reference to any transit across the Isthmus of Panama, which grow out of the mutual engagements of the treaty with Colom- bia, fix more definitely the interest of this Government in any material changes of that Isthmus as the theater of these rights and obligations. It is manifest that so stupendous a change from the natural configu- ration of this hemisphere as transforms the Isthmus of Panama from being a barrier between the Atlantic and Pacific Oceans into a gateway and thoroughfare between them for the navies and merchant ships of the world, bears directly upon the weight and burden of our guarantees under that treaty. It is equally manifest, and only less important, that the organization and nationality of an immense capital and the admin- istration of a great and growing force of managers and laborers, and the throng of population likely to attend the prosperity of the enter- prise, affect essentially the conditions under which the United States may be called upon to perform the engagements of that treaty. The guarantee of the neutrality of the transit and of the sovereignty and 20 PROPOSED INTEKOCEANIC CANAL, property of Colombia in the Isthmuth are one thing while the Isthmus remains in its natural and unpeopled state, and quite another when it shall hare been opened to the interests, the cupidities, and the ambi- tions of the great commercial nations, and occupied by populations of foreign allegiance and discordant habits. So obvious are these propositions that it may well be assumed that no contractor negotiations could ever be entered into between private pro- jectors and the Government of Colombia except in contemplation of this position of the United States under the treaty, and of the necessity that both the private interests and the public engagements involved, in reli- ance upon the power and faith of this Government for their protection, must be conformed to its rightful participation and control in any ar- rangements that may seriously affect the discharge of its stipulated' responsibilities. WM. M, EVAETS. List of accompanying papers. No. 1. Mr. Marcy to Messrs, Morse and Bowlin. No. 28, December 3, 1856, with ao- •ompanimeiits. No. 2. Mr. Seward to Mr. Sullivan. No. 3. Convention with Colomhia of January 14, 1869, heing confidential Ex. Doo. L. L., Sen., 40th Cong., 3d session. No. 4. Convention with Colombia of January 26, 1870, being confidential Ex. DoOk Q., Sen., 41st Cong., 3d session ; and confidential Ex. Doc. E., Sen., 4lHt Cong., 3d ses- (ioh. No. 5. Concession from Colombia to Lucien N. B. Wyse, March 20, 1878, with decree of May, 1878, modifying the concession. No. 6. Convention between the United States and Nicaragua of June 21, 1849. No. 7. Convention between the United States and Great Britain, April 19, 1850. No. 8. Proposed basis of an arrangement for settling Central American affairs, April 80,1852. No, 9. Convention between the United States and Nicaragua, November 16, 1857; and Mr. Cass to Lord Napier, April 6, 1858. Same to same, November 8, 1858. Mi-. Cass to Mr. Dimitry, Septeinber 22, 1859. Mr. Cass to Mr. Clarke, October 1, 1859. Same to same, February 18, 1860. Lord Napier to Earl Malmesbury, April 4, 1859. , Earl Malmesbury to Sir W. 6. Ouseley, April 30, 1859. Lord Lyons to Earl Malmesbury. May 10, 1859. Same to same, May 30, 1859. Same to same, May 30, 1859. Earl Malmesbury to Lord Lyons, June 16, 1859. Lord Lyons to Earl Malmesbury, July 5, 18.59. Lord J. Russell to Mr. Wyke, August 15, 1859. No. 10. Articles 14-19 of treaty between the United States and Nicaraena. June 21. 1867. ^ ' ' No. 11. Mr. Fish to United States ministers, February 28, 1877, with correspondenc* between Mr. Fish and Mr. Cardenas. glfe*** No. 12. Article 14 of treaty between the United States and Honduras, July 14, 1864. No. 13. Correspondence between Mr. Cass and Lord Napier as follows: Lord Napier to Mr. Cass, May 31, 1857. Same to same, August 24," 1857. Mr. Cass to LOrd Napier, Sept^mb6T 10, 1857. CLAYTON-BULWKB TREATY, ANiD MONROE DOCTfilNE. 21 DOCUMENT No. 1. 1. — Mr. Marcy to Meaara. Morae and Bowlin. TSo. 38.] Department op State, Waahington, December 3, 1856. Gentlemen : You have teen furnished by the President with a joint authority t» conduct an important negotiation with New Granada. It has been and still is the anxious desire of the President to maintain a cordial good anderstanding between the United States and the Republic of New Granada. He is unwilling to believe that the Government of that republic will persist in the attempt to impose high tonnage duties on American vessels visiting the Granadian ports, or to burden our mails crossing the Isthmus of Panama with a most exorbitant tax. The Government of New Granada has bound itself by solemn treaty stipulations, and an explicit contract with the Panama Kailroad Company, a corporation authorized by its laws and composed of American citizens, as we understand them, to abstain from both impositions. ' It is presumed that an appeal to the good faith of the Granadian Government ia all that can be necessary to induce it to abandon these pretensions. It is not apprehended that you will have any difficulty in coming to a proper understanding upon these sub- jects. The archives of the legation will put yon in possession of the views of your Government thereon. The Panama outrage of the 15th April last, involving the de- struction of several lives and the plunder of a large amount of property, does not seeip to have received the attention or called forth the action which its serious importance demanded from the Government of New Granada. Great pains have been taken by this Government to acquire full information of the transaction in all its details, and the result discloses a scene shocking to the feelings of humanity. The evidence which has been collected, together with the commissioner's report, is placed in your possession. The examination of them cannot, it is believed, leave any doubt that New Granada is bound to make ample indemnity for the injuries sustained by our citizens in that uufortunate affair. Her subsequent action in regard to it has disap- pointed the just expectations of this Government. No efficient measures have beeu taken to punish the guilty actors of that outrage, no attempt has been made to re- cover the property pillaged from the passengers. This iudiffijrence of the Government in regard to the outrageous conduct of the population at Panama on that occasion emboldens the offenders and others like-minded to hope for impunity if engaged in similar lawless proceedings. This course of conduct on the part of New Granada can only be accounted for upon the ground that New Granada has not the ability to bring to punishment the wrong- doers, and to afford proper protection in future to the property and persons on the Panama route. There are good reasons for believing that further outrages would have' occurred ou that route if the population had not been deterred by the presence of a considerable naval force in the harbors of Panama and Aspinwall. The law- less character and the insubordinate spirit of a large portion of these residents justify the most serious apprehensions of danger to the lives of the passengers and to property passing over the Isthmus in case of the withdrawal of our vessels of war from those harbors. No measures of precaution were taken before the lamentable occurrence of the iSth of April, thpugh there were w^ll-founded fears of serious disturbance ; nor since that event have any been adopted by New Granada to discharge he|idutie8 of protection to the property and persons of our citizens on that route. Assuming that the Government of that republic has not the ability to maintain order and affori security, she is bound to agree to any fair arrangement to accomplish those objects. You are herewith furnished with the projSt ot a convention for that purpose, and instructed to urge the acceptance of it upon that Government. So far as respects the establishment of mnnicipalities at Panama and Aspinwall, to which most reluctance is apprehended, it is to be observed that this arrangement is, in all its essential features, similar to the one recommended by this Government and that of Great Britain to be established at San Juan de Nicaragua, or Greytown. It is also similar to that made between Great Britain and the Republic of Honduras in re- gard to the Bay I^ilands. San Jnan i? situated in relation to the Nicaragua route as Aspinwall and Panama are in regard to the route which terminates at those two place?, and the measure deemed appropriate for the safety of the former is equally required for the safety of the latter. Both of these precedents, which have the approval of Great Britain, and the latter the further approval of this Government, may, with great force, be. urged upon New Granada as inducemenlis to the acceptance of a similar ar- rangement at Panama and Aspinwall. It is not designed, as you will perceive, to secure any exclusive advantage to tbe United States. To remove all objections of this sort, an article is proposed securing the common use of the Panama route to all foreign nations. 22 PROPOSED INTEROCEANIC CANALj Should this Government get the control of the road it would at once take meaenre* to satisfy foreign powers that it would be kept open for their common use on fair terms, and they would be asked to become parties with the United States to a guaranty for the nentrality of that part of the Isthmus. If the United States should pay, as they propose to do, a large sum of money to secure the safety of that route, they would nat- urally expect some equivalent therefor, which would probably be some special terms in relation to transportation of their mails, soldiers, sailors, and national property. The arrangement does not propose a full cession of the sovereign rights of New Granada over the territory included in the two municipalities, though it is to a considerable extent a restriction upon those rights. This arrangement is not, it is believed, of an unusual character. In organizing the General Government of the United States the •everal States reserved to themselves a large portion of their original sovereign rights. The second article in the projei proposes a transfer of the reserved rights of New Gra- nada in the charter to the railroad company. The amount of money which the United States proposed to give for this assignment will be more than equivalent to what will ever be paid by the company to New Granada. She ought to recollect that the obliga- tion of the company to pay her for the right of transit is counterbalanced by her obli- gation to afford full protection to the route. To fulfill this obligation would proba- bly cost her an expenditure quite equal to what she would receive from the company. By the proposed transfer to the United States she is entirely released from the duty of protecting the route or paying heavy damages in case of neglecting that duty. The United States have already had to assume this duty by keeping force at each end of the route to preserve order and prevent outrages similar in character and conse- quences to that of the 15th of April last. It cannot be expected that this Government should be satislied with the bare assurance of future protection after what has hap- pened, and New Granada is apparently without the means of restraining and control- ling the population which occupies the Isthmus. She has not shown herself able to punish the well-known perpetrators of a most aggravated wrong, nor has she taken any effective measures to guard against the recurrence of such scenes. It must be evi- dent to New Granada that things cannot remain as they are. You will be able to urge many cogent reasons for the proposed transfer, and it is hoped they will commend themselves to the approval of the Granadian government. The Republic of New Granada is, as well as the United States, deeply interested in a safe and unobstructed passage over the Isthmus within her limits, and it is not an- ticipated that it will be reluctant to concur in the arrangement for that object sug- Hested in the accompanying projet. It is proposed in the sixth article of that projit to purchase or acquire control over the Island of Tabogo, and some other small island, lying together in the harbor of Panama. It is not supposed that New Granda will seriously object to transfer tho govereignty or the control of them to the United States for the liberal consideration which you are authorized to offer. It is important to the commerce of the United States, so long as the Panama jout* is the principal thoroughfare across the Isthmus, that ample provision should be made for the safety of vessels, which will, of course, in great numbers resort to the port of Panama. It is not merely on account of security and refuge for our ships that such a place is needed, but for an establishment to make repairs, deposit goods, timber, coal, &o. Several rival routes across the Isthmus are about to be opened, and the present on» between Aspinwall and Panama will have to contend against a vigorous competition, without nt can provide such conveniences and accommodations as the United States ■would afford if the propt substantially as it is furnished you could be adopted. The future success of the Panama route and its advantage to the Republic of New Granada depend in great degree upon the inducements the citizens and Government •f the United States may have to use it. The possession of the islands in question would do much to identify the interests of this country with the present or any other route across the Isthmus that may be established through New Granada. Article 6, numbered one, in the prq/g« proposes the cession of th^ sovereignty of th» islands in the harbor of Panama, aud also the island of Taboga, distant about nin» miles from the city of Panama. Article 6, numbered two, does not in terms confer the sovereignty of the islands to the United States, but it gives full use and control over them to this Government, and I am disposed to believe that the latter is the form of cession which will be preferred by New Granada, and it would alike be acceptable bo this Government. Should yoa find that New Granada is unwilling to concede to the United States the control over all these islands, or shall require a larger sum than you are authorized to offer, you will then endeavor to get the three islands in the harbor near Panama, namely Fla- menco or Flamingo, Uenao, and Perico. The adjustment of the sums to Vb paid by New Granada as/damages for the affair of the 15th of April, and by the United States for concessions, &c., will, I apprehend ke attended with much difficulty. The sum to be put in the blank of the iifth article CLAYTON-BULWEB TREATY, AND MONROE DOCTRINE. 23 must not he less than $400,000. This will hardly cover the just claims of the sufferers. The aggregate amount of the demands of all descriptions of which this Government has now notice is now about $600,000, but iu many instauces the damages may turn out to be excessive; if reduced to the lowest point the above-named sum will hardly be sufficient to cover them. You will open the negotiation on this point with the sug- gestion of $500,000, but may, if you find a larger sum cannot be obtained, come down to $400,000. I anticipate that for the proposed concessions and grants New Granada will expect a much larger sum than would be reasonable for her to demand or this Government could consent to pay. She probably overestimates the importance of the route over her territory, and particularly so in regard to its value to the United States. You will not fail to remind her that the route through Nicaragua is only temporarily embar- rassed. It may soon be in successful operation, and has advantages aver that of Pana- ma in our intercourse with California and the Territories of Oregon and Washington. There are good reasons to believe that the routes through Honduras and at Tehuan- tepec will be opened without much delay, and if this Congress does not it is probable that the next will authorize the construction of a railroad through our own Territo- ries to the Pacific. When either of these enterprises is executed the Panama route ■will lose its peculiar importance to the United States. This Government is, there- fore, by this arrangement with New Granada procuring special advantages which may not last long, and it will not, therefore, be willing to pay a very exorbitant price for them. The establishment of the municipalities is only to effect that which New Granada herself is under obligation of duty and treaty stipulation to perform. With the United States and our citizens who are interested in the railroad she is under the most explicit engagements to protect the route. If she had fulfilled these engage- ments, and were enabled to do so in future, the arrangements in regard to municipal- ities would be unnecessary, and she cannot, therefore, expect this Government should compensate her for making them. Without receiving scarcely any other advantages than those which this Government and our citizens have a right to receive from New Granada, this Government is taking upon itself burdens in order to render secure a route which New Granada is bound to protect and secure. This security is not for the exclusive benefit of the United States, but is essentially so to New Granada herself, to all other nations, and to the railroad company which has her guarantee for that security. For the possession of the islands, with the liberal authority over them which is contemplated by the convention. New Granada may reasonably expect compensation, yet it is by no means certain that she will not get by the arrangement in that respect more than she surrenders. The establishment of a naval depot on them by the United States will be a great advantage to Panama, and, indeed, to the whole Re- public of New Granada. It is not necessary that I should go into an enumeration ef the benefits of such an establishment to New Granada, for they will readily occur to you ; and in discussing that article in the convention you will not fail to impress them upon the Government of New Granada. • N 4r « * • * I am, &c., W. L. MARCY. P. S. — ^The map herewith sent has four islands on it. If Culebra be an island it most be included in the cession along with the three named in the proj^t. — W. L. Habcy. Flamenco. Ilenao. Perico. Cnlebra. PROJET. Convention ietween the United States of America and theBepublic of Neto Granada for tht adjustment of claims of citizens of the United States and for settling other differences he- tween the parties. Whereas by the thirty-fifth article of the treaty of peace, amity, navigation, and •ommerce between the high contracting parties, concluded on the ISith of December, 1846, and ratified and exchanged on the 10th of June, 1848, a right of way or transit across the Isthmus of Panama within the territiory of New Granada was granted to the United States and the citizens thereof, and certain rights and privileges were by that and other articles of the said treaty conferred on the Government and people of the United States in relation to the said right of way or transit ; And whereas a certain company, denominated the Panama Railroad Company, mainly 24 consisting of American citizens, have, with a view to the enjoyment of the rights and privileges so conferred, and pursuant to a charter granted to said company by the Ke- public of New Granada, constructed a railroad across the said Isthmus ; And whereas it is for the mutual interest of the high contracting parties that this railroad, or any other interoceanie communication, which may be constructed withia the limits of New Granada, should be secured from interruption and rendered safe for all persons and property passing or designed to pass over the same : The high contracting parties do, for the purposes aforesaid, enter into the following stipulations : The President of the United States having, for this object, conferred full powers on James B. Bowlin, esq., the minister j-esideut of the said United States ac- credited to the Eepublic of New Granada, and Isaac E. Morse, esq., a citizen of th» said United States ; and the President of New Granada having conferred similar pow- ers upon , , who have exchanged their said powers, yhioji were found to be in due form. Article I. It ishereby agreed that New Granada shall constitute and declare — First. That the port of Colon, otherwise called Aspinwall, and the port of Panama shall be free ports. Second. That a district of country twenty English miles in width, bounded on the north and south by lines running from the Atlantic to the Pacific Ocean in the general direction equi-distant, or as pearly so as practicable, from the present line of the Pan- ama EaUroad, and including within the same the ports and cities of Aspinwall (Colon) and Panama shall be under the exclusive municipal jurisdiction of the inhabitants re- siding therein. New Granada still retaining the sovereignty over the same, to be exer- cised in auy manner not inconsistent with the municipal jurisdiction and powers herein conceded to the residents of said district. Third. That there shall be two municipalities established within the said district, one including Panama, and the other Colon, otherwise called Aspinwall, and the jurisdiction of each shall extend to a line drawn across said district at a distance mid- way between the two citieg, br as nearly so as may be, and the inhabitants of each shall have the following rights and privileges. Subject to the specified restrictions : (A.) The right to govern themselves by means of their own municipal governments, to be administered by legislative, executive, and judicial officers, elected according to their own regulations. The right to vote at all elections shall be confined to free- holders and residents owniog personal property to the amount of $ . (B.) Trial by jury in their own courts. (C.) Perfect freedom of religious belief and of worship, public and private. (D.) Neither of the siiid municipal governments shall lay any duties on goods ex- ported, nor any duties of tonnage of vessels, except such as may be necessary for the police of the ports and the maintenance of light-houses and beacons. Nothing herein contained shall impair or abridge the right of the municipal authority of the said gov- ernments to levy taxes by the- ordinary mode of taxation on the real and personal property of the inhabitants for the purpose of raising the necessary sums for defraying the expenses incident to the duo administration of public affairs in all branche* thereof. (E.) E^xemption from military service, except for the defense of either of the terri- tories aforesaid. Fourth. That each of the said municipalities shall enact suitable laws for the pro- tiBction of the said' Panama Eailroad, or any other transit way across the Isthmus, for the security of the persons engaged upon the said road or way, and of the passengers and all property passing or intended to be transported over the said road, and shall cause the same to be duly executed. Fifth. That whenever it shall be deemed necessary, and the Panama Eailroad Com- pany or its agent shall make application to the Uuited States consul at Aspinwall or Panama for that purpose, such consul shall require of the mayor or chief mao-istrate of either city a police force for the protection of the Panama Eailroad, or au'y other route of travel and transportation across the Isthmus, within the district aforesaid oi for the security of passeugers or property passing or intended to be passed over the said road or route, or for the prevention or removal of any interruption of the said road or route, the said mayor or chief magistrate shall promptly furnish the same. In case the mayor or chief magistrate shall refuse or neglect to furnish such force at the request of the consul, the consul shall then have authority to make a direct call on the said police, whose duty it shall be to obey such call ; and in case such call is not complied with, the consul may organize and take charge of a temporary police force and those composing it shall h'ave the same protection for their acts as the regular ■ police force are entitled to. The said police, while upon duty for that purpose, "shall be subject to the orders of the United States consul requiring the same, and Khali h» kept in service so long as he shall determine such force to be necessary, and the whole CLAYTON-BULWER TEEATT, AND MONROE DOCTRINE. 25 force, or any persons belonging to it, shall be discharged when the said consul shall request the same to be done ; the civil authorities of the municipalities shall in no way embarrass or interfere with the action of the said police force while executing .th« orders of the said consul for tlje protection and security aforesaid, but shall lend their aid and assistance, if need be, to render the police force efficient for that purpose. In order to defray the expenses of such police force when so called out, the United States consuls at Aspinwall (Colon) and Panama shall have authority to make an as- sessment, or to levy and collect taxes to the amount needed for that purpose, upon the railroad and upon passengers and property passing over the railroad or route ; but no taxes, assessments, or duties shall be levied by the municipal authorities at Aspinwall (Colon) or Panama upon the railroad passengers or their property, or foreign mail?, or any articles of merchandise passing over the said road. But this restriction is not to apply to any tax levied by direction or authority of the United States consuls to defray the expenses of the police which may be called out to protect the railroad, pa»- •engers and property transported over the same. Sixth. That in case the route across the Isthmus of Panama within the district afore- «aid shall be interrupted or shall be fieriously threatened with obstruction or interrup- tion by a force or a power which is likely to be too formidable to be put down by the po- lice force which may be called out for that purpose, as herein provided, then the naval force of the United States which may be in or near either of the harbors at the extremities of said road or route may be used for the purpose of protecting, keepinjg open, and securing a free and safe passage over the said road, and the Government (jf tne United States may also, if it should deem itnecessary, send, for the same purpose, into the said district, or any part of it, or organize therein a military force ; but when- ever the exigency which may have led to the employment of the naval or militaiy force of the United States shall cease the same shall be withdrawn from the said ter- ritory. The high contracting parties shall each appoint, within three months after the ex- change of the ratifications of this convention, a commissioner, and the two commis- sioners shall immediately proceed to establish and mark the lines of the said district, and shall devise a mode for organizing the municipalities, and make needful regula- tions for executing the same. The high contracting parties hereby agree to respect the municipal government! hereby authorized to.be established, and not to interfere in anyway with the exercise of any of the powers granted or privileges conceded to the same, but will maintain ■with them friendly relations. Should either party at any time encroach upon the rights and privileges hereby granted and conceded, the other party may, at its discre- tion, and in any way it may deem proper, aid thesaid municipal government, or either of them, in resisting such encroachments. Should any foreign power invade the terri- tories of thelsaid municipal governments, or interfere with their rights and privileges, either party to this convention may assist these governments in defense of their terri- tory and municipal rights. Article II. And it is expressly agreed by the high contracting parties that nothiug contained In the foregoing article shall give to, or confer upon, the people of the before-described district, or either of the municipalities therein authorized, any of the rights, powers, or privileges reserved by the Republic of New Granada to itself by the charter granted to the Panama Railroad Company, or by any contract made with the said coin|iany ; and that neither the said people or the municipalities shall have any control ()r juris- diction over that road or any other interoceanic communication that may be made in or through that district. And New Granada, for the considerations hereinafter mentioned, does hereby trans- fer and assign to the United States all the rights, title, interest, and control which she -has by charter, contract, or in any other manner in, to, and over the said PaniiraaRail- road, with full power and authority to receive for their own use all sums of money or compensation stipulated to be paid by the said railroad company for the privileges, or for the right of transit conferred by the charter gianted to, or any con tract made with, the said Panama Railroad Company. The United States are authorized and empowered to exact and enforce all the obligations which the said Panama Railroad Company ba* eontiacted with New Granada. And it is hereby furthfjrmore agreed and stipulated that the United States shall have and enjoy, in regard to the said railroad company, all the right and authority in and over the said road that New Granada has at any time had and enjoyed, and they shall have full power and authority to alter, modify, or extend the charter of the said Panama Railroad Company, and to make any agreement with it In relation rto the use of the said road, and thi'y shall also have full and exclusive power tp make any provision for the construction of any other railroad or passage way acrosi ■flxe Isthmus of Panama witjiin the district of country mentioned in the next precedini^ •rticle on such terms as they may deem proper. 26 PROPOSED INTEKOCEANIC CANAL, Article III. If, unhappily, the high contracting parties should be engaged in war with each other, they do hereby mutually agree that the district of coilntry before described shall be neutral territory ; that neither party shall occupy the same for belligerent purposes (reserving the right of either to pass over it), nor shall either solicit or accept the lervices or aid of the said municipalities in the said war, but they shall remain neu- tral ; neither shall in any way interrupt the transit within the district aforesaid, or obstruct or interfere with the ord inary operations of business on the said road, but the Governments and citizens of each of the high contracting parties respectively shall have the same use of the road during any such war, and the same security for their persons and property on the said road and within the district aforesaid as if the said parties were at peace. Article IV. It is hereby agreed that both parties shall have the free use of the Panama Rail- road, or any other means of passage across the Isthmus, withiu the said district ; hut the said road or route shall be open to the common use of all nations which shall by treaty stipulations agree to regard and treat the district of country aforesaid at all times as neutral, and to respect the municipal authorities therein established, and all •uch nations shall have the use of said road or route to be established within the ■aid district upon fair and reasonable terms ; and they do further agree to invite for- eign nations to join in the mutual guarantee of the neutrality of the said country, of the municipal governments aforesaid, and of the unobstructed use of the said Panama Railroad, or any other road or route which may be established across the Isthmus within the limits of the territory before designated. Article V. New Granada hereby stipulates and agrees to pay, in the manner hereinafter pro- Tided, to the United States the sum of $ , to be applied by the said United States to satisfy the claims of those of their titizena who sufferedbodily injuries in the riot at Panama on the 15th of April last, to indemnify those citizens who had their property taken from them or destroyed in that riot, including damages to the railroad company and its property, and to make suitable provision for the families of the citizens of th« United States who were killed on that occasion. On the payment of the above sum of $ for the purposes aforesaid by the Got- •rnment of New Granada the United States releases it from aU further claim or demand •n that account. Article VI (No. 1). In order to protect and render secure the transportation of persons and property across the Isthmus of Panama, and for the full enjoyment of the advantages of that interoceanic communication to the Government and people of the United States, it is important that there should be a safe and commodious harbor for merchan t vessels and national ships near the termination of communication on the Pacific. New Granada does for that purpose cede to the United States the island of Taboga and the other islands in the harbor of Panama, to wit. Flamingo, Uenao, Perico, Culebra,with all the rights and appurtenances thereunto belonging, in full sovereignty, to be owned and held for- ever by the United States in as full and ample a manner as they are or have been here- tofore held by New Granada. It is understood that the cession now made of the said islands shall not impair the title of individuals to any part of the said islands, holding the same by iona-fide grants from the Republic of New Granada or as assignees of such grants. Without other restriction the United States may hereafter exercise full and •iclusive jurisdiction of the said islands of Taboga, Flamingo, Ilenao, Perico, Culebra. Article VI (No. 2). It being important to the interests of both the high contracting parties that thers should be a safe and commodious harbor and ship-yard or naval station at or nearth* termination of the route or transit-way across the Isthmus, on the Pacific, it is hereby •greed and stipulated that the islands of , or near the harbor of Panama, including the island of Taboga, shall be included within the municipality of Panama in the same manner and to the same extent as is the city of Panama ; and that in case the United States shall see fit to establish on the said islands, or any of them, a ship-yard and marine depot, or to occupy any place on the same as a naval CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 27 station, they shall and may he under the authority of the United States. The said islands and the waters aronnd them necessary for the purposes herein mentioned shall he placed under the control and jurisdiction of the United States, and the United States shall have full authority and power to make such laws and regulations as may he deemed hy them necessary or proper for the security of ships, merchandise, and persons on the said islands, and for the protection of the piers, wharves, workshops, huildings, or any other structures that may he erected or constructed thereon. And they may also make such provision for maintaining order, peace, and the good con- duct of persons on the said islands, and to punish offenders against the rules and reg- nlations which may be there established by the United States, or under their authority j and the authority and jurisdiction herein conferred on the United States over the •aid islands and adjacent waters around the same shall be independent of any control by the municipal authority of the city or State of Panama, or the Republio of New Granada, without the express consent of the United States, and then under such re- strictions as may he imposed by them. The United States agree not to protect offenders against the laws or government of the said city, state, or republic who may flee to the said islands, but, on proper de- mand made, to deliver them up or permit them to be taken therefrom. The property of every disoription on the said islands and waters about the same shall be exempt from all taxation, except that which may be imposed by the United States or by their consent, and the persons thereon shall be exempt from the civil and criminal jurisdic- tion of the city and State of Panama or the Republic of New Granada, unless the ex- tent of the jurisdiction or authority of the municipality or the State of Panama, or of the Republio of New Granada, shall be such as the United States may from time to time designate. Nothing herein contained shall interfere with the rights, title, or interest of the owners of the real estate on the said islands. Article VII. For and in consideration of the grants and cessions contained in the foregoing artl- •les it is hereby stipulated and agreed that the United States shall allow or pay to ths- Republic of New Granada the full sum of dollars, currency of the said United States. Of the said sum of $ , the United States shall retain the sum off , specified in the fifth article of this convention, to be applied to the purposes in that article particularly designated, and the balance of $ ■hall be paid to the Republic of New Granada, in the city of New York, within sixty days after the exchange of the ratifications of this convention. Article VIII. The present convention shall be ratified by the President of the United States, hy •nd with the advice and consent of the Senate thereof, and hy the President of the Republic of New Granada, with the consent and approbation of the congress of the- same; and the ratifications shall be exchanged in the city of Washington within one year from the date of the signature thereof, or sooner if possible. In faith whereof the respective plenipotentiaries have signed and sealed these pres- ents in the city of Bogota, on the day of , in the year of our Lord one thousand eight hundred and fifty . DOCUMENT No. 2. S. — Mr. Seward io Mr. Sullivan. Ko. 58.] Dbpaktment of State, Washington, September 27, 1868. Sir : Your dispatch No. 82, of the 12th August last, on the subject of the proposed canal across the Isthmus of Darien, has been received and taken into mature consid- eration. • In reply, I am directed to make the following observations on the articles of the eonvention submitted by you and on the amendments desired by the Government of the United States of Colombia: "Article I. "The United States of Colombia agree and consent that the United States of America shall make, and the United States of America agree to make the necessary snr- 28 PROPOSED INTEBOCEANIC CANAL, •T«y for such Bhip-oanal, and if they ascertain the same to be feasible, then to locate the fi9.me, together with all its neoesBary appendages and appurtenances of locks, ports, harbors, stations, supply-feeders, and sluices on land and sea, upon the domain and ■ffithin the jurisdietioji of the United States of Colombia, and to adopt a plan of con- jstruction and to make thorough and detailed estimates of the expense and cost of construction ; and for that purpose the United States of America may employ proper civil and military superintendents, engineers, accountants, and other agents, and laborers, ships of war and transports, the military force, however, not to exceed a* an J time five hundred rank and file, without express consent of the United States of Col- ombia first obtained, and all persons engaged in such service, whether civil, naval, or military, shall, while so engaged, render lawful submission and obedience to the civil authorities of Colombia. When the survey and locations shall be complete the Presi- dent of the United States shall certify the same, with the necessary maps and descrip- tions, to the President of the United States of Colombia, and the same surveys, loca- tions, anddesoriptions shall be filed in the archives of the two Governments. The route and plan thus fixed may afterwards be varied as occasion shall require under the au- thority of the United States of America, due notice being given of such modificatioui to the United States of Colombia. " Said canal shall, in no case, be constructed on or across the route of the Fanam> Eailroad, unless the company's consent has been first obtained." EXPLANATION. Article 1 is understood to be agreed upon by both parties. " Article II. "It is proposed in behalf of the United States to substitute in lieu of Article what follows : "The United States of Colombia agree to concede, set apart, appropriate, and devote to the purposes of such ship-canal all the territory, including land, ocean, and tribu- tary waters, which shall be designated for the purposes thereof in such plan, and which may be found necessary, including in any case ten miles of waste, unsettled, and un- improved lands on each side of the canal throughout its entire length; and all th» materials for siich construction found within the territory so to be conceded. " Private owners of property being entitled to have a just indemnity, to ettect which the Government of Colombia shall order expropriations to be made according to its laws ; but the valuation thereof in no case to be enhanced by reason of the proposed or actual construction of the canal. "At the expiration of this convention the United States shall give back to the Col- ombian Government all such lots or portions of the lands herein ceded on both sides of the canal as shall not have been appropriated or be necessary for the use or purposa of the said canal, and also all such lots or portions thereof as shall not have been alien- ated or disposed of by the United States of America." EXPLANATIONS. 1. The English word " waste" used in the Colombian amendment does notwith suf- ficient accuracy describe unsettled or unimproved lands, but rather means lands whicli ,are worthless or incapable of improvement or use. 2. The amendment proposed by the Colombian ministers seems to concede a tract of land ten miles wide on each side of the canal for the purposes of that canal, while in point of fact it concedes only half that quantity of land. The United States are to build the canal and defray its cost. All the lands which shall be conceded to them are expected to be sold and its avails to be applied in reimbursing the cost of the con- struction. Colombia is to pay nothing ; and yet according to the amendment proposed by her ministers, Colombia is to receive the avails of the sale of one-half of the terri- tory conceded. The concession of the lands required by the United States would not be required at all if it were believed that the capitalists would be procured without that inducement. I cannot too earnestly express my conviction that the real hazard of the enterprise is not that Qolombia shall concede more than is necessary to secure its success, but that all the inducements which can be offered by both Governments will be insufficient to invite the necessary capital. 3. It is supposed, indeed, that under the expropriation laws of Colombia, private property would be valued without enhancement by the reason of the proposed or ac- tual construction of the canal. There can be no harm, however; in establishing that principle definitely. The public patrons of the enterprise could afford to take no private property at all for the uses of the canal if they were to be charged in favor o/ CLAY TON-BUL WEB TREATY, AND MONROE DOCTRINK. 29 Individual citizens of Colombia ■with profits upon the outlay to be made by the patron* themselves. 4. The modification proposed by me in regard to the restoration of portions of domain at the expiration of the convention sufficiently explains itself. " Article III. — (Newly proposer! by this Government.) "The United States of Colombia stipulate not to nodertake or allow the opening of any other interoceanic canal, or of any new railway through their territory, from the Atlantic to the Pacific Ocean, without the consent of the United States."^ EXPLANATION. 1. The intelligent economists who have been consulted are of opinion that the ar- ticle as originafly proposed and as approved by the Colombian ministers, would b« iDe£fectual as an inducement to capital without excluding any new interoceanic rail- way, as well as any other interoceanic canal. "Article IV. " The outlay, cost, and expense of the survey, location, construction, and equipment of the said canal and its ports, stations, depots, and harbors, including damages paid for private property, and the indemnity that may correspond to the Panama Railroad Company, should the case arrive, in accordance with the contract, celebrated by the Government of Colombia, and approved by Congress on the 15th of August, 1867, shall be for the account of the United States of America, but exclusively with reference to the purposes of this convention. The objects devoted in Article II by the United States of Colombia for the work of the canal shall be delivered to the United States of America, but exclusively for the purposes of this convention." EXPLANATION. The Colombian minister's amendment seems to be reasonable and proper, and is accepted. "Article V. — (New as now proposed by this Government.) " The United States of America shall construct the said canal, with its appendages and appurtenances, and may employ the necessary force of skill, art, and labor for that purpose, and may also maintain a necessary military and naval force. The civil employes engaged being subject to the laws and Government of the United States of Colombia ; and the United States engage that the military and naval employes so engaged shall always conform themselves to the laws and Government of the United States of Colombia. The naval and military forces shall, in no case, exceed one thou- sand, rank and file, of both armies, unless the express consent of the United States of Colombia shall have been first obtained." explanation. 1. The original Article V, on revision, seems to require amendment so as to prevent possible differences between the two nations in regard to the employes. Civil employes will be directly subject to the laws of the Colombian Government as administered by the authorities. The United States guarantee , that the military and naval forces, while remaining under the command of their own officers, will respect and obey those laws. 2. Doubtless five hundred, rank and file, would be an adequate force to prpteot sur- veyors against hostile Indians or other disturbers of the peace ; but in prosecuting a work of 80 great magnitude as the proposed ship-canal, the number of workmen em- ployed at times might well be expected to fully exceed the number of five hundred or one thousand. The Secretary of War of the United States has been consulted, and he is of opinion that to secure the public peace and a continuance of work in the contingency of sur- prise, it would be well to stipulate for a force of one thousand. There would be no reason In any case to apprehend that the United States would be disposed to employ a force unnecessarily large. Every consideration of conveuieiice and economy will incline them to use the smallest number possible. The United States have never shown a disposition to maintain military forces for political purposes in foieign countries. 30 PROPOSED INTEEOCEANIC CANAL, "Article VI. "As fast as the canal and its appendages and appurtenances shall be constructed, th» control, possession, direction, and government of the same shall belong to and be exer- cised by the United States of America, the Government of the United States of Colombia at the same time being always at liberty after the exchange of this convention to main- tain a permanent committee of agents, with a ri^ht to examine the accounts, inspect the operations concerned, measure the tonnage ot vessels, and report thereupon to the Crovernment of Colombia ; but not to interfere with the survey, control, management, direction, and working of the canal." EXPLANATION. This Government acquiesces in the modincations proposed by the Colombian min- isters. "Article VII. " The Government of the United States shall establish a tariff of tolls and freights for the said canal. Such tariff shall be upon a basis which shallnot allow of more than an aggregate of twenty-five per cent, of net protits after i3rst deducting the outlay upon the survey, location, construction, management, operation, and control of the canal, Includingin the cost of construction the damages which shall necessarily be paid for private property and indemnities, i;f auy shall be found necessary and proper, to the Panama Railroad Company. Further, such tariff shall be on a basis of perfect equality for the two nations, and for all other nations who shall be at peace with both the United States of America and the United States of Colombia. But nothing herein contained shall be construed to prevent the two Governments from agreeing upon such a modification of the tariff as will enable the United States of Colombia to receive a reasonable proportion of such net revenue as is before mentioned, or such modifica- tions as may discriminate in favor of both nations, if any political necessity now un- foreseen sliall at any time require it." EXPLANATION. 1. Due consideration has been bestowed upon the amendments to this article pro- posed by the Colombian ministers. The result is that the United States'find them- selves obliged to decline all of those proposed amendments. The seventh article, as originally written, proposed that the tariff of tolls and freights shall be on a basis of perfect equality for both nations, and for all other na- tions who shall be at peace both with the United States of America and the United States of Colombia. The Colombian ministers, on the contrary, propose that the tariff shall be on a basis of eqnalitj- for all nations, whether at peace or war. If, unhappily, Colombia shall at any time engage in war with a foreign nation, the United States of America do not suppose that the Colombian Government would expect to furnish nnlimited transporta- tion to its armed enemy. Nor could the United States of America consent to guaran- tee that Colombia would adhere to any possible stipulation for the practice of such magnanimity. If, unhappily, the United States of America should be involved in a war with a for- eign nation, a contingency which is not expected to take place within the life of the proposed convention, no administration here could permit itself to allow the foreign enemy to use a work constructed by the United States, or their citizens, for the ad- vantage of that enemy and to the prejudice of the United States of America. With all due respect to the Colombian ministers; we think that the amendment pro- posed in this respect is impracticable and visionary. 2. The original Article VII proposes that the tariff shall bo upon a basis which shall not allow a profit of more than twenty-five per cent, upon the entire cost of the canal with its indemnities, &c. ' The Colombian ministers propose to strike out this limitation of the revenue profit of twenty^five per cent., with a view, doubtless, that by allowing larger profi.ts the two Governments may derive revenue from the canal. The proposed ship-canal, like any other artificial channel of trade, will all other things beiDgequal,commaud business in proportion as its tariff of revenue is reduced. It is a thing hitherto unheard of that any such public work of internal improvement yields or can yield permanently a profit of more than twenty-five per cent, upon its cost. It remains to be seen whether the Darien ship-canal will be more productive. It is certain, however, that every dollar of revenue that either the United States of America CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 31 or the United States of Colombia can derive from the canal will be a tax, serving to abate its effectiveness tor the purposes for which it is designed. If there are capitalist* who would invest their money in constructing this canal with the purpose of affording direct revenue to either the United States of America or the United States of Colom- bia, it is believed this is the tirst instance where capitalists have ever shown so great devotion to any government. The principles of political economy which prevail in the United States of America forbid, and will continue to forbid, this Government from «ver taking even one dollar of net revenue from the construction of any channel of navigation or transport. In opposition to such a policy the United States of America encourage capitalists by offering them adequate and liberal rewards, and by reducing profits encourage business upon artificial highways. Government revenues are only expected to be de- rived from the increase of values and production which result from the construction of such works. The Government of Colombia is invited to consider whether it is not impracticable for it to construct works of improvement upon principles difl'erent from those which are here perhaps too sharply expressed. If it shall turn out that we are mistaken in our present anticipation that the work shall prove sufficiently productive to yield revenue for the two Governments, Article VII, as originally prepared, reserves for consideration after that the development should be made the proceedings to be adopted for the division of those profits. 3. The commissioners propose (1) a stipulation that the annual expense of th»i under- taking shall in no case exceed thirty per cent, of the annual proceeds, without the consent of both contracting parties; (2) that the net proceeds of the undertaking correspondiug to the United States of America shall be preferentially applied from the first year to the reimbursement of the capital invested ; and (3) that to deter- mine the net proceeds of the undertaking no deduction shall be made for interest on the capital invested in the work, nor for the amount destined as a reserve for the sinking fund. Upon careful inquiry, I am satisfied that the restrictions thus proposed would defeat a subscription of the necessary capital for the construction of the work. On the subject of this article generally, I may be excused for saying that the United' States of America have been able to secure the undertaking of the Pacific Railway, now in such prosperons progress, through the territory of the United States only bj allowing to capitalists guarantees more liberal, and promises of reward more munifi- cent, than those which are stipulated in this Article VII, as now invested upon, with a view to the construction of a ship-canal by capitalists of the United States in a for- eign and distant country. "Aeticlb VIII. "The United States of Colombia shall retain their political sovereignty and juris- diction over the canal and the territory pertaining thereto, but they shall not only allow, but guarantee, according to the constitution and laws of Colombia, the peace-* able enjoyment, control, direction, and management of the same, as before specified." EXPLANATIONS. The amendments proposed by the Colombian ministers to Article VIII seem reason- able, and are accepted. "Article IX. " The United States of America and the United States of Colombia shall have right to use the canal for the transportation of troops and munitions of war, but no other nation shall have such right without the consent of the two contracting parties, and in case of war, in which neither the United States of America nor the United States of Colombia shall be parties, the canal shall be neutral to all other nations." EXPLANATIONS. The projected treaty comes back with the words, " rejected by Colombia," written opposite this Article IX. No explanation for the rejection has been communicated. By expunging that article the treaty would leave the proposed ship canal to become a common military road for tlie transportation of armies, and of military and naval munitions by all belligerents of whatever nation they might be. If it may be supposed, by way of illustration, that Great Britain and France are belligerents in the East, or that China in the East and Great Britain in the West, or that Austria and Prussia, or that Spain and the South American Republics, or that 32 PROPOSED INTEKOCEANIC CANAL, Bnssia and Japan, should become belligerents, and that there might not only be on» war betweeo some of those parties at one time, but half a dozen wars prosecuted among bo many belligerents at the same time. In that case, according to the view of the Colombian convention, not only one of those belligerents but both the parties engaged in one actual war, and, indeed, all the parties engaged in all the conflicts- concurring at the same time would have a right to use the Darien Ship-Canal as a military road. Is it to be supposed that those belligerents in the heat of conflict would conform themselves to the regulations which the United States Of America might establish for the use of the canal, or would submit themselves to the laws and police of the United Statt-s of Colombia in the use of it for such hostile and probably fatal pur- poses ? One of the two belligerents might think it would gain an advantage over its enemy by burning the ships that were carrying munitions and troops through the canal ; another, or a confederacy of others, might think it would be advantageous to their cause to destroy the canal itself. Is Colombia able and willing to guarantee to the United States of America the maintenance of the neutrality which she thus proposes to all belligerents ? What inducenients does Colombia offer to the United States of America to give such guarantee on their part ? Even though one of the belligerents should be at war with Colombia itself, the Darien Ship-Canal must nevertheless be neutral. The armed enemy of Colombia must be allowed to introduce his armies through the terminal ports and the canal to the very capital of Colombia, and to substitute itself in the place of Colombia as depositary of the key which unlocks the American conti- nent to the ambition of foreign powers. The United States of America have less reason perhaps than any other nation has now or ever has had to desire, fear, or expect to be engaged in war with any foreign State ; but can the Republic of Colombia expect, in the event the European States should at- tempt singly or by confederacy to overthrow republican institutions and to restore by force imperial or despotic power in the American continent, that in such a case the United States of America would allow a public enemy of the American continent the use and advantage of a work constructed by two American nations ? Even it the two nations were to be so shortsighted as to leave such advantages open to an enemy of either or both nations, the capitalists of any country who should be invited to engage in' constructing a canal would instinctively decline to grant the solicited investment. Article IX, as originally submitted, carefully consults the sovereignty, integrity, and safety of the United States of Colombia, while in case of war it saves all necessary advantages to both countries. The Secretary sincerely hopes the Colombian ministers will reconsider their rejection and accept the article. "Article X. " Columbia shall imposenotollsordutiesof any kind on vessels, passengers, money, merchandise, and other objects which may be conveyed through the canal from one ocean to another, but such effects as may be destined for home consumption or trad* in Colombia, shall be liable to such duties as are or may be established." EXPLANATION. The amendments proposed by the Colombian ministers are accepted. "Article XI. " Notwithstanding what is before said of guarantee, if a military or naval force shall be at any time found necessary to maintain the protection and service of the canal it shall be maintained at the equal expense of the contracting parties. ' "Either party failing to contribute its proportion of such force shall indemnify th» other for excess of force and expenditure." EXPLANATION. The Colombian ministers have raised no objections to this article, and it stands as •riginally drawn. "Article XII. "The nentral rights and privileges hereinbefore specified shall continue for th« period of one hundred years after the canal shall have been brought into operation «t CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 33 the end of which time the canal and its appendages and appurtenances shall revert to the United States of Colombia, on their paying to the United States of America an amount equal to the original cost of the survey, location, and construction of the canal and expenditures for the same, deducting any net profits that shall have been received by the United States of America exceeding an interest of ten per cent." EXPLANATION. We have carefully considered the amendments proposed by the Colombian ministers and are of opinion that they could not prudently be accepted. The whole article is rather visionary than practical. The reversion of the canal to the United States of Colombia ia delayed an hundred years. No one now living can foresee the financial, political, and social condition which will exist in the two countries at that distant period. Indeed, it is very probable that such changes may occur in both countries that the parties will, by common consent, agree more than once to modify the agreements now made long before the period as- signed. It may be foreseen that such modifications will be desired by the Republic of Colom- biaif it shall go on increasingin resources, population, and strength, aa itisto be hoped it may. The ti-rms of revision mentioned in Article XII were fixed in anticipation of some such early reconstruction of the agreements, rather than with a view of their being insisted on only at the end of one hundred years. What seems conclusive upon the subject is that capitalists could not be expected to invest funds in such an enter- prise with a condition of a future surrender of their property in the canal unless they had reason to expect that they should be allowed by the Government to realize ten; per cent, upon their investments if they shall find it possible. "Article XIII. " The United States of America may by law devolve all its rights, franchises, and duties, property and obligations touching survey, construction, or preservation of the propostd canal herein contained upon any individual citizen or incorporated associations of citizens of the United States, and in that case such citizen or citizens shall enjoy all the rights of property and privileges, and be subject to all the obligations and engage- ments herein contained, and they shall always be subject to the control and direction of the United States of America as declared by law. But the political obligations., herein assumed by the United States of America and the United States of Colombia are permanent and indefeasible." EXPLANATIONS. We feel obliged to disallow the amendments proposed by the Colombian ministers, and to insist npon the article as it was originally written. 1. The amendments of the Colombian commissioners are supposed to have arisen under a very natural misapprehension of facts and circumstances. The commissioners seem to suppose that the United States of America stand not only well disposed but fully prepared and impatient to commence, prosecute, and complete the projected ship- canal by a direct application of executive and administrative powers and faculties, itt must have been this belief on the part of the Colombian ministers which induced them to propose that the United States of America shall not at all devolve the construction of the canal upon any private company, and that the care and conduct of the canal itself shall not be devolved npon any such company until the canal shall have been fully constructed and brought into operation. It is supposed that the commissioners persisted under the same belief in prescribing contingent forfeitures of the rights of the anticipated company. Frankness on the part of the United States requires ma to eay that in regard to these important points the Colombian ministers are acting under a grave misapprehension. The territory of the United States is full of canals and railroads and other works of material improvement. The length of canals in this country is measured by thousands of miles, the length of our railroads by tens of thou- sands of mi les. Nevertheless there is not, and there never was, within the territory of the United States of America one mile of railroad or canal which was directly con- structed by the Government of the United States of America, or over which the United States of America exercises directly rights of property or control. The United States construct only fortifications and other works of military strategy or defense, and navy-yards, light-houses, custom-houses, and the like. Every work of internal improvement in the United States has been made either by States or by corporate companies or by private individuals. What the Government of the United States do ^d always do in regard to such works of internal improvement is to accept or sanction such enterprises when undertaken by the varioas States or by corporate 4909 CONG 3 34 PROPOSED INTEROCEANIC CANAL, bodies or by private individuals, and lend them aid by way of compensation or loan or protection, with other practical enconragement. The Government of Colombia XB familiarly acquainted with the Panama Railroad, which was made and is owned by a corporate company of the United States of America, and enjoys only the recogni- tion, sanction, and protection of the Government of the United States. Even the Pacific Railroad, which, although incomplete, nevertheless stretches near halfway across the continent at its widest part, was begun and has been thus far prosecuted, and will be prosecuted to the end, by corporate companies so encouraged and patronized by the Government. Precisely the same course of proceeding is contemplated by the present convention in regard to the Darien Ship-Canal. It is believed that no other mode of proceeding in regard to the construction of the proposed canal could secure the assent or appro- bation of the Congress of the United States. It would be easy 10 show that this in- direct mode of proceeding would tend greatly to the security and advantage of the United States of Colombia. Private citizens of the United States and corporate com- panies created under their laws may be expected to be held by proper obligations to respect and obedience of the laws and authority of the United States of Colombia. On the other hand, I am unable to conceive of any proceeding that could be more perilous to the United States of Columbia than that one should allow a stronger gov- ernment like that of the United States to become directly th e proprietor or conductor ■of a ship-canal with free ports at its termini on the two oceans. If, contrary to these views of the case, the Colombian Government shall continue to regard with disfavor the construction of the canal by a company or associations under the laws of the United States, and with their sanction, then the present negotiation may be immediately brought to an end. I trust, however, that the practical view which I have suggested will be accepted by the United States of Colombia, and that thoy will not insist upon their proposed amendment, which denies to the United States Government the privilege of devolv- ing ihe work of constructing the canal upon individuals or upon a corporated com- pany. 2. This explanation having been made,'it is not thought unlikely that the Colom- bian Government will assume that alieady some private individuals in the United States have organized themselves into an association, or that such individuals are now standing ready and eager to accept the powers and privileges which are to be stipulated in the present treaty and to engage with the necessary capital in the oou- stmction of the Darien Ship-Canal. If this expectation has been or shall be formed it should be dissipated promptly. Engineers the best qualified and informed estimate the cost of constructing the Darien Ship-Canal at one hundred millions of dollars in gold, and they calculate that it involves a sacrifice by pestilence and other forms of accidents of twenty-five thou- sand lives. No citizen of the United States of America, capitalist or otherwise, has moved or can be moved to engage in the vast enterprise except as he is influenced by the political, moral, and social considerations which have inspired the proceedings of the Executive Department of the United States in the present negotiation. The Executive Department believes, and thinks it has reason to believe, that were adequate inducements offered by the two countries a corporate association could be formed, competent to the enterprise, and called into activity ; but the entire proceed- ing is experimental. No corporation will come forward and no capital will be subscribed unless such in- ducements and guarantees as have been suggested shall be furnished by the two Gov- ernments. The assessments, charges, penalties, and forfeitures which the Colombian ministers propose would alarm and etfectively deter capitalists from accepting the invitation ■which the projected treaty, as drawn up by me, is intended to hold out to them. It is not supposed that the great achievement contemplated can beeffected without immediate cost and expense and sacrifice to be incurred by both nations. The amount of accumulated capital in the markets of the world is too small, and the field for its employment is relatively too large, to justify an expectation that one hundred million ■ dollars would be voluntarily and impetuously poured into the treasuries of either of the two Governments, or b'^th of them, or of any corporate body that shall avow itself willing to undertake the work. Entertaining these views, I am of opinion that the stipulations proposed in the amendments of the commissioners to Article XIII are im- practicable and must be disallowed. "Article XIV. " Such citizen orcltizens shall likewise hold their property, rights, immunities, and privileges in and about the same ship- canal subject to the authority of the Congress of the United States, and subject in like manner to the reservation herein contained in favor of the United States of Colombia." CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 35 EXPLANATION. This article has been rejected by the Colombian ministers. It is insisted upon by the United States. Reasons for the persistence will easily be inferred from the ex- planation which has been communicated under the head of Article XIII. It is proper, however, to further say that the effect of Article XIV would be to se- cure to such corporate company as should be authorized by the United States to prose- cute and operate the Darieu Ship-Canal just the same powers, and no others, than those which the draft of i he treaty saves to the United States of America, and subjects such company to all the obligations and duties which the treaty proposed to devolve upon the Government of the United States, in case that Government should undertake to construct and qperate the canal directly. "Article XV. "This treaty shall cease and determine if the United States of America shall not make or cause to be made the surveys and locations of the canal herein provided for within three years after the ratification and exchange of this convention, or if they shall fail to begin the construction of the canal or cause it to be begun within five years after such ratification, or if they shall fail to cause it to be completed within a period of fifteen years after such ratification." EXPLANATION. The Colombian commissioners accept this article. "Article XVI. "If, unhappily, any difference shall arise between the United States of America and the United States of Colombia growing out of this treaty, or out of the survey, loca- 'tion, construction, use, management, or revenues of the projected ship-canal, the par- ties mutually engage not to resort} to war on that account,, but to refer all such diffi- culties and controversies to the arbitrament of some foreign nation which shall be impartial between the contracting parties, and which shall be favorable to the ad- vancement of commerce, peace, and civilization throughout the world. EXPLANATION. We would prefer to insist upon Article XVI, here recited. It seems that the present is a suitable and convenient time for the two American nations to negotiate a treaty to manifest their confidence in the stability and wisdom of the republican system of gov- ernment on the American continent. If, however, the Colombian commissioners shall persist in their proposed amendments the minister of the United States of America is a,t liberty to concede them. "Article XVII. "The Colombian ministers propose to amend this article by substituting one which declares that the convention shall not take effect until it shall have been approved by the Congresses of both contracting nations, and exchanged in due form." I propose to amend the amendment of the Colombian commissioner by substituting in place of the original article a new article as follows: "Article XVII. "In considerationof the constitutions of the two nations, andof the magnitude and weight of the matterscontained in this convention, it isdeclared that it shall not take effect, except as to the provisional surveys, until laws approvingthe convention shall have been passed by the respective Congresses of the United States of America and the United States of Colombia, and exchanged in due form, and that the provision for survey may take effect from the time when laws have been passed, approving of the convention by the Consiress of the United Statss of Colombia, and when the conven- tion shall hate been duly ratified by the President, by and with the consent of the Senate, of the United States of America." EXPLANATION. A reliable preliminary survey of the Darien Ship-Canal is an object most desirable to be accomplished even if the provisions contained in this treaty for ooustructing the canal are unattainable. 36 PROPOSED INTEEOCEANIC CANAL, The Congress of the United States have already appropriated sufficient funds and conferred on the President the power to make such a survey ; so that no further action on that subject by the Congress of the United States is deemed necessary. . ., , All that is required with regard to the survey is, that the consent of the United States of Colombia shall be given to that survey. While I think it would be unfor- tunate to lose the survey proposed in this amendment, I still leave the executioa ot that preliminary work to the full and fr6e consent of the Congress of the United btates of Colombia. "Aeticlb XVIII. "The present convention shall be approved and ratified by the President of the United States of America, by and with the advice and consent of the Senate thereof; and by the President of the United States of Columbia, with the consent and approba- tion of the Congress of the same; and the ratifications shall be exchanged in the city of , within twelve months from the date of the signatures of this convention." EXPLANATION. The Colombian ministers assent to this article. I am, &c., WILLIAM H. SEWARD. DOCUMENT No. 3. 3.— [Confidential.— Executive, LL. 40tli Congress, 3d session.] Message of the President of the United States, transmitting a convention of the United States of America and the United states of Colombia, relating lo the construction of a ship-uanal between the Atlantic and Padfio Oceans, concluded at Bogota the lith January, 1869. February 16, ] 869. — Read ; convention read the first time, referred to Committee on Foreipi Belatlons, and, witli the message, ordered to he printed in confidence for the use of the Senate. To the Senate of the United States : I transmit for the consideration of the Senate, with a view to ratification, a con- vention between the United States of America and the United States of Colombia, for facilitating and securing the construction of a ship-canal between the Atlantic and Pacific Oceans, through the continental isthmus lying within the jurisdiction of the United States of Colombia, which instrument was signed at Bogota on the 14th nltimo. ANDREW JOHNSON. Washington, February 15, 1869. Convention between the United States of America and the United States of Colombia, relating to the construction of a ship-canal between the Atlantic and Pacific Oceans, concluded at Bogota the lith January, 1869. Whereas, the construction of a ship-canal between the Atlantic and Pacific Oceans, through the continental isthmus which lies within the jurisdictiou of i he United States of Colombia is essential to the prosperity and welfare of the United States of America and the United States of Colombia, as well as to the interests of commerce and civil- ization throughout the world; now, therefore, the United States of America and the United States of Colombia have agreed to enter into a convention for the purpose of facilitating and ultimately securing that great object, and witti that view have ap- pointed their plenipotentiaries, namely : the President of the United States of America, Peter J. Sullivan, minister resident of the United States to the United States of Colom- bia; and the President of the United States of Colombia, Miguel Samper, secretary of finance and internal improvement of the Colombian union, and Tomas Cuenca- and the said plenipotentiaries, having exchanged their full powers in due form have agreed upon the following articles : ' Article I. The United States of Colombia agree and consent that the United States of America shall make, and the United States of America agree to make the necessary survey for such ship.canal; and, if they ascertain the same to be feasible, then to locate the same CLAYTON-BULWER TREATY, AND MONROE DOCTRINE 37 together with all its necessary appendages and appurtenances of locks, ports, harhors, statioDs, supply-feeders, and sluices, &c., on land and sea, upon the domain and within the jurisdictiou of the United States of Colombia; and to adopt a plan of construc- tion, and to make a thorough ami detailed estimate of the expense and cost of con- struction ; and for that purpose the United States of America may employ proper civil and military superintendents, engineers, accountants, and other agents and laborers, ships of war and transports, the military force, however, not to exceed, at any time, 500 rank and file without express consent of the United States of Colombia first ob- tained; and all persons engaged in such service, whether civil, naval, or military, shall, wbile so engaged, render lawful submission and obedience to the civil author- ities of Colombia. When the survey and location shall be completed the President of the United States of America shall certify the same, with the necessary maps and descriptions to the President of the United States of Colombia, and the same surveys, locations and de- scriptions shall be filed in the archives of the two Governments. The route and plan thus fixed may afterwards be varied, as occasion shall require, under the authority of the United States of America, due notice being given of such modifications to the United States of Colombia. Said canal shall in no case bn con- structed on or across the route of the Panama Railroad, unless the company's consent has been first obtained. ; Article II. The United States of Colombia agree to concede, set apart, appropriate, and devote to the purposes of such ship-canal all the territory, including land, ocean, and tribu- tary waters, which shall be designated for the purpose thereof in such plan and may be found necessary, and besides ten miles of waste, uosettled, and unimproved lands on each side of the canal throughout its entire length, and all the materials for such construction found within the territory so to be conceded; private owners of i)roperty heing mtitled to have a just and reasonable indemnity, to th< ett'ect whereof the Gov- ernment of Colombia shall order the expropriations to be made according to its laws ; hut the valuation thereof, in no case, to he enhanced by reason of the proposed or actual construction of the canal. The ten miles of land granted on each side of the canal shall be measured and divided into equal lots, the front whereof, bordering on the canal or its appendages, shall not exceed three thousand three hundred yards. Said lots shall be equally distributed between the two Governments, so that neither of them shall have two contiguous or consecutive lots, nor the two first at either extremity of the canal, both Governments being able to dispose freely of their corresponding lots, but with the condition that they shall allow free i massage thereby to and from the canal and its appendages. To begin the distribution the Government of the United States of America shall choose its first lot, and at the expiration of the term of this treaty shall give back to the Colombian Government, without exacting any amount for improvements made thereon, nor for any other reason whatever, all such lots or portions thereof which may not have been disposed of in favor of private individuals. Article III. The United States of Colombia stipulate and agree not to undertake or allow the opening of any other interoceanic canal or of any new railway through or across their territory from the Atlantic to the Pacific Ocean without the express consent of the United States of America being first obtained. Article IV. The outlay, cost, and expense of the survey, location, construction, and equipment of the said canal and its ports, stations, depots, and harbors, including damages paid for private prooerty and the indemnity that may correspond to the Panama Railroad Company, should the case arise, in accordance with the contract celebrated by the Colombian Government and approved by Congress on the 15th of August, 1867, shall be for the account of the United States of America, but exclusively with reference to the purposes of this Qonvention. The objects destined in Article II by the United States of Colombia for the construction of the canal shall remain in charge of the United States of America, but exclusively for the purposes of this convention. Article V. The United States of America shall construct said canal, with its appurtenances, suitable for the passage of all kinds of vessels, and may employ the necessary force 38 PROPOSED INTEEOCEANIC CANAL, of skill, art, and laborfor that purpose. They may also maintain the necessary naval and military force, which shall at no time exceed 1,000 men, without the express con- sent of the United States of Colombia being first obtained ; as soon as the canal be brought into operation, said force shall be withdrawn by the Government of the United States of America, if it be so requested by the Government of the United States of Colombia. The United States of America engage that the employes, laborers, artih- cers, as well as the naval and military force so engaged, shall conform themselves to the laws and Government of the United' States of Colombia. Article VI. As fa.st as the canal and its appendages and appurtenances shall be constructed, the control, possession, direction, and government of the same shall belong to, and be exer- cised by, the United States of America, the Governiueut of the United States of Colom- bia at the same time being at liberty, after the exchange of this convention, to main- tain a permanent committee of agents, with the full right to inspect the operations concerned, measure the tounage of vessels, examine the books and accounts, and re- port thereupon to the Government of the United States of Colombia ; but not to inter- fere with the survey, control, management, direction, and working of the canal. Article VII. The Government of the United States of America shall establish a tariff of tolls and freights for the said canal on a basisof perfect equality for all nations, whether in time of peace or war. The proceeds of the canal shall be preferently applied to the reim- bursement of the expenses incurred in the management, service, and government of the same, and to the reimbursement of the capital invested in its survey, location, and con- struction, including in the cost of construction the indemnities to be paid for private property, and that which may correspond to the Panama Railroad Company, should the case arrive, according to the contract entered into by the Colombian Government with said comi^any. Twelve years after the canal be brought into operation the Government of Colombia shall be entitled to an annual 10 percent, of the net proceeds of the undertaking; and as soon as the Government of the United States of America shall have been reimbursed of the capital invested in the undertaking, up to the time when it be bronght into operation, such proportion shall be of 25 per cent, of the said net proceeds, even if the reimbursement takes place within the first twelve years. The payment of the por- tion corresponding to Colombia, above mentioned, shall be made semi-annually in the city of New York. For the purposes of this article it is stipulated : first, that the annual expenses of the undertaking shall in no case exceed 3U per cent, of its annual proceeds, unless the express consent of both contracting parties has been first obtained; second, that the net proceeds of the undertaking, corresponding to the Government of the United States of America, shall be preferently applied, from the first year of its being bronght into operation, to the reimbursement of the capital ; and third, that in order to liquidate the net proceeds of the undertaking no deduction whatever shall be made for interest of capital invested therein, nor for the amount set apart as a reserved or sinking fund. Akticlb VIII. The United States of Colombia shall retain their political sovereignty and jurisdic- tion over the canal and territory appertaining thereto ; but-they shall not only allow but guarantee to the United States of America, according to the constitution and laws of Colombia, now in force, the peaceable enjoyment, control, direction, and man- agement of the same, as before specified. Articlk IX. The United States of America shall have right to use the canal for the passage of troops, munitions and vessels of war, in time of peace. The entrance to the canal shall be rigorously closed to the troops of nations which are at war with another or others, including their vessels and munitions of war. Article X. Colombia shall not impose tolls or duties of any kind on vessels, passengers, money merchandise, and other objects conveyed through the canal from one ocean to the CLAYTON-B«rLWEE TREATY, AND MONROE DOCTRINE. 39 other. Bat such effects as may be destined to be sold or consumed in the interior of Colombia shall be liable to the duties and taxes that are or may be established. Article XI. Should a naval or military force be required for the protection or defense of the canal, and the Government of the United States of America agree to furnish the same, said force shall, for the object expressed, and during the time it may be needed, act under the concurrent orders of the two governments, and be paid from the proceeds of the canal. Article XII. The mutual rights and privileges hereinbefore specified shall continue for the term of one hundred years, reckoned from the day on which the canal be brought into opera- tion ; at the end of which time the Government of Colombia shall enter into the pos- session, property, and enjoyment of the canal and lauds appertaining thereto, wharves, stores, and all other appendages of the undertaking built at the extremities or along the canal, without being therebyobliged to pay indemnity of any kind whatever ; the United States of America being entitled to retain whatever sums they may have re- ceived during the one hundred years herein mentioned. Article XIII. The United States of America may, by law, devolve all their rights, franchises, duties, property, and obligations, touching survey, construction, and preservation of said canal, upon any individual citizen or association of citizens of the United States of America ; and in that case such citizen or association shall enjoy all the rights, prop^ erty , and privileges, and be subject to all the obligations and engagements herein con- tained on the part of the United States of America. The diiferences which may arise between such citizen or association and the United States of Colombia as to the interpre- tation or fulfillment of the several clauses of this treaty shall be decided by a tribunal formed in the following manner: each party shall appoint a commissioner, and these two commissioners shall appoint an umpire who shall decide those cases m which the two former canuot agree. This tribunal shall hold its sessions in Bogota, and neither party shall have recourse against its decisions. In case one of the parties be required to appoint its commissioner and should not do it within the thirty days following, or should appoint a person who canuot or will not accept the appointment, then this ap- pointment shall be made by the Government of the United States of America. The ex- penses of this tribunal shall be taken from the gross proceeds of the canal, as soon as it be brought into operation ; and before this takes place, such expenses shall be to the equal charge of both parties, but to be deducted from the first proceeds of the canal. In case the commissioners do not agree as to the appointpient of the umpire, then the two contracting governments shall submit their diiiferences to the arbitrament of some other friendly government in the manner stipulated in Article XVII. The political obligatioils herein assumed by the United States of America and the United States of Colombia are permanent and indefeasible. Article XIV. Such citizen or association shall hold their property, rights, immunities, and privi- leges in and about the same ship canal, subject in like manner to the reservations herein contained in favor of the United States of Colombia. Article XV. In case the Government of the United States of America should devolve the under- taking, as mentioned in Article XIII, the privilege shall be forfeited, and the Govern- ment of Colombia enter into the possession and gratuitous enjoyment of the canal and its appendages in the following cases: First. If such citizen or association should transfer or underlet the enterprise in favor of any foreign government. Second. If such citizen or association should co-operate in any rebellious act against the Govern- ment of the United States of Colombia tending to the withdrawal from the dominion of said government of the territory wherein the canal may be constrncted ; and Third. If, after the canal be constructed and brought into operation, the passage through the same be suspended for more than three years, save unforeseen cases or superior force beyond the control of said citizen or association. It is understood that the enumerated. 40 PEOPOSED INTEEOCEANIC CANA&, cases of forfeiture are comprehended in the matters of which the tribunal provided for in Article XIII has jurisdiction, and shall be judgfed by it both as to fact and law. Article XVI. This treaty shall cease and determine if the United. States of America shall not make, or cause to be made, the surveys and locations ot the canal herein provided for, ■within three years after the ratification and exchange of this convention, or if they shall fail to begin the construction of the canal, or cause to be begun within five years after such ratification, or if they shall fall to cause it be completed within a period of fifteen years after such ratification. Article XVII. If, unhappily, any difference should arise between the United States of America and the United States of Colombia, growing out of this treaty, such ditteyence shiiU be submitted to the arbitrament of some impartial government, whose decision shall be, in every case, duly respected and fulfilled. Article XVIII. The United States of America and the United States of Colombia mutually agree to second the efl'orts of each other in procuring the friendship and guarantee of all other liations in favor of the stipulations ening of a canal in any part of the territory of America, while the present treaty remains in force, without having first obtained the consent of the United States of Colombia." ModifiyCation fifth. Article VIII to read thus : "The United States of America shall construct, or cause to be constructed, the pro- jected canal (if found practicable), together with its appurtenances, so that it maybe adapted for the passage of vessels of all classes not exceeding five * * thousand tons, and may employ such superintendents, engineers, mechanics, artisans, aud laborers, or other employes as may be necessary for the purpose. The military force which may 4909 CONG 6 82 PROPOSED INTEEOCEANIC CANAL, be necessary to protect the work on the canal shall be furnished by the United States of Colombia, unless they shall prefer that it should be furnished by the United States of America. The expenses which shall adcrue from the use of said force shall, in either case, be paid by the United States of America. In case that the United States of America shall furnish said force they shall be withdrawn on the completion of the work, if required by Colombia. " The United States of America undertake that the superintendents, engineers, me- chanics, artisans, and workmen, and other employes, as well as the military force, if the case arise, shall conform to the laws of Colombia, and in respect to this they shall be subject to the civil authorities. Both the military force and the other employes of the enterprise shaU in no case and under no pretext be employed in any service other than that above expressed." • Modification sixth. Article IX to read thus : "The United States of America may construct yards and docks, and maintain the same for the repair and supply of their ships in the ports at each extremity of the canal, but only on the lots which may have become their property under Article V, and may maintain within the limits of such docks and yards a police force (which shall not exceed two hundred men, without the permission of the Government of Co- lombia) for the protection of the property therein." Modification seventh. Article X to read thus : "Aeticle X. "As soon as the canal, its dependencies and appurtenances, shall be completed, the inspection, possession, direction, and management of the same shall appertain to the United States of America and shall be exercised by them without any interference from any source, but without any jurisdiction over the territory or its inhabitants. "The United States of Colombia shall retain its political so vereignty and jurisdiction over the canal and adjacent territory, but will not only permit, but hereby guarantees to the United States of America, in conformity with the constitution and laws of Colom- bia, the peaceable and undisturbed enjoyment, administration, direction, and manage- ment of the canal as already stated. But this guarantee in no respect differs from that which is accorded by the laws of Colombia to all persons and to all interests within its territory, and if the enterprise of the canal shall require any extraordinary public force in order to obtain more complete security, it will be furnished when requested, b ut at the expense of the enterprise. " Section a. In the event provided for in this article as well as by Articles VIII and IX, the military force as well as the police force, whatever may be its organization, shall be subject to the laws of Colombia and to the authority and j urisdiction of their functionaries." Modification eighth. Article XI to read thus : "Aeticlb XI. "The United States of America, on their part, guarantee to the Government of Co- lombia that the canal, its dependencies and appuiteuances, shall be free and exempt from all hostile acts on the part of any other na ion or foreign power, and for these purposes the United States of America constitute themselves an ally of the United States of Colombia to aid in repelling any attack or iuriisiou upon the properties, rights, and privileges above guaranteed, it being well understood that such expenses as maybe thus incurred by the United States of America shall be solely discharged by that power ; and also that the United States of Colombia will defend the said canal and its dependencies, as part of her territory, to the extent of her ability. "The United States of Colpmbia reserve to themselves the right to pass through the canal their ships of war, troops, and munitions of war at all times, free from all charge, impost, or toll, and extend to the United States of America the same right as to their ships of war, troops, and munitions of war ; . but the said canal shall remain closed to ^he flag of all nations which may be at war with either of the contracting parties, except in the cases jirovided in the clauses following: "It being the interest and purpose of the contracting parties that the canal, so far as pbssible, should be a safe and privileged highway for the lawful commerce of all nations, it is stipulated that neither the United States of America nor the United States CLA.YTON-BULWER TREATY, AND MONROE DOCTRINE. 83 of Colomliia, in case of war with any other nation, will exercise the belligerent right of excluding from the canal, capturing, blockading, or detaining the merchant vessels of such hostile nation within the limit of the canal, its ports, bays, or dependencies, or the adjacent sea within such limits as may hereafter be determined. It is, however, well understood that the benefits of the stipulations in this clause mentioned shall only apply to the merchant marine of those nations which, by treaties, shall guarantee the sovereignty of Colombia over the Isthmus of Panama and the territory in which the canal shall be constructed, and the immunity and uetrality of the canal, its ports, harbors, and dependencies, and the adjacent sea, and shall reciprocally concede the same rights of exemption from capture^ blockade, and detention within the aforesaid limits, with the same conditions and to the same extent, to the merchant marine of the United States of America and of the United States of Colombia. " Sectiout 2. The two contracting parties further agree to oifer and concede to such nations as may join for the purpose of giving the guarantees aforesaid of the sovereignty of Colombia over the Colombian Isthmus, and ofnentralityandimmnuity of the canal, the following bases and conditions of an agreement relative to the passage of ships of war through the canal, that is to say : In case of war unfortunately arising and existing between either of the contracting parties and any one or more nations which shall have given'the above guarantees, or between any of such guaranteeing powers, the right of transit through the canal shall be suspended as regards the ships of war of such belligerents during the existence of such hostilities ; and no act of hostilitj', in any form, shall be committed by such belligerents within the limits of the canal, its ports, bays, or dependencies, nor in the adjacent seas within such limits as may be here- after determined. But it is expressly stipulated that the benefits and advantages set forth in the preceding clauses shall only be enjoyed by the nations which shall have given the guarantees aforesaid, and which shall, by treaties with the two contracting parties, except the principles above set forth, and grant, on their part, the same exemp- tions to the United States of America and the United States of Colombia. In time of war the transit through the canal shall be closed to the ships of war of such belliger- ents aa shall not have guaranteed the sovereignty of Colombia over the Isthmus and territory mentioned in this article and the immunity and neutrality of the canal, its dependencies, appurtenances, and the adjacent sea. " Section 3. The advantages, rights, and exemptions specified in this article, and the exemption of tonnage duties mentioned in Article XXV, shall be offered and con- ceded in perfect equality, and without imposing other conditions than as stated in this article, to all the nations which may give their guarantee in the same terms as do the United States of America in favor of the sovereignty of Colombia over the Isthmus of Panama and the territory in which the canal shall be constructed, and in favor of the immunity and neutrality of the canal, its dependencies, appurtenances, and the ad- jacent sea." MoMfication ninth. Article XII to read thus : "Article XII. "The United States of America may establish, and from time to time change and alter, a tariff of imposts on merchant vessels, loaded or unloaded, and on the ships of war of other nations than the United States of America and the United States of Co- lombia which may pass through the canal, according to tonnage and on the basis of the most perfect equality, at all times and for all nations, without other restriction than is contained in the preceding article. "The tonnage shall be measured according to the laws now in force in the United States of America for the measurement of tonnage, and the amount of said tonnage duty shall never be less than the proportion which is hereinafter conceded to the United States of Colombia. The United States of Colombia shall receive, as their share of said impost, for each ton which said ships may measure, thirty centavos of a dollar during the first twenty years after the canal shall be opened for business, and forty centavos of a dollar during the remainder of the concession." Article XIII to read thus : Modification tenth. "Article XIII. "The United States of America may establish, and from time to time change, and alter, a tariff of charges upon passengers, and also upon the cargoes of vessels paBsing through the canal, and also for the nse of the docks, wharves, watehouses, harhorB, 84 PROPOSED INTEEOCEANIC CANAL, and other necessary works of the canal. The tariff of charges upon the cargoes shall be calculated ad valorem, that is to say, upon the value of the goods and merchandise at the port of shipment, and at the same auiounr and rate for all classes of merchan- dise; and if the vahie at the port ofshipmeiit cannot be clearly ascertained, then upon the value at the entrance into the canal. Special rates, however, may be established on gold, silver, platina, and precious stone,s. All the duties above mi-utioned shall be fixed without making any distinction in favor of one nation or against another. "The United States of America, or its grantee, in conformity with this treaty, shall have full power to determine the time, place, and manner in which the payment of the duties aforesaid shall be made, and, in order to secure their payment, shall have power to hinder the entrance or departure into or from their canal, its stores, warehouses, harbors, and other appurtenances, of vessels, passengers, or merchandise which shall not have paid such duties. "Section 2. The Government of the United States of Colombia shall have the right to maintain a permanent commission of its own agents to examine and verify the ton- nage of vessels." Modification elecentli. Article XIV to read thus : " Article XIV. " If, by reason of the opening of the canal, the Panama Railroad shall be destroyed, or its business and profits be diminished to such an extent that the said railroad company shall be unable to pay to the United States of Colombia the whole or a part of the sam of ^250,000 which it now pays, after paying its expenses and necessary repairs and a dividend of 5 per centum on f 10,000, 000, at which the cost of said road is estimated, then the enterprise of the canal shall pay, in the first instance, the whole, and in the second, the difference between said sum of .$250,000 and the amount actually received ■ by the United States of Colombia, or, in lieu thereof, the capital sum which is rep- resented by the income of $250,000 at 5 per centum per annum. " It is understood that the United States of America are substituted into the right of appointing the arbitrator mentioned in the second article of the contract concluded with the Panama Railroad Company on the 15th August, 1867, as also into the right of receiving the half of the indemnity which, by that article, is allotted to the United States of Colombia. Nothing in this article contained shall be construed to release the said railroad company from the obligation imposed on them in said contract in favor of the United States of Colombia." Modification twelfth. Article XV is suppressed. Modification thirteenth. Article XVI to read thus : " Akticlb XVI. " For the better understanding of the articles of this treaty which speak of sums of money or refer to the conclusion of the work of the canal, it is declared, 1st. That the money iu which said sums are to be estimated shall be that of the United States of Colombia, whose unit is a piece of silver called the " peso," weighing 25 grams, at the fineness of nine hundred-thousandths; 2d. That the canal shall be considered finished from the time when the first vessel on which duties are collected shall pass from ocean to ocean, although some portion of the work may not be completed." Modification fourteenth. Article XVII suppressed. Modification fifteenth. Article XX to read thus : " Article XX. " The rights and privileges herein granted shall continue in force for the teim of one hundred years, counted from the date at which the canal shall be opened to commerce CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 85 according to Article XVI, and at the expiration of that time the said canal, with all its dependencies, appurtenances, and accessories, docks and yards, Shall become the ahpolute property of the United States of Colombia, without any payment of indemnity of any kind whatever. The canal shall be maintained in the best order and condition until its delivery, and the United States of America shall retain whatever profits or advantages they may have received during said term." Modification sixteenth. Article XXI to read thus: "Aeticlb XXI. "The United States of America may by law transfer all the rights, privileges, fran- chises, duties, properties, and obligations in relation to the exploration, surveying, construction, and maintenance of said canal to any person or corporation created by law, and in such event, such person or corporation shall enjoy all the rights, properties, ftanchises, and privileges herein granted to the United States of America, and shall be subject to all the duties and obligations herein contracted to be performed by tte United States of America; but such transfer shall not work a complete substitution of such individual or corporation into the place and stead of the United States of America, and the Government of the United States of Colombia will hold itself bound as trustees for the United States of Colombia to enforce the fnlfillraent of the provisions of this treaty upon the person or corporation which shall derive title from it under such transfer in so far as Such provisions shall apply to such person or corporation. The person or corporation to whom such transfer shall have been made shall hold and enjoy the properties, rights, immunitieSr and privileges hereinbefore expressed, in the said canal and its dependencies and appurtenances, subject, however, to thi> reservations hereinbefore set forth in favor of the United States of Colombia for the term herein mentioned. The political obligations contracted between the United States of America and the United States of Colombia, specified in Articles XI and XXV, shall remain permanent and irrevocable. "Sections. In case that the United States of America, in use of the power granted in this article, shall transfer their rights, privileges, &.o.,to any private per- son or corporation created by law, such pers^^n or corporation shall be bound to main- tain in Panama a representative with sufficient powers to answer to the Government of the Union or of the State, as well as to private individuals, upon all matters con- nected with the enterprise." Ai-ticle XXIV to read thus : Modification seventeenth. "Article XXIV. "In addition to the cases provided for in the preceding article, this treaty shall terminate, and the rights granted under it shall lapse — "First. If the United States of America shall not execute or cause to be executed the explorations and surveys to which the first article of the treaty refers within the space of three years from the date of the exchange of the ratifications of this treaty. "Second. If the work of excavating the canal shall not be commenced within the space of five years from the date of said exchange, provided the work be found prac- ticable. " Third. If the work shall not be completed within fifteen years from the date of its commencement. " The periods above mentioned shall be deemed to be interrupted, and to that ex-> tent prolonged, if any instance of superior force or of the act of God shall intervene to prevent the fulfillment of the same without the consent of those in charge of the undertaking." Given in Bogota, this 30th day of June, 1870. MANUEL DK J. QUIJANO, President of the Senate. J. DEL CRUZ RODIGUEZ, President of the Chamber. EUSTACIO DE LA TORRE N., Secretary of the Senate. JORJE ISAACS, Seoretary of the Chamier. Bogota, July 8, 1870. 86 PROPOSED INTEROCEANIC CANAL, Let this be published and executed. EUSTORJIO SALGAR. The secretary for foreign relations, FELIPE TAPATA. The above is a correct translation from the official Spanish text. STEPHEN A. HURLBUT, Minister Beaident United States of America. Bogota, July 13, 1870. DOCUMENT No. 5. 5.— WYSE CONCESSION, MARCH 20, 1878. [Translation ftom tie Diario Official of Bogota, Weclnesday, May 22, 1878.] Law 28th of 1878 (18ublic shall enjoy a par- ticipation equal to 5 per cent, of the gross earning which shall accrue to the enter- prise, as per the tariif to be fixed by the company. Aet. 16. The grantees are authorized to require payment in advance of any charges which they may establish; nine-tenths of these charges shall be made payable in gold, and only the remaining one-teuth part t.hall be payable in silver of twenty-five grammes, of a fineness of 900. Art. 17. The ships which shall infringe upon the rules established by the company shall be subject to the payment of a tine which said company shall fix in its regula- tions, of which due notice shall be given to the public at the time of the issue of the tariff. Should they refuse to pay said fine, nor furnish sufficient security, they may be detained and prosecuted according to the laws. The same proceedings may be observed for the damages they may have oau.sed. Akt. 18. If the opening of the canal shall be deemed financially possible, the grant- ees are authorized to form, under the immediate protection of the Colombian Govern- ment, a universal joint-stock company, which shall undertake the execution of the work, taking charge of all financial transactions which may be needed. As this enter- prise is essentially international, and for public utility, it is understood that it shall always be kept free from political influences. The company shall take the name of "The Universal Interoceanic Canal Associa- tion"; its residence shall be fixed in Bogota, New York, London, or Paris, as the grantees may choose ; branch offices may be established wherever necessary. Its con- tracts, shares, bonds, and titles of its property shall never besubjected by the Govern- ment of Colombia to any charges for registry, emission, stamps, or any similar imposts upon the sale or transfer of these shares or bonds, as well as on the profits produced by these values. Art. 19. The company is anthorized to reserve as much as 10 per cent, of the shares emitted, to form a fund of shares, to the benefit of the founders and promoters of the enterprise. Of the products of the concern, the company take, in the first place, what is necessary to cover all expenses of repairs, operations, and administration, and the share which belongs to the Government, as well as the sums necessary for the payment of the interest and the amortization of the bonds, and, if possible, the fixed interest or dividend of the shares ; that which remaius will be considered as net profit, on t of which 80 per cent, at least will be divided among the shareholders. Art. 20.* The Colombian Government, should it consider it important, may name a special commissioner in the board of directors of the company. This delegate shall enjoy all the advantages conceded to the other directors by the statutes of the com- pany. The grantees are obliged to appoint in Bogota, near the National Government, an agent duly authorized to resolve all doubts and to present all demands to which this contract may give rise. Reciprocally, and with the same intention, the Govern- ment shall name a resident agent in the principal establishment of the company on the canal. In every case the difficulties which may arise between the contracting . parties shall be submitted to a committee of arbitrators, composed of four individuals, two of whom shall be selected by the executive power from among the members of the federal supreme court, and the other two named by the company. In case of a *This article modified by Colombian Congress. See decree which follows. 90 PROPOSED INTEROCEANIC CANAL, tie in the votes of this committee, the said arhitrators shall name a fifth party. The decision pronounced by this tribunal shall be fiual. Art. 21. The grantees, or those who iu the future may succeed them in their rights, may transfer those rights to other capitalists or financial. companies, but it is abso- lutely prohibited to cede or mortgage them under any consideration whatever to any nation or foreign Government. Art. 22.* The grantees or their representatives shall forfeit their acquired rights in the following cases : 1st. If they do not deposit within the term 8tipul?,ted the amount required as secur- ity for the exeoulion of the work. 2d. If in the first of the twelve years allowed for the construction of the caual the work is not already begun. In this case the company shall forfeit the sum deposited as a guarantee, and which shall go to the benefit of the Republic. 3d. If at the termination of the period fixed by paragraph fift.h of article one the canal is not navigable. 4th If they do not comply with the provisions of article 21. 5th. If the service of the canal should be interrupted without some superhuman obstacle. In cases 2, 3, 4, and 5, the federal supreme court shall decide whether the privilege has become null or void. Ab,t. 23.* In all cases of declaration of nullity, the public lands mentioned in para- graphs 7 and 8 of article 1, and those not alienated among those conceded in article 4, will return to the possession of the Republic in the state in which they are found, and without any indemnity whatever, and also the buildings, materials, works, and im- provements of which the grantees hold possession in the canal. These shall reserve only their capital, vessels, provisions, and, in general, their mo^ able property. Art. 24. Five years previous to the expiration of the ninety nine years of the privi- lege, the executive power shall appoint a commissioner to examine the condition of the canal and annexes, and, with the knowledge of the company or its agents on the Isthmus, to make an official report, describing in every detail the condition of the same and jiointing out what repairs may be necessary. This report will serve to establish in what condition the canal and its dependencies shall be delivered to the National Government on the day of expiration of the privilege now granted. Art. 25. The enterprise of the canal is reputed to be of ptiblic utility. Art. 26. This contract, which will serve as a substitute for the provisions of la w 33, of May 26, 1876, and the clauses of the contract celebrated on the 28th of May of the same year, shall be submitted for the approval of the President of the union and the definite aucepta,nce by the Congress of the nation. In witness whereof they sign the present in Bogota, on the 20th March, 1878. EUSTORGIO SALGAE. Approved. The President of the union : The secretary of the interior and of foreign relations : LUCIEN N. B. WYSE. Bogota, March 23, 1878. AQUILEO PAERO. EUSTORGIO SAL6AR. The foregoing contract is hereby approved, with the following modifications : Article 1, with the addition of the following paragraph : § — " It is, however, stipulated and agreed that if, before the payment of the secu- rity determined upon in article 2, the Colombian Government should receive any formal proposal, sufficiently guaranteed, in the opinion of the said Government, to construct the canal in less time and under more advantageous conditions for the United States of Colombia, said proposal shall be communicated to the grantees or their representatives, that they may be substituted therein, in which case they shall be preferred; but if they do not accept said substitution, the Colombian Government, in the new contract which they may celebrate, shall exact, besides the guarantee mentioned iu article 2, the sum of three hundred thousand dollars in coin, which shall be given as indenmity to the grantees. Article 2, thus : "Art. 2. Within the term of twelve months from the date at which the international commission shall have presented the definite results of their studies, the grantees * This article modified by Colombian Congress. See decree which follows. CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 91 shall deposit in the bank or banks of London, to be designated by the national execu- tive power, the sum of seven hundred and fifty thousand francs, to the exoluaiou of all paper money, as security for the execution of the work. The receipt of said banks shall be a voucher for the fulfillment of said deposit. It is understood that if the grantees should lose that deposit by virtue of the stipulations contained in clauses 2 and 3 of article 22 of the preseut contract, the sum referred to, with interest accrued, shall become in foto the property of the Colombian Government. After the conclusion of the canal, said sum, without interest, which latter will in this case /belong to grantees, shall remain for benefit of the treasury, for the outlays which it may have incurred or may incur in the construction of buildings for the service of the public officers." Article 3, thus : '•Art. 3. If the line of the canal to be constructed from sea to sea should pass to tl;ie west and to the north of the imaginary straight line which joins Cape Tiburon with Garaohin^ Point, the grantees must enter into some amicable arrangement with the Panama Railroad Company, or pay an indemnity, which shall be established in accord- ance with the provisions of law 46, of August 16, 1867, 'approving the contract cele- brated on July 5, 1867, reformatory of the contract of April 15, 1850, for the construc- tion of an iron railroad from one ocean to the other through the Isthmus of Panama.' " In case the international commission should choose the Atrato or some other stream already uavigalile as one of the entrances to the canal, the ingress and egress by such stream, and the navigation of its waters, so long as it is not intended to cross the canal, shall be open to commerce and free from all imposts." Article 4, thus : "Art. 4. Besides the lands granted in paragraphs 7 arid 8 of article 1, there shall be awarded to the grantees, as an aid for the accomplishment of the work, aud not other- wise, five hundred thousand hectares of public lands, with the mines they may com- prise, in the localities which the company may select. This award shall be madie directly by the national executive power. The public lands situated on the sea-coast, on the borders of the canal or of the rivers, shall be divided in alternate lots between the Government and the company, forming areas of from oneto two thousand hectares. The measurements for the allotment or locating shall be made at the expense of the grantees and with the intervention of government commissioners. The public lands thus granted, with the mines they may hold, shall be awarded to the grantees as fast as the work of construction of the canal progresses, an{i in accordance with rules lo be laid down by the executive power. "Within a belt of two mynaraeters on each side of tho canal, and during five years affer the termination of the work, the government shall, not have the right to grant other lands beyond the. said lots until the company shall have called for the whole number of lots granted by this article." Article 5, thus: "Art. .5. The government of the republic hereb.v declares the ports at each end of the canal, and the waters of tlie latter from sea to sea, to be neutral for all time ; and con- sequently in case of war among other nations, the transit through the canal shall not be interrupted by such event, and the merchant vessels and individuals of all nations of the world may enter into said ports and travel on the canal without being molested or (leraiued. In general, any vessel may pass freely without any discrimination, ex- clusion, or preference of nationalities or persons, on payment of the dues and the observance of the rules established by the company for the use of the canal and its dependencies. Exception is to be made of foreign troops, which shall not have the right to pass without permission from Congress, and of the vessels of nations which, ~ being at war with the United States of Colombia, may not have obtained the right to pass through the canal at all times, by public treaties wherein is guaranteed the sovereignty of Colombia over the Isthmus of Panama and over the territory whereon the canal is to be cut, besides immunity and neutrality of the said canal, its ports, bays, and dependencies and the adjaceut seas." Article 6, thus : "Art. 6. The United States of Colombia reserve to themselves the right to pass their vessels, troops, ammunitions of war at all times and without paying any dues what ever. The passage of the canal is strictly closed to war vessels of nations at war, aud which ma.y not have acquired, by public treaty with the Colombian Government, the right to pass by the canal at all times." Article 8,. thus: "Art. 8. The executive power shall dictate, for the protection of the financial inter- ests of the republic, the regulations conducive to the prevention of smuggling, and shall have the power to station, at the cost of the nation, the number of men which they may deem necessary for that service. "Out of the indispensable officials for that service, ten shall be paid by the com- pany, and their salaries shall not exceed those enjoyed by employes of the same rank ia the Barranquilla custom-house. 92 PEOPOSED INTf:ROCEANIC CANAL, " The company shall carry gratis throngli tlie canal, or on the auxiliary railway, the men destined for the service of the nation, for the service of the state throngh whose territory the canal may pass, or for the service of the police, with the object of guard- ing against foreign enemies, or for the preservation of pjiblic order, and shall also transport gratis the baggage of such men, their war materials, armament, and cloth- ing which they may need for the service assigned to them. " The subsistence of the public force which may be deemed necessary for the safety of the interoceanic transit shall likewise be at the expense of the company." Article 13, thus : "Art. 13 The government allows the immigration and free access to the la,iids and shops of the grantees of all the employes and workingmen, of whatever nationality, who may be contracted for the work, or who may come to engage themselves to work on the canal, on condition that such employes or laborers shall submit to the existing laws, and to the rfegulations established by the company. The government promises them support and protection, and the enjoyment of their rights and guarantees, ia conformity with the national constitution and laws, during the time they may sojourn on Colombian territory. " The national peons'smi laborers employed on the work of the canal shall be exempt from all requisition of military service, national as well as of the state." Article 14, thus : "Art. 14. In order to indemnify the grantees of the construction, maintenance, and working expenses Incurred by them, they shall have, during the whole period of the privilege, the exclusive right to establish and collect, for the passage of the canal and its ports, the dues for light-houses, anchorage, transit, navigation, repairs, pilotage, towage, hauling, storage, and of station according to the tariff which they may issue, and which they may modify at any time under the following express conditions: " 1st. They shall collect these dues, without any exceptional favor, from all vessels in. like circumstances. "2d. The tariffs shall be published four mouths before their enforcement in the Diario Oflcial of the government, as well as in the capitals and the principal commer- cial ports of the countries interested. "3d. The principal navigation dues to be collected shall not exceed the sum often francs for each cubic meter resulting from the multiplication of the principal dimen- sions of the submerged part of the ship, in transit (length, breadth, and draught). "4th. The principal dimensions of the ship in transit, that is to say, the maximum exterior length and breadth at the water-line, as well as the greatest draught, shall be the metrical dimension inserted in the official clearance papers, excepting any modi- fications supervening during the voyage. The ships' captains and the company's agents may demand a new measurement, which operations shall be carried out at the expense of the petitioner ; and, "5th. The same measurement, that is to say, the number of cubic meters contained in the parallelopipedon circumscribing the submerged partof the ship, shall serve aa a basis for the determination of the other accessory dues." Article 15, thus: "Art. 15. By way of compensation for the rights and exemptions which are al- lowed to the grantees in this contract, the government of the republic shall be enti - tied to a share amounting to five per cent, on all collections made by the company, hy virtue of the dues which may be imposed in conforming with article 14, during the first twenty-five years after the opening of the canal to the public service. From the twenty-sixth up to the fiftieth year, inclusive, it shall be entitled to a share of six per cent. ; from the fifty-first to the seventy-fifth to seven per cent. ; and from the seventy- sixth to the termination of the privilege to eight per cent. It is understood that these shares shall be reckoned, as has been said, on the gross income from all sources, with- out any deductions whatever for expenses, interest on shares, or on loans or debts against the company. The government of the republic shall have the right to ap- point a commissioner or agent, who shall intervene in the Collections and examine the accounts, and the distribution or payment of the shares coming to the government shall be made in due half-yearly installments. The product of the five, six, seven, and^ eight per cent, shall be distributed as follows : " Four-fifths of it shall go to the government of the republic, and the remaining one- fifth to the government of the State through whose territory the canal may pass. "The company guarantees to the Government of Colombia that the share of the latter shall in no case be less than the sum of two hundred and fifty thousand dollars a year, which is the same as that received as its share in the earnings of the Panama Eailroad, so that if in any ye;ir the five per cent, share should not reach said sum, it shall be completed out of the common funds of the company." Article 20, thus : "Art. 20. The Colombian Government may appoint aspecial delegate in the board of directors of the company whenever it may consider it useful to do so. This delegate CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 93 Blig,ll enjoy the same advantages as are granted to the other directors' by the by-laws of the company. "The grantees pledge themselves to appoint in tlie capital of the Union, near the national government, a duly authorizeil agent for the purpose of clearing up all doubts audpresentiugauy claim:! to which this contract may give rise. Reciprocally and in the same sense, the government shall appoint an agent, who sliall reside in the principal establishment of the company situated on tbeline of the canal; and, ac- cording to the national constitution, tlie difficulties which may arise between the contracting parties shall be submitted to the decision of the federal supreme court." Article 2rf, thus : "Art. 22. The grantees, or their representatives, shall lose the right hereby ac- quired in the following cases: "1st. If they do not deposit, on the terms agreed upon, the sum which by way of security must' insure the execution of the work. ' "2d. If, in the first year of the twelve that are allowed for the construction of the canal, the works are not already commenced, in this case the company shall lose the su'i. deposited by way of security, together with the interest that may have accrued; all of which will remain for the benefit of the republic. "3d. If, at the end of the second period fixed in paragraphs of Article 1, the canal is not transitable, in this case also the company shall lose the sum deposited .is seen-, rity ; which, with the interests accrued, shall remain for the benefit of the republic. "4th. If they violate the prescriptions of Article 21; and, "5th. If the service of the canal should be interrupted for a longer period than six months without its being occasioned by the acts of God, &c. "Incases 2, 3, 4, and 5, the federal supreme court shall have the right to decide whether the privilege has become annulled or not." Article 23, thus : "Art. 23. In all cases of decisions of nnllity, the public lands mentioned in clauses 7 and 8 of Article 1, and such lauds as are not settled or inhabited from among those granted by Article 4, shall revert to the possession of the republic in the condition they may be found in, and wil}hont any indemnity whatever, as well as the buildings, materials, works, and improvements which the grantees may possess along the canal and its accessories. The grantees shall only retain their capital, vessels, provisions, and in general all movable property." Given at Bogota on the seventeenth day of May, eighteen hundred and seventy- eight. The president of the senate of plenipotentiaries: The president of the chamber of representatives: The secretary of the senate of plenipotentiaries : The secretary of the chamber of representatives: RAMON GOMEZ. BELISARIO ESPONDA. JULIO E. PEREZ. ENRIQUE GAOUA. Bogota, May 18, 1878. Let it be published and enforced. The President of the Union : [SEAL.] JULIAN TRUJILLO. The secretary of the interior and foreign relations: ) FRANCISCO J. ZALDUA. Note from Mr. Lucien N. B. Wyse, wherein he declares he accepts all the modifications made by law 28 to the contract for the construction of the interoceanic canal. To the honorable Secretary of the Interior and Foreign Belationa: I have the honor to inform yon that I accept each and all of the modifications intro- duced by Congress to the contract which I celebrated with Senor Eustorgio Salgar, your worthy predecessor in the department of the interior and foreign relations, for the construction of the interoceanic canal, which contract was approved by the exec- utive power under date of March 23 last. The modifications to which I have alluded are those recorded in law No. 28 of the 18th instant. I hasten to lay this declaration before the Government of Colombia, so that it may be taken into consideration, in order that said law may be effective in all its parts. Bogota, May 18, 1878. LUCIEN N. B. WYSE, Chief of the International Scientific Commiaiion for the Survey of the Isthmus, Member and Delegate from the Board of Direotors of the Interoceanic Canal Association. 94 PEOPOSED INrEROCEANIC CANAL, DOCUMENT No. 6. 6.— HISE-SELVA CONVENTION, JUNE 21, 1849. Special convention between the United States of America and the State of Nicaragua. The United States of America and the State of Nicaragua, having in view the grand design of opening and establishing through the territories of the latter State a passage and communication between the Caribbean Sea and the Pacific Ocean to facilitate the commerce between the two oceans and to produce other great results, and designing to establish, regulate, and deiine the grauts, rights, privileges, and immunities that shall appertain to each other with reference to such great object by means of a treaty and special convention. For the accomplishment of these desirable purposes the President of the United States of America has conferred full powers on Elijah Hise, charg6 d'affaires of the government of said States in Central America, and the State of Nicaragua hath likewise granted full powers to Sr. Lic^" Don Bueneventura Selva, charge d'affiiires of the government of the said State of Nicaragua near the United States legation in Central America, who, after' having exchanged their said full powers in due and proper form, have agreed and do agree upon the following articles: Article I. It is solemnly agreed between the two high contracting parties that the State of Nicaragua doth grant to and confer upon the United States of America., or to a com- pany of the citizens thereof, the exclusive right and privilege to make, construct, and build within the territories of the said State of Nicaragua, through or by the use and means of any of the streams, rivers, bays, harbors, lakes, or lands under the juris- diction or within the limits of said State, a canal or canals, a road or roads, either railways or turnpikes or any other kind of roads, for the purpose of opening a con- venie/it passage and communication (either by land alone, or watfr alone, or by both land and water, and by means, if deemed proper, of locks and dams, or by any other mode of overcoming and removing the obstructions to the navigation of the said rivers, lakes, harbors, &c., between the Caribbean Sea and the Pacihc Ocean, for the transit and passage of ships, steamers, sailing-vessels, boats, and vessels of all kinds, as well as vehicles of every sort used for the transportation and conveyance of persons and property and of goods, wares, and merchandise of every description, and the United States or the said company which may be formed by virtue of such charter as shall he made as herein provided shall be permifted for the con'struotiou of said works to pro- cure, take, and obtain withiu the territories of Nicaragua all kinds of materials, such as stone, timber, earths, and whatever else may be necessary and proper for the said purposes, free of any charge so far as the said m'aterials may be procured on the lands belonging to sand State. Article II. The, State of Nicaragua cedes and grants to the United States, or to a chartered company of the citizens thereof, as the case may be, absolutely all the land that may be required for the location and construction of said canal or canals, road or roads, and which may be necessary for the erection of buildings and houses of every, descrip- tion for the residence and accommodation of the engineers, superintendents, and la- borers, and all others employed in the making and construction of the said works, or in governing, managing, and controlling the same, and also for the erection of all such necessary buildings as may be requisite aud proper for the purpose of storing away therein all the tools, machines, materials, and property of every description which may be required for use in the construction, repairing, preservation, and man- agement of said works, and should any portion of the lands or materials, or of the rivers, bays, ports, or their coasts or lakes, and their shores, which may be necessary and proper to be applied for the location aud construction of the said works and its appurtenances, belong to individuals, the State of Nicaragua agrees and under- takes to extinguish the titles thereto, and to procure the same upon a just principle of valuation for the aforesaid public works. The aforesaid cession and grant shall include a space of not less than three hundred feet on each side of the lines of said works, and extending all along the whole length thereof, so that ample space be se- cured on the margins of said works for the convenient use thereof. The just value of such of said lands and materials as may be private property at the date of this treaty will be paid for by said company. Article III. It is agreed that if the Government of the United States shaU decide not to under- CLAYTON-BULWER TREATY, AND MONKOE DOCTKINE. 95 take and constrnot the said works, then either the President or Congress thereof shall have the power and authority to frame, enact, and issue a charter or act of incorpora- tion containing such liberal provisions and such grants of riglits and privileges (not inconsistent with the rights of the contracting parties herein secured), as may he necessary, convenient, or proper to effect the great object in view, which charter and act of incorporation sliall provide as follows: Ist. That the company which may be formed and organized under and by virtue of its provisions shall he composed exclusively of the citizens'of one or both of the ccm- tracting parties, who may subscribe for and become the owners of the whole of the capital stock required for the said works. If, however, such citizens (thus having the preference) shall fail in due time to subseribe for and become the owners of thewliole amount of the said capital stock, the residue thereof not taken by them may be taken, paid in, and owned by the governments of both or either of the contracting parties, or by the governments or citizens of any other nation, kingdom, or country. 2d. That said company shall have the sole and exclusive right and privilege of con- structing and owning such works as are herein named withiu the State of Nicaragua, provided the same are commenced aud prosecuted within the time limited in this con- vention. 3d. It shall authorize the said company to build and construct said canal or canals, in such directions and of such width and depth as they shall in their discretion deter- mine, and if the plan of roads is in part or in whole adopted the route, width, kind, and number thereof shall be determined upon by the said company as they may think proper. 4th. It shall provide that said company may make contracts, sue, and he sued as a corporation, with a given name and style, have a corporate seal, and engage in all such trade and business as may be proper and convenient iu promoting all the opera- tions required for the attainment of the ends in view. 5th. It shall contain provisions adequate for the organization of said company ; it shall provide for the appointment of the officers, agents, engineers, surveyors, super- intendents, and other employ(Ss of said company; and that said company may make and adopt all its own by-laws and regulations, so that the same be not in conflict with the provisions of this convention. 6th. It shall provide that said company may not only build and construct, but also enlarge, alter, repair, and reconstruct the said works as they may think proper, and that they may manage and govern the same, and manage and control the financial affairs of the corporation. 7th. It shall j)rovide that said company shall make annual reports to the executive governments of the United States aud the State of Nicaragua, setting forth their re- ceipts and expenditures, and the condition, operations, and affairs of the said com- pany. 8th. It shall pr{)vide that the management of the affairs of said company shall be vested aud lodged in niue managers, five of whom shall be appointed by the company for a period of time, and id a manner to be regulated by the said charter, and in like manner two of the said managers shall be appointed by the President of the United States and two by the Executive Chief of the State of Nicaragua, and the said nine managers shall appoint their own president. 9th. It shall provide that the governments of either of the contracting parties may, through their committees, freely examine and investigate the affairs, business opera- tions, and condition, tinancial and otherwise, ofthe said company, and for such purpose snch committees may examine the books and papers ofthe company, and examine the officers thereof aud other witnesses on oath, aud make reports thereon to their respect- ive governments. 10th. It shall provide that said company shall have the sole and exclusive right and privilege of conveying persons and passengers, aud of conveying all steanlers, ships, and vessels of all kinds, by towage or otherwise, aud of transporting iu the vessels of others or of their own all property, goods, wares, and merchandise, over, through, and upon said navigable waters, canal or canals, road or roads, which shall he improved, made; or constructed by them, at such rates, charges, dntits, and tolls as the said com- pany may think proper to establish ; except, however, that the said charter shall fur- ther provide that all the vessels of war and all other public vessels of every description belonging to the governments of the two contracting parties, as well also as all other vessels which may be engaged in the permanent or temporary employment of the said governments to transport their troops, munitions of war, their public property of all kinds, and to convey their public agents, consuls, ministers, and all their officers, civil and military, shall be permitted to have the free and unrestricted use of the said canal or canals and navigable waters, and shall if necessary aud required be conveyed through the same by the said conpany free of all costs and charge ; said charter shall further provide also that the public mails of the contracting parties shall be conveyed and transported along and over the said works by the said company, in their own vessels or vehicles, free of cost or charge, and the contracting parties agree and stipulate with aU 96 PROPOSED INTEKOCEANIC CANAL, solemnity that the aforesaid rights and privileges shall be enjoyed by each other per- petually, and that said charter shall provide accordingly; said charter shall also fur- ther provide that the citizens of the two parties shall enjoy and possess the right and privilege with their vessels, goods, merchandise, and property, and persons to pass and be conveyed through, upon, and over the said canals, roads, and navigable waters on terms at least as favorable as the subjects or citizens of any other nation or country. Uth. Said charter shall provide that the said works shall be commenced by said company within ten years after it shal 1 be fully organized under said charter, or other- wise forfeit their privileges; so likewise if they shall after said works are hegun de- clare their intention to abandon thera and cease to prosecute the same for four entire successive years intentionally. Article IV. The charter aforesaid may contain such other provisions and grants of rights and privileges not in violation of or in conflict with any of the preceding or subsequent articles of this treaty as may be deemed necessary, convenient, or proper for the ob- jects in view by either the President or Congress of the United States, and the same when framed and issued shall be approved and legalized by the Government of the State of Nicaragua, and no privileges or emoluments shall be granted in said charter to either of the contracting parties which shall not likewise be held and enjoyed to the sarae extent by the other. Article V. The Government of the United States shall have the right to erect such forts and fortifications at the ends and along the lines of said works, and to arm and occupy the same in such manner and with as many troops as may be deemed necessary by the said government for the protection and defense thereof, and also for the preservation of the peace and neutrality of the territories of Nicaragua, to whom pertains equal rights as inherent to her sovereignty. Article VI. The public armed vessels, letters of marque, and privateers, and the private mer- chant and trading vessels belonging either to the governments, or the subjects, or cit- izens of nations, kingdoms, or countries with which either of the contracting parties may bo at war, shall not, during the continuance of such war, be suffered or allowed to come in the ports at the terminations of said canals, nor be allowed to pass on or through the same, on any account whatever ; neither shall the vessels of neutral na- tions, whether public or private, be allowed to convey by means of said canal articles contraband of war, to or for the enemies of either of the contracting parties, or to or for other nations or states who may be at war with each other ; nor shall the vessels of countries which are engaged in war with each other, owned or employed and armed by them to carry on such war, during its continuance be allowed to pass through the said canals. The public and private vessels of all nations, kingdoms, aod countries which are in peace with both the contracting parties and with each other shall be permitted to enter said ports, and to pass or be conveyed through the said canals, but they shall be subject, however, to the payment of such duties, charges, and tolls as may be es- tablished by the proprietors of the said works. Article VII. The State of Nicaragua may, of course, exercise her right of erecting and establish- ing anywhere on the routes or margins, or at the points of termination of said works, custom-houses and warehouses, and to collect duties, according to her own laws, upon the goods, wares and merchandise imported for sale or consumption into her terri- tories by means of said works, and the State of Nicaragua may adopt and enforce all needful rules and regulations to prevent smuggling or the introduction of contraband goods in her territories ; but it is expressly agreed that the State of Nicaragua shall not impose, enforce, or collect any taxes, charges, or duties of any kind or amount on the persons (for passports), or property, or on goods, wares, or merchandise of any class or kind on their travel or transit over, or for passing through her territories by means of said canals, roads, &c., provided the said property, goods, wares, and mer- chandise shall be not sold or not introduced for sale or consumption into the said State, but be exported to other states or countries. Article VIII. The ports at the points of termination of said works shall be free to bo th th e con CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 97 traoting parties and their citizens, respectively; and their public and private vessels of all kinds shall enter and remain therein and depart therefrom and not be subjected to the payment of any port charges, tonnage duties, or other imposition wha,tever. Article IX. The persons employed in the location and construction of said works, the owners thereof, and all their agents, and officers, and employes of every sort, shall be under the speoialprotection of the governments of both the contracting parties; and they shall not be subject to any kind of taxation on their persons or property, nor shall they be required to pay any contribu tions or to perform any civil or military duty or service what- ever for either of the two governments during their employment about the said works ; and all provisions, including wines and liquors, and all merchandise imported into Nic- aragua for their clothing and subsistence shall be free and exempt from all duties and taxes, direct or indirect ; and all such articles, property, stores, tools, implements, and machines, &o., &o., as may be required for surveys and explorations, and for locating and constructing said works, shall be imported into the State of Nicaragua free from all taxes and duties whatever thereon, and the vessels employed in the importation of the said subsistence, clothing, tools, implements, &c., &c. , shall also be free and exempt from all port charges and tonnage duties in all the ports, rivers, lakes, or harbors on the coasts or within the limits of the State of Nicaragua ; and entire liberty is to be enjoyed by the said company to make full and complete surveys and explorations of the ports, bays, seas, lakes, rivers, and territories of Nicaragua, in order to the location of said works and for the procurement of lands and materials necessary for the same, in which explorations and surveys Nicaragua, at her own expense, may participate, if she thinks proper. Akticlb X. The State of Nicaragua grants and cedes to the United States or to a company to be chartered as herein provided, as the case may be, all the land within two leagues square belonging to the said State, and which may be unappropriated at the date of this treaty, at each point of the terminations of said works at the seas on each side, that is to say, three miles square on each side of both ends of said works, to serve for the sites of twO' ftee cities which it is anticipated will hereafter be established at said points, the in- habitants of which free cities shall enjoy the following rights and immunities : 1st. They shall govern themselves by means of their own municipal government, to be administered by officers, legislative, executive, and judicial, chosen and elected by themselves according to their own regulations. 2d. They shall have the right of trial by jury in their own city courts. 3d. They shall have the most perfect freedom of religions belief and of religious worship, public and private. 4th. They shall not be required to pay any tax upon their real estate or other prop- erty except such as may be imposed by the municipality and collected for the city treasury, and to be used and applied for the benefit of said cities. 5th. They shall not be required to perform any military services, except for the de- fense of the said cities in wliich they may reside. 6th. The said cities will of course be under the qualified dominion and government of the State of Nicaragua, not to be exercised in any manner, however, in violation of their rights and immunities as herein specified ; and said free cities shall be under the protection of the governments of both the contracting parties. Akticlb XI. The State of Nicaragua agrees that the United States shall have, possess, and enjoy forever the following rights and privileges; that is to say, the ri^ht and privilege to pass, convey, transport, and send through all or any part of the territories and dominions of the State of Nicaragua, on land or water, from ocean to ocean, by means of her ports, bays, rivers, lakes, and roads, troops, infantry or cavalry, all kinds of arms, artillery, and munitions of war of all kinds, her public property of every description, public officers, civil and military, consuls, ministers, dispatch agents, her public mails and mail agents, and all other employes of the Government of the United States of America ; and the same shall all and each be permitted to pass, be sent, and be conveyed through said State, in any manner, as aforesaid, in the public armed vessels of the United States, and in all such other vessels or vehicles, public or private, which may be in the temporary or permanent employment of the Government of the United States for any of the purposes aforesaid, or in any other yray, free from all' cost and exempt ftom all taxes, duties, imposts, charges, or exactions of any kind whatever, either on the persons, property, vehicles, or vessels aforesaid ; and all the aforesaid privi- leges and the said free rights of way and of transit shall be held, used, and enjoyed 4909 CONG 7 i)8 PROPOSED INTEEOCEANIC CANAL, by the United States of America, but not by any other nation, state, or govern- ment, except Nicaragua, without cost or charge, and freely, whether the same be made through the dominions and territories of Nicaragua as they now exist, or whether the said troops, munitions of war, public officers, agents, employes, mails, public prop- erty, vehicles, and vessels, &c., shall be sent, transported, or conveyed by means of improved navigable rivers, canals, or turnpikes, or railroads, or any other public im- provements which maybe hereafter made in the State of Nicaragua, either by the gov- ernments or citizens of the contracting parties, or by the governlnents, citizens, or people of any other nation, kingdom, or country ; and the citizens of the United States shall have and enjoy all the rights and privileges of travel, passage, transit, and con- veyance for themselves and their property and vessels of all kinds through the terri- tories and dominions of the State of Nicaragua as they now exist or through such canals or roads, railways or turnpikes, or other improvements as may be hereafter made in said State, upon terms and conditions in every particular as favorable as those enjoyed by the citizens of Nicaragua, or by the citizens of any other nation, kingdom, or country. Articlb XII. In consideration of the premises as set forth in the foregoing eleven articles, the United States of America doth solemnly agree and undertake to protect and defend the State of Nicaragua in the possession and exercise of the sovereignty and dominion of all the country, coasts, ports, lakes, rivers, and territories that may be rightfully un- der the jurisdiction and within the just and true limits and boundaries of the said State, and when the circumstances and condition of the country may require it the United States shall employ their naval and military force to preserve the peace and maintain the neutrality of the said coasts, ports, lakes, rivers, and territories, and to hold and keep the same under the dominion and sovereignty of the Government of the State of Nicaragua or of the government of such state or political community of which Nicaragua may voluntarily become a member, or with which, of her own accord, she may hereafter be identified: Provided, however, that the said sovereignty and domin- ion of the State of Nicaragua, so guaranteed as above, shall not be held, maintained, or exercised by said State in any such nianner as to conflict or to be inconsistent with the rights and privileges herein secured to the United States and her citizens; and to prevent all misunderstanding, it is expressly stipulated that the United States are not bound, nor do they undertake, to aid, assist, or support Nicaragua in offensive wars or wars of aggression waged and carried on by said State with foreign powers or with the neighboring states, oatside of her just limits, and beyond the territories right- fully within her jurisdiction ; but the contracting parties agree and undertake that, if necessary, the naval and military forces and the entire means and resources of both the contracting parties shall be employed to put down all wars and bloodshed arising therefrom and to suppress all violations of the peace and interruptions of the neutrality of the said State of Nicaragua ; and for further explanation it is understood that if the State of Nicaragua should become involved in a war with any foreign power or neighboring state within her own borders, to defend the territories rightfully belonging to her, or to recover such territories wrongfully wrested from her, the Uni- ted States engage to aid and defend Nicaragua in carrying on such war within her own rightful limits, provided, however, that such war is just, and provided, moreover, that if peace is prevailing in the State of Nicaragua, no wars or hostilities shall be first com- menced in said State by either of the contracting parties without previous friendly consultations, and unless with the consent of both their governments, given according to their laws and constitutions, respectively. ' Articlb XIII. The contracting parties, in negotiating this treaty, have had in view the contract entered into between the State ofNicaragua, through their commissioner, Jos6 Trinidad Mufioz, and a certain company styled ' ' Compania de trausito de Nicaragua," composed of certain persons named Willard Parker, Simeon H. Ackerman, Asher Kurshecdt, and David J. Brown, through the said David J. Brown as their agent, which contract was executed and signed by said commissioner and agent on March 14, 1849, and ratified by the legislative power of the State of Nicaragua on March 16, 1849, and approved by the executive power of said State on the 17th of March, 1849. Now, in view of this contract, it is further agreed as follows : 1st. If the above-named company shall accede to this treaty in all its parts, or if they shall voluntarily abandon their contract, or if they shall forfeit their rights un- der said contract by failing to perform and execute ISie terms and conditions thereof in due time, then this treaty shall remain and be valid in all its parts. 2d. But if the said company shall not accede to this treaty in all its parts, and if CLAYTON-BULWEE TREATY, AND MONROE DOOTEINB. 99 they shall not abandon or forfeit their said contiact, but if they shall execute the same and comply with its terms, and build the said works all in the time required, then, in such case, this treaty in all its parts, wherein the State of Nicaragua grants to the United States, or to a company to be chartered by the President or Congress thereof, the exclusive privilege to be the constructors and owners of said works shall be void, and of no force or effect. 3d. Nevertheless, in such case as is set forth in the second section next preceding, if said company shall accede to the fifth (5th), the sixth (6th), the eighth (8th), and the eleyenth tilth) articles of this treaty, and shall consent and agree that the United States of America, and the citizens thereof, shall have and enjoy all the rights and privileges therein granted to them, and as defined also in the tenth (10th) section of the third (3rd) article, then in such case the above-named fifth, sixth, eighth, and eleventh articles of this treaty, as also the twelfth article thereof, shall be valid and obligatory between the contracting parties. 4th. But if in such case existing as is set forth in the second section above the said company shall refuse to accede or agree to the said fifth (5th), sixth (6th), eighth (8th), and eleventh (11th) articles hereof, as specified in the preceding third section, then this treaty shall be altogether void and of no force or eii'ect whatever. But the contracting parties, anticipating that said company, being satisfied that the great enterprise in view cannot succeed unless under the protection and patronage of the two governments, will concur and co-operate with them in the promotion thereof, they are assui'ed that this treaty will meet their cordial approbation, and that it will be fully acceded to by them. The present special convention between the United States of America and the State of Nicaragua shall be approved and ratified by the President of the United States of America, by and with the advice and consent of the Senate thereof, and by the Director of the State of Nicaragua, with the consent of the Legislative Chambers thereof, and the ratifications shall be exchanged in the city of Washington, Santiago de Managua, or Leon, within the term of two years counted from this date. In fai th whereof, we, the plenipotentiaries of the United States of America and of the State of Nicaragua, have signed and sealed these presents in the city of Guatemala, on the twenty-first day of June, in the year of our Lord one thousand eight hundred and forty-nine, in the seveaty-third year of the independence of the United States of America, and in the twenty-eighth year of the independence of the State of Nicaragua. [SEAL.] ELIJAH HISE. [SEAL.] BUENAVA SELVA. DOCUMENT No. 7. 7.— CLAYTON-BULWEE CONVENTION OF APEIL 19, 1850. Convention between the United States of America and her Britannic Majesty. The United States of America and Her Britannic Majesty, being desirous of con- solidating the relations of amity which so happily subsist between them, by setting forth and fixing in a convention their views and intentions with reference to any means of communication by ship-canal which may be constructed between the Atlan- tic and Pacific Oceans by the way of the river San Juan de Nicaragua and either or both of the Lakes of Nicaragua or Managua, to any port or place on the Pacific Ocean, the President of the United States has conferred full powers on John M. Clayton, Secretary of State of the United States, and Her Britannic Majesty on the Eight Honorable Sir Henry Lytton Bulwer, a member of her Majesty's most honorable privy- council, knight commander of the most honorable Order of the Bath, and envoy extraordinary and minister plenipotentiary of Her Britannic Majesty to the United States, for the aforesaid purpose ; and the said plenipotentiaries having exchanged their full powers, which were found to be in proper form, have agreed to the follow- ing articles : Akticlb I. The Governments of the United States and Great Britain hereby declare that neither the one nor the other will ever obtain or maintain for itself any exclusive control over the said ship-canal ; agreeing that neither will ever erect or maintain any fortifications commanding the same or in the vicinity thereof, or occupy, or fortify, or colonize, or assume, or exercise any dominion over Nicaragua, Costa Eica, the Mosquito coast, or any part of Central America ; nor will either make use of any protection which either affords or may afford, or any alliance which either has or may have to or with any 100 PEOPOSED INTEKOCEANIC CANAL,. state or people, for the purpose of erecting or maintainiag any auch fortifications, or of occupying, fortifying, or colonizing Nicaragua, Costa Eioa, the Mosquito coast, or any port of Central.America, or of assuming or exercising dominion over the same ; nor ■will the United States or Great Britain take advantage of any intimacy, or use any alliance, connection, or influence that either may possess vrith any state or government through whose territory the said canal may pass, for the purpose of acquiring or hold- ing, directly or indirectly, for the oitiiiens or subjects of the one, any rights or advan- tages in regard to commerce or navigation through the said canal which shall not be offered on the same terms to the citizens or subjects of the other. Article II. Vessels of the United States or Great Britain traversing the said canal shall, in case of war between the contracting parties, be exempted from blockade, detention, or cap- ture by either of the belligerents ; and this provision shall extend to such a distance from the two ends of the said canal as may hereafter be found expedient to establish. Article III. In order to secure the construction of the said canal, the contracting parties engage that if any such canal shall be undertaken upon fair and equitable terms by any parties having the authority of the local government or governments through whose territory the same may pass, then the persons employed in making the said canal, and their property used, or to be used, for that object, shall be protected, from the commence- ment of the said canal to its completion, by the Governments of the United States and Great Britain, from unjust detention, confiscation, seizure, or any violence whatso- ever. Arttclb IV. The contracting parties will use whatever influence they respectively exercise with any state, states, or governments, possessing or claiming to possess any jurisdiction or right over the territory which the said canal shall traverse, or which shall be near the waters applicable thereto, in order to induce such states or governments to facili- tate the construction of the said canal by every means in their power. And further- more, the United States and Great Britain agree to use their good offices, wherever or however it may be most expedient, in order to procure the establishment of two free ports, one at each end of the said canal. Article V. The contracting parties further engage, that when the said canal shall have been completed, they will protect it from interruption, seizure, or unjust confiscation, and that they will guarantee the neutrality thereof, so that the said canal may forever he open and free, and the capital invested therein secure. Nevertheless, the Governments of the United States and Great Britain, in according their protection to the construc- tion of the said canal, and guaranteeing its neutrality and security when completed, always understand that this protection and guarantee are granted conditionally, and maybe withdrawn by both governments, or either government, if both governments, or either government, should deem that the persons or company undertaking or man- aging the same adopt or establish such regulations concerning the traffic thereupon as are contrary to the spirit and intention of this convention, either by making unfair discriminations in favor of the commerce of one of the contracting parties over the commerce of the other, or by imposing oppressive exactions or unreasonable tolls upon passengers, vessels, goods, wares, merchandise, or other articles. Neither party, how- ever, shall withdraw the aforesaid protection and guarantee without first giving six months' notice to the other. Article VI. The contracting parties in this convention engage to invite every state with which both or either have friendly intercourse to enter into stipulations with them similar to those which they have entered into with each other, to the end that all other states may share in the honor and advantage of having contributed to a work of such general interest and importance as the canal herein contemplated. And the contracting parties likewise agree that each shall enter into treaty stipulations with such of the Central American States as they may deem advisable, for the purpose of more effectually car- rying out the great design of this convention, namely, that of constructing and main- CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 101 taining the said canal as a ship communication between the two oceans for the benefit of mauiiind, on equal terms to all, and of protecting the same ; and they also agree, that the good offices of either shall be employed, when requested by the other, in aid- ing and assisting the negotiation of such treaty stipulations; and should any differ- ences arise as to right or property over the territory through which the said canal shall pass between the states or governments of Central America, and such differences should in any way impede or obstruct the execution of the said canal, the Governments of the United States and Great Britain will use their good offices to settle such differences in the manner best suited to promote the interests of the said canal, and to strengthen the bonds of friendship and alliance which exist between the contracting parties. Article VII. It being desirable that no time should be unnecessarily lost in commencing and constructing the said canal, the Governments of the United States and Great Britain determine to give their support and encouragement to such persons or company as may first offer to commence the Bame, with the necessary capital, the consent of the local authorities, and on such principles as accord with the spirit and intention of this con- vention ; and if any persons or company should already have, with aby state through ■which the proposed ship canal may pass, a contract for the oouBtruction of such a canal as that specified in this convention, to the stipulations of which contract neither of the contracting parties in this convention have any just cause to object, and the said per- son or company shall moreover have made preparations, and expended time, money, and trouble, on the faith of such contract, it is hereby agreed that such persons or company shall have a priority of claim over every other person, persons, or company to the protection of the Governments of the United States and Great Britain, and be allowed a year from the date of tie exchange of the ratifications of this convention, for concluding their arrangements, and presenting evidence of suificieut capital sub- scribed to accomplish the contemplated undertaking; it being understood that if, at the expiration of the aforesaid period, such persons or company be not able to com- mence and carry out the proposed enterprise, then the Governments of the United States and Great Britain shajl be free to afford their protection to any other persons or company that shall be prepared to commence and proceed with the construction of the canal in question. Article VIII. The Governments of the United States and Great Britain having not only desired, in entering into this convention, to accomplish a particular object, but also to establish a general principle, they hereby agree to extend their protection . by treaty stip ulations, to any other practicable communications, whether by canal or railway, across the isth- mus which connects North and South America, and especially to the inter-oceanic com- munications, should the same prove to be practicable, whether by canal or railway, which are now proposed to be established by tbe way of Tehuantepec or Panama. In granting, however, their joint protection to any such canals or railways as are by this article specified, it is always understood by the United States and Great Britain that the parties constructing or owning the same shall impose no other charges or conditions of traffic thereupon than the aforesaid governments shall approve of as just and equi- table ; and that the same canals or railways, being open to the citizens and subjects of the United States and Great Britain on equal terms, shall also be open on like terms to the citizens and subjects of every other state which is willing to grant thereto such protection as the United States and Great Britain engage to afford. Article IX. The ratifications of this convention shall be exchanged at Washington within six months from this day, or sooner if possible. In faith whereof, we, the respective plenipotentiaries, have signed this convention, and have hereunto affixed our seals. Done at Washington, the nineteenth day of April, anno Domini one thousand eight hundred and fifty. JOHN M. CLAYTON. [l. s.] HENRY LYTTON B.ULWER. [l. s.] 102 PROPOSED INTEEOCEANIC CANAL, DOCUMENT NO. 8. 8.— PEOPOSED BASIS OF AN ARRANGEMENT FOR SETTLING CENTRAL AMERICAN AFFAIRS. CRAMPTON-WEBSTER. "Washington, April 30, 1852. The iindersigiied, Daniel Webster, Secretary of State of the United States, and John Fiennes Crampton, Envoy Extraordinary and Minister Plenipotentiary of Her Brit- annic Majesty, having taken into consideration the state of the relations between the Republics of Costa Rica and Nicaragua in respect to the boundaries between those republics, and between the Republic of Nicaragua and the territory claimed by the Mosquito Indians ; and being mutually desirous that all pending differences respect- ing those questions should be amicably, honorably, and definitively adjusted, do in behalf of their respective governments earnestly recommend to the respective govern- ments of the Republics of Nicaragua and Costa Rica an accommodation and settlement of these differences upon the following basis: Article I. The Mosquito Indians may reserve to themselves out of the territory heretofore claimed or occupied by them on the eastern coast of Central America, a district of country, and the jurisdiction over the same to be bounded as follows, namely : begin- ning on the shore of the Caribbean Sea at the mouth of the river Rama, which is(ao- cording to Bailey's map of Central America, published in London in November, 1850) in 11° 34' north latitude and 83° 46' west longitude ; running thence due west to the meridian 84° 30' west longitude from Greenwich;, thence due north on said meridian to the river Segovia, Fantasma, or Wanx ; thence down said river to the Caribbean Sea ; thence southerly along the shore of said sea to the place of beginning ; and all the rest and remainder of the territory and lands lying southerly or westerly of said reservation heretofore occupied or claimed by the said Mosquitos, including Greytown, they shall relinquish and cede to the Republic of Nicaragua, together with all jurisdic- tion over the same in consideration of the net receipts tor a period of three years from all duties levied and collected at Greytown at the rate of 10 per cent, ad valorem on all goods imported into the State. The period of three years to commence on the day when Nicaragua shall formally take possession of and enter into the occupancy of said town. And the said net re- ceipts shall be payable quarterly, or every three months, to such agent or agents as may be appointed to receive them. And the said Republic of Nicaragua hereby agrees not in any way to molest or in- tefere with the Mosquito Indians within the territory herein reserved by them. It is also understood that any grants of land which may have been made by the said Mosquitoes since the 1st of January, 1848, in that part of the Mosquito territory hereby ceded to Nicaragua, shall not be disturbed, provided the said grants shall not interfere with other legal grants made previously to that date by Spain, by the Central Ameri- can Confederation, or by Nicaragua, or with the privileges or operations of the Atlantic Ship-Canal Company, or Accessory Transit Company, and shall not include territory desired by the Nicaraguau Government for forts, arsenals, or other public buildings. 11. It is also understood thatnothing in the preceding article shall preclude the conclu- sion of such voluntary compact and arrangements between the State of Nicaragua and the Mosquito Indians, by which the lattermay be definitively incorporated and united with the State of Nicaragua, it beiag stipulated that in such case the said Mosquito Indians shall enjoy the same rights and be liable to the same duties as the other citi- zens of the said State of Nicaragua. The municipal and public authority in the town of Greytown shall be held and exercised by the Government of Nicaragua, but said Government shall levy no duties of tonnage nor any duties of import on goods imported into Greytown, intended for transit across the Isthmus or for consumption in any other state than that of Nicaragua, except such tonnage duty as may be necessary for the preservation of the port and harbor and the erection and maintenance of necessary light-houses and beacons, and no duty for this or similar purposes shall exceed say W cents per ton on each vessel. III. The boundary between the Republics of Nicaragua and Costa Rica shall begin on the south bank of the Colorado at its confluence with the sea at high-water mark on said river; 1 hence along said south bank, also at high- water mark, to the confluence of the Colorado with the the river San Juan; thence, at high- water mark, along the south CLAYTON BULWEE-TREATY, AND MONROE DOCTRINE. 103 bank of the San Jiian to its source on Lake Nicaragua ; thence, at high-water mark, along the south and west shore of that lake to the point nearest the mouth of the river La Flor ; thence by a direct line drawn from that point to the mouth of the said river in the Pacific Ocean. It is understood, however, that Costa Kioa retains the right, in common with Nicaragua, to navigate said rivers and lake by said vessels, barges, or vessels towed, but not by steam ; but this right is by no, means to interfsre with the paramount right in Nicaragua or her grantors to appropriate the waters of said rivers and lake for a ship-canal from ocean to ocean or from the Caribbean Sea to said lake. It is also understood that the said compauy entitled ' ' The American Atlantic and Pacific Ship-Canal Company" shall have the privilege of locating on the south bank of the St. John River four of the eight stations or sections of land referred to in the XXVIIth article of the amended charter of said company, as rectified by the Govern- ment of Nicaragua on the 11th of April, 1850. If, however, the said company should desire to locate more than the said four sections on the south side of the San Juan, the Governments of Nicaragua and Costa Eica will amicably agree in regard to the terms of such location. IV. Neither the Government of Nicaragua nor the Government of Costa Rica should be at liberty to erect, or suffer to be erected, any wharf, wall, embankment, or other struc- ture, or to do, or suffer to be done, any thing or act whatever, in the harbor of Grey- town, in any part of the Colorado or San Juan Rivers, or on the shore of Lake Nica- ragua, which shall obstruct the free operations of the ship-canal or transit company, or hinder the passage of their boats in, along, and through the said harbor of Greytown and rivers Colorado or San Juan. And if, after the proper survey of a route for a ship- canal between the two oceans, it shall be found that it would be preferable for that canal to pass in part along the southern bank of the river San Juan or the Colorado Eiver, the Government of Costa Eica engages to grant any lands and to afford any fa- cilities which may be necessary for the construction of the said canal. Whereas it is stipulated by Article II of the convention between Great Britain and the United States of America, concluded at Washington on the 19th day of April, 1850, that vessels of the United States or Great Britain traversing the said canal shall, in case of war between the contracting parties, be exempt from blockade, detention, or capture by either of the belligerents, and that that provision should extend to such a distance from the two ends of the said canal as might thereafter be found expedient to establish ; now, for the purpose of establishing such distance within which the ves- sels of either of said nations shall be exempt from blockade, detention, or capture by either of the belligerents, it is hereby declared that it shall extend to all waters within the distance of twenty-five nautical miles from the termination of said canal on the Pacific and on the Atlantic coasts. VI. Whereas by Article VII of the said convention it was among other things stipulated that if any persons or company had already made with any state through which the ship-canal might pass, a contract for the construction of such a canal as that specified in said convention, to the stipulations of which neither of the contracting parties in that convention had any just cause to object ; and the said persons or compauy had moreover made preparations and expended time, money; and trouble on the faith of such contract, it was thereby agreed that such persons or company should have a priority of claim over every other person or persons, or company, to the protection of the Governments of the United States and Great Britain, and should be allowed a year from the date of the exchange of ratifications of that convention for concluding their arrangements, and presenting evidence of sufficient capital subscribed to accomplish the contemplated undertaking ; it being understood that if at the expiration of the aforesaid period, such persons or company should not be able to commence and carry out the proposed enterprise, then the Governments of the United States aud Great Britain should be free to afford their protection to any other persons or company that should be prepared to commence and proceed with the construction of the canal in question. And whereas at the time of the signatare of the said convention, a com- pany styled the American Atlantic and Pacific Ship-Canal Company had with the Government of the Eepublio of Nicaragua a contract for constructing a ship-canal be- tween the said oceans, but, for reasons deemed sufficient by the Governments of Great Britain and the United States, have not hitherto been able to comply with the .stipu- lation which gavethem a claim to the protection of the said governments ; aud whereas no other company has claimed such protection on the same couditions, it is therefore agreed that the further time of one year from the exchange of the ratifications of this 104 PEOPOSED INTEROCEANIC CANAL, ■convention shall be allowed to the said company to comply with the stipulation afore- 'Said. VII. And whereas by another charter (of April 11, 1850) to the American Atlantic and Pacific Ship-Canal Company, the State of Nicaragua, with a view to facilitate the con- struction of the canal, has authorized the said company to separate from their said •contract of September ii3, 1849, the part relating to the navigation of the waters of Nicaragua by steam, under the title of the Accessory Transit Company ; and whereas the said Accessory Transit Company has been for some time past in full and successful •operation, the Governments of Great Britain and ttie United States hereby engage to •extend their protection to the said Accessory Transit Company in the same manner and to the same extent as by the aforesaid convention of April 19, 1850, and by this con- vention the said protection is extended to the Atlantic and Pacific Ship-Canal Com- pany ; but as the main object of the said convention between Great Britain and the United States of America was to provide for an interoceanic ship-canal between the Atlantic and Pacific, and as that object is still deemed paramount to every other mode of transit, the protection hereby extended to the Accessory Transit Company shall not be construed to interfere with the right to construct said caual by the company which has undertaken to construct the same, or, in case of their failure, by any other persons or company which may be authorized to construct the same ; and every grant and privilege conferred upon said Accessory Transit Company shall be subject to the para- mount right and privilege of any other persons or company to construct, maintain, and use such caual. Final ly, these propositions, so far as they respect the Governments of Nicaragua and Costa Rica, are advisory and recommendatory; and the immediate consideration of those governments to their consideration is earnestly invoked. To insure a prompt decision, Mr. Wyke, cousul-general of Her Britannic Majesty, clothed with full powers for that purpose, Mr. Kerr, charge d'affaires of the United States to Nicaragua, and Mr. Walsh, appointed special agent of the United States to the Government of Costa Rica, are authoiized to communicate the arrangement pro posed to those Governments respectively ; and, unless the aforesaid Governments of Nicaragua and Costa Rica shall promptly, and without loss of time, concur in the gen- eral basis of this arrangement, and adopt proper measures for carrying it into effect, then the Governments of Great Britain and the United States will immediately, as be- tween themselves, jointly adopt such measures as they shall deem advisable to carry into full fexeoutiou the convention between those Governments of April 19, 1850; and to accomplish the design therein contemplated, of an interoceanic communication by •canal from the Atlantic to the Pacific Ocean by the way of the river San Juan and the Lake Nicaragua. JOHN F. CRAMPTON. DANL. WEBSTER. DODUMENT No. 9. 9.— CASS— YRISARRI TREATY. NOVEMBER 16, 1857. The Republic of Nicaragua and the United States of America, being desirous to main- tain with each other the most friendly relations, topromote the commercial intercourse of their respective citizens, and to make some mutual arrangement with respect to a communication between the Atlantic and Pacific Oceans by the river San Juan de Nicaragua and either or both the lakes of Nicaragua or Managua, or by any other route through the territories of said Republic of Nicaragua, have deemed it expedient to conclude a treaty of friendship, commerce and navigation, and for this purpose have named the following plenipotentiaries, that is to say : The Republic of Nicaragua, Antonio Jos6 de Yrisarri, her envoy extraordinary and minister plenipotentiary in tlie United States of America ; And the President of the United States of America, Lewis Cass, Secretary of State of the United States ; who, after having communicated to each other their full powers, found to be in due and proper form, have agreed upon and concluded the following articles : Articm! I. There shall be perpetual amity between the United States and their citizens, on the •one part, and the Government of the Republic of Nicaragua and its citizens on the •other. CLAYTUN-BULWER TREATY, AND MONROE DOCTRINE. 105 Aeticlb II. There shall be, between all the territories of the United States and the territories of the Republic of Nicaragua, a reciprocal freedom of commerce. The subjects and cit- izens of the two countries, respectively, shall have full liberty, freely and securely, to come, with their ships and cargoes, to all places, ports, and rivers, in the territories aforesaid, to which other foreigners are, or maybe, permitted to come, to euter into the same, and to remain and reside in any part thereof, respectively ; also, to hire and occupy houses and warehouses for the purpose of their comiuerce; and generally the merchants and traders of each nation, respectively, shall enjoy the most complete protection and security for their commerce, subject always to the laws and statutes of the two countries respectively. , In like manner the respective ships of war and post-office packets of the two coun- tries shall have liberty, freely and securely, to come to all harbors, rivers, and places to which other foreign ships of war and packets are, or may be, permitted to come, to enter the same, to anchor, and to remain there and reflt, subject always to the laws and statutes of the two countries respectively. By the right of entering places, ports, and rivers, mentioned in this article, the priv- ilege of carrying on the coasting trade is not understood, in which trade national ves- sels only, of the country where the trade is carried on, are permitted to engage. Article III. It being the intention of the two high contracting parties to bind themselves, by the preceding articles, to treat each other on the footing of the most favored nation, it is hereby agreed between them that any favor, privilege, or immunity whatever, in matters of commerce and navigation, which either contracting party has actually granted, or may grant hereafter, to the subjects or citizens of any other state, shall be extended to the subjects of the other contracting party gratuitously, if the oouoession in favor of that other nation shall have been gratuitous, or in return for a compensa- tion, as nearly as possible, of proportionate value and effect, to be adjusted by mutual agreement if the concession shall have been conditional. Article IV. No higher nor other duties shall be imposed on the importation into the territories of the United States of any article being the growth, produce, or manufacture of the Republic of Nicaragua, and no higher or other duties shall be imposed on the impor- tation into the territories of the Republic of Nicaragua of any articles being the growth, produce, or manufacture of the territories of the United States than are, or shall be, payable upon the like articles being the growth, produce, or manufacture of any other foreign country ; nor shall any other or higher duties or charges bo imposed in the territories of either of the high contracting parties on the exportation of any articles to the territories of the other than such as are, or may be, payable on the ex- portation of the like articles to any other foreign country ; nor shall any prohibition be imposed upon the exportation or importation of any articles the growth, produce, or manufacture of the territories of the United States or the Republic of Nicaragua, to or form the said territories of the United States, or to or form the Republic of Nica- ragua, which shall not equally extend to all other nations. Article V. No higher or other duties or payments, on account or tonnage^ of light or harbor dues, or pilotage, of salvage in case of either damage or shipwreck, or on account of any local charges, shall be imposed in any of the ports of Nicaragua on vessels of the United States than those payable by Nicaraguan vessels ; nor in any of the ports of the United States on Nicaraguan vessels than shall be payable in the same ports on ves- sels of the United States. Article VI. The same duties shall be paid on the importation into the territories of the Republic of Nicaragua of any article being the growth, produce, and manufacture of the terri- tories of the United States, whether such importations shall be made in Nicaraguan vessels or in vessels of the United States; aud the same duties shall be paid ou the importation into the territories of the United States of any article being the growth, produce, or manufacture of the Republic of Nicaragua, whether such importation shall be made in United States or Nicaraguan vessels. The same dnes shall be paid and the bounties and drawbacks allowed on the expor- tation to the Republic of Nicaragua of any articles being the growth, produce, or man- 106 ufaoture of the territories of the United States, whether such exportation shall he made in Nicaraguan or United States vessels; and the same duties shall be paid and the same bounties and drawbacks allowed on the exportation of any articles being the growth, produce, or manufacture of the Kepnblic of Nicaragua to the territories of the United States, whether such exportation shall be made in the vessels of the United States or of Nicaragua. Article VII. All merchants, commanders of ships, and others, citizens of the United States, shall have full liberty in all the territories of the Republic of Nicaragua to manage their own affairs themselves, as permitted by the laws, or to commit them to the manage- ment of whomsoever they please, as broker, factor agent, or interpreter ; nor shall they be obliged to employ any other persons in those capacities than those employed by Nicaraguans, nor to pay them any other salary or remuneration than such as is paid in like cases by Nicaraguan citizens ; and absolute freedom shall be allowed in all oases to the buyer and seller to bargain and fix the price of any goods, wares, or mer- chandise imported into, or exported from, the Republic of Nicaragua, as they shall see good, observing the laws and established customs of the country. The same privileges shall be enjoyed in the territories of the United States by the citizens of the Republic of Nicaragua under the same conditions. The citizens of the high contracting parties shall reciprocally receive and enjoy full and perfect protection for their persons and property, and shall have free and open ac- cess to the courts of justice in said countries, respectively, for the prosecution and de- fense of their just rights; and they shall be at liberty to employ, in all eases, the advocates, attorneys, or agents, of whatever description, whom they may think proper and they shall enjoy, in this respect, the same rights and privileges therein as native citizsne.; Article VIII. In whatever relates to the police of the ports, the lading and unlading of ships, the safety of the merchandise, goods, and effects ; the succession to personal estates, by will or otherwise ; and the disposal of personal property of every sort and denomination, by sale, donation, exchange, testament, or any other manner whatsoever, as also the ad- ministration of justice, the citizens of the two high contracting parties shall reciprocally enjoy the same privileges, liberties, and rights as native citizens ; and they shall not be charged, in any of these respects, with any higher imposts or duties than those which are, or may be, paid by native citizens, submitting, of course, to the local laws and regulations of each country, respectively. The foregoing provisions shall be applicable to real estate situated within the States of the American Union or within the Republic of Nicaragua, in which foreigners shall be entitled to hold or inherit real estate. But in case real estate situated within the territories of one of the contracting par- ties should fall to a citizen of the other party, who, on account of his being an alien, could not be permitted to hold such property in the state in which it may be situated, there shall be accorded to the said heir, or other successor, such term as the laws of the state will permit to sell such property ; he shall be at liberty at all times to with- draw and export the proceeds thereof without diiificulty, and without paying to the government any other charges than those which, in a similar case, would be paid by an inhabitant of the country in which the real estate may be situated. If any citizen of either of the two high contracting parties shall die without a will or testament in any of the territories of the other, the minister or consul or other diplo- matic agent of the nation to which the deceased belonged (or the representative of such minister or consul or other diplomatic agent, in case of absence), shall have the right to nominate curators to take charge of the property of the deceased, so far as the laws of the country will permit, for the benefit of the lawful heirs and creditors of the deceased, giving proper notice of such nomination to the authorities of the country. Article IX. 1. The citizens of the United States residing in Nicaragua, or the citizens of Nicara- gua residing in the United States, may intermarry with the natives of the country, hold and possess, by purchase, marriage, or descent, any estate, real or personal, without thereby changing their national character, subjedt to the laws which now exist ormay be enacted in this respect. 2. The citizens of the United States residents in the Republic of Nicaragua, and the citizens of Nicaragua residents in the United States, shall be exempted from all forced (or compulsory) military service whatsoever, by laud or sea; from all contributions of war, military exactions, forced loans in time of war ; but they shall be obliged in the CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 107 same manner as the citizeus of each nation to pay lawful taxes, municipal and other modes of imposts and ordinary charges, loans, and contributions in time of peace (as the citizens of the country are liable), in just proportion to the property owned. 3. Nor shall the property of either, of any kind, be takeu for any public object, with- out full and just compensation to be paid in advance; and 4. The citizens of each of the two high contracting partes shall have the unlimited right to go to any part of the territories of the other, and in all cases enjoy the same security as the natives of the country where they reside, with the condition that they duly observe the laws and ordinances. Article X. It shall be free for each of the two high contracting parties to appoint consuls for the protection of trade, to reside in any of the territories of the other party. But before any consul shall act as such, he shall, in the usual form, be approved and admitted by the government to which he is sent, and either of the high contracting parties may except from the residence of consuls such particular places as they judge fit to be excepted. The diplomatic agents of Nicaragua and consuls shall enjoy in the territories of the United States whatever privileges, exemptions, and immunities whatever as are, or shall be, allowed to the agents of the same rank belonging to the most favored nation ; and, in like manner, the diplomatic agents and consuls of the United States in Nicara- gua, shall enjoy, according to the strictest reciprocity, whatever privileges, exemp- tions, and immunities that are, or may be, granted in the Republic of Nicaragua to the diplomatic agents and consuls of the most favored nations. year, to wind up their accounts and dispose of their property ; and a safe conduct shall be given to them to embark at any port they themselves may select. Even in case of a rupture all such citizens of either of the high contracting parties, who are established in any of the territories of the other in trade or other employment, shall have the priv- ilege of remaining and of continuing such trade or employment without any manner of interruption, in the full enjoyment of liberty and property, so long as they behave peacefully and commit no offense against the laws, and their goods and effects, of whatever description they may be, whether in their own custody or intrusted to in- dividuals, or to the state, shall not be liable to seizure or sequestration nor to any other charges or demands than those which may be made upon the like effects or property belonging to the native citizens of the country in which such citizens may reside. In the same cas'e, debts between individuals, property out in public funds, and shares of companies, shall never be confiscated nor detained. Article XII. The citizens of the United States and the citizens of the Republic of Nicaragua, re- spectively, residing in any of the territories of the other party shall enjoy in their houses, persons, and property the protection of the government, and shall continue in possession of the guarantees which they now enjoy. They shall not be disturbed, molested, or annoyed in any manner on account of their religious belief, nor in the proper exercise of their religion, agreeably to the system of tolerance established in the territories of the high contracting parties, provided they respect the religon of the nation in which they reside, as well as the constitution, laws, and customs of the country. Liberty shall be also granted to bury the citizens of either of the two high contract- ing parties who may die in the territories aforesaid, in burial places of their own, which, in the same manner, may be freely established and maintained; nor shall the funerals or sepulchres of the dead be disturbed in any way or upon any account. Article XIII. Whenever the citizens of either of the contracting parties shall be forced to seek refuge or asylum in the rivers, bays, ports, or dominions of the other, with their ves- sels, whether merchant or war, public or private, through stress of weather, pursuit of pirates or enemies, or want of provisions or water, they shall be received and treated with humanity and given all favor and protection for repairing their vessels, procur- ing provisious and placing themselves in all respects in a condition to continue their voyage without obstacle or hindrance of any kind. Article XIV. The Republic of Nicaragua hereby grants to the United States, and to their citizens and property, the right of transit between the Atlantic and Pacific Oceans through the territories of that republic on any route of communication, natural or artificial, whether 108 by land or water, which may now or hereafter osist or be constructed under the au- thority of Nicaragua to be used and enjoyed, in the same manner and upon equal terms by both republics and their respective citizens, the Republic of Nicaragua, how- ever, reserving its rights of sovereignty over the same. Article XV. The United States hereby agree to extend their protection to all such routes of com- munication as aforesaid, and to guarantee the neutrality of the same. They also agree to employ their influence with other nations to induce them to guarantee such neu- trality and protection. And the Republic of Nicaragua on its part undertakes to establish two free ports, one at each of the extremities of the communications aforesaid on the Atlantic and Pacific Oceans. At these ports no tonnage. or other duties shall be imposed or levied by the Government of Nicaragua on the vessels of the United States, or on any effects or merchandise belonging to citizens or subjects of the United States, or upon the ves- sels or effects of any other country intended ftoHa^de for transit across the said routes of communication and not for consumption, within the Republic of Nicaragua. The United States shall also be at liberty to carry troops arid munitions of war in their own vessels or otherwise to either of the said free ports, and shall be entitled to their conveyance between them without obstruction by the authorities of Nicaragua, and without any charges or tolls whatever for their transportation on either of said routes of communication. And no higher or other charges or tolls shall be impcsed on the conveyance or transit of persons or property of citizens or subjects of the United States or of any other country across the said routes of communication than are or may be imposed on the persons and property of citizens of Nicaragua. And the Re- public of Nicaragua recognizes the right of the Postmaster-General of the United States to enter into contracts with any individuals or companies to transport the mails of the United States along the said routes of communication, or along any other routes across the isthmus, in its discretion, in closed bags, the contents of which may not be intended for distribution within the said republic, free from the imposition of all taxes or duties by the Government of Nicaragua ; but this liberty is not to be construed so as to permit such individuals or companies, by virtue of this right to transport the mails, to carry also passengers or freight. Article XVI. The Republic of Nicaragua agrees that, should it become necessary at any time to employ military force for the security and protection of persons and property passing over any of the routes aforesaid, it will employ the requisite force for that purpose ; but, upon failure to do this for any cause whatever, the Government of the United States may, after notice to the Government; of Nicaragua, or to the minister thereof ia the United States, employ such force, for this and for no other purpose ; and when the necessity ceases, such force shall be immediately withdrawn. Article XVII. It is understood, however, that the United States, in according protection to such routes of communication, and guaranteeing their neutrality and security, always in- tend that the protection and guarantee are granted conditionally, and may be with- drawn if the United States should deem that the persons or company undertaking or managing the same adopt or establish such regulations coucerning'the tratfic there- upon as are contrary to the spirit and intention of this treaty, either by making unfair discrimination in favor of the commerce of any nation or nations over the commerce of any other nation or nations, or by imposing oppressive exactions or unreasonable tolls upon mails, passengers, vessels, goods, wares, merchandise, or other articles. The aforesaid protection and guarantee shall not, however, be withdrawn by the United States without first giving six months' notice to the Republic of Nicaragua. Article XVIII. And it is further understood and agreed that in any grants or contracts which may hereafter be made or entered into by the Government of Nicaragua having reference to the interoceanic routes above referred to, or either of them, the rights and privileges granted by this convention to the Government and citizens of the United States shall be fully protected and reserved. And if any such grants or contracts now exist of a valid character, it is further understood that the guarantee and protection of the United States stipulated in Article XV of this treaty shall be held inoperative and void CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 109 until the holders of such grants or contracts shall recognize the concessions made in this treaty to the Government and citizens of the United States with respect to snch interoceanic routes, or either of them, and shall agree to observe and be governed by those concessions as fully as if they had been embraced in their original grants or con- tracts ; after which recognition and agreement, said guarantee and protection shall be in full force ; provided that nothing herein contained shall be construed either to affirm or deny the validity of any of the said contracts. Article XIX. After ten years from the completion of a railroad or any other route of communica- tion through the territory of Nicaragua, from the Atlantic to the Pacific Ocean, no company which may have constructed or be in possession of the same shall ever divide, directly or indirectly, by the issue of new stock, the payment of dividends, or other- wise, more than fifteen per cent, per annum, or at that rate, to its stockholders from tolls collected thereupon ; but whenever the tolls shall be found to yield a larger profit than this, they shall be reduced to the standard of fifteen per cent, per annum. Article XX. It is understood that nothing contained in this treaty shall be construed to affect the claim of the government and citizens of the Republic of Costa Rica to a free pas- sage by the San Juan River for their persons and property to and from the ocean. Article XXI. The two high contracting powers, desiring to make this treaty as durable as possi- ble, agree that this treaty shall remain in full force for the term of twenty years from the day of the exchange of the ratifications ; and either party shall have the right to notify the other of its intention to terminate, alter, or reform this treaty, at least twelve months before the expiration of the twenty years ; if no such notice be given, then this treaty shall continue binding beyond the said time, and until twelve months shall have elapsed from the day on wMoh one of the parties shall notify the other of its intention to alter, reform, or abrogate this treaty. Article XXII. The present treaty shall be ratified, and the ratifications exchanged, at Washing- ton City, within the space of nine months, or sooner, if possible. In witness whereof the respective plenipotentiaries have signed the same, and afiixed thereto their respective seals. Done at the city of Washington, this sixteenth of November, in the year of our Lord one thousand eight hundred and fifty-seven. LEWIS CASS. A. J. DB YRISARRI. [Inclosure No. 9 — 2.] Mr. Cass to Lard Napier. Department of State, Washington, April 6, 1858. My Lord: Your recent communications in reference to an adjustment of the Cen- tral American questions make it necessary that I should correct a misapprehension which seems to be entertained by Her Majesty's Government concerning the views of the President on the subject. The President has always regretted the differences between the United States and Great Britain, which have grown out of their different constructions of the " Clayton- Bulwer treaty," and has been sincerely desirous to see them amicably arranged. In proof of this friendly disposition, he gave his sanction to the Dallas-Clarendon treaty of 1856, as amended by the Senate, notwithstanding the objections which your lordsidip is aware he entertained to some of its provisions. When this treaty had failed in consequence of the refusal of Great Britain to ratify it in its amended form he was confidentially informed by your lordship, on the 19th of October last, in an in- terview which you had sought for the purpose "that Her Majesty's Government had considered the several alternatives of action which were open to their selection, and, 110 PROPOSED INTEKOCEANIC CANAL,. in a review of the whole case, had resolved to dispatch a representative of authority and experience to Central America, charged to make a definite settlement of all the matters with regard to which the United States and England are still at variance." Your lordship added that Sir William Gore Ouseley had been selected as the represent- ative, and that while you were unable to explain the precise character of his instruc- tion, you " believed it was the intention of Her Majesty's Government to carry the Clay- ton-Bulwer treaty into execution according to the general tenor of the interpretation put upon it by the United States, but to do so by separate negotiations with the Cen- tral American republics in lieu of a direct negotiation with the Federal Government." In reply to this communication you were assured by the President that "if the reso- lutions of Her Majesty's Government were such as yon had related, and they really meant to execute the Claytou-Bulwer treaty according to the American interpretation, this was as much as he could insist upon," and ' ' to him it was indifferent whether the concession contemplated by Her Majesty's Government were consigned to a direct en- gagement between England and the United States, or to treaties between the former and the Central American republics." In a reply to a further suggestion of your lord- ship in respect to what might be the character of his message to Congress on this sub- ject, he finally stated that if before the meeting of Congress he should receive an official announcement on the subject such as he could use, he would refer to Sir Will- iam Ousley's mission in his message, and nothing would give him greater pleasure than to add the expression of his sincere and ardent wish for the maintenance of friendly relations between the two countries." The President also distinctly stated, in reference to some apprehension expressed by your lordship lest the mission of Sir William Ouseley might be frustrated by an at- tempt in Congressto annul the treaty, an attempt which your lordship thought would have a " calamitous influence on the future relations of England and America," that under the circumstances here described no attempt against the Clay ton-Bulwer treaty would have any counteuance from him whatever. He did not fail, however, to point out to your lordship that no stipulations in respect to the Bay Islands, similar to those contained in the convention then pending between Great Britain and Honduras, would be regarded by the American Government as a satisfactory compliance with the Clay- tou-Bulwer treaty, and your lordship, in return, allowed that the articles establishing the administrative independence of the islands might have been larger than was nec- essary, "but made no doubt Her Majesty's Government would entertain any reasonable suggestions which might be offered them in that sense, and Sir William Ouseley would probably have power to enter upon it (the discussion) in a liberal spirit." According to your lordship's account of the interview of which I have freely availed myself in this narrative, you thanked the President for his assurances, and expressed your hope that your lordship (Lord Clarendon ) would be enabled to make a full communication of Sir William Ouseley's instructions to the American cabinet, and even to direct that minister to visit Washington on his way to Central America, if his excellency (the President) thought such a step desirable. In a second interview with the President, on the 24th of October, your lordship re- iterated your " belief that the instructions of Sir William Ouseley would, infact, enable him to sanction the execution of the treaty by direct arrangements with the Central American Republics, in conformity with the general tenor of the interpretation placed upon them by the United States," and then proceeded to suggest how important it was, therefore, " to know what is the sense attached to the Clayton-Bulwer treaty by the Government of the United States." These expressions were met by the President in the same friendly spirit which he had manifested at the previous interview, and while in response to your lordship's suggestion he did not fail to mention what he regarded as the leading requirements of the Clayton-Bulwer treaty, according to the American construction of it, he withdrew nothing of his previous assurance that an adjustment of the Central American questions, according to that construction, would be entirely ac- ceptable to him, whether this adjustment should be made by direct negotiation with the Central American States, or by a treaty between the United States arid Great Britain. Similar views to those which were thus expressed by your lordship in these conver- sations had been previously communicated to me in the same confidential manner, and by me reported to the President. On the 30th of November, however, I received from your lordship a notice of Sir William Ouseley's mission, together with a statement in outline of its leading objects. This statement not only did not communicate the full instructions under which that plenipotentiary was to carry into effect the Clayton-Bulwer treaty according to the American construction of it, but left it to be inferred that the new negotiations were to be based, not upon the treaty of 1850, but upon the Dallas-Clarendon treaty of 1856. The special commission, according to your lordship's communication, was " charged with the duty of negotiating arrangements conformable in general character to those contemplated by the treaty signed by the secretary of state for foreign affairs and the United States minister in- 1856, but subject to certain modiflcations which maybe consistent with the just claims of the Central American republics, with the general CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. Ill ■welfare of trade, with the vested interests of British subjects, and which will be, at the same time, agreeable to the wishes of the United States." This substitution of a basis of the new negotiations of a treaty which had never represented the views and policy of this Government, which had undergone important alterations in the Senate, which even after these alterations had been adopted with hesitation both by the President and the Senate as a " compromise " for the sake of peace, and which, at least, had been rejected by Great Britain because it was unwill- ing to sanction the Senate's amendments to it — this substitution of the Dallas-Claren- don treaty with some undefined modifications instead of the plain and precise basis which was implied in the American construction of the convention of 1850, could not fail to arrest the atten tion of the President and increase his anxiety to receive a more definite account of Sir William Ouseley's instruotioHS. This anxiety was not dimin- ished by the dispatch of Lord Clarendon of November 20, which was transmitted with your lordship's communication of December 5, for in that dispatch not only was the Dallas-Clarendon treaty referred to as a basis of the new negotiations, without any explanations whatever of the precise modifications which the commissioner was authorized to make in its provisions, but it was even urged as a matter of "concern and disappointment" that the Government of the United States, " so far from desiring to facilitate the adjustment of these questions, are inclined to require admissions on the part of this country (Great Britain) which, if made, would render all negotiation superfluous." Since the only condition which had been made by this Government was that the treaty should be executed according to the American construction of it, and this condition had been, moreover, a part of the original proposition made by your lordship to the President, it is difficult to understand how the expression of it in your report of your interviews with the Presi- dent could have occasioned Lord Clarendon either "concern" or "disappointment." Equally surprising was the declaration of Ms lordship in the same dispatch that ' ' it cannot be expected that the British Government, which entertains no doubt as to the true intent and meaning of the Clayton-Bulwer treaty, should abandon their opinion in order to adopt the adverse interpretation put upon that treaty by the Government of the United States," because it was according to the general tenor of this very interpretation that your lordship informed the President, on the 19th of October, you believed it was the intention of Her Majesty's Government to carry the Clayton- Bulwer treaty into execution, and it was only on this basis that the President had given the assurances to your lordship to which I have already adverted. In view of the tone and language of this dispatch of Lord Clarendon the President might have been fully justified in withdrawing these assurances of October last, because the con- dition upon which they were given appeared now to be unsatisfactory to Her Majesty's Government. But since he was assured that Her Majesty's Government desired to per- severe in the mission of Sir William Ouseley, and since it was only reasonable to be- lieve that this mission had been undertaken in a friendly spirit, he determined to do nothing which might either frustrate or delay it, unless he should feel compelled to do so after receiving that full information on the subject which he still had reason to expect. Accordingly in his message to Congress, after describing the position which the Central American question then occupied, he added : " Whilst entertaining these sentiments I shall nevertheless not refuse to contribute to auy reasonable adjustment of the Central American questions which is not practically inconsistent with the American interpretation of the treaty. Overtures for this purpose have been recently made by the British Government in a friendly spirit, which I cordially reciprocate, but whether this renewed effort will result in success I am not yet prepared to express an opinion. A brief period will determine." The view here taken of Sir William Ouseley's mission is precisely that which was taken of it in your lordship's interviews with the President on the 19th and 24th of October, and precisely that which this Government has ever since steadily maintained. Soon after the meeting of Congress it was uoderstood that some delay was thought necessary in the prosecution of the mission, in oonsequenceof the expedition of Walker, and the treaty which had been negotiated between the United States and Central America, concerning both of which events your lordship seemed desirous to ascertain the opinions of your Government. In repeated conversations with your lordship on this subject I was led to infer that when these opinions were known I should receive a further communication in reference to the instructions and purposes of Her Majesty's special commissioner, and in these interviews I was careful to express my sincere hope that these instructions and purposes would be found of such a character as to meet the cordial concurrence of the President. No such communication, however, has been received, and this Government has now no more definite information concerning Sir William Ouseley's mission than it had when the President referred to it in his message to Congress on the 8th of December. I am instructed, therefore, to request from your lordship a full and definite statement of the arrangements by which it is proposed that this mission shall carry into effect the Clayton-Bulwer treaty, according to the American interpetration of it. This re- 112 PROPOSED INTEROCEANIC CANAL, quest, as your lordship must perceive, has become necessary iu reference to Sir William Ouseley's mission in which the President has been placed by the proceedings of Her Majesty's Government. The President has expressed his entire concurrence in the proposal for an adjust- ment of the Central American question which was made to him by your lordship last October, and he does not wish that any delay or defeat of that adjustment shall be justly cliargeable to this Government. Since, however, he is asked to co-operate in the arrangement by which it is expected to accomplish it, it is essential that he should know with reasonable accuracy what those arrangements are. This information he- comes the more important in consequence of the idea which seems to prevail in Lord Clarendon's dispatches of November 20, that the American interpretation of the Clay- ton-Bulwer treaty of 1850 was to be found in the provisions of the Dallas-Clarendon treaty of 1856. I need not repeat to your lordship that this idea is clearly erroneous, because your lordship is aware that the treaty of 1856 was an attempt to reconcile the conflicting views of the two Governments, and did not pretend to adopt, in their full extent, the claims of either. Without, however, any further reference to this rejected treaty, I am instructed by the President to express his sincere hope that the more perfect in- formation which he hopes to have concerning the mission of Sir William Ouseley may justify him in anticipating from it a substantial execution of the Clayton-Bulwer treaty according to the general tenor of the American interpretation of it. In that event he will be happy to give it his cordial co-operation, and to direct the ministers of the United States in Central America to render any assistance in their power to- wards promoting its success. The prosecution of this mode of adjustment, I need hardly remind your lordship, must necessarily exclude the adoption of any other alternative. I was surprised therefore, on the 27th of October, only eight days after the interview with the Presi- dent in which your lordship had announced the mission of Sir William Ouseley, and the President had expressed his concurrence in it, to hear your lordship, in conversa- tion at this Department, propose a different alternative, and renew the offer of arbitra- ' tion which had been previously declined by this Government, and which I did not hes- itate to decline again. On the 30tih of November, the very day when the first official announcement was made of Sir William.Ouseley's mission, I was still more surprised that this offer of ar- bitration was formally renewed, but I regarded it as sufficiently answered by the express concurrence of the President in the mode of adjustment contemplated by that mission, even if it had not been twice rejected before. In conversation with your lord- ship since this last offer, I have freely expressed to you my views concerning it, hut in order to avoid any misapprehension on the subject I am instructed to inform you that the reasons which caused the rejection of the offer of arbitration when it was first proposed by Great Britain sriU exist, and that for these reasons it is again declined' Should Sir William Ouseley's mission he successful in giving effect to the Clayton- Bnlwer treaty according to the American construction of it, it will be unnecessary, of course, for either the United States or Great Britain to consider the question of its abrogation ; had this abrogation been promptly made as soon as it was discovered that the treaty was understood by the parties to it in senses directly opposite, it is quite possible that the Central American questions might have been adjusted ere this to the satisfaction of both governments, and if the abrogation could be accomplished now, by substituting a new adjustment of these questions for that which has led to so much discussion in the convention of 1850, this might be a fortunate termination of the whole controversy. But after eight years of fruitless negotiation, to abandon the treaty, without any arrangement whatever of the difficulties out of which it grew, would be almost to abandon at the same time all hope of adjusting these difficulties in a peaceful manner. In a recent conversation with your lordship on this subject, I understood you to say that while Great Britain might possibly consent to dissolve the treaty, it would, in your belief, expect the dissolution to be accompanied by some stipulations which Her Majesty's Government desire to have, in respect to the transit routes across the Isth- mus, but that it had no intention, iu that event, of relinquishing any of the possessions which it now has in Central America. With this understanding of your suggestion, I replied that in my judgment the President would never consent, while Great Britain continued to maintain her Central American possessions, to make new concessions to her interests in that quarter, but would prefer rather that the dissolution of the treaty should be naked and unconditional. From your lordship's " confidential" note to Lord Malmesbury of the22d ultimo, I now learn that in advising certain new stipulations to accompany the repeal of the treaty of 1850, should such a repeal be determined on, yon had "never designed to represent those suggestions as official or unalterable, or to intimate that Her Majesty's Government would not listen to any amicable proposal for the simple revocaiion of the treaty alluded to." I understand your lordship, however, to remain firmly of opinion that if the CLAYTON-BULWER TKEATY, AND MONEOE DOCTRINE. 113 treaty should be dissolved, Her Majesty's Government vfouM relinquish none of its pretensions in Central America, and that the Bay Islands especially " would remain attached to the British Crown." Since it is well known that the views of this Gov- ernment are wholly inconsistent with these pretensions, and that it can never will- ingly therefore acquiesce in their maintenance by Great Britain, your lordship will rsadily perceive what serious consequences might follow a dissolution of the treaty if no provision should be made at the same time for adjusting the questions which led to it. If, therefoue, the President does not hasten to consider now the alternative of repeal- ing the treaty of 1850, it is because hw does not wish prematurely to anticipate the failure of Sir William Onseley's mission, and is disposed to give a new proof to Her Majesty's Government of his sincere desire to preserve the amicable relations which now happily subsist between the two countries. I have, «&c., &c., LEWIS CASS. [Inolosnre "No. 9—3.] Mr. Cass to Lord Napier. Department oe State, Washington, November 8, 1858. My Lord : I have had the honor to receive the copy which your lordship did rae the favor to send me of Lord Malmesbury's dispatch to your lordship of August 18, in ref- erence to Sir William Ouseley's mission, and have submitted it to the consideration of the President. From the statement of Lord Malmesbury that the British Govern- ment has no remaining alternative but that of leaving the Cabinet of Washington to originate any further overtures for an adjustment of these controversies, it is quite obvious that the position of the President on this subject is not correctly understood by Her Majesty's Government. Since the announcement by your lordship in October, 1857, of Sir William Ouseley's special mission, the President has a waited not so much any new proposition for the adjustment of the Central American question as the state- ment in detail whichhe had been led to expect of the method by which Sir William Ouse- ley was to carry into eifect the previous proposition of the British Government. To make this plain, your lordship will pardon me for making a brief reference to what has occurred between the two governments in respect to Central America since the rati- fication of the Clayton-Bulwer treaty of 1850. While the declared object of that convention had reference to the construction of a ship-canal, by the way of San J uan and the lakes of Nicaragua and Managua, from the Atlautic to the Pacific oceans, yet it avowed none the less plainly a general principle in reference to all practicable communications across the Isthmus, and laid down a dis- tinct policy by which the practical c^peration of this principle was likely to be kept free from all embarrassment. The principle was that the interoceanic routes should remain under the sovereignity of the states through which they ran, and be neutral and free to all nations alike. The policy was, that in order to prevent any govern- ment outside of those states from obtaining undue control or influence over these in- teroceanic transits, no such nation should "erect or maintain any fortifications com- manding the same, or in vicinity thereof, or should occupy or fortify or colonize or assume or exercise any dominion over Nicaragua, Costa Rica, the Mosquito coast, or any part of Central America." So far as the United States and Great Britain were concerned, these stipulations were expressed in unmistakable terms, and in reference to other nations it was declared that the contracting parties in this convention engage to invite every state with which both or either have friendly intercourse to enter into stipulations with them similar tothose which they have entere'l into with each other. At that time the United States had no possessions whatever in Central America and exercised no dominion there. In respect to this Government, therefore, the provisions of the drst article of the treaty could operate only as a restriction for the future, but Great Britain was in the actual exercise of dominion over nearly the whole eastern coast of that country, and in rela- tion to her this article had a present as well as a prospective operation. She was to abandon the occupancy which she already had in Central America, and was neither to make acquisitions or erect fortifications or exercise dominion there in the future. In other words, she was to place herself in the same position, with respect to posses- sions and dominion in Central America, which was to be occupied by the United States, and which both the contracting parties to the treaty engaged that they would endeavor to induce other nations to occupy. This was the treaty as it was understood and assented to by the United States, and this is the treaty as it is still understood by this Government. Instead, however, of giving effect to itin thissense, the British Govern 4909 CONG 8 114 PROPOSED INTEROCEANIC CANAL, meiit proceeded, in 1851, ouly a few months after the signature to the treaty, to estab- lish a new British colony in Central America uurterthe name of the "Bay Islands"; and when this Government expressed its great surprise at this proceeding and at the failure of Great Britain to comply with the terms of the convention, Her Majesty's Govern- ment replied that the islands already belouged to Great Britain at the date of the treaty, and that the convention, in their view of it, interfered with none of their exist- ing possessions in Central America, but was wholly prospective in its character, and only prevented them from making new acquisitions. It is unnecessary to do more than simply refer to the earnest and able discussions which followed this avowiU, aud which show more and more plainly the oiiposite constructions which were placed upon the treaty by the two governments. In 1854 it was sought to reconcile these constructions and to terminate the Central American question by the convention which was signed at London by the American minister and Lord Clarendon, usually designated the Dallas-Clarendon treaty. The terms of this treaty are doubtless familiar to your lordship. It provides — 1. For the withdrawal of the British protectorate over the Mosquito Indians and for an arrangement in their behalf upon principles which were quite acceptable to the United States. 2. It regulated the boundaries of the Belize settlements, within which Great Britain claimed to exercise certain possessory rights upon terms which, although not wholly acceptable to this Government, were yet in a spirit of generous concession ratified by the United States Senate. 3. It provided for a cession of the Bay Islands to Honduras (in the opinion of this Government their rightful proprietor), but this concession was made dependent upon an unratified treaty between Great Britain and Honduras, whose terms were not offi- cially known to this Government, but which, so far as they had unofficially appeared, were not of a satisfactory character. The Senate, therefore, in ratifying the Dallas-Clarendon treaty, felt obliged to amend it by striking out all that part of it which contemplated the concurrence of this Gov- ernment in the treaty with Honduras, and simply providing for a recognitiou by the two governments of the severeign right of Honduras to the islandsiu question. Great Britain found itself unable to concur in this amendment, and the Dallas-Clarendon treaty, therefore, fell to the ground. It was clear, however, that the objections of the Senate to the Honduras treaty were not deemed unreasonable by Her Maj esty 's Govern- ment, because^ in your lordship's interview with ihe President on the 2ad of Octo- ber, 1857, your lordship " allowed that the articles establishing the administrative in- dependence of the islands might have been larger than was necessary." " I had ob- served," you added, "the same impression in the correspondence of Mr. Wyke, Her Majesty's eharg(S d'affaires at Guatemala, who seemed to admit that a greater partici- pation in the internal government might be granted to the authorities of Honduras," and you made " no doubt that Her Majesty's Government would entertain any reason- able suggestions which might be offered to them in that sense." And again, in your lordship's note to this Department of November 30, 1857, yon recognize the same probability "that the intervention of the Honduras Government in the administration of the islands may have been more limited than was necessary or even advisable." Such was doubtless the opinion of Honduras, for as long ago as May 10, 1857, 1 was Informed by your lordship that the treaty remained unratified " owing to some objec- tions on the part of the Government of Honduras," and that "Her Majesty's Govern- ment does not expect that the treaty in its present shape will be definitely sanctioned by that RepubUo." In view of the objectionable provisions of this convention with Honduras, and of its failure to be sanctioned by that Republic, your lordship, by the authority of Lord Clarendon, informed me on the 6th of May, 1857, that Her Majesty's Government was prepared to sanction a new treaty, in respect to the Central American questions, which should in all respects conform to the Dallas-Clarendon treaty, as ratified by the Senate, except that to the simple recognition in the Senate's substitute for the second separate article of the sovereignty of Honduras over the Bay Islands there was to be added the following passage : "Whenever and so soon as the Republic of Honduras shall have concluded and ratified a treaty with Great Britain by which Great Britain shall have ceded and the Republic of Honduras shall have accepted the said islands subject to the provisions and conditions contained in said treaty." Whilethis condition contem- plated a new treaty with Honduras which might possibly avoid the objectionable pro- visions of the old one, yet it was quite impossible for the United States to become a party, either directly or indirectly to a convention which was not in existence, ot whose terms and conditions it could neither know nor control. For this reason I in- formed your lordship in my communication of May 29, that your lordship's proposi- tion was declined by this Government. The attempts to adjust the Central Amei !oan questions by means of a supplementary CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 115 treaty having thus failed of success, and the subject not being of a character, in the opinion of the United States, to admit of their reference to arbitration, the two Gov- ernments were thrown back upon their respective rights under the Clayton-Bulwer treaty. While each Government, however, had continued to insist upon its own con- struction of this treaty, there was«reason to believe that the embarrassment sgrowing out of their conflicting views of its provisions might be practically relieved by direct negotiation between her Majesty's Government and the States of Central America. In this way it seemed possible that, without any injustice to those States, the treaty might be rendered acceptable to both countries as well as operative for the disinter- ested and useful purposes which it had been designed to serve. The President, there- fore, was glad to learn from your lordship, on the 19th of October, 1857, that Her Maj- esty's Government bad " resolved to dispatch a representative of authority and experi- ence to Central America, to make a definitive settlement of all the matters with regard to which the United States and England were still at variance, and who would be in- structed," as your lordship believed, ' ' to carry the Clayton-Bulwer treaty into execution according to the general tenor of the interpretation put upon it by the United States, but to do so by separate negotiation with the Central American Republics in lieu of a direct engagement with the Federal Government." This announcement could not fail to be received with satisfaction by the President, because it contemplated the substan- tial accomplishment of the very purposes in respect to the treaty which the United States had always had in view, and so long as these were accomplished he assured your lordship that " to him it was indifferent whether the concession contemplated by Her Majesty's Government were consigned to a direct engagement between England and the United States or to treaties between the former and the Central American Republics; the latter method might, in some respects he added, be even more agreeable to him, and he thought it would be more convenient to Her Majesty's Government, who might, with greater facility, accede to the claims of the weaker party." It is unnecessary to refer at length to what was said in this conversation, or to a second one on the same subject which your lordship had with the President on the evening of October 23; but there can be no doubt thatiu both inter views the expected mission of Sir William Ouseley (who it was understood had been selected as the pleni- potentiary referred to), in connection with what your lordship indicated as his prob- able instructions, was favorably regarded by the President. So much was this the case, that he gave your lordship his full assurance that should your lordship's an- nouncement be confirmed by any official information such as he could use, he would change that part of his message which related to Great Britain, would encourage no attempt in Congress to annul the treaty while the mission was in progress, and noth- ing could give him greater pleasure, he said, "than to add the expression of his sin- cere and ardent wish for the maintenance of friendly relations between the two countries." At the close of the second interview, he even went so far as to remark, in reference to the extended boundary claimed by Great Britian for the Belize (to which he had ever objected), that he could take no absolute engagement in this matter; but he would say this much, " that if the Baylslands were fairly and handsomely evacuated, such a measure would have a great effect with him, and with the American people, in regard to the settlement of the other points at issue." Sir William Ouseley arrived in Washington about the middle of November, and on the 30th of November I received from your lordship an official statement in outline of the purposes of his mission. On the 5th December, your lordship inclosed to me a copy of Lord Clarendon's dis- patch of November 20, in which your lordship's previous statement was substan- tially confirmed, and in which it was further stated that "Sir William Ouseley, during his visit to Washington, will, in pursuance of his instructions, have explained with the utmost frankness to the Government of the United States the nature of the in- structions with which he is furnished, and your lordship, as the duly accredited organ of Her Majesty's Government, will have given similar explanations." The objects' of Sir William Ouseley's mission, as thus made known to the United States, were : 1. To provide for the transfer by Great Britain of the Bay Islands to the Govern ment of Honduras ; and in this transfer it was especially declared that the stipula- tions in the British treaty with Honduras were not to be rigidly adhered to. Sir Will- iam Ouseley, on the contrary, while requiring provisions to secure the vested rights of British subjects in the Bay islands, was to be left at liberty to contract engagements with Honduras which should embody not only an unmistakable recognitipn of its sovereignty over these islands; but should allow of a more direct government and a more efficient protection over them by that republic than had been contained in the convention of 1856. •Z. The second object of Sir William Ouseley's mission was the settlement of the ques- tion of Ihe Mosquito protectorate with Nicaragua and Honduras. Whilst he was to provide for the compensation, the government, and the protection of the Mosquito In- 116 PEOPOSED INTEROCEANIC CANAL, dians under the sovereignty of UTicaragua, this was to be done upon terms pot less favorable than those which had received the approbation of the Senate in the Dallas- Clarendon treaty. In no degree was the Indian reserve to trespass on the territory applicable to transit purposes. ^ 3. The regulation of the frontier of British Hondnras was to be effected by negotia- tion with the Government of Guatemala. Her Majesty's Government trusted to obtain from that Republic a recognition of limits "which, if we may judge from previous communications on the subject, may be accepted in a spirit of conciliation, if not with absolute approval, by the President." Such were the overtures communicated by your lordship's note to this Department, of November 30, and which were again referred to in Lord Clarendon's note to ypur lordship, of November 20, of which you inclosed to me a copy in your lordship's note of December 5. Inasmuch as the announcement of Sir William Ouseley's mission, with the explanation by your lordship of its general purposes, had been received with much satisfaction by the President, there were some expressions in this note of Lord Clarendon's which it was not easy to understand ; but which, nevertheless, did not materially change the general character of the overtures. It was still stated in th^t dispatch "that the objections entertained in the United States to the constructions placed upon that treaty by the British Government are, as every impartial person must admit, in a fair way to be removed by the voluntary act of the latter ; and while the objects of Sir William's mission continued to be mentioned in only general terms, it was yet added that during his visit to Washington he will, in pursuance of his in- structions, have explained with the utmost frankness the nature of the instructions with which he is furnished, and your lordship, as the duly accredited organ of Her Majesty in the United States, will| have given similar explanations.'' The President did not hesitate, therefore, in his message to Congress, to refer to these overtures as having recently been made by the British Government in a friendly spirit, which he cordially reciprocated. He could do no more than this, whatever might be his hopes for the success of Sir William's mission, until he had received the further explanations concerning it which he had been led to expect, and which he was prepared to consider in the kindest and most respectful manner. The general remarks contained in the outline of November 30 must have been molded in some specific form, in order to enable this Government to arrive at a practical decision upon the questions presented to it. This I understood to be the view of your lordship and Sir William Ouseley, as well as that of the President and this Department. Indeed, it was wholly in conformity with this view that Sir William Ouseley was understood to have called at Washington on his way to Central America. Had he proceeded di- rectly to his destination, and there, by separate trea,ties with the Central American Republics, given substantial effect to the Clayton-Bulwer convention, according to the general tenor of the American construction of that instrument, the Central American controversy would then have been fortunately terminated to the satisfaction of both Governments. But since this Government, in a spirit of comity, which the President fully appreciates, was asked to co-operate in accomplishing this result, it was surely not unreasonable that it should know specifically the arrangements which it was ex- pected to sanction. The general objects in view we were acquainted with and approved, but ihere was no draft of a treaty, no form of separate article, no definition of measures. The Bay Islands were to be surrendered, but under what restrictions? The Dallas-Clarendon treaty was to be modified, but what were the modifications ? The rights of British subjects and the interests of British trade were to be protected in Ruatan, but to what extent and by what conditions? Honduras was to participate more largely in the government of the Bay Islands than she was allowed to do by the convention of 1856, but how far was she to be restrained and what was to be her power? These and other similar questions naturally arose upon the general overtures con- tained in your lordship's note of November 30, and seemed naturally enough to justify the hope which was entertained of some further explanation of those overtures. In all my conversations with your lordship on the subject of Sir William's mission, suh- sequent to the meeting of Congress, this expectation of some further and more definite communication concerning it was certainly taken for granted, and until time was given to receive such a communication, you did not press for any answer to your lord- ship's note of November20. In the beginning your lordship seemed to think that some embarrassment or delay in prosecuting the mission might be oscasioned by the expe- dition to Nicaragua which had been undertaken by General Walker, and by the Cass- Yrisarri treaty which had been negotiated with that Republic by the United States; but the treaty was not disapproved by Her Majesty's Government and the expedition of Walker was promptly repressed, so that no embarrassment from these sources would be further apprehended. As the delay still continued, it was suggested by your lord- ship, and fully appreciated by me, that Her Majesty's Government was necessarily oc- cupied with the affairs of Her Majesty's possessions in India, which then claimed its immediate attention to the exclusion naturally of business which was less pressing, and CLAYTON-BULWEE TEEATY, AND MONEOE DOCTEINE. 117 hence I awaited tlie expected instructions witliout any anxiety whatever. All this is precisely what your lordship very frankly describes in your lordship's communication to this Department of April 12, 185b. " I addressed my Government," your lordship says, "with a view to obtaining further explanations and instructions, and I informed yon that it was not my desire to pressTfor an official reply to the overtures of the Earl of Clarendon pending an answer from London." The explanations, however, anticipated by your lordship and by myself were not received, and about three months after the arrival of Sir William at Washington you expressed to me your regret that you had held out expectations which proved un- founded and which had prompted delay, and then for the first time requested an answer to the proposals of Her Majesty's Government, and " especially to that part of them relating to the arbitration." It was even then suggested that the answer was desired because it was thought to be appropriate as a matter of form and not because the explanations which had been waited for were deemed wholly unnecessary. "I overlooked something due to forms," is your lordship's language in the note of April 12, "in my auxiety to promote a clearer understanding, and I eventually learned iu an official shape that Her Majesty's Government, following their better judgment, desired, before making any further communication a reply, to their overtures, and especially to that part of them referring to arbitration. Should the new proffer of arbitration be declined, it was clearly not supposed in your note of February 15 that this result would have any tendency to interrupt Sir William's efforts ; but in that event it was hoped, you informed me, that these efforts would result in a settlement agreeable to the United States, inasmuch as in essential points it would carry the treaty of 1850 into operation in a manner {practically conformable to the American interpretation of that instrument. On the 6th of April I replied to your lordship's note of February 15, with a very frank and full statement of the views of this Government upon all the p'oints to which your lordship had referred. The renewed offer of arbitration mentioned in a dispatch of Lord Clarendon was explicitly declined for the same reasons which had occasioned its rejection before, but an earnest hope was expressed for the success of Sir William Ouseley's mission, and I was instructed formally to request from your lordship those further explanations concerning it which had been promised iu Lord Clarendon's note of November 20, for which both your lordship and myself had waited for three mouths in vain, and which, up to this time, have never been furnished to the American Gov- ernment. The disappointment which the President felt at some portions of the corre- spondence which had occurred, and especially at the failure of Her Majesty's Govern- meot to inform him more fully than it had done on the subject of the mission, was communicated to your lordship without the least reserve, but in the purposes of that mission, so far as he understood them, I was authorized to say that he fully concurred, and to add his sincere hope that they might be successfully accomplished. "The President," I informed yon, "has expressed his entire concurrence in the pro- posal for an adjustment of the Central American questions which was made to him by your lordship last October, and he does not wish that any delay or defeat of that adjustment shall be justly chargeable to this Government. Since, however, he is asked to co operate iu the arrangement by which it is expected to accomplish it, it is essential that he should know with reasonable accuracy what those arrangements are." It was in the hope of this adjustment, as well as with a view to the serious consequences which might flow from a naked repeal of the Clayton-Bulwer treaty, that I made the observations on that subject which are contained iu my letter to your lordship of April 6. No demand for this abrogation, your lordsbip is well aware, had then been made by Her Majesty's Government ; but your lordship had several times suggested to me that such an alternative, if proposed by the United States, would be respectfully considered by Great Britain, and in your lordship's belief might in some form or (itber be finally adopted. You informed me, however, at the same time, that in that event Great Br'tain would not be inclined t» surrender its possessions iu Cen- tral America, and would certainly continue to occupy the Bay Islands. In reply to this announcement, I informed your lordship that since itiswellknown tbattheviews of this Government are wholly inconsistentwiththesepretensions, and thatitcan never willingly acquiesce in their maintenance by Great Britain, your lordship will readily perceive what serious consequences might follow a dissolution of the treaty, if no provision should be made at the same time for adjusting the questions which led to it. "If therefore," I added, " the President does not hasten to consider now the alter- native of repealing the treaty of 1850, it is because he does not wish to anticipate the failure of Sir William Ouseley's mission, and is disposed to give a new proof to Her Majesty's Government of his'sinoere desire to preserve the amicable relations which DOW happily subsist between ihe two countries." Having thus complied with your lordship's request, and given that formal reply to the overtures embraced in Sir William Ouseley's mission which was desired by Her Maj- esty's Government, I confidently expected to receive within a reasonable time these 118 PROPOSED INTEEOCEANIC CANAL, additioQal instructions which appeared, to have been delayed for this delay. Sucli doubtless, was the hope also of your lordship. " The discussion has been deferred," you informed me in your note of April I'i, "but the interests at stake have probably not suffered. The results of the negotiation between Nicaragua and the United States are not yet disclosed, and it is probable that Sir William Ouseley may proceed to his destination with more advantage when the nature of those engagements is fully de- fined." "If the American Cabinet," you also said, " as may be inferredfrom your ex- pressions, be well disposed towards Sir William Ouseley's mission, and will meet Her Majesty's Government ill a liberal spirit on matters of secondary moment, that mission may still conduct us to a happy terminajtion." In further informing me that my com- munication would be transmitted to Her Majesty's Government, you added, "It re- mains with Her Majesty's Government to determine whether they can afford the more perfect information desired." This wasthe state of the negotiation in April, 1858. The purposes of Sir William Ouseley's mission had been announced to the American Government and approved; reference had been made by Lord Clarendon to your lordship and Sir William Ouse- ley for further explanations ; these explanations had been asked for from your lord- ship in repeated interviews, but your iQrdship had not received the necessary instruc- tions to make them until a reply had been received to the general overtures embraced in your previous notes, and especially to that part of them relating to arbitration; this reply had been given, still approving the mission and rejecting the arbitration; and it had been sent to London for the consideration of Her Majesty's Government. Under these circumstances, I need not describe to your lordship the surprise with which I received the copy of Lord Malmesbury's dispatch to your lordship, dated at Potsdam, August 18, which yon were good enough to inclose to me. In this dispatch, instead of affording any more exact definition of the objects of Sir William Ouseley's mission, your lordship is directed to inform me that Her Majesty's Government "have, in fact, nothingto add to the explanations given by Sir William and your lordship upon the subject." As no explanations whatever had been received from either Sir William or yourself since the communication of November 30, it is obvious that his lordship must labor under some misapprehension on this subject ; and equally clear is it that when his lordship represents me as having declared in ray note of the 6th of April that the Government of the United States could not agree to the abrogation of the Clayton- Bul wer treaty, that he has failed to appreciate fully the views of the United States in reference to that abrogation. The declaration in my note of April 6 was certainly not against any abrogation of the treaty, but against considering the expediency of abro- gating it at that particular time, and until hopes were at an end for a successful ter- mination of Sir William Ouseley's mission. This waiver of a discussion on the subject of abrogation, in deference to the purposes of that mission, indicated very clearly, it seems to me, how much was expected by this Government from Sir William Ouseley's mission. Yet even these efforts Lord Malmesbury seems to regard as having been re- jected by the United States, and Her Majesty's Government, he concludes, have no alternative but that of leaving to the Cabinet of Washington to originate any further overtures for an adjustment of these controversies. Surely, my lord, there must be some grave misapprehension in all this of the views entertained and expressed by this Government upon the proposal embraced in your lordship's note of November 30, or else this Government has labored under an equally serious error as to what was intended by Sir William Ouseley's mission. It is under this impression, and in order to prevent two great nations from failing in their attempts to adjust an important controversy from a mere question of form, or a mere misunder- standing of each other'sviews, that I have entered into this extended narrative. Itis of no small consequence, either to the United States or Great Britain, that these Cen- tral American controversies between the two countries should be forever closed. On some points of them, and I have been led to hope on the general policy which ought to apply to the whole Isthmian region, they have reached a common ground of agreement. The neutrality of the interoceanic routes and their freedom from the superior and controlling influence of any one Government, the principles upon which the Mosquito Protectorate may be arranged, alike with justice to the sovereignty of Nicaragua and the Indian tribes, the surrender of the Bay Islands under certain stipulations for the benefit of trade and the protection of their British occupants, and the definition of the boundaries of the British Belize — about all these points there is no apparent disagree- ment except as to the conditions which shall be annexed to the Bay Islands' surrender, and as to the limits which shall be fixed to the settlements of the Belize. Is it possi- ble that, if approached in a spirit of conciliation and good feeling, these two points of difference are not susceptible of a friendly adjustment ? To believe this would be to underestimate the importance of the adjustment, and the intelligent appreciation of this iinpoitance which must be entertained by both nations. What the United States want in Central America, next to the happiness of its peo- ple, is the security and neutrality of the interoceanic routes which lead through it. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 119 This is equally the desire of Great Britain, of France, and of the whole commercial ■world. If the principles and policy of the Clayton-Bulwer treaty are carried into effect, this object is accomplished. When, therefore, liord Malmesbury invites new overtures from this Government upon tbe idea that it has rejected the proposal em- braced in Sir William Ouseley's mission for an adjustment of the Central American questions by separate treaties with Honduras, Nicaragua, and Guatemala, upon terms substantially according with the general tenor of the American interpretation of the treaty, I have to reply that this very adjustment is all that the President ever de- sired, and that instead of having rejected that proposal he had expressed his cordial acceptance of it so far as he understood it, and had anticipated from it the most grati- fying consequences. Nothing now remains for me but to inquire of your lordship whether the overtures contained in your lordship's note of November 30 are to be considered as withdrawn by Her Majesty's Government^or whether the good results expected in the beginning from Sir William Ouseley's mission may not yet be happily accomplished. I have, &c., LEWIS CASS. [Incloaure No. 9 — 4.] Mr. Cass to Mr. Dimiiry. No. 3. "I Department ov Statb, Washington, September 22, 1859. Sir: In the memorandum accompanying the instructions you received, dated the 31st ultimo, a brief review was given of our relations with Great Britain, arising out of the Clayton-Bulwer treaty, and the general course indicated which it was thought expedient you should pursue. At that time we had not been furnished with a copy of the Ousely-Zeledon treaty, and did not therefore know precisely what terms had been offered by the British plenipotentiary to Nicaragua, though we knew that these were not entirely satisfactory to that Republic, and that much delay had been the conse- quence, which was accompanied with danger of a failure of the negotiations. Since then we have received from Mr. Ruunells, our consul at San Juan del Sur, a copy of the proposed treaty, which was communicated to him by Mr. Zeledou, with the expression of a wish that the Government of the United States would offer any suggestions to that of Nicaragua in relation to the adjustment of the Mosquito question, intimat- ing at the same time that no definitive action should be taken till our views were re- ceived. The specific objections to the British project were not, however, made known to us. Since your departure the British Government has again given us such assurances ^s to their desire to terminate these Nicaraguan ditHculties by a just and satisfactory arrangement with that Republic, andin coniormity with the principles which had been approved by this Goveriimetit, that 1 indulge the confident expectation that the pres- ent effort will be successful and future difftoulties be prevented. You will express to the minister of foreign affairs our gratification at the confi- dence exhibited towards the United States, and the assurance that our best eftbrts shall be devoted to a termination of the existing difficulties between Great Britain and Nicaragua uijou terms honorable and just to both parties. You are at liberty also to submit to Mr. Zeledonacopy of such portions of this letter as you may consider expedient, that the views of the United States may be fully made known to the Nicaraguan Government, and you will embrace all favorable opportunity in conversation of impressing upon the minister of foreign-affairs the importance of dealing with this whole subject in a spirit of justice and moderation, and of meeting withcorrespondingfeelings the friendly sentiments avowed by the British Government. It is not less desirable that you should cultivate the best relations with the British minister, and should also explain candidly to him the objects of your Government and the conciliatory course you are pursuing. When it was found difficult for the Government of the United States and that of Great Britain to conclnde a satisfactory treaty for the arrangement of the various subjects growing out of the Clayton-Bulwer treaty, the British Government proposed to make separate treaties with the several States of Central America interested i n the adjustment of these matters. To this proposition this Government assented, with the understanding that the terras should, in their general purport, be in conformit,y with the principles which this Government had approved, and which had been fully dis- cussed between us and the Government of Great Britain. I have carefully examined the proposed treaty offered by the British minister to Nicaragua, a copy of which accompanies this dispatch, ami have compared it with that part of the amended Dallas-Clarendon treaty which relates to Nicaraguan affairs, 120 PEOPOSED INTEROCEANIC CANAL, and I find that, with one or two exceptions, they are substantially the same. The Dal- las-Clarendon treaty in some of its Nioaraguan provisions was modified by the Senate, and in this modified form was submitted for the approbation of the British Govern- ment. That approbation was withheld, not on account of the changes made by the Senate in this part of the treaty, but on account of provisions contained in the same instrument, which had relation to the Bay Islands. You will find herewith a copy of the Dallas- Clarendon treaty, and you will find in parallel columns the same with the changes proposed by the Senate. The British Government assured us that none of these changes were so unacceptable to it as to lead it to refuse its notification, and in May, 1857, Lord Napier presented for joint action the project of a treaty containing precisely the arrangements and stipu- latious as approved by the Senate'. We have a right, therefore, to expect that this modified treaty should now be offered to the Nicaraguan Government instead of the treaty in its original form, as appears to have been proposed by Sir William Ouseley. There is no reason to suppose that the Government of Her Britannic Majesty, having signified their acceptance of the Senate modifications to the Dallas-Clareudon treaty, ' in all that relates to Nicaragua and the Mosquito question, will now interpose any objection to the conclusion of a similar convention between their minister in Central America and the Nioaraguan Government. You will communicate these views unre- servedly to the Nicaraguan Government, and should the offer made to it be of the char- acter just indicated, as this Government cannot doiibt it will be, you will, on the part of the United States, advise that it be promptly accepted. You will, also, make tnown your course to the British minister in Nicaragua. I am, &c., LEWIS CASS. Memorandum for Mr Dimilry, to accompany general instructions of August 31, 1859. You are aware that difficulties growing out of the Clayton-Bulwer treaty have arisen between this country and Great Britain. These concern Ceutral America, and are owing, as the United States contend, to the palpable disregard by Great Britain of the words of that treaty, and the substitution of a construction entirely inconsistent with them, and which would give to Great Britain advantages in that quarter to which this country would not accede. After much delay and prolonged discussion the British Government proposed to adopt substantially the construction we contended for, and to carry out the treaty in that spirit. To this the United States assented, and a conventional arrangement was negotiated for that purpose. The points principally at issue were — 1. The Mosquito protectorate. 2. The establishment of the southwestern boundary of the Belize settlement. 3. The condition of Ruatau and the other Bay Islands. These questions were satisfactorily settled in aconventiou whichreceived ratification by the proper authority of both Governments, but the measure ultimately failed in con- sequence of their disagreement upon another question. Alter this the British Government pro) losed to form treaties with the Central Ameri- can States interested in these points, and to adjust the various matters with them upon the basis which had been approved by the United States, and which would leave to Great Britain no orher possessions in Ceutral America but the Belize settlement. To this proposition also the United States gave their assent, and since that time we have been earnestly looking for the adjustment of these coinplicated difficulties. It is known that the Belize boundary has been settled by a convention between Great Britain and Guatemala, which carries it to the Sarstoou River, an important exten- sion of that settlement, to which the United States were led to agree in the convention with Great Britain, which failed, as I have stated, because that arrangement of bound- ary was also aocompauied by the arrangement of the other subjects in dispute. Without such settlement of tlie whole matter this country would not have assented to this boundary adjustment. In the progress, however, oi^the controversy this exten- sion has been secured by Great Britain, while the other stipulatious requiring from her an abandonment of territory have been left unadjusted. I am satisfied that this course has been the result of accident, and that the British Government is striving to fulfill its engagements in good faith. But you understand the dissatisfaction which the failure to arrange these subjects has occasioned in this counti-y, and will therefore appreciate the anxiety of the Government that prompt action should immediately take place and this whole difference be bronght to a satis- factory conclusion. I have entered into these details solely with a view to insure your zealous and efficient co-operation, not indeed by official interfereftce, but by fair repre- sentations, in conversation, to the British minister in Nicaragua and the Government of that country, and by efforts to remove such difficulties as may arise, and especially CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 121 by commuuicating to them the strong desire of the United States for a prompt arrange- ment of the controversy. During some mouths a British minister has been in Nicaragua with instructions from his Government to enter into a convention for the adjustment of these conflicting views, and it is understood that the basis of the proposed settlement is acceptable, both to the Government of Great Britain and to that of Nicaragua, and in conformity with the expectations of the United States. It proposes that a reasonalile extent of country be reserved for the use of the Mosquito Indians, to be held and occupied by them as Indian reservations are held and occupied in the IJnited States and in Canada, under the sovereignty of the Republic of Nicaragua, and that any rights they may have to other portions of the territory be ceded to that Republic. It is also further proposed that a moderate annuity be secured as a consideration for this cession, and that this be effected by the payment of a small duty upon goods imported into San Juan and intended for consumption there. What difference of opinion in the details of this plan ias prevented its being carried into effect is not known here, though it is known that some difference has occurred which has thus far delayed the arrangement. By looking over the documents in the Department which relate to this subject you have ascertained the various points to which the United States have assented, and which it is expected will be assented to by the parties interested. On your ar- rival in Nicaragua you will endeavor to learn the true t>tate of this matter, and report the result of your inquiry without delay; and at the same time you will strive to re- move any difficulties which may stand in the way of a satisfactory negotiation. The British Government has been urged to give such orders to its minister as will insure his most zealous efforts to accomplish the object. We have been assured that this shall be done, and I am ilrmly persuaded that that Government is desirous that the proposed arrangement be carried immediately into effect. The arrangement will be followed by the withdrawal of the British Power from every part of Nicaragua, and the recognition of the sovereignty of that State over every part of its territory. An accident, which has been satisfactorily explained, has prevented the opening of negotiations between Great Britain and Honduras for the surrender of the Bay Islands to the latter country. We learn, however, that measures are in progress for the accom- plishment of this object, and upon terms which the United States deem reasonable. It is to bo hoped that a few months will he sufficient to complete the work of adjust- ment. Department op State, August — , 1859. [Incloaure TSo 9,-5.] Mr. Casa to Mr. Clarice. No. 6.] Department of State, Washington, Ootober 1, 1859. Sir: This Department has received information that Mr. Wyke, Her Britannic Maj- esty's churg^ d'affaires in Honduras, has recently returned from London to his official duties, with instructions to negotiate a treaty with the Government of that country for the relinquishment to that republic of the I3ay Islands. Under these circumstauces the President thinks it very desirable that you, also, should be present in Honduras, in order to be able to render all suitable aid within your power to promote the con- templated session, as well as to be in a position to furnish early and reliable informa- tion to your Government with respect to the progress and results of the negotiation. You will embrace the earliest opportunity, therefore, to proceed to Comayagua and place yourself in communication with the Government there. With your instructions No. 1, dated 29th March, 1858, you were furnished with copies of all the correspondence which had heea printed in reference to Ceutral Amer- ican affairs, and from these, as well as from other sources which have been open to you, you have doubtless become familiar with the whole controversy concerning the Bay Islands which has existed between the United States and Great Britain. In the opin- ion of this Government, these Islands are a part of the territory of Honduras, and their occupation by Great Britain would have been wholly unjustifiable even if the Clayton-Bnlwer treaty had never existed. By the terms of this treaty, however (of July .5, 1850), it is provided that "the Governments of the United States and Great Britain, neither the one nor the other shall ever occupy, or fortify, or colonize, or as- sume or exercise any dominion over Costa Rica, Nicaragua, the Mosquito .shore, or any part of Central America." There being no doubt that the Bay Islands form a part of Central America, their occupation by Great Britain was distinctly prohibited by this provision of the Clayton-Bulwer treaty. 122 PEOPOSED INTEROCEANIC CANAL, Yet they were seized upon by British officers, almost as soon as the treaty had heen signed, and in less than two years afterward they were formally erected into a British colony. Of course the Government of the United States lost no time in protesting against this violation of the treaty, and the correspondence to which it led is already in your possession. ... In 1856 the two Governments endeavored to adjust all the questions which had arisen under the convention, by a supplementary treaty, and such a treaty "was signed at London b\- Lord Clarendon, on the part of Her Britannic Majesty, and Mr. Dallas, on the part of the United States, on the 17th October, 1856. That portion of it which referred to the Bay Islands was in the following words: "That the islands, and their inhabitants, of Euatan, Bonaooa, Utilla, Barbarate, Helene, and Moxat, situate in the Bay of Honduras, and Ijnown as the Bay Islands, having been by a convention bearing date the twent.v -seventh day of August, 1856, between Her Britannic Majesty and the Republic of Honduras, constituted and de- clared a free territory under the sovei-eignty of the said Republic of Honduras, the two contracting parties do hereby mutually engage to recognize and respect in all future time the independence and rights of the said free territory as a part of the Re- public of Honduras." The treaty here referred to, of August, 1856, had not been communicated to this Gov- ernment and was not officially before the Senate when it had under consideration the Dallas-Clarendon treaty. It declined, therefore, to sanction a reference to it, which might be construed afterward into an approval of its terras. The treaty, moreover, had been published in some of the public journals, and its provisions were not such as this Government could sanction. It erected the islands into " a free territory under the sovereignty of Honduras," but it then proceeded to deprive that Eepublic of rights without which its sovereignty over them conld scarcely be said to exist. It separated them from the remainder of Honduras, and gave them a Government of their own, with their own legislative, executive, and judicial ofBcers, elected by themselves. It deprived the Government of Honduras of the taxing power in every form, and ex- empted the people of the Bay Islands from the performance of military duty, except for their own defense, and it prohibited the Eepublic from providing for their defense by the construction of any fortifications whatever. It provided, moreover, that slavery should at no time be permitted to exist in those islands As slavery had never existed there and was not likely to be established there, this latter clause was wholly unneces- sary, and when brought to the attention of the United States could not fail to be re- garded as highly offer sive. But the restrictions were, all of them, in violation of the rights of Honduras. The islands were a part of her territory, and Great Britain having wrongfully seized them, was bound to make an unconditional restoration. Instead of doing this, she required Honduras to assent to a treaty by which they were erecting into an independent state within her own limits, and a state at all times liable to foreign influence and control. Entertaining this opinion, the Senate amended the Dallas-Clarendon convention by substituting for the clause already quoted the following : " The two contracting parties do hereby mutually engage to recognize and respect the islands of Euatan, Bonacca, Utilla, Barbarate, Helene, and Moxat, situate in the Bay of Honduras, and off the coast of the Eepublic of Honduras, as under the sover- eignty and as part of the said Republic of Honduras." Great Britain decliued to assent to this amendment, and the Dallas-Clarendon treaty fell to the ground. The British treaty with Honduras also failed to be ratified by that Republic,- and thus the Clay ton-Bulwer convention, according to our construction of It, still remained unexecuted. To avoid the difficulties which this state of things was likely to produce, the British Government proposed to send out a special minister to Central America, who might adjust the questions which had been under discussion in that quarter by separate trea- ties with Nicaragua, Guatemala, and Honduras. For this purpose Sir William Gore Ouseley was appointed, and came to Washington, on his way to his destination, in November, 1-57. ^ While he was here, and even before his ariival, Lord Napier, the British ministerin this country, conversed very freely with the Department conoeruicg his instructions, and had also one or two conversations on the subject with the President. In these conversations it was clearly understood that Her Majesty's Government had determined to execute the Clayton-Bulwer treaty " according to the general tenor of the interpretation placed upon it by the United States," and that the powers of Sir William Ouseley would be sufficient to enable hira to accomplish this purpose. Ref- erence was made, indeed, to the Dallas-Clarendon treaty, as amended by the Senate, .but it was understood that the special minister would be at liberty to modify some of its provisions, in order to make it acceptable to the United States. On the 30th of November Lord Napier communicated officially to the Department a general statement of Sir William's instructions. That part of them which refers to Hondnrasis described as follows: "1. The transfer of the Bay Islands to the Government of Honduras was recognized by the treaty of 1856, mentioned above, and the conditions of this cession were con- CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 123 signed in a treaty between Great Britain and Honduras, -which has been communicated to the Government of the United Slates, but which has not been ratified by the con- tracting parties. By that treaty Her Majesty's Government intended to convey the islands in full sovereignty to the Republic of Honduras, to provide for them such a measure of municipal independence and self-government as might.secure Her Maj- esty's subjects in the enjoyment and improvement of their possessions, and develop the resources of the islands, which may be destined to attain hereafter some com- mercial importance as an entrep6t in connection with the projected interoceanic railway. " In looking to these reasonable and salutary ends it is, however, probable that the intervention of the Honduras Government in the administration of the islands may have been more limited than was necessary or even advisable. Her Majesty's Govern- ment in relinquishing the Bay Islands are far from desiring that they should remain defenseless or become independent. Sir William Ouseley is not bound down to the terms of the original treaty ; he is at liberty to contract engagements with Honduras which shall embody not only an unmistakable recognition of its sovereignty over the islands, but shall allow of the more direct government, and more efficient protection of the latter by that Republic. "The transfer of the inlands will not be unconditional, but it will be unambiguous. " The Government of Honduras will obtain not only a titular but a virtual and use- ful possession under provisions requisite for the security of those who have settled there with the assurance of protection from the British crown, and favorable to the expansion of that tra6Sc which the transit route is expected to create. "2. In framing stipulations for the compensation, the goverument, and the preser- vation of the Mosquito Indians under the so vereignty of Nicaragua, Sir William Ouse- ley will be guided by the provisions of the treaty of 1856, which, although it did not acquire the validity of an international engagement, may on this point be held to ex- press the policy and opinions of the contractiug parties. The limits of the territorial reserve may be subject to modifications, but the boundaries proposed to Nicaragua and Honduras will certainly not be less favorable than those indicated by the treaty alluded to ; they will in no degree trespass on the territory applicable to transit pur- poses ; and in the settlement of details Her Majesty's envoy will grant an indulgent consideration to the wishes and necessities of the Central American Governments where they are compatible with the safety and the welfare of those native, tribes which have previously enjoyed the protection of the British crown. " 3. The regulation of the frontier of British Honduras will be eifected by negotia- tion with the Government of Guatemala. Her Majesty's Government trusts to obtain from this Republic a recognition of limits which, if we may judge from previous com- munications on this subject, may be accepted in a spirit of conpiliation, if not with absolute approval, by the President." Although this statement of the instructions was not accompanied by any draft of a treaty, and was not sufficiently specific to authorize an accurate judgment of their character, it was nevertheless hoped that they might be quite sufficient to answer their purpose. In reference to the views and expectations of the United States, there could be no doubt whatever, because, apart from the action of the Senate concerning the Dallas-Clarendon treaty, these views and expectations had been repeatedly ex- pressed to the British minister, both orally and in writing. It was known that while it was quite immaterial to us whether Great Britain executed the Clayton-Bulwer treaty by a supplementary convention with us or by direct negotiation with the states of Central America, we yet expected that the treaty would be executed substantially according to our construction of it, and that, with reference to the Bay Islands, this construction required their unconditional surrender to-Honduras. ' Of course this Government could never sanction any such limitations upon the sover- eignty of that Republic over its own territory as were contained in the Dallas-Claren- don convention, and the clause in respect to slavery was not only an unjust condition in regard to Honduras, but was also offensive, under the circumstances, to the United States. It was believed that the cession might well be made without any of these conditions, and that if any security should be really necessary to preserve the rights of British settlers upon the islands, it might safely be postponed to a new convention, ■when both parties should be in a situation to treat upon equal terms. Whether Sir William Ouseley would have conformed to these views if he had made a treaty with Honduras can only be conjectured from what we know of his instruc- tions. Unfortunately, he delayed a long time in Washington, and since his arrival in Central America, either from sickness or from some other cause, he has wholly failed to accomplish the object of his mission. Mr. Wyke, who negotiated the previous treaty with Honduras for the cession of the Bay Islands, is now authorized to negotiate another with that Republic for the same object, and his authority is understood to be even more ample than that which was given to Sir William Ouseley. He is now, perhaps, in Guatemala, but will soon pro- 124 PROPOSED INTEROCEANIC CANAL, ceed to Honduras, and it is hoped tliat you will be able to co-operate with him in the leading purpose of his mission. This narrative has fully explained to you the views of your Government upon the subject, and if, in conformity with these views, you can in any way assist Mr. Wyke in his negotiation, you will not fail to do so. To this end you should be in friendly relations with him, as well as with the Government of Honduras, and you may frankly state to both the general expectations which your Government entertains in respect to the cession of the Bay Islands. Believing that Honduras is the lawfol owner of those islands, we cannot advise her to purchase their surrender by consenting to any terms which are inconsistent with her dignity and rights. We believe that the surrender of them should be wholly unconditional, but there may be provisions in behalf of private rights, or even for the benefit of general commerce, of so reasonable a character that their insertion in the treaty ought not to occasion its defeat, even although they might more properly belong to another negotiation. With what is believed, however, to be the present disposition of the British Government, and with the liberal margin of dis- cretion with which Mr. Wyke is supposed to be intrusted, it is hoped that the cession will not be incumbered with any stipulations to which either the United States or Honduras might reasonably take exception. It is important that the treaty should be completed, if possible, so that it may be known in Washington at an early day after the meeting of Congress. You will, there- fore, communicate a copy of it to the Department at the earliest practicable period, and your Government will then determine for itself whether its provisions can be re- garded as a reasonable compliance in respect to Honduras with the Clayton-Bulwer treaty. I will thank you, also, to inform the Department of your departure from Guatemala and of your arrival in Comayagua, and generally of the course and progress of the negotiation. Your dispatches to No. 12, inclusive, have been received. I am, &c., LEWIS CASS. [Inolosare No. 9—6.] Mr. Cass to Mr. Clarice. No. 11.] Department OF State, Washington, February 18, 1860. Sir : Your dispat(fli of the 24th December have been received. In connection with Mr. Wyke's note to you, a copy of which accompanied that dispatch, the Department has received the circumstances which have marked your recent official conduct in Central America. The Department regrets exceedingly that your understanding of the precise relations betweeut'iis Government and that of Great Britain in regard to Central American questions was so inexact as to permit you to adopt a line of conduct different from that which the accord of those Governments would have indicated as the most consistent with their mutual views, and to lead you to protest against negotiations which were in harmony with the understanding of the subject entertained here and at London. The dispatch of 1st October last, which you have received, enabled yon so to modify your course as to correct the misapprehension which your protest and correspoudence were likely to excite on the part of the Gov- ernments of Guatemala and Honduras, although in communicating the views of your Government expressed in that disoatch if. is to be regretted that the historical sum- mary embodied in it for your information was transferred so litterally to your note of 9th November to Mr. Wyke. In making these observations, which I do equally in a spirit of frankness and kind- ness, I do not wish to be understood as censuring you for adopting a course which is not entirely approved. On the contrary, I am pleased to be permitted to say that the President highly ap- preciates that zeal for the interests of your country which prompted you to adopt energetic measures when you thought those interests were in jeopardy. The patriot- ism of your conduct cannot be questioned, nor the integrity of your purposes doubted. I am, &;c., LEWIS CASS. CLATTON-BULWER TREATY, ANB MONROE DOCTRINE. 125 [Inolosure No. 9 — 7.] IFrom British State Papers, 1859-18C0, pp. 188-190.J Lord, Napier to the Earl of Malmesbury. No. 168.] Washington, April 4, 1859. (Received April 19.) Mt Lord: I gather from the conversatiou of General Cass that the Government of the United States have conceived some dissatisfaction in regard to two points con- nected with the proceedings of Her Majesty's representative iu Central America. These points are — Ist. The insertion in the English transit treaty of the last clause of Article XXII, stipulating that Her Majesty's Government will not suffer the organizatiou of piratical expeditions against Nicaragua in the British dominions, or the participation of Brit- ish suhjectsiu the domestic struggles of that Republic ; and 2d. The conclusion and ratification of the transit treaty separately from that which provides for the cession of Mosquitia. On the first head. General Cass remarks that the adoption of the clause referred to interferes with the conclusion of the American treaty ; for such a clause, even if sanctioned by the President and Cabinet, which it never could be, would certainly be expunged by the Senate, as binding the Government of the United States to execute its own existing laws — a superfluous and offensive engagement. I observed to General Cass in reply to this reflectiou, that I was disposed to regret the adoption of the clause alluded to. I presumed it had been insisted on by the Nicaraguan Government as a sine qua non with Sir William Ouseley; and that Her Majesty's commissioner had naturally felt himself justified in assenting to it rather than see his negotiation entirely frustrated. I hoped that the persuasions of Mr. Lamar, and the advice of Mr. Jerez, recently offered to his Government from Washing- ton, might still induce President Martinez and the Assembly to ratify the American treaty without the obnoxious provision. With reference to the conclusion of the transit treaty, without the adjustment of that which regulates the transfer of Mosquitia, I suggested that Sir William Gore Ouseley had probably met with some unexpected opposition on the part of the Nicara- guan Government, and bad been obliged to refer to London for further instructions. In the interval he had proceed to Costa Rica for the purpose of concluding the con- templated arrangements with that Government. I made no doubt your lordsbip would regret, as I did myself, that the two treaties had not been cotemporaneously termi- nated, which would have been more consistent with all the interests involved. General Cass reiterated several times that he had no doubt of the good faith and conciliatory intentions of Her Majesty's Government ; but for the preservation of a friendly understanding between the two countries, he thought it essential that a set- tlement of the Mosquito and Bay Island questions should not be delayed, and he would direct Mr. Dallas to submit his views to your lordship on those subjects. The Secretary of State then expressed himself with some resentment against the Government of ^Nicaragua on account of their unjustifiable treatment of the transit steam vessels employed on the San Juan River. It appears that on some alarm of in- vasion the Nicaraguan authorities ordered the vessels above mentioned to come to an anchor under the guns of one of the river forts ; that on their refusal to obey, the Americans serving on board were arrested, the vessel seized, and some citizens of the United States subjected to forced labor and other hardships. In conclusion, General Cass emphatically informed me that instructions would in- stantly be issued to General Lamar ordering him to leave Nicaragua, unless, within the period of ten days after the receipt of his letters, the Cass-Yrisarri treaty should be ratified in the form adopted by Sir William Ouseley, excepting the last clause of Article XXII referred to above, and unless ample reparation and apology should be afforded for the outrage perpetrated on the river steamers. If, after the withdrawal of the United States minister, a satisfactory adjustment of all the questions in controversy were not attained before the meeting of Congress, the assent of that body would be demanded with a view to the declaration of war against Nicaragua. Such an issue, said General Cass, would be highly deplored by the Government of the United States ; but they had been trifled with too long already. Her Majesty's Government and the Government of France would also, he observed, have many reasons to regret the disturbance of peace in the quarter referred to ; and he intimated that their counsels might be properly and advantageously employed in inducing the Nicar- aguan Government to adopt a wiser course towards the United States, while it could etill be embraced with success. I assured General Cass that I made no doubt Her Majesty's Government would con- tinue to give the Government of President Martinez the advice, which had been already 126 PROPOSED INTEEOCEANIC CANAL, more that once oiFered, viz, to make all the concessions in their relations with the United States which are now desired, and which cannot appear unreasonable ; for all the modifications in the Cass-Yrisarri treaty embodied in Sir William Ouseley's con- vention are acceded to here, except the addition to Article XXtl, which could not pos- sibly be entertained by this Government. I have, &c., NAPIEE. [Inclosnre — Translation.] Extract from Article XX of the Evglish treaty with Nicaragua. Her Britannic Majesty will prohibit and prevent the formation of armed expeditions in her dominions, either for the invabion of Nicaragua or with the intention or under the pretext of assisting the parties or political bodies which may exist in thatcountry. [Incloaare No. 9 — 8.] (From British State Papers, 1859-1860, p. 209.] Tfte Earl of Malmesbury to Sir W. G. Ouseley. No. 175.] Foreign Ofpicb, ApHl 30, 1859. Sir : I have to state to you that Mr. Dallas called at the foreign office yesterday, in order to read to me a dispatch which he had received from General Cass, expressing the uneasiness with which the Government of the United States regarded the progress of your negotiations with Nicaragua; those negotiations having, up to the last dates from Central America, left untouched the question of the surrendc of the Mosquito protectorate, while they had resulted in the conclusion of a commercial treaty, which had been ratified by Nicaragua, although that Republic had refused to ratify the com- mercial treaty which it had concluded a year previously with the United States. Gen- eral Cass also observes, upon the objectiouable nature of the clause to which you liad agreed concerning armed expeditions, and says that addition is made by Nicaragua the occasion for defeating the Cass-Yrisarri treaty. I informed Mr. Dallas in reply that Her Majesty's Govern ment had already expressed to you their regret that you should have proceeded to negotiate the commercial treaty with Nicaragua in apparent disregard of that which is by far tlie more important of the two, viz, the treaty for tlie surrender of the Mosquito protectorate, and that Her Majesty's Government had informed you that Her Majesty would not be advised to ratify the one without the other also. I further informed Mr. Dallas that Her Majesty's Government had rejected the clause to which you had agreed on the subject of armed expeditions, which they, equally with the Government of the United States, regarded as in the highest degree objectionable. I have now to urge upon you in the strongest manner the necessity of your bring- ing these negotiations to a conclusion in exact conformity with your instructions. Her Majesty's Government deprecate the delay which has already taken place, and they desife that you will make every effort to conclude the treaties, and to bring them home with you. I am, &c., MALMESBURY. 127 [Inclosure No. 9 — 9.] [From British State Papers, 1859-1860, p. 228.) Lord Lyons to the Earl of Malmesbury. [Extract.] No. 196.] Washington, May 10, 1859. (Received May 24.) I yesterday, in obedience to the orders conveyed to me by your lordship's dispatch of the aist ultimo, explained to General Cass the course pursued by Her Majesty's Government in regard to the treaty signed by Sir William Gore Ouseley with the Gov- ernment of Nicaragua on the 18th January last. • I pointed out to General Cass that Sir William Ouseley had consented to various modifications of the terms which he had been directed to propose to Nicaragua. Of these modifications there were, I said, several which Her Majesty's Government could not approve; and among those disapproved was the clause concerning what were com- monly called "filibustering" expeditious, which had been added to Article XXII. This clause Her Majesty's Government considered as both unnecessary and undigni- fied. I proceeded to inform General Cass that in admitting the modifications in question, Sir William Ouseley had acted entirely on his own responsibility, for he had been fur- nished by Her Majesty's Government with drafts of the treaties to be concluded, and had been instructed not to assent to any alterations which were not of a purely for- mal and immaterial character. Her Majesty's Governmeut had, I went on to say, promptly refused to ratifiy the treaty as signed by Sir William Ouseley, and had instructed him to sign a new treaty, omitting the clauses objecteil to by Her Majesty's Government. Sir William Ouseley had, moreover, been repeatedly directed distinctly to inform the Government of Nica- ragua that Her Majesty's Government regarded the object of his mission, that is, the conclusion of the treaty of commerce, and of the treaty respecting the Mosquito pro- tocl orate, as a whole, and that one treaty would not be ratified without the other. I had a foitaight previously been ena,bled, by information afforded me by your lord- ship's dispatch of the 30th of March last, to explain to General Cass the sentiments of Her Majesty's Government in regard to these matters. Nevertheless, General Cass appeared to receive, with verj remarkable saiisfaction, the more formal and definitive communication, which, in execution of your lordship's orders, I made to him yester- day. He said very emphatically that the course pursued by Her Majesty's Govern- ment was most honorable, and that the President would be extremely gratified by my communication. With respect to the recent treaty between the United States and Nicaragua, General Cass said thar, upon examination, it did not appear to be all that could be wished; still, the President was prepared to accept the whole of it with the single exception of the clause concerning filibustering expeditions. LYONS. [Inclosnre No. 9—10.] [From British State Papers, 1859-1860, p. 241.] Lord Lyons to the Earl of Malmesbury. No. 206.] Washington, May 30, 1859. (Received June 12.) My Lord : On the 25th and 26th instants I had some conversation with General Cass respecting the att'airs of Nicaragua. General Cass told me that General Jerez, the Nlcaragnan minister to the United States, was to return home on the 5th of next month, and that he had requested to bo informed definitely, before his departure, of the intcntious of the President with respect to the treaty recently negotiated by General Lamar. General Cass told me that he should state to General Jerez, in general terms, that the President accepted the whole treaty, with the exception of the clause directed against what are commonly termed " filibustering expeditions." That clause the Gov- ernment of the United States absolutely rejected. There was, however, General Cass said, a reservation which he should have to make. He had observed in Article XXII of the treaty signed by Sir William Ouseley, a clause which did not exist either in the dr^ft with which Sir William Ouseley was furnished by Her Majesty's Government or in General Lamar's treaty. The clause to which he referred stated that, in case of imminent danger to the lives and properties of British 128 PEOPOSED INTEROCEANIC CANAL, subjects, Her Majesty's forces might act for their protection without obtaining the previous consent of the Nicaraguau authorities. If this clause should be maintained in the new treaty which Sir William Ouseley had been directed to sign, the United States would insist upon the same privilege being secured to them ; in fact, they would require to be placed upon a perfect equality with Great Britain in this respect. General Jerez would be authorized to inform his Government that upon this point being settled and the "filibustering " clause struck out, the President would send the treaty to the United States Senate for ratification. I saw General Jerez himself the day before yesterday. He confirmed the account given above of the intentions of the United States Government ; and he told me fur- ther that he hoped that, by negotiation with the American companies holding con- tracts for construction of the interoceanic route, he should be able, before his depart- ure, io effect a compromise which would satisfy both the companies themselves and the Govf rnment of the United States. I have, &c., LYONS. [Inclosure No. 9 — 11.] [From British State Papers, 1858-1860, p. 242.] Lord Lyons to the Earl of Malmesbury. [Extract.] JSTo. 207.] Washington, May 30, 1859. I perceive by your lordship's dispatch to Sir William Ouseley of the 9th instant, of which you did me the honor to send me a copy in your dispatch of the 11th instant, that Sir William is directed to bring the treaty with Nicaragua respecting Mosquitia to an immediate conclusion ; and, as soon as that treaty and the general treaty with the same State are signed and ratified, to return at once to England. The franli and full explanation which your lordship enabled me to give respecting the delay in the conclusion of the treaty for the abandonment of the lilosquito Protec- torate were most acceptable to the President, aud produced a very remarkable effect on the tone of the public press. With a view to keep up the good feeling which has happily since prevailed, it would be very desirable that, before the intended d eparture of Sir William Ouseley becomes generally known in this country, I should be able to state distinctly the intentions of Her Majesty's Government with respect to the treaty which remains to be negotiated with Honduras, in order to complete the settlement of the Central American questions. It will be in your lordsliip's recollection that in the dispatch to Lord Napier, dated the 18th of December last, of which he gave by your lordship's order a copy to General Cass, it was stated that her Majesty's Government intended to confide the negotia- tion of that treaty to Sir William Ouseley ; and that so soon as Sir William should have concluded the negotiations in which he was then employed Lord Napier would immediately be enabled to state to General Cass the details of his second mission, and the conditions with Honduras on which the cession of the Bay Islands to that State was contemplated. Your lordship may perhaps deem it expedient that I should be directed to give at once some explanations in order to prevent unfounded imputations upon the good faith or Her Majesty's Government if the news of Sir William Ouseley's departure for England should not be accompanied by some definite declaration respecting the nego- tiations with Honduras. LYONS. [Inolosnre No. 9—12.] [From British State Papers, 1859-1860, p. 246. ] The Earl of Malmesbury to Lord Lyons. No. 211.] Foreign Office, June 16, 1859. My Lord: With reference to your lordship's dispatch of the 30th ultimo, I have to observe that Sir William Ouseley's health having suffered from the climate of Nicara- gua, Her Majesty's Government did not consider it desirable that his stay in Central CLAYTON-BULWEK TREATY, AND MONEOE DOCTRINE. 129 America should be prolonged, and that they consequently instructed him to return home so soon as he should have concluded the treaties which he had been charged to negotiate with the refiublics of Nicaragua and CostaRica. They, at the same time, however, sent to Mr. Wyke full powers to conclude a treaty with Guatemala, defining the limits between that State aud the settlement of Belize, and they subsequently in- formed Mr. Wyke, in a dispatch of which a copy is inclosed, that it was their inten- tion to confide to him the negotiation of the other pending conventions with the States of Central America. Her Majesty's Government have learned by the West India mail which has just ar- rived that Mr. Wyke has concluded the treaty with Guatemala respecting British Honduras, but the state of his health having obliged him to avail himself, as you will see by the inclosed dispatch, of the permission which he had previously received to return home, some little delay must, much to the regret of Her Majesty's Govern- ment, take place before the further negotiations to which I have adverted can be car- ried through. I am, &c., MALMESBUEY. [Inclosure Ifo. 9—13.] [From Britisl State Papers, 1859-1860, p. 249.] Lord Lyons to the Earl of Malmesbury . No. 219.] * Washington, J«i^ 5, 1859. (Received July 18.) My Lokd : Since I wrote my immediately preceding dispatch of this date relative to the negotiations in Central America, I have had a few minutes' conversation -with General Cass. The general told me that the United States plenipotentiary in Central America, General Lamar, was about to return home, and that it was not the intention of the President to accredit a diplomatic agent to Nicaragua until the Government of that republic should remove from the treaty which they had signed with General Lamar the clause concerning "filibustering" expeditions, and ratify the remainder of the treaty. General Cass then asked me how the British negotiations were going on. I said that Sir William Ouseley was, by your lordship's orders, urging in the strongest man- ner upon the Government of Nicaragua the adoption of the terms proposed by Her Majesty's Government for the abandonment of the Mosquito Protectorate ; and that Mr. Wyke had already concluded with Guatemala a convention determining the boun- dary of the settlement of Belize. I added that Sir William Ouseley was very anxious that I should convince the Government of the United States that the delays which had so unfortunately occurred respecting the abandonment of the Mosquito Protectorate were in no degree attributable to him. I observed that Sir William had sent me ample information on this point, but that, as I was aware that General Cass was very busy, I would not take up his time by entering into details at the moment. I had, I said, al- ready been able to write to Sir William Ouseley to tell him that the general had, on more than one occasion, said to me that he did not consider that it was Her Majesty's plenipotentiary who was to blame for the delays. General Cass then said that neither British nor American plenipotentiaries could do anything with the Nicaraguans, who did not understand their own interests. The general proceeded to ask me what had been done respecting the cession of the Bay Islands to Honduras. I replied that it had been the intention of Her Majesty's Government to confide the negotiation on that matter to Mr. Wyke, Her Majesty's chargS d'affaires at Guatemala, and that instructions to that effect had been sent to him by your lordship. Mr. Wyke had, however, unfortunatel^'been compelled by ill health to quit his post, and was al- ready on his way to England when your lordship's orders reached him. This might, I said, much to the regret of Her Majesty's Government, cause some little delay in the prosecution of the negotiation. General Cass, without making any comment upon this explanation, passed on to another subject. I have, &o., LYONS. 4909 CONG 9 130 PROPOSED INTEROCEANIC CANAL, [Inclosure No. 9 — 14. J [From British State Papers, 1859-1860, p. 267.) Lord J. Bussell to Mr. Wyhe. [Extract.] No. 2!J7. ] FOREIGW Office, August 15, ISSff. In order to convey to you the instructions of Her- Majesty's Government for your guidance in the negotiation which you are to undertake with tbe Government of Nic- aragua, it is necessary that I should explain what has already heeu done, with a view to the settlement of the question in discussion with that Eepublic. When Sir William Gore Ouseley proceeded from the United States to Ceutral America at the end of October last, he was furnished with drafts of three treaties to propose to the Government of Nicaragua : 1. A treaty of friendship, commerce, and navigation, containing certain articles rel- ative to the interqceauic Iransit. This draft was founded upon the treaty concluded on the 16th of November, 1857, betweeen the United States and Nicaragua, and com- monly called the Cass-Yrisarri treaty.. The commercial articles of the latter were slightly modified, so as to adapt them to our system ; the articles relative to the tran- sit were adopted from the American treaty, with very little change, and that purely immaterial. 2. A treaty relative to the Mosquitft territory and the claims of British subjects. The arrangements of this draft were taken from the Clarendon-Dallas treaty of Octo- ber 17, 1856. 3. A convention or agreement respecting jiost-office arrangements. The last-meutioued convention has been concluded and put in operation, so that it may be dismissed from consideration. Of the other two drafts, I transmit to you copies, as well as copies of the Clarendon- Dallas treaty, which, you are aware, was never ratilied, and of the articles of the Cass-Yrisarri treaty which'relate to the interoceanic transit. After the arrival of Sir William Gore Ouseley in Nicaragua he communicate(^ to the Nioaraguan Government, first the draft of the treaty of commerce and navigation, and, shortly afterwards, the draft of the treaty respecting the Mosquito territory. He pro- ceeded in the first place with the negotiation of the former treaty, and signed it on the 18th of January last, having, however, admitted into it various alterations of the draft given to him. Some of those alterations were of' no great importance, but others »hich occurred in the articles respecting the interoceanic transit were of a very em- oarrassing nature. In order to show you clearly what they were, I transmit a printed copy of the draft, with the alterations marked in manuscript, and Sir William Gore Ouseley's reasons for admitting them. Her Majesty's Government, having taken the treaty into consideration, were of the opinion that some of the alterations of the draft were such as they could not sanction, and the Earl of Malmesbury accordingly informed Sir William Ouseley that the treaty could not be ratified in the form in which he had signed it. His lordship at the same time transmitted to him a draft in which were marked such of the alterations as Her Majesty's Government were prepared to admit, telling him, however, that they oon- fiidered that treaty and the treaty respecting the Mosquito territory as forming to- gether Olio and the same arrangement, and that Her Majesty's Government would not ratify one without the other. A copy of the draft in question is also inclosed. In this position the negotiation of the treaty rests at the present moment, so far as Her Majesty's Government are aware. The most important and embarrassing alteration of the draft which Sir William Gore Ouseley admitted was the introduction into Article XXII of a clause by which Great Britain engaged to discourage and prevent the organization of filibustering ex- peditions in her territories against those of Nicaragua. It is obvious that this engage- ment had no real meaning so far as Great Britain and Nicaragua are concerned, except AS a simple concession. JSut the Nicaraguan Government having prevailed upon the British negotiator to consent to its insertion in the British treaty, made that insertion a ground for endeavoring to insert it likewise in the Cass-Yrisarri treaty. The treaty, after great delay and much communication between the Governments of Nicaragua »nd of the United States, seemed on the point of being ratified, with some slight mod- ifications. The attempt by Nicaragua to introduce at the last moment a new olauBS which the American Government considered an insult, especially when proposed under the shelter, as it were, of a similar clause introduced without any practical meaning into a treaty between Great Britain and Nicaragua, justly excited the displeasure of the American Government, and has led to the withdrawal of their minister, and the AND MONROE DOCTRINE. 131 threat of a resort to force if the Case-Yrisarri treaty he not immediately ratified with- out the obn' >xiuus clause. The insertion of the clause in the British treaty might, moreover, haye created an nnfriendly feeling on the part of American Government towards Great Britain, had not Her Majesty's Government set themselves right by at once informing the American Government that the clause was added to the treaty without their authority, and was disapproved. I now turn to the negotiation in regard to the draft of treaty respecting the MosqnHo territory., I have already stated that Sir William Gore Onseley presented the draft of that treaty to the Nicaraguan minister soon after the draft of the treaty of com- merce. The latter was negotiated and signed in the first place. The NicaiMguan minister having o\> tained, by the treaty of commerce, a guarantee of the neutrality of the interoceanic co mmnnication, and an engagement obliquely directed agaiust Ameri- can filibusters, showed no great anxiety to proceed with the second treaty. Sir William Gore Ouseley indeed pressed it upon his attention, but finding that his l)usi- neas made no progress, he resolved upon visiting Costa Rica with the view of complet- ing his negotiations th ere and afterwards returning to Nicaragua to conclude tlje Mosquito treaty. After his arrival at San Josg, he received an official communication from Senor Zeledon, stating that the Nicaraguan Government had cor suited the Senate of the Republic in regard to the draft of treaty, and detailing certain modifications of the draft which the Senate considered necessary ; adding that, if Sir William Gore Ouseley were able to accept them a plenipotentiary would he appointed to confer with him. Under these circumstances Sir William Gore Ouseley could do no more than transmit Senor Zeledon's communication to Her Majesty's Governmeiit for their consideration. On examining Senor Zeledon's note, it was found somewhat dif6cu]t to form an opinion with regard to it. He had merely described, under a series of heads, the nature of the modifications which his Government desired, but withont offering a complete counter- draft of the treaty, Consequently, it was not clear whether the Nicaraguan Govern- ment proposed to suppressor to retain such passages of the draft as were not specific- ally superseded by the particular modifications mentioned in his letter. Sir William Ouseley was therefore informed that so far as Her Majesty's Government understood the scope of Senor Zeledon's modifications, they did not offer any insuperable obstacle to further negotiation, with, hoyrcver, the exception of two stipulations ; one which appeared to supersede the arrangement proposed by our draft for the payment of a pecuniary compensation to the Mosquito King for the abandonment of his interest in the territory which is to be placed under the sovereignty of Nicaragua; the other, which would have bound Great Britain indefinitely to continue her protection to the Mosquito coast until the conclusion of a joint arrangement between Great Britain and the United States, and Nicaragua, on the principle of the Clayton-Bulwer treaty. l(Ord Malmesbury informed Sir William Gore Ouseley with reference to this last prop- osition, that the utmost Her Majesty's Government could assent to would be to con- tinue the British protection for the period of a year after the signature of the tireaty 80 as to give Nicaragua time to prepare for its defense ; and he was authorized to in- sert an article to that effect in the treaty. In this state the negotiation relative to the Mosquito question now remains. But with a view to the conclusion of this embarrassing affair, her Majesty's Government have remodeled the draft of treaty in such a manner as to make it conformable to the wishes expressed by the Nicaraguan Senate in all points except the two which relate to the pecuniary compensation to the Mosquito chief, and the indefinite con- tinuance of the British protectorate. Her Majesty's Government propose that their protectorate shall cease three months after the exchange of the ratifications of tllie treaty; a period which although not so long as that mentioned by Lord Malmpsbury, is in reality not so much shorter as it would appear to be, because in the one case the year was to date from the day of signature, and in the other the three months are to date from the day of the exchange of ratifications. I transmit to you a copy of the new draft, which you are to propose to the Nicara- guan Government. It is possible that before you reach Nicaragua Sir William Gore Ouseley may have returned thither, and may have concluded one or both of the treaties. If he should have signed the new treaty of commerce and nav igation in the terms of the amended draft sent to him in the Earl of Malmesbury's dispatch of the 23d of March last, yon will not have occasion to enter upon that part of the question ; bnt if, as is most likely, that treaty remains unsigned when you arrive, you will state to the Nicaraguan Gov- ernment that you are authorized to sign it in the terms of the amended draft which has been communicated to them by Sir William Gore Ouseley, provided the treaty about the Mosquito teixitory be signed at the same time. It is not at all probable, judging from the tenor of Sir William Opseley's late dis- patches, that he will havg' concluded the Mosquito treaty. If, however, he should hive done so, and the treaty shall have been confiriiied by the Nicaraguan Congress, 132 PROPOSED INTEEOCEANIC CANAL, it will be best not to disturb the arranj^ement ; bat if the treaty has either not been signed or has been signed and not. ratiiied by the CoiigTess, you will propose the draft with which you are furnished, and which will doubtless be more acceptable to the Nicaragnan Government than the treaty which Sir William Ouseley would feel au- thorized to propose to sign. Even if he should have signed a treaty the new one can be substituted for it. You will speedily form an opinion as to the success of your mission, and Her Maj- esty's Government would not wish it to be much prolonged. You will state to the Nicaraguau Government that Her Majesty's Government make this last effort to ar- range the Central American question so far as Nicaragua is concerned; that they expect a prompt and frank acceptance of the very favorable terms which they now offer; and that if any hesitation or delay takes place Her Majesty's Mission will be at once withdrawn and Great Britain will leave the Eepublio to lake the consequences of their infatuation. I trust, hovfever, that the Nicaraguan Government will have suffi- cient discretion to see the dangerous position in which it would then be placed and the necessity of at once arranging the questions which have been so long pending with this country. I have only to add that Her Majesty's Government expect not only that the treaties should be properly signed, but that they should be as promptly ratified. If the Nic- araguan Congress be not in session at the time it is not too much to require that in a matter of so much impoi-tance a special session should be convoked for the purpose of passing the treaties, so that they may be ratified before your departure. The ratifica- tions might, indeed, be confided to you wi th instructions to M. Marcoletato exchange them at London against. those of Her Majesty. You will, however, warn the Govern- ment that it will be vain for them to ratify the treaty of commerce without ratifying also the Mosquito treaty, for Her Majesty's Government will not accept the one with- out the other. J. KUSSELL. DOCUMENT No. 10. 10.— AETICLES 14, 15, 16, 17, 18. AND 19 OF THE TREATY OF JUNE 21, 1867, BE- TWEEN THE UNITED STATES AND NICAEAGUA. DIGKINSON-AYON. Article XIV. The Eepublio of Nicaragua hereby grants to the United States, and to their citizens and property, the right of transit between the Atlantic and Pacific Oceans through the territory of that Eepnblic, on any route of communication, natural or artificial, whether by land or by water, which may now or hereafter exist or be constructed under the au- thority of Nicaragua, to be used and enjoyed in the same manner and upon equal terms by both Eepublics and their respective citizens, the Eepublio of Nicaragua, however, reserving its rights of sovereignty over the same. Articlb XV. The United States hereby agree to extend their protection to all such routes of com- munication as aforesaid, and to guarantee the neutrality and innocent use of the same. They also agree to employ their influence with other nations to induce them to guar- antee such neutrality and protection. And the Republic of Nicaragua, on its part, undertakes to establish one free port at each extremity of one of the aforesaid routes of communication between the Atlantic and Pacific Oceans. At these ports no tonnage or other duties shall be imposed or levied by the Government of Nicaragua on the vessels of the United States, or on any effects or merchandise belonging to citizens or subjects of the United States, or upon the vessels or effects of any other country intended, bona fide, for transit across the said routes of communication, and not for consumption within the Republic of Nicar- agua. The United States shall also be at liberty, on giving notice to the Government or authorities of Nicaragua, to carry troops and munitions of war in their own vessels, or otherwise, to either of said free ports, and shall be entitled to their conveyance be- tween them without obstruction by said Government or authorities, and without any charges or tolls whatever for their transportation on either of said routes : Provided, said troops and munitions of war arejiot intended to be employed against Central American nations friendly to Nicaragua. And no higher or other charges or tolls shall be imposed on the conveyance or transit of persons and property of citizens or subjects of the United States, or of any other country, across the saiid routes of communication, than are or may be imposed on the persons and property of citizens of Nicaragua. AND MONROE DOCTRINE. 133 And the Republic of Nicaragua concedes the right of the Postmaster-General of the United States to enter into contracts with any individuals or companies to transport the mails of the United States along the said routes of communication, or alojig any other routes across the Isthmus, in its discretion, in closed bags, the contents of which may not be intended for dustribntion within the said republic, free from the imposition of all taxes or duties by the Government of Nicaragua; but this liberty is not to be construed so as to permit such individuals or companies, by virtue of this right to transport the mails, to carry also passengers or freight. Article XVI. The Republic of Nicaragua agrees that, should it become necessary at auy time to employ military forces for the security and protection of persons and property pass- ing over any of the routes aforesaid, it will employ the requisite force for that purpose ; but npon failure to do this from any cause whatever, the Government of the United States may, with the consent or at the request of the Government of Nicaragua, or of the minister thereof at Washington, or of the competent legally appointed local au- thorities, civil or military, employ such force for this and for no other purpose ; and when, in the opinion of the Government of Nicaragua, tlie necessity ceases, such force shall be immediately withdrawn. i In the exceptional case, however, of unforeseen or imminent danger to the lives or property of citizens of the United States, the forces of said republic are authorized to act for their protection without such consent having been previously obtained. But no duty or power imposed upon or conceded to the United States by the pro- visions of this article shall be performed or exercised except by authority and in pur- suance of laws of Congress hereafter enacted. It being understood that such laws shall not affect the protection and guarantee of the neutrality of the routes of transit, nor the obligation to withdraw the troops which may be disembarlied in Nicaragua directly that, in the j ndgment of the Government of the republic, they should uo longer be necessary, nor in any manner bring about new obligations on Nicaragua, nor alter her rights in virtue of the present treaty. Article XVII. It is understood, however, thut the United States, in according protection to such routes of communication, and guaranteeing their neutrality and security, always in- tend that the protection and guarantee are granted conditionally, and may be with- drawn if the Uuited States should deem that the persons or company undertaking or managing the same adopt or establish suoli regulations concerning the traffic there- upon as are contrary to the spirit and intention of this treaty, either by mailing unfair discriminations in favor of the commerce of any country or countries over the com- merce of any other country or countries, or by imposing oppressive exactions or un- reasonable tolls upon mails, passengers, vessels, goods, wares, merchandise, or other articles. The aforesaid protection and guarantee shall not, however, be withdrawn by the United States without first giving six months' notice to the Republic of Nica- ragua. Article XVIII. And it is further agreed and understood that in any grants or contracts which may hereafter be made or entered into by the Government of Nicaragua, having reference to the interoceanio routes above referred to, or either of them, the rights and privi- leges granted by this treaty to the Government and citizens of the United States shall be fully protected and reserved. And if any such grants or contracts now exist, of a valid character, it is further understood that the guarantee and protection of the Uni- ted States, stipulated in article XV of this treaty, shall be held inoperative and voifl until the holders of such grants and contracts shall recognize the concessions made iu this treaty to the Government and citizens of the United States with respect to such iuteroceanic routes, or either of them, and shall agTee to observe and be governed by these concessions as fully as if they had been eml)raced in their original grants or con- tracts ; after which recognition and agreement said guarantee and jh-otectiou shall be in full force : provided, that nothing herein contained shall be construed either to affirm or to deny the validity of the said contracts. Article XIX. After ten years from the completion of a railroad, or any other routeof communication through the territur.v of Nicaragua from the Atlantic lo tiie Pacific Ocean, no company which may have constructed or he in possession of the same shall ever divide, di- 134 PROPOSED INTEROCEANIC CANAL, rectly or indirectly, by the issue of new storlr, the payment of dividends or otherwise more than fifteen per cent, per annum, or ac that rae, to its stockholders from tolls collected thereupon ; but whenever the tolls shall be found to yield a larger profit than this, they shall be reduced to the standard of fifteen per cent, per annum. DOCUMENT No. 11. 11. — Mr. Fish to the United States ministers. Department of State, Washington, February 28, 1877. Sir: For many years past the subject of an interoceanic canal, connecting the At- lantic and Pacific Oceans at some point in or adjacent to Central America, has occu- pied the public mind in this country and abroad. On more thau one occasion the mat- ter has been discussed between the United States and several of the States of Central and South America, and treaty negotiations have been entered upon, with a view to faciliate the work. Nicaragua and some of the Centra), American powers have also entered upon treaties with other powers touching this question, and yet, notwith- standing all that has been written, the siirveysthat have been made, and the amount of consideration and study which has been given to this enterprise, no active steps have been taken to construct such a o.inal over any of the contemplated routes. Dr. Adan Cardenas was accredited to this country some months since in the charac- ter of envoy extraordinary and minister plenipotentiary, mainly with a view of ne- gotiating a new treaty with rclVrence to this work; and for some time past negotia- tions to that end have been carried ou at Washington. Adraft treaty was prepared here, to which it was proposed to obtain the accession of the principal maritime pow- ers and of such other Governments as might seem advisable, and under which it was hoped capitalists might be induced to obtain a concession and really enter upon the work of building the canal. It has been found, however, to the regret of tliis Govern- ment, that the views entertained by the Government of Nicaragua would not permit the negotiation of a treaty either in the form proposed or in any form that would ad- dress itself to the approval of this Govfrnment, or that seemed at all calculated to obtain the confidence or co-operation of the principal maritime powers in furthering the scheme. The matter, however, has evoked considerable interest, not only among our own citi- zens and public men, but also among the foreign diplomatic representatives accredited to the United States ; and so much inquiry has arisen that I have deemed it important to forward to you, as I do herewith, a copy of the proposed treaty referred to, and of the views of the representative of Nicaragua, as contained in a counter-draft, with certain correspondence on the subject which has taken place. These papers will in- form ycm of the points on which the two Governments have failed to agree. Should you be applied to concerning the subject, you are authorized to permit the correspondence in question to be perused by the authorities of the country to which you are accredited, in order that the position and views of this Government may be clearly seen ; or you may explain such position and views as contained in the draft treaty and the correspondence of the Department herewith sent to such persons as may be interested in the question. I am, sir, your obedient servant, HAMILTON FISH." Senor Cdrdenas to Mr. Fish. [Translation.] Legation op Nicaragua, Washington, January 25, 1877. Sir: The undersigned, envoy extraordinary and minister plenipotentiary of the Ee- public of Nicaragua, has the honor to inform the honorable Secretary of State that, having caused the draft of a convention between the United States of America and the Republic of Nicaragua, which the honorable Secretary of State did him the honor to deliver to him in person, to be translated, and having' now read its contents, he is able to state his opinion concerning it. CLAYTON-BULWEB TREATY, AND MONEOE DOCTEINE. 135 The undersigned takes pleasure in informing tlie honorable Secretary of State that, the Government of Nicaragua being disposed to favor and accept, as he has repeatedly- had the honor to assure him, anything tending to facilitate the construction of an in- teroceanic canal through its territory, it seems to him that the draft of a convention which has been comiuunicated to him is in general acceptable in its spirit and pur- poses, although as to its details and some of its specific provisions it is desirable to introduce in itsuoh changes as are indispensable to cause it to harmonize with the con- stitution and laws of the Republic, the important object which it has in view being favored at the same time, since, however favorable may be the disposition of the Gov- ernment of Nicaragua as regards this matter, its liberty of action must necessarily be ■circumscribed within these limits. For the explanation of the changes which this circumstance obliges the undersigned to suggest a conference is necessary, which he begs the honorable Secretary of State to do him the honor to grant him. In addition to this, however, and in order to make his views more clearly understood, it has seemed to the undersigned that it was of the highest importance to prepare at once and communicate to the honorable Secretary of State, previously to the confer- ence in queslion, the articles which, in his opinion, should be inserted in the conven- tion. The undersigned hopes, therefore, that the honorable Secretary of State, consider- ing the aforesaid articles, which he has the honor to inclose, as an integral part of this note, will be pleased, when he shall have read them, to appoint a day for the de- sired conference. The undersigned avails himself of this occasion to renew to the honorable Secretary of State the assurances of his most distinguished consideration. AD. ClEDENAS. Hon. Hamilton Fish, Bemarka ore the draft of Mr. Fish. [Translation.] Article 1. Each of the- contracting parties to this convention pledges itself to request the other natious with which it is on terms-of peace and Iriendship to subscribe to the obliga- tions contracted by Spain, France, Great Britain, and the United States of America, accepting then dvant ages already granted by the Government of Nicaragua to the Gov- ernmenls of the above-named countries, and to consider as binding upon themselves the stipulations of Article SIII of the treaty of Madrid of July 25, 1850, those of Ar- ticles XXVII, XXVIII, XXIX, XXX, XXXI, and XXII of the treaty of Washington of April 11, 1869, those of Articles XX, XXI, XXII, XXIII, XXIV, XXV, of the treaty of Managua of February 11, 1860, and those of Articles XIV, XV, XVI, XVII, XVII, and XIX of the treaty of the same city of Managua of June 21, 1867, concluded respectively between the Government of Nicaragua and that of His Catholic Majesty ; that of His Majesty the Emperor of the French ; that of Her Britannic Majesty ; and the President of the United States of America, which are not abrogated, and which have lost none of their binding force. Article 2. In addition to the proposal and request of adhesion referred to in the foregoing ar- ticle, the Government of the United States and the Government of Nicaragua s3so agree to invite, each on its own part, the aforesaid powers with which they are on terms of peace and friendship, including France and Spain, likewise to subscribe to and con- sider as binding upon themselves the stipulations which were adopted in respect to this matter of the interoceanio canal, the construction of which it is designed to facil- itate, by the Government of the United States and that of Great Britain in Articles I, II, III, IV, V, VI, and VII, of the treaty concluded at Washington, April 19, 1850, be- tween the two nations. Article 3. The Government of Nicaragua, on its part, pledges itself to the aforesaid powers, in. return for the obligations which they will contract by their adherence to this treaty, as set forth in the foregoing articles, not only to fulfill and carry out with scrupulous exactitude what it has therein promised, but also to do as follows : 136 PROPOSED INTEROCEANIC CANAL, 1. To make a grant in favor of snch person or persons, corporation or company, as may solicit it, and as, in the jurlgment of the Government of Nicaragua, may offer the necessary guarantees, for the term of ninety-nine years, said grant to contain, for the greater encouragement and benefit of the commerce of the world, the privileges and favors enumerated hereafter in article 6. 2. To protect the person or persons, corporation or company, in whose favor this grant shall be made, from the time of the commencement of the work until its com- pletion, barring the cases provided for in article 7, against every measure of embargo, confiscation, detention, or violence of any kind. It is, however, understood that this does not imply the impunity of the persons to whom this exemption is granted for any violations that they may commit of the laws of Nicaragua within the territory of the Republic. 3. To protect in like manner from embargo, confiscation, interruption, or injury, the aforesaid canal, when it shall be completed, together with its appurtenances, so that it shall forever remain free and open to the vessels of all nations, as herein pro- vided. 4. To consent that the neutrality already secured and guaranteed to the canal itself by Spain, France, Great Britain, and the United States of America, and which shall be secured and guaranteed in the same manner by the nations accepting the invitation referred to in articles 1 and -2 of this convention, be extended to a strip of the territory of the Republic running alongside of the canal, parallel to its course, and measuring miles in width ou both sides ; and likewise to that space in both oceans over which the Government of Nicaragua has jurisdiction on both aides of the poits of ingress and egress circumscribed by the arc of a circle drawn from the mouth of said points as its center, with a radius of one hundred and fifty nautical miles. 5. To protect, by all means in its power, using for this purpose its own force, or ap- pealing to that of friendly nations, as agreed in the treaties referred to in article 1 of this convention, not only the neutrality of the canal and of the territory and waters described in the foregoing paragraph, hut also the innocent use of said canal, and the security of the persons and property belonging to the enterprise and being withm the neutral territory. 6. To allow the company receiving the grant and the management of the canal to establish and maintain, at their own expense, such force of special police as they may deem necessary for the security of the interests of the enterprise, provided that the aforesaid police force be subjected to regulations approved by the Government of Nicaragua, and act only within the limits of the canal and its dependencies, subject to the constitution and laws of the Republic. It is understood, however, that none of these conditional concessions, which are offered as a stimulus to the completion of the work, and in return for the advantages and guarantee solicited, or the declaration of the neutrality of the territory and wa- ters above mentioned, or any other clause, expression, or sentence in this convention, or in the treaties referred to in its article 1, shall ever be interpreted as involving any renunciation or impairment of the jurisdiction and sovereignty of the Republic over the whole of its territory and waters, which jurisdiction and sovereignty are hereby recognized and guaranteed. Article 4. Neither of the two contracting parties, and neither of the two nations signing the stipulations and guarantees above mentioned, shallconsider itself obliged to recognize or pay any claims which may be presented or claimed to be presented by governments, corporations, companies, or individuals, or associations of individuals, who, previously to the exchange of the ratifications of this convention, shall have undertaken the con- struction of the canal, or done anything connected with it. Nevertheless, the Government of Nicaragua hereby declares that there exists, at this date, no grant or grants that can impede, delay, or embarrass the work which shall he undertaken according to the grant which it pledges itself to make ou the terms of ar- ticle 6 of this convention ; and it agrees that if any claim shall be presented on thia ground, and it be attempted thereby to hinder the work, or if it be found necessary, from any other cause, to remove and terminate it (i. e. the claim) definitely, the Gov- ernment of Nicaragua will see that this be done. Article 5. All the powers signing or adhering to this convention before the commencement of the work, and not availing tbemselves of the privilege of withdrawal from it, which is stipulated in the treaties referred to in article 1, shall at all times, both in peace and war, have the right of transit througlj the canal when it shall be completed, and shall enjoy the benefit of the neutral waters at its extremities for the vessels entitled to CLAYTON-BULWER TREATY, AND MONROE DOCTKINE. 137 carry their flag, and also for the cargoes of said vessels, on terms of perfect equality ■with each other. Those adhering after the completion of the canal shall enjoy the same rights and henefits after the expiration of years from the date of their adhesion. Article 6. The Government of Nicaragua agrees, as stated in paragraph 1 of article 3 of this convention, that the grant to be made in favor of the person or persons, corporation or company undertaking the construction of the interoceanio canal, shall contain, as indispensable circumstances and conditions, the following : 1. That the aforesaid canal, with its entrances and appurtenances, shall be con- structed for and adapted to the passage of vessels not exceeding . 2. That the transit or passage duties to be imposed upon vessels shall be calculated upon the gross tonnage. If the vessel be not laden, or in ballast, the dues to be paid shall be fixed according to the volume of water which she draws. The measurement of the tonnage shall be performed according to the Moorsora system ; and when the vessel shall belong to a nation that has adopted that system, and shall be provided with an ofScial registtr or certificate in which is stated the number of tons which it measures, such statemenc shall be deemed satisfactory, and no measurement shall be made. 3. That the fixing and alteration of the charges or passage dues to be paid by ves- sels passing through the canal or any part thereof shall belong exclusively to its board of directors or managers, within the limits allowed by the existing treaties in behalf of the canal. 4. That more than one dollar per head shall never be charged for each passenger passing through the canal or any part thereof. 5. That a discount of 25 per cent, be made from the passage dues fixed by the scale in favor of vessels belonging to the nations which have given in their adhesion to this, treaty, or which shall hereafter do so, as provided in article ,5. 6. That in order better to secure the execution of the treaties on the part of the per- son or persons, company or companies, receiving the grant, the Government of Nica- ragua, and each of the Governments of the nations adhering to this convention, or which shall hereafter adhere thereto, shall have the right to appoint two persons, in order that they may jointly constitute a kind of superior board of vigilance, of an in- ternational character, which shall be called the governmental board. The members of this board shall choose, from among their number, their own presiding officer, and shall organize in such manner as they may determine at their first meeting, or, in case of their holding no meeting, according to their wishes, expressed in writing, the will of the majority being adopted, whatever may be the number of those present, or of those who, by letter or otherwise, shall take part in the deliberation. 7. That this governmental board shall have charge of everything connected with the general inspection of the enterprise of the canal in that which relate* to its general use and in any way affects the inxerests of the commerce of the nations adhering to this convention, and shall take care that the stipulations of the treaties aud of the grant made be rigidly observed and fulfilled, and that the regulations, dispositions, and measures which shall be adopted by the enterprise and its directors or mauagers be not iuopposition, eitherin letter or spirit, to the absolute equality which, according to the agreement made, must be observed among the nations which shall have ad- hered to this convention, and that the lofty objects of civilization and progress aimed at by this work be not defeated. 8. That the Government of Nicaragua shall cause to be duly observed, fulfilled, and executed what shall be decided and determined upon by this board, within the iifaitsl of its jurisdiction and authority. Article 7. On and after the issuance of a grant, as herein agreed, the Government of Nica- ragua pledges itself to respect it, and to issue no other grant for the construction of a canal until one of these three things shall have occurred : 1. Until the company or persons in whose favor the grant was made shall declare that they consider the work impracticable. 2. Until the term of two years shall have expired without the works having been commenced, unless the Government of Nicaragua, on consulting with the govern- mental board, shall consent to an extension of the time. 3. Until, according to the agreement made in the grant, and considering that the company, individual, or corporation in whose favor it shall have been made, do not fulfill its terms nor respect the obligations therein contracted by themselves, it shall be demonstrated that the grant has become null and void. 138 PROPOSED INTEEOCEANIC CANAL, Article 8. As soon as tlie canal stall be completed, the Government of Nicaragua shall have the Tight to require, if it thinks proper, all the laborers, or any part of them who shall have finished their vrork, or who shall not be needed for the continnauoe of the enter- prise, or -who, during the construction of the work, shall have been discharged from the enterprise, to depart, and not to remain in the territory of Nicaragua. Akticle 9. In order to secure the construction of the interoceanic caoal, the Government of Ificaragua agrees to make two ports free, one at each extremity of the canal, and also to allow the two porta of San Juan del Sur and Salinas, on the western coast, to he used as plact^s of refuge, and as resting places for vessels having a right to pass through the canal, and which may be obliged to wait there before being able to enter it, or ■which may have already passed through it. Vessels thus situated shall not be obliged to pay more than half the charges required from those not intending to sail through the canal. All the privileges refeirred to in this article are to be understood as not preventing the Governmeut of the Republic from taking the proper measures to protect the fiscal interests and property of the State against any fraud that may be attempted on the plea of a free port and of the privilege herein granted. Article 10. The Government of Nicaragua further agrees to levy no national impost or duty, and Tiot to permit any taxes, duties, or contributions of any kind, except those which are permitted by this treaty, to be levied on the canal, the vessels passing through it, or the passengers, goods, or effects on board of the same, or on the capital stock of the company, corporation, individuals, or association that shall undertake the work, or •on the towing-vessels, store-houses, wharves, machinery, and works of mechanical •construction used in operating the enterprise. And tlie Government of Nicaragua further agrees that the cargo of no vessels com- plying with the regulations that shall govern the transit through the canal shall be molested or subjected to examination, provided they do not abuse this privilege to the prejudice of tlie fiscal interests of the State. Article 11. In order to afford the greater encouragement to the work and assistance to its ex- «cution, the (^vernment of Nicaragua promises to grant, gratuitously, and without -any compensation whatever, such portion of the public lands, including the sea and tributary waters, as may be necessary for the location and construction of the canal and its branches, and for supplying the same with provisions, and likewise for its wharves, storehouses, buildings, and other appurtenancesof the enterprise, and places for depositing the earth and material excavated or to be excavated. As to the lands belonging to individuals, the Government of Nicaragua guarantees to the enterprise of the canal the privilege of soliciting their appropriation to its use •on payment of a just compensation, the whole to be done in accordance with the con- stitution and laws of the Republic, even without the necessity of furnishing legal proof of the public utility of the work, which is hereby recognized and admitted. The Government of Nicaragua further promises that it will give the enterprise all the moral and material aid in its power in order that the important object of this work may be more speedily and easily realized. Article 12. As soon as thecanal, with its dependencies and appurtenances, is completed, it shall fee possessed, controlled, and managed during the whole time that the grant shall last, and according to its terms, by the person or persons, corporation or company, receiv- ing the grant, and no obstacle of any kind shall be placed in their way, nor shall any •claim he made to exercise greater interveutiou in their affairs than is allowed by the terms of this treaty and already agreed upon. Article 13. If differences shall arise between any of the various powers adhering to the terms of this convention, and the person, persons, corporation, or company receiving the CLAYTON-BLUWER TREATY, AND MONROE DOCTRINE. 139 ^rant, in respect to anything oonuected with the management and use of the canal, «r between the aforesaid person or persons, corporation, or company receiving the grant, and the Republic of Nicaragua, with regard to anything in anywise affecting the canal or the matters and thiujis conuf cted with the same, they shall be decided by the goverumental board, whose decisions shall be liaal. Article 14. Both Governments pledge themselves to use their good offices with that of Costa Rica to the end that it may adhere to the stipulations of this treaty in the part affect- ing it, ia case the question pending between Costa Rica and Nicaragua on the subject •of the validity of the boundary treaty of 1858 be decided in its favor ; and the Gov- ernment of the United States, actuated by the desire that the boundary questious be- tween the two reijublios may be no obstacle to the accomplishment of the worlc in question, pledges itself to use its good offices with the Government of Costa Rica to the end that the aforesaid questions may be settled by the arbitration of one or more impartial Governments. Aktiole 15. If at the expiration of a year from the date of the exchange of the ratifications of this treaty the adhesion of at least four of the maritime powers of Europe shall not have been obtained, the stipulations of the present convention, so far as they add anything to or modify the obligations contracted in the existing treaties, shall be null and void, the said treaties remaining in full force, and the Republic of Nicaragua being fully at liberty to act in the matter as it shall thiult most ^conducive to its interests. Article 16. The present convention shall be ratified, and the ratifications exchanged, at Man- agua, within eighteen months from this date, or sooner if i>ossible. Smor Cardenas to Mr. Fish. [Trauslation.] Legation of Nicaragua, Washington, February 9, 1877. Sir: The honorable Secretary of State having informed the undersigued, daring ■their interview yesterday, that a counter-draft of a treaty between his Goverument and that of Nicaragua, which he had the honor to address to him on the 25th ultimo, was absolutely unacceptable, both on account of its form and on account of the essen- tial modifications thereiu made to the draft presented hy the honorable Secretary, the undersigued had the honor to state that he did not attach much importance to the form in which he had presented the modifications, but th:it he did to their sp'rit; and that, therefore, if the question of form could cause the discussion to be prolonged beyond the time at the disposal of the undersigned, in view of his desire to bring the nego- tiation to a speedy termination, he had no objections to withdrawing the modifica- tions presented in the form proposed, and to the adoption, as a basis of discussion, of the honorable Secretary's draft, to which he proposed to make at the same sitting the observsltions which gave rise to the counter-draft. This having been agreed upon, the undersigned had the lienor to oliject in general to some of the principal stipulations of said draft, which he thinks inadmissible on account of its incompatibility both with the sovereign rights of Nicaragua and the spirit of its constitution and laws, as well as with the interests of the commerce of the world, and particularly with those of the republics of Central America ; and he had the honor to hear that the honorable Secretary admitted the justice of some of his observations. But as the day which the honorable Secretary Jiad been pleased to appoint for this interview was not the most suitable for a full discussion of the draft— it being the day appointed for the reception of the diplomatic corps— the undersigned became aware that the honorable Secretary did not propose to discuss tlie matter in detail, and was obliged CO confioe himself tol^he general observations alluded to, and promised to com- Biunicate to the honorable Secretary, as soon as possible, a mijmorandum of objections to the draft, which he has the honor to send herewith. He has therein succinctly stated, as the shortness of the time has allowed, the 140 peoposp:d interoceanio canal, reasons for which, in Ills judgment, Articles I, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, XV, XVI, XVII, and XVIII of the draft of the honorable Secretary of State are inadmissable, leaving the remaining articles without observations, although if the objections made to the principal ones should be adopted, it would he necessary to modify thetn in order to cause all the parts of the draft to harmonize with each other, and to aHd some stipulations providing that none of the concessions and privilegeg granted by Nicaragua to the nations guaranteeing the neutrality of the canal and of the commerce of the world should ever be interpreted to the detriment of her sov- ereignty and of her fiscal interests. The undersigned would, at the same time, have proposed the stipulations which, in his opinion, should be substituted for the articles which he thinks inadmissible ; but, , as most of them are condensed in the draft which has been rejected by the honorable Secretary of State, and which the undersigned considered as withdrawn, it would be desirable, if the honorable Secretary of State considers just, and accepts the reasons on which tlie undersigned has based his objections, and has thought of any way to avoid the difficulties in question, that he should state his views in a new draft. But if, which would be matter for regret, the honorable Secretary should be of a contrary opinion, the undersigned hopes that he will be pleased so to inform him as soon as possible, that he may prepare to obey the orders of his Government, inasmuoli as the time at his disposal, and the speedy change of administratioh will not no w per- mit the continuation of negotiations in this matter. The undersigned has the honor to reiterate to the honorable Secretary of State the assurance of his highest consideration and esteem. AD. ClRDENAS. Hon. Hamilton Fish, ^c, ^-c, fo. Memorandum of objeo ions madety the minister of Nicaragua to the draft of a treaty hetween the Governmentof the United Stales and that of Nicaragua, presented by thehonorable Sec- retary of State January 25, 1877. [Translation.] Article I. This article is inadmissible on the terms proposed, because, the invitation being lim- ited to the principal maritime powers with which the contracting Governments are on terms of peace and friendship, the other uninvited nations are excluded from the ad- vantages offered to those accepting the con vention, and are therefore-subjected, accord- ing to the following stipulations, to a scale of tolls so high that it would exclude their flag from the use of the canal. This would be the condition of all the nations of the American continent (with the exception of the United States), and 'even of there- publics of Central America, to whose territory the route bt longs; and the canal, in stead of being, as was to be hoped, and as the Government of Nicaragua desires to have it, a universal highway, open to the world, on conditions of perfect equality,, would be converted into a monopoly for the benefit of a few maritime powers, by the mere fact of the guarantee of neutrality, which guarantee is a purely moral one, and to which many of them are already pledged, without that privilege, by treaties with Nicaragua. With regard to the stipulations and guarantees to which the article refers, which are acceptable in general, with some slight modifications, it would be desirable to add,' in order to give greater security to the route, and to maintain equilibrium betweenthe mar^time powers guaranteeing its neutrality, and in conformity with the agreement made between the United States and England, a clause providing that none of them shall occupy, fortify, colonize, assume, or exercise any dominion whatever over Nica- ragua or over any part of Central America. The neutrality oi a strip 5 miles wide ou each side of Ihe canal for the object in view seems unnecessary. The neutrality of a great zone, 10 miles wide, which would comprise one of the principal centers of the population of the republic, is purposeless. Two miles on eacli side are more than sufficient, and can be granted. Paragraphs 3 and 5 of this article must be explained in such a way that it will be understood that the capacity of constructor of the canal oremploy^ thereof does not involve the inviolabiliiy of person or property so as to place them beyoud the reach of any legal action. The company and its employes must not consider themselves as beyond the relations of common law. CLAYTON- BUL WEE TREATY, AND M^iNROE DOCTRINE. 141 Akticle IV. This article is absolutely inadmissible, because restrictions are thereby imposed upon Nicaragua, in the exercise of her administrative acts, which cannot fail to affect her independence, and -which no other nation wonid admit under similar circumstances. The acts of the Congress of Nicaragua, in the exercise of its constitutional powers, necessary to invest a concession with the authority of law, would be liable to be re- jected and nullified by any of the foreign Governments to which is given the power of approving them in their spirit and form. This power, moreover, is superabundant, since the couditions of the concessions to bo granted by Nicaragua are also fixed, and since Nicaragua pledges herself, by this convention, to a series of concessions calcu- lated to favor the interests of the commerce of, the world, and to give confidence and security to the cai>ital invested in the work, which obligations she would be bound to respect on making a grant. The second condition of this article is inadmissible for the reasons stated in the observations on article 1 ; and because it would oblige the company undertaking to construct the canal, to increase the tolls to the detriment of the interests of non- favored commerce, or it would have to reduce them to a fair rate, to the prejudice of its own interests. The creation of the board of control, to which the third condition refers, although admissible in principle, is not so witli the latitude of powers conferred upon said hoard. It is proper that the nations guaranteeing the neutrality of the canal should unite in forming aa international board of council of vigilance to exercise a general supervision over the enterprise, so far as regards the general use of the canal, and so far as this can, in any wise, affect the iuterests of the nations; it does not, however, seem proper for another kind of powers to be granted, to the prejudice of the interests of the enterprise, or for the right of intervention to be granted to said board in mat- ters which, by reason of their very nature, are within the province of the Government of Nicaragna alone. It is a sufficient guarantee for the nations to have representatives to see that the company comply with the terms of the grant, which must be in accordance with ex- isting treaties. Moreover, as the protection of the Governments is conditional, and may be withdrawn, according to the stipulations of paragraph 6, article 1, if the com- pany adopts regulations with respect to trade which are contrary to the spirit and design of this convention ; and', as moreover, by treaties still in force between Nica- ragua and other nations, a limit has been placed to the profits of the enterprise, it is neither proper nor necessary for the board of control to have the right to approve and reform the tariffs. The fifth condition, which refers to an armed police in the neutral territory, is ad- missible, if it be provided that such police shall be governed by regulations made by the Government of Nicaragua, and that it shall act only within the limits of the canal and its dependencies, subject to the constituriou and laws of the Republic. A body of police, independent of the Government, and not subject to the laws of Nicaragua, would be an anomaly incompatible with the sovereignty of the State. The sixth condition, in the part referring to the approval of the charges to be levied per ton upon each vessel, is admissible for the reasons stated in speaking of the powers of the board of control. For the same reasons, and in view of what has been said in respect to the first part of article 4, the seventh and eighth conditions cannot be admitted. The ninth condition would be acceptable provided that portion were suppressed which refers to private armed vessels, both in view of the danger of filibusteringand piratical expeditions, and because this condition would render the convention unac- ceptable to those European nations which have condemned the principle of privateer- ing. Akticle V. This article seems unnecessary, because as soon as the Government of Nicaragua makes a grant, by that very fact it becomes obMgedto respect it until it becomes null and void, according to its terms. ABTICtE VI. This is acceptable, with the addition, after the phrase " including the Government of Nicaragua," of the following : " and the other Governments of Central America." Article VII. This article is inadmissible because the Government of Nicaragua cannot assume all the obligations of article 1, some of which would imply a renunciation of its aov- 142 PROPOSED INTEEOCEANIC CANAL, ereijtn rights to the zone occupied by the canal, such as that of not maintaining ex- clusive authority over the canal, and of uever erecting or maintaining on It or in its vicinity fortifications commanding it. The result of this would be that the control of the canal would be taken away from Nicaragua, or that she would have a very small share of it, together with the other guaranteeing nations. Moreover, the article binds Nicaragua to all the guarantees of article 1, and to the others which are granted by thi.s convention in an absolute maa- ner, while the Government of the United Statesbihdsitself thereto only conditionally by the terms of article 15. Akticle VIII. _ The final portion of this article is objectionable, inasmuch as it provides that the ports of San Juan del Sur and Salinas may be used gratuitously as harbors of refuge and resting places for vessels having ihe right to pass through the canal ; because this, ■would oblige Nicaragua to declare open two ports unnecessary to her commerce, there- by occasioning her expense in maim aining guards for the protection of her fiscal in- terests, police, &c., for tbe prevention of sninggling, without receiving anything io return. It might be admitted, provided a fair reduction were made in the ordinary duties in favor of the vessels referred to. Akticlks IX, X, A2JD XI. These articles do not seem to come within the scope of this treaty. They treat of a grant, and the Government of Nicaragua is ready to allow, without any necessity of providing for it by treaty, and with some modifications, all that is asked therein for the company, and much more, and the company will not fail to demand it in its grant j moreover, the privilege of appropriating private property, as asked for, is at variance with the constitution and laws of the Republic. Article XII. This article might be accepted with the addition after the phrase " except in the manner prescribed by this convention" of the following: " and, acaording to the tenit of the grant." Akticlb XIII. This i-s inadmissible, because these docks, with a force of foreign police in the terri- tory of Nicaragua, might be considered as poikts occupied by foreign nations. It does not tend, moreover, to facilitate the special object of this convention,, and would rather obstruct the ports, since the same right would belong to all the nations ad- hering to the convention. It seems more proper that the construction of docks for the vessels of the whole world be left to pri vate enterprise. Akticlk XV. This article is not admissible in the conditional terms in which it is drawn. It makes the convention a unilateral contract, in which the only obligation contracted by the Government of the United States is imperfect, and consequently much leas binding than the obligations contracted by it iu this respect by the treaty of Managua of June 20, 1868, whereas Nicaragua pledges herself absolutely to do much more than she IS obliged to do by the aforesaid treaty ; which, viewed iu connection with the stipulations of Article XVII of the draft, limits, to a certain extent, the obligations contracted by the United States, while Nicaragua contracts greater and much more serious ones. ARTICiE XVI. Admitted, striking out the phrase " as ihe owner of apart of the banks of the San Juan Mtver. Article XVII. First part accepted, striking out the 9th, in view of what was said in the observa- tions on Article XV. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 14cJ Article XVIII. Admitted, changing the word Washington to Managua, it being easier to make the- exchange in Nicaragua, the Government of the United States having a minister resi- dent in Central America. Legation of Nicaragua, Washington, February 9, 1877. Mr. Fish to Senor Cdrdenas. Department op State, JVasMngton, February W, 1877. Sir: I have had the honor to receive yonr note of the 9th instant, repeating and amplifying remarks upon your counter-draft upon the subject of an interoceauic ca- nal which you made during a recent conference with nie. In the interview which I had the honor to hold with you on the 8th instant, I pre- sented the reasons and motives of this Government for the several provisions in the draft of a treaty which had been submitted, to which you had excepted, and also the objection to the greater part of the amendments proposed in your counter-draft, whil& accepting on one or two points of detail the reasonableness of your exceptions to our draft, and expressing a willingness to modify the position of this Goverumeut as to- those pointb. I regret to notice, from the paper now acknowledged, that your views upon the main and upon what are deemed the vital points of the question absolutely essential to the practical attainment of the result which both nations anxiously desire continue to he so contrary to those entertained on the part of the United States, that I can see no hope for the construction of the canal, or for its being undertaken, without a modi- fication of the views presented by you. This is a result which I deplore for the inter- ests of the United States and of Nicaragua, as well as those of commercial nations in. general, and for myself personally. The object is obviously so beneficent in its purpose that, if the work were to be completed upon an advantageous basis, it could not fail to increase the wealth and happiness of mankind. It certainly would be no dishonorable ambition for any man to have his name associated with such a scheme. It would also be affectation to deny insensibility to its failure. For its success the President was disposed again to pledge the faith of this Government to defend the neutrality of the -work, as h.-ld been done in other instances touching interoceauic intercourse. In favoring the enterprise he has had an eye to nothing but its success. He was sure that this could not be com- passed without a guarantee of the neutrality of the work by the chief maritime pow- ers, and by grants from Nicaragua such as would be sufficient to tempt the cupidity; and inspire the confidence of capital. It is feared that because this great natural pathway happens to lie within the jurisdiction of Nicaragua she may be disposed to he somewhat unduly sensitive in regard to her sovereignty, and to assert her techni- cal rights in the matter in a way not only inconsistent with her own interests but with those of commercial nations generally. You will pardon me for suggesting that she seems to have undue apprehension of designs upon her sovereignty outside of the necessary limits of the canal, and does not appreciate that, whatever sacrifices other powers may make to insure success to the enterprise, must be met by at least some corresponding concessions, and in a spirit of justice, not to say of generosity, on her part. She will profit more than all other nations by the construction of the canal, and yet I am forced to think that her counter-draft of the treaty is unconsciously framed upon the theory that the world desires a transit through her territory and must make all exacted submission to obtain it. It is hoped that sooner or later this policy on her part will be changed. For many years, and by separate treaties with very many of the nations of the world, Nicaragua has endeavored to enlist the support and the co-operation of other powers in the construction and the neutralization of this canal ; but not a shovelful of earth has been removed toward the execution of the work. A want of assurance as to the superiority of advantage of the route by the way of Nicaragua over other routes has, no doubt, to some extent prevented any real efforts in the directiou of an actual construction of the work. Other causes of impediment and of delay have, however, been even more operative. Among these may be mentioned the want of confidence in the terms of concession which Nicaragua might be disposed to grant to those who undertake the construction, and the entire uncertainty of the competence or even of the actual intent to undertake the work on the part of those to whom a coneessiou may be granted. A concession on in- adequate terms and conditions, or one granted to parties of insufficient credit or capi- 144 PROPOSED INTF.EOCEANIC CANAL, tal to perform their obligations, but who may seek the grant simply and solely (as ex- perience shows some similar grants have been used) to speculate with, and to hawk about in the moneyed capitals of the world an offer to the best bidder, will not com- mand the confidence of the nations whose guarantee and support are essential to the object. ifn the dralt of the treaty which I had the honor to submit to your consideration, the difficulty arising from this want of assurance and of confidence was sought to be ob- viated by obtaining the approval by several of the great maritime powers of the ooa- cession and of the grantees in advance of their assumption of the guarantee. The policy of the separate treaties which Nicaragua has made with other powers in relation to a canal has proved utterly ineffective. The treaties are generally, if not invariably, terminable at the pleasure of either party at the end of a short number of years. The guaranteeing State is bound by its engagements only to the State of Nioar ragua, which may release it, or it may release itself by a notice terminating the treaty, and one by one the powerful States may withdraw and either leave the canal without efficient guarantee, or may leave one State to maintain and defend its neutrality against all the rest. A State conscious of power to enforce the guarantee, and with a character for good faith which leads to the performance of its engagement, must naturally look witli care before entering upon a contract which may thus expose it. It may be said that many of the powerful States have, nevertheless, entered into such treaties. It is true, but they entered into them for very limited periods; and it has been demonstrated that their united confidence in the work has not been enlisted, and the necessity of further negotiation is the result. The United States, among others, entered into atreatyof this nature with Nicaragua for fifteen years. Nearly nine of these years have elapsed, and so ineflicieut has the treaty been that Nicaragua has invited another negotiation. So convinced is the United States of the entire and utter inefficiency of such treaties that little doubt is entertained that by mutual agreement those provisions of the treaty will be termi- nated at the earliest day. The draft treaty submitted by the United States was framed to avoid what are be- lieved to be radical defects in the theory of previous conventions, and to secure the confidence of the guaranteeing powers in the completion of the work by securing their approval of the terms of the concession and the character and capacity of the grantees, and by making their obligations of guarantee and the benefits of use and enjoyment identical and common. ' It is not necessary here to discuss further than was done in the conversation between us the points of objection raised either to the draft of the United States or the coun- ter-draft of Nicaragua. I will only remark that the objection raised by you, that the first article of the United States draft would exclude the states of Central and South America from participation in the use of the canal, except on the payment of double tolls, will readily be obviated. We appreciate that the States of Central America, and possibly the adjoining United States of Colombia, might and should be admitted to equal participation in the use of the canal with the States whose guarantees are such as to command respect from the maritime powers. It would not, however, seem just to admit States without the power to make their guarantee practically, and, if need, be, physically efficient to the same degree of control with those States on whom, in case of need, the sacrifices will fall which guarantee involves and may bring. Pursuant to your oral request, I do myself the honor to inclose a copy of certain re- marks which occurred to me upon a perusal of your counter-draft, and I avail myself of this occasion, sir, to offer to you a renewed assurance of my very high consideration. HAMILTON FISH. Senor Doctor Don Adan CXrdenas, fc, fo., fc. BemarTcs on the counter-draft of Mr. Cdrdenas. Article I. The stipulations proposed in this article of the counter-draft seem to be unnecessary, especially from their comprehensive character. They require the parties to propose to the other nations with which they are at peace certain obligations contained in instru- ments to which the United States is not a party, and some of which are not known here. It would seem to be unnecessary to expect Governments of countries whose citizens or subjects might never or seldom use the canal to join in that guarantee of the neutrality of the work which would be desirable from the chief maritime powers. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 145 The treaties of Nicaragua with France and Spain, referred to in this article, are not known to this Department, which is also uncertain ^.s to what instruments may be meant by the treaty of Managua of the 11th of February, ISfiO, and of the treaty of Washington of the 11th of April, 1869. It is believed that it would be preferable to omit any specification of the particular powers which may be asked to join in the guar- antee of the neutrality of the canal. If application for that purpose be made to those nations most interested in naYigation and commerce, and particularly in that between the two oceans, and the application be accepted, there can be no doubt that others would themselves apply as their interests might suggest. If, however, they should abstain, this might not be a material embarrassment to the success of the work. Akticle II. This article is believed to be unnecessary, because the obligations of the Clayton- Bulwer treaty, including that which provides for an invitation to other powers to join in guaranteeing |.he neutrality, are still subsisting. This Government has hith- erto abstained from making a proposition on the subject to other powers, because there has' been no prospect of a completion, or even of a commencement of the canal. Having already entered into the stipulation with Great Britain, and that still being in force, its repetition in a treaty with Nicaragua might imply a doubt of the good faith of the United States on the subject. Article III. It may be regarded as questionable whether the capital necessary to construct the canal could be raised upon a charter of limited duration, even if the term should be ninety-nine years as proposed in this article. The efficiency of the police force provided for might be thwarted by the stipula- tion that it shall be subject to the constitution and laws of Nicaragua. It seems clear that the work cannot be constructed unless there is a police force at hand to restrain and punish especially breaches of the peace and other offenses among the workmen. Offenders, or those likely to become such, would not probably be much deterred if they were to be carried to a distance to be tried by the courts of the country, and the proceedings would not be as summary as is desirable. The laws of a country are frequently modified to suit the stipulations of a treaty. It is presumed that the Government of Nicaragua, if satisfied that its existing laws might obstruct work on the canal, would change them so that the impediment would be re- moved. This change might, in its application, be restricted to the belt within which the canal is to be constructed. Indeed, it may be said that even if the constitution of Nicaragua itself should be adverse to the prompt completion of the work, that instru- ment might be so modified as to change its bearing on the subject. It is presumed that Nicaragua wo^ild not be insensible either of the importance which such a work would confer upon her in the eyes of other nations, or to the increased prosperity of her material interests which must ensue. The United States cannot undertake to guarantee the sovereignty of the Republic of Nicaragua over the whole of its present territory, especially as a condition of the stipulations upou*the subject of the canal proposed in the treaty. In this respect, it can go no further than to guarantee the neutrality of the canal. Article IV. This article is not acceptable to the United States. Although there may be no claims of citizens of the United States resulting from prior grants in respect to a canal, respect- ing which claims this Government would officially interfere, it is not deemed expedient to join in formally reeouncing the obligation to pay such claims if they should exist. It may be hoped that if such claimants should be citizens or subjects of other countries than the United States, Nicaragua would have no difficulty in carrying into effect the- stipulation with which this article closes. Article V. It is believed that the concluding paragraph of this article of the counter-difaft would be impolitic. Instead of postponing the benefits of the canal for a term of years after their accession to the treaty to such powers as may delay their accession, it is believed the most judicious course would be to require of their vessels and cargoes heavier tolls, until their accession should be granted. 4909 CONG 10 146 PROPOSED IN'tEEOCEANIC CANAL, Article VI. The policy suggested in regard to Article V is formally proposed in the fifth clause of this article of the counter-draft. Article VII. ■ The United States having, by adequate and expensive surveys, ascertained the prac- ticability of the canal, cannot accept that clause of this article which allows a grantee the privilege to relinquish his grant upon the ground of the impracticability of the work. Article IX. It is believed that vessels intending to pass through the canal, which may have ocoa- sioii to take refuge or to wait at the ports of Salinas or San Juan del Sur, should be wholly exempted from charges, instead of being liable to pay half of those usual, as this article requires. Article XI. It is believed that this article of the counter-draft would require at least modifica- tion enough to provide against exorbitant demands for private property which was a part of the public domain of Nicaragua at a period of years prior to the date of the treaty. CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC, OF NICARAGUA. Wliereas pursuant to certain articles of the treaty of friendship, commerce, and nav- igation between the United States and the Republic of Nicaragua of the 21st of Junej, 1867, stipulations were entered into with reference to an interoceanio canal through the territories of that Republic ; And whereas all previous efforts for the construction of any such canal have proved futile and have been abandoned and no route of communication has been constoucted between the Atlantic and Pacific Oceans ; and whereas it is deemed indispensable to that end that the obligations of the parties as contained in said treaty should be chaiiged in some respects and in others extended ^nd made more explicit, and that new efforts be made toward the commencement and completion of the work : The President of the United States has for this purpose conferred full power on Hamilton Fish, Secretary of State, and the President of Nicaragua has conferred like power on Senor Doctor Don Adan Cdirdenas, envoy entraordinary and minister pleni- potentiary of that Republic at Washington. And the said plenipotentiaries having exchanged their full powers, which were found to be in proper form, have agreed upon the following articles : Article I. ' Each of the contracting parties hereto agrees to propose severally to the principal maritime powers with which it has friendly intercourse, to accede to the terms of this convention, and to enter into the following guarantees and stipulations with reference to an interoceanic canal across the Isthmus by the way of Lake Nicaragua, viz : First. That neither will ever obtain or maintain for itself any the Pacific. Nicaragua claimed sovereignty over the whole of the line of the proposed canal, while Great Britain, as I have shown, claimed sovereignty over a portion of it occupied by the Mosquito Indians. At the time of the concession by Nicaragua it would have been im- possible to procure in the United States the capital necessary for the construction of a ship-canal from the Atlantic to the Pacific. Beuce it was that, when Mr. Clayton learned of the concession, he at once informed Mr. Orampton, the British minister, saying that the United States did not propose to avail themselves exclusively of these privi- leges, but wished a canal constructed, and that the claim of Great Britain on behalf of the Mosquito Indians, which the United States could not admit, stood in the way. The Government of the United States, Mr. Clayton said, was persuaded that — These considerations, if fairly laid before Her Majesty's Government, would induce Her Majesty's Government to make such an arrangement with regard to the Mosquito Indians as would prevent its being an obstacle to the design in question. President Taylor was present at the interview, and " cordiaUy con- curred." Mr. Crampton reported the conversation to Lord Palmerston the 1st October, and on the 15th of the same month transmitted to him a copy of the concession by Nicaragua to the American company. The 22d November Mr. Abbott Lawrence ofiQcially informed Lord Palmer- ston that an American company, aided by the subscription of a large amountof British capital, had begun to construct the Panama Kailroad, and had completed the contracts for iron for it. He transmitted to Lord Palmerston a copy of the guaranty in the treaty of 1846 with New Grenada, and invited Great Britain to join in the guaranty. In the same note he acquainted Her Majesty's Government with the concession from Nicaragua to the American canal company, and said that the con- flicting claims as to Mosquito threw an obstacle in the way of the work, and invited a conversation on the subject. It seems that several con- versations were had, since on the 14th of the following December Mr. Lawrence addressed a formal note to Lord Palmerston, in which, after referring to them and again setting forth the concessions for the Panama Eailroad and the Nicaragua Canal, and stating that the United States had "disclaimed all intention to settle, annex, colonize, or fortify the territory of Central America, which declaration had been met by a similar disclaimer on the part of Great Britain," and also that Her Majesty's Government "had intimated their willingness to join with the United States in their guaranty of neutrality," he asked, in subtance, 1st. Whether Great Britain would enter into a treaty with Nicaragua similar to that negotiated by the United States ? 2d. Whether Great Britain would enter into a treaty with New Grenada guaranteeing the neutrality of the railway then under construction. 3d. Whether the obstrucjiion of the Mosquito protectorate would be removed ? This note was never answered formally in London, but negotiations were trans- ferred to Washington. Meantime, and in the autumn of 1849, Sir Henry Bulwer had suc- ceeded Mr. Crampton in Washington, and, soon after his arrival, com- menced negotiations with Mr. Clayton for a treaty for the protection of a canal. On the 6th of January, 1850, Sir Henry Bulwer wrote to Lord Palmer- ston, saying: Your lordship is aware that the main interest of the United States in this matfer has arisen from its newly acquired possession in the Pacific, and the project of an Ameri- 16B PROPOSED INTEROCEANIC CANAL, can company to form a water communication between the two oceans, x'assinp: throngli the lake of Nicaragua and the river San Juan; this company having obtained from the state of Nicaragua the use of its lakes and territory for this purpose, and the use also of the river San Juan, to which Nicaragua lays claim. » « • Bnt it so happens that while it is very difficult, not to say impossible, for Her Majesty's Government to listen to those claims of Nicaragua, our decision with respect to which has been already openly taken, there is no difficulty, I believe, whatsoever in her Majesty's Government assisting the United States in its general views with respect to that water communica- tion across Central America, which Great Britain must be almost as desirous as the United States to see established. » « » i am disposed to think that the best way of doing this is by a convention between Great Britain and the United States. Negotiations conducted on this basis progressed so rapidly that on the 3d February, 1850, Sir Henry Bnlwer was able to transmit for Lord Palmerston's criticism the full project of a treaty. Extracts from the covering dispatch fully explain what the treaty was intended to ac- complish : The State of Nicaragua made to an American company, formed for the construction of such a canal, the grant, accompanied by various favors and privileges, of all snoll portion of the territory clajimed by it as the said company require. * * » It was, however, impossible for the contemplated scheme to be executed under any grartfrom the State of Nicaragua as long as the mouth of the San Juan River was in the hands of another people protected by Great Britain . * * * Both the American company to which I have allnded and the American Government have latterly manifested an earnest desire to have it clearly understood that they will modify all that portion of their original engagement with Nicaragua which secures any advantages to one state which another may not equally enjoy; and if such be the spirit which is to preside over the vast project under cousideration, Great Britain has not only no interest in preventing its success, but every interest in forwarding its completion and providing for its security. » * » It is with such views that the inclosed convention has been drawn up, its object being to exclude all question of the disputes between the Nioa- riigua and the Mosquitos, but to settle in fact all that it was essential to settle with regard to these disputes as far as the ship communication between the Atlantic and Pacific and the navigation of the river San Juan were concerned. The project, which was inclosed in this dispatch, was, in the substance of its provisions and in most of its language, identical with the treaty subsequently concluded, with one marked exception. In the prdject. Article VII stopped with the general provision to give encouragement ami support to the first parties offering to commence the work with the necessary capital. In the subsequent negotiations the following words were added to that article, and form part of Article VII of the executed treaty : And if any persons or company should already have, with any state through which the proposed ship-canal may pass, a contract for the construction of such a canal as that speciiied in this convention, to the stipulations of which contract neither of the contracting parties in this convention have any just cause to object, and the said per- sons or company shall, moreover, have made preparations and expended time, money, and trouble on the faith of such contract, it is hereby agreed that such persons or company shall have a priority of claim over every other person, persons, or company to the protection of the Governments of the United States and Great Britain, and be allowed a year from the date of the exchange of the ratifications of this convention for concluding their arrangements and presenting evidenoe of snfficient capital sub- scribed to accomplish the contemplated undertaking ; it being understood that if at the expiration of the aforesaid period such persons or company be not able to com- mence and carry out the proposed enterprise, then the Governments of the United States and Great Britain shall be free to aiibrd their protection to any other persons or company that shall be prepared to commence and proceed with the constmotionof the canal in question. The Olayton-Bulwer treaty was concluded on the 19th of the follow ing April, and I think it will not be denied that the object which Presi- dent Taylor, Mr. Clayton, Sir Henry Bulwer, and Lord Palmerston had in view in making it was primarily and mainly this : To insure at the earliest possible moment the completion of the particular ship-canal for which a concession had been made by Nicaragua to citizens of the United CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 167 States on the 29th August, 1849; all the interviews of which accounts remain, and all the correspondence relate to this particular canal and to no other. As if to make assurance doubly sure, the project of a treaty which Sir Henry Bulwer sent to Lord Palmerston the 3d of February, being found doubtful or insufilcient in this respect, was so amended between that time and the 19th April as to make it practically certain that that grant would be accepted by both governments as the one covered by the treaty. It was to this particular canal that were to be applied all the pro- visions of the first article in the treaty relating to the fortification of the canal, the control over it, and exclusive advantage in it; of the second article, relating to blockade, detention or capture; of the third and fourth articles, relating to protection during construction and to free ports; of the fifth article, in regard to a guaranty of neutrality ; of the sixth article, with regard to treaties with other states, and the use of the good offlces of the high contracting parties; and of the seventh article, as already noticed; but if under the provisions of the seventh article the claims of the holders of this particular concession should be set aside, then each government reserved to itself the right to determine whether its interests required it to afford protection to the holders of any other concession. The two governments did, however, subsequently come to a harmo- nious agreement with regard to the grant by Nicaragua, the one con- templated by the treaty. The company was organized, and Colonel Ohilds, who had been chief engineer of the canals of the State of New York, was sent to Nicaragua to make a survey. He arrived there in August, 1850, and in 1852 his report was received, printed, and laid before the Secretary of War by direction of the President, who detailed Colonel Abert and Lieutenant- Colonel TurnbuU, of the United States Army, to examine it and give tbeir opinions upon it. They approved the report on the 20th March, 1852. On the 16th June, in the same year, Mr. Lawrence informed Lord Malmesbury of these facts, and requested Her Majesty's Government to appoint engineers of skill and experience to examine it on the part ot that government. Mr. Lawrence was on the 30th July informed that an officer of the royal engineers and an eminent civil engineer had been appointed for that purpose, and on the 13th August their report was, transmitted to Mr. Lawrence by Lord Malmesbury. The report was favorable, and a com- bination of British capitalists was made in contemplation of united ac- tion with American shareholders in the construction of the canal. For reasons which need not now be repeated, but principally because of the discussion which immediately began as to the clauses of the treaty re- lating to settlements in British Honduras, the project failed, arid no canal was ever constructed under that grant. A line of steamers was put on and run for many years, carrying pas- sengers between New Tork and San Francisco. The expedition of Walker into Nicaragua terminated this line. The grant was revoked, the steamers were seized ; the stockholders received no benefit from their property, and although the company nominally exists, it has been practically superseded by subsequent grants from Nicaragua to other companies. It was also agreed in the treaty that the parties should invite other states to enter into similar stipulation, to the end that they might share in the "honor and advantage of having contributed to a work of such ins PROPOSED INTEEOCEANIC CANAL, general interest and importance as the canal herein contemplated," to wit, that by the Nicaragua route. It is to be observed that if other nations were to become parties to the enterprise it was only on the joint invitation of both the United States and Great Britain ; but the President regards the provision as lapsed by the failure to construct the canal to which it referred, and by the fact before stated that experience has shown that no joint protec- torate for any canal across the Isthmus is requisite. The canal, however, now in question is on the Panama and not on the Nicaragua route. The remaining subject of the treaty is contained in the eighth article, which relates to a canal or railway across the Isthmus other than by the Nicaragua route, as by way of Tehuantepec or Panama, and it is this provision of the treaty which has occasioned this correspondence. The article provides as follows : The GovernmentB of the United States and Great Britain having not only desired, in entering into this convention, to accomplish ^particular object [to wit, the Nicaragua Canal, which, at the date of the treaty, it was thought was about to be constructed], but also to establish a general principle, they hereby agree to extend their protection, by treaty stipulations, to any other communications, whether by canal or railway, across the Isthmus which connects North and South America, and especially to the interoceanic communications, should the same prove to be practicable, whether by canal or railway, which are now proposed to be established by the way of Tehuan- tepec or Panama. It is to be here observed that the Government of the United States has a treaty with New Grenada, now a part of the United States of Colombia, entered into in 1846, by which free transit is guaranteed to the citizens of the United States across the Isthmus of Panama upon any mode of communication that may be constructed, subject to no duties or burdens but such as may be imposed upon citizens of New Grenada ; and by which, in order to secure the tranquil and constant enjoyment of these advantages, the United States guaranteed, posi- tively and efficaciously, the perfect neutrality of the Isthmus, with the view that free transit from sea to sea might not be interrupted or embarrassed, and also guaranteed the rights of sovereignty and prop- erty which New Grenada (now the United States of Colombia) had and possesses over said territory. By this treaty with New Grenada the United States claim to occupy a peculiar relation to the means of transit by railroad or canal across the Isthmus, within the territories of the United States of Colombia, a relation which cannot justly be superseded by the intervention of other States without the consent of the United States, duly and properly obtained. A protectorate of this kind is, like government, necessarily exclusive in its character, and implies aright and duty to make it effective. There may be a joint protectorate engaged in by mutual convention of different States, but the protectorate itself must be a unit. The treaty with New Grenada of 1846 still remains in full force. If Great Britain should desire to be united with the Government of the United States in that guaranty, of course it would require the consent of the United States of Colombia and of this Government, and a con- vention to that end, the terms of which should be made agreeable to the parties. Article VIII of the Clayton-Bulwer treaty relates only to those pro- jects now [1850] proposed to be established ; and expressly contemplates some further "treatj"^ stipulation" on the part of Great Britain with the United States of America and New Grenada, now the United States of Colombia, before Great Britain can join the United States in the pro- tectorate of the canal or railway by the Panama route. No such treaty CLATTON-BULWER TREATY, AND MONROE DOCTRINE. 169 "stipulation has been made or has been proposed by Great Britain. Since the ratification of the Olayton-Bnlwer treaty, for thirty years the United States, under the treaty of 1846 with New Grenada, has extended protection to the transit from sea to sea by the Panama Eail- way. Should Her Majesty's Government, after obtaining the consent thereto of the TTnited States of Colombia, claim, under the Clayton- Bulwer treaty, the right to join the United States in the protection of the exist- ing Panama Eailway, or any future Panama canal, the United States would submit that experience has shown that no such joint protect- orate is requisite ; that the Clayton-Bulwer treaty is subject to the pro- visions of the treaty of 1846 with New Grenada, while it exists, which treaty obliges the United States to afford, and secures to it the sole protectorate of any transit by the Panama route ; and if Great Britain still claimed the right to join in the protectorate the United States would then determine whether the " treaty stipulations " proposed by Great Britain regulating that joint protectorate were just; and, if so, whether the length of time d.uring which Great Pritain has concurred in the protection of the Panama route under the treaty with New Grenada has or has not relieved the United States from any obligation to accept a proposal from the government to join in the guaranty. I may then state the President's views on the whole subject, which I do with an assurance that they will meet with a candid consideration from Lord Granville, and with the hope that they may be substantially concurred in by Her Majesty's Government. The Clayton-Bulwer treaty was concluded to secure a thing which did not exist, and which now never can exist. It was to secure the construction of a canal under the grant of 1849 from Nicaragua that the United States consented to waive the exclusive and valuable rights which have been given to them ; that they consented to agree with Great Britain that they would not occupy, fortify, colonize, or assume dominion over any part of Central America ; and that they consented to admit Her Majesty's Government at some future day to a share in the pro- tection which they have exercised over the Isthmus of Panama. The Government and people of the United States, though rich in land and industry, were poor in money and floating capital in 1850. The scheme for a canal, even without the complications of the Mosquito protectorate, was too vast for the means of the Americans of that day, who numbered then considerably less than one-half of their numbers today. They went to England, which had what they had not, surren- dered their exclusive privileges, offered an equal share of all they had in those regions in order, as expressed in the seventh article of the treaty, " that no time should be unnecessarily lost in commencing and constructing the said canal." Through no fault of theirs time was un- necessarily lost, the work was never begun, and the concession failed. The President does not think that the United States are called upon by any principle of equity to revive those provisions of the Clayton-Bul- wer treaty which were specially applicable to the concession of August, 1849, and apply them to any other concession which has been since or may hereafter be made. The conditions of 1882 are not those of 1852. The people of the United States have now abundance of surplus capital for such enterprises, and have no need to call upon foreign capitalists. The legislative branch of the Government of the United States may also desire to be free to place the credit of the United States at the service of one or more of these enterprises. The President does not feel him- self warranted in making any engagement or any admission respecting 170 PROPOSED INTEEOCEANIC CANAL, the extinct provisions of the Clayton -Bulwer treaty which would pre- vent or interfere with such a purpose. On the contrary, frankness re- quires him to say that as the persons who held the grant which the United States understood to be accepted by the two governments under the provisions of the treaty have not " carried out the proposed enter- prise," the United States esteem themselves competent to refuse toafford their protection jointly with Great Britain to any other persons or com- pany, and hold themselves free hereafter to protect any interoceanic communication in whiermitted to enter said ports, and to pass or be conveyed through the said canals, but they shall be siibjec however, to the payment of such duties, charges, and tolls as may De established by the proprietors of the said works. CLAYTON-BULWER TEEATY, AND MONUOE DOCTRINE. 191 Article VII. The State, of Mcaragua may, of coarse, exercise her right of erecting^ and establishing anywhere on the routes or margins, or at the points of termination of said works, custom-honses and warehouses, and to collect duties, according to her own laws, upon the goods, wares, and merchan- dise imported for sale or consumption into her territories by means of said works, and the State of Nicaragua may adopt and enforce all need- ful rules and regulations to prevent smuggling or the introduction of contraband goods in her territories; but it is expressly agreed that the Stateof Mcaragua shall not impose, enforce, or collect any taxes, charges, or duties of any kind or amount on the persons (for passports), or prop- erty, or on goods, wares, or merchandise of any class or kind on their travel or transit over, or for passing through her territories by means of said canals, roads, &c., provided the said property, goods, wares, and mer- chandise shall be not sold or not introduced for sale or consumption into the said State, but be exported to other states or countries. Article VIII. The ports at the points of termination of said works shall be free to both the contracting parties and their citizens, respectively; and their public and private vessels of all kinds shall enter and remain therein and depart therefrom and not be subjected to the payment of any port charges, tonnage, duties, or other imposition whatever. Article IX. The persons employed in the location and construction of said works, the owners thereof, and all their agents, and ofdcers, and employes of every sort, shall be under the special protection of the governments of both the contracting parties, and they shall not be subject to any kind of taxation on their persons or property, nor shall they be required to pay any contributions or to perform any civil or military duty or service whatever for either of the two governments during their employment about the said works; and all provisions, including wines and liquors, and all merchandise imported into Mcaragua for their clothing and subsistence shall be free and exempt from all duties and taxes, direct or indirect; and all such articles, property, stores, tools, implements, and machines, &c., &c., as may be required for surveys and explorations, and for locating and constructing said works, shall be imported into the State of Mcaragua free from all taxes and duties whatever thereon, and the vessels employed in the importation of the said subsistence, cloth- ing, tools, implements, &c., &c., shall also be free and exempt from all port charges and tonnage duties in all the ports, rivers, lakes, or harbors on the coasts or within the limits of the State of Mcaragua; and entire liberty is to be enjoyed by the said company to make full and complete surveys and explorations of the ports, bays, seas, lakes, rivers, and territories of Nicaragua, in order to the location of said works and for the procurement of lands and materials necessary for the same, in which explorations and surveys Nicaragua, at her own expense, may partici- pate, if she thinks proper. Article X. The State of Mcaragua grants and cedes to the United States or to a company to be chartered as herein provided, as the case may be, all the 192 PROPOSED INTEROCEANIC CANAL, land within two leagues square belonging to the said State, and which may be unappropriated at the date of this treaty, at each point of the terminations of said works at the seas on each side, that is to say, three miles square on each side of both ends of said works, to serve for the «ites of two free cities which it is anticipated will hereafter be estab- lished at said points, the inhabitants of which free cities shall enjoy the following rights and immunities : 1st. They shall govern themselves by means of their own municipal government, to be administered by offtcers, legislative, executive, and judicial, chosen and elected by themselves according to their own regu- lations. 2d. They shall have the right of trial by jury in their own city courts. 3d. They shall have the most perfect freedom of religious belief and of religious worship, public and private. 4th. They shall not be required to pay any tax upon their real estate or other property except such as may be imposed by'tUe municipality and collected for the citj' treasury, and to be used and applied for the benefit of said cities. 6th. They shall not be required to perform any military service, ex- cept for the defense of the said cities in which they may reside. 6th. The said cities will of course be under the qualified dominion and government of the State of Nicaragua, not to be exercised in any man- ner, however, in violation of their rights and immunities as herein specified ; and said free cities shall be under the protection of the gov- ernments of both the contracting parties. Article XI. t The State of Nicaragua agrees that the United States shall have, possess, and enjoy forever the following rights and privileges; that is to say, the right and privilege to pass, convey, transport, and send through all or any part of the territories and dominions of the State of Nicaragua, on land or water, from ocean to ocean, by means of her ports, bays, rivers, lakes, and roads, troops, infantr\- or cavalry, all kinds of arms, artillery, and munitions of war of all kinds, her public property of every description, public officers, civil and military, consuls, minis- ters, dispatch agents, her public mail and mail agents, and all other employes of the Government of the United States of America; and the same shall all and each be permitted to pass, be sent, and be conveyed through said state, in any manner, as aforesaid, in the public armed vessels of the United States, and in all such other vessels or vehicles, public or private, which may be in the temporary or permanent employ- ment of the Government of the United States for any of the purposes aforesaid, or in any other way, free from all cost and exempt from all taxes, duties, imposts, charges, or exactions of any kind whatever, either on the persons, property, vehicles, or vessels aforesaid; and all the aforesaid privileges and the said free rights of way and of transit shall be held, used, and enjoyed by the United States of America (but not by any other nation, state, or government, except Nicaragua) without cost or charge, and freely, whether the same be made through the dominions and territories of Nicaragua as they now exist, or whether the said troops, munitions of war, public officers, agents, employes, mails, public prop- erty, vehicles, and vessels, &c., shall be sent, transported, or conveyed by means of improved navigable rivers, canals, or turnpikes, or railroads, or any other public improvements which may be hereafter made in the CLAYTON-BULWER TEEATY, AND MONEOE DOCTRINE. 193 State of Nicaragua, either by the governments or citizens of the con- tracting parties, or by tl>e governments, citizens, or people of any other nation, kingdom, or country; and the citizens of the United States shall have and enjoy all the rights and privileges of travel, passage, transit, and conveyance for themselves and their property and vessels of all kinds through the territories and dominions of the State of Nicaragua as they now exist or through such canals or roads, railways or turnpikes, or other improvements as may be hereafter made in said state, upon terms and conditions in every particular as favorable as those enjoyed by the citizens of Nicaragua, or by the citizens of any other nation, king- dom, or country. Article XII. In consideration of the premises as set forth in the foregoing eleven articles, the United States of America doth sole uuly agree and jinder- take to protect and defend the State of Nicaragua in the possession and exercise of the sovereignty and dominion of all the country, coasts, ports, lakes, rivers, and territories that may be rightfully under the jurisdic- tion and within the just and true limits and boundaries of the said state ; and when the circumstances and condition of the country may require it the United States shall employ their naval and military force to pre- serve tbe peace and maintain the neutrality of the said coasts, ports, lakes, rivers, and territories, and to hold and keep the same under the dominion and sovereignty of the G-overnment of ttie State of Nicaragua or of the government of such state or political community of which Nica- ragua may voluntarily become a member, or with which, of her own ac- cord, she may hereafter be identified : Provided, however, that the said sovereignty and dominion of the State of Nicaragua, so guaranteed as above, shall not be held, maintained, or exercised by said state in any snch manner as to conflict or to be inconsistent with the rights and privileges herein secured to the United States and her citizens; and to prevent all misunderstanding, it is exjiressly stipulated that the United States are not bound, nor do they undertake, to aid, assist, or support Nicaragua in offensive wars or wars of aggression waged and carried on by said state with foreign poweis or with the neighboring states, outside of her just limits, and beyond the territories rightfully withiu her juris- diction ; but the contracting parties agree and undertake that, if neces- sary, the naval and military forces and the entire means and resources of both the contracting parties shall be employed to put down all wars and bloodshed arising therefrom, and to suppress all violations of the peace and interruptions of the neutrality of the said State of Nicaragua; and for further explanation it is understood that if the State of Nica- ragua should become involved in a war with any foreign power or , neighboring state withiu her own borders, to defend the territories rightfully belonging to her, or to recover such territories wrongfully wrested from her, the United States engages to defend Nicaragua in carrying on such war withiu her own rightful limits, provided, how- ever, that such war is just, and provided, moreover, that if peace is pre- vaihng in the State of Nicaragua, no wars or hostilities shall be flrst commenced in said state by either of the contracting 'parties without previous friendly consultations, and unless with the consent of both their governments, given according to their laws and constitutions, respec- tively. 4909 COKG 13 194 PROPOSED INTEROCEANIC CANAL, Article XIII. The contracting parties, in negotiating this treaty, have had in view the contract entered into between the State of Nicaragua, through their commissioner, Jos6 Trinidad Munos, and a certain company styled "Oompania de transit© de Nicaragua," composed of certain persons named Willard Parker, Simeon H. Ackerman, Asher Kurshecdt, and David J. Brown, through the said David J. Brown as their agent, which contract was executed and signed by said commissioner and agent on March 14, 1849, and ratified by the legislative power of the State of Nicaragua on March 16, 1849, and approved by the executive power of said State on the 17th of March, 1849. Now, in view of this contract, it is further agreed as follows : 1st. If the above-named company shall accede to this treaty in all its ^arts, or if they shall voluntarily abandon their contract, or if they shall forfeit their rights under said contract by failing to perform and execute the terms and conditions thereof in due time, then this treaty shall re- main and be valid in all its parts. 2d. But if the said company shall not accede to this treaty in all its parts, and if they shall nob abandon or forfeit their said contract, but if they shall execute the same and comply with its terms, and build the said works all in the time required, then, in such case, this treaty in all its parts, wherein the State of Nicaragua grants to the United States, or to a company to be chartered by the President or Congress thereof, the exclusive privilege to be the constructors and owners of said works, shall be void, and of no force or effect. 3d. Nevertheless, in such case as is set forth in the second section next preceding, if said company shall accede to the fifth (5th), the sixth (6th), the eighth (8th), and the eleventh (11th) articles of this treaty, and shall consent and agree that the United States of America, and the citizens thereof, shall have and enjoy all the rights and privileges therein granted to them, and as defined , also in the tenth (10th) section of the third (3rd) article, then in such case the above-named fifth (5th), sixth (6th), eighth (8th), and eleventh (11th) articles of tliis treaty, as also the twelfth (12th) article thereof, shall be valid and obligatory between the contracting parties. 4th. But if in such case existing as is set forth in the second section above the said company shall refuse to accede or agree to the said fifth (5th), sixth (6th), eighth (8th)? and eleventh (11th) articles hereof, as specified in the preceding third section, then this treaty shall be alto- gether void and of no force or effect whatever. But the contracting parties, anticipating that said company, being satisfied that the great enterprise in view cannot succeed unless under the protection and patronage of the two governments, will concur and co-operate with them in the promotion thereof, they are assured that this treaty will meet their cordial approbation, and that it will be fully acceded to by them. The present special convention between the United States of America and the State of Nicaragua shall be approved and ratified by the Presi- dent of the United States of America, by and with the advice and con- sent of the Senate thereof, and by the Director of the State of Nica- ragua, with the consent of the Legislative Chambers thereof, and the ratifications shall be exchanged in the city of Washington, Santiago de Managua or Leon, within the term of two years counting from this date. In faith whereof, we, the plenipotentiaries of the United States of America and of the State of Nicaragua, have signed and sealed these CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 196 presents in the city of Guatemala, on the twenty-first day of June, in the year of our Lord, one thousand eight hundred and forty-niue, in the seventy-third year of the independence of the United States of America, and in the twenty-eighth year of the independence of the State of Nicaragua. SEAL.] ELIJAH HISE. SEAL.] BUENAVA SELVA. DOCUMENT No. 28. 14. — Contract between Nicaragua and the American Atlantic and Pacific Ship- Canal Company, signed at Leon, August 27, 1849, containing the grant which was subsequently accepted under Article VII of the Clayton- Bulwer Treaty. The Supreme Director of the State of Nicaragua, and " The American Atlantic and Pacific Ship-Canal Company," composed of Cornelius Van- derbilt, Joseph L. White, Nathaniel H. Wolfe, and their associates, be- ing always citizens of The United States, desiring to settle the terms of a contract for facilitating the transit across the Isthmus of Nicaragua from the Atlantic to the Pacific Oceans, by means of a ship-canal or railroad, have appointed as Commissioners on the part of the Supreme Director of the State of Nicaragua, Messrs. Hermenegilda Zepeda and Gregorio Juares, and on the part of the said company Mr. David L. White, with full powers to arrange and conclude a contract for the above- named purposes ; which Commissioners having exchanged their respect- ive powers, have agreed upon and concluded the following Articles : Art. I. The State of Nicaragua grants to the said Company the ex- clusive right and privilege of constructing a ship-canal across its terri- tory, by a single route, and at its own expense, from the port of St. John's of Nicaragua, or any other more feasible point on the Atlantic, to the port of Eealejo, Gulf of Amapala, or Fonseca, Ta;morinda, St. John's of the South, or any other point on the Pacific Ocean which the engineers of the Company may decide upon, by means of the St. John's river, Lake Nicaragua, River Tipitapa, Lake of Leon, or any other rivers, lakes, waters, and lands situated within its territory, with the object of con- necting the two oceans, and to make use of, for its construction and navi- gation, said rivers, lakes, waters, and lauds, both public and private. And the State also grants tQ the Company the exclusive right to the administration, management, and control of the said canal, according to the following Articles : II. The dimensions of the canal shall be such as may be necessary for the passage of vessels of all sizes, and the point at which it shall ter- minate on the Pacific, in the event that the engineers of the Company shall decide upon two or more points as equally practicable, shall be that one most consistent with the mutual interests both of the State and the Company. III. The Company binds itself to construct, at its own expense, in the harbors at the extremities of the route of said canal, custom-house buildings of the necessary capacity for the use of the State and Com- pany. IV. The exclusive rights aud privileges herein granted to the said Conipany by the said^State, shall be enjoyed by the same for the fixed 196 PROPOSED INTEEOCEAMC CANAL, period of 85 yeafs, counted from the day in which the canal shall be eompleted and put in use. V. The Company hereby agrees to pay to the said State for the said grant the following sums of money, namely : First. Ten thousand dollars by draft on the said Company in the city of New York, as soon as this contract shall be ratified by the Legisla- ture of the State. Second. Ten thousand dollars at the expiration of one year from this same date; and 10,000 dollars each year thereafter until the com- pletion of the said canal ; the above sums to be paid to the State in the city of Leon, or in the city of New York, as the State may elect. Also the said Company makes a free donation to the said State of 200,000 dollars of stock in the enterprise, which shall be delivered to the State as soon as the certificates of stock shall be distributed by the Com- pany. YI. Said State shall receive for its proportion of the income of said eanal, after the same shall be put in use, the following interests, namely : for tlie first 20 years, 20 per cent, annually out of the net profits, after deducting therefrom the interest of the capital employed in its construc- tion at the rate of 7 per cent. i)er annum, and 25 per cent, each year thereafter out of said net profits, after deducting the said 7 i)er cent, until the expiration of the full period of the term hereinabove granted. And the State shall also receive 10 per cent, out of the net profits, without any deduction of interest, of any route which the Company may estab- lish between the two oceans, whether it be by railroad, or carriage road, or by any other means of communication, during the 12 years herein granted ibr the construction of said canal. VII. The said Company shall be bound to make and present an an- Bual report and account to the Government of Nicaragua, setting forth the receipts and expenditures, as well as a statement of the condition of the works of the canal ; which report shall be certified by the proper officers of the Company. The State, however, shall have the right, through any Commissioners wLich it may appoint for that purpose, to inspect atid examine at any time the books of the Company, to satisfy itself of the coirecitncss of the said receipts and expenditures. VIII. It is hereby stipulated that the State of Nicaragua shall have the privilege of taking stock in the said canal, to the amount of 500,000 dollars, within 1 year from the date of the ratification of this contract, which it may distribute, as it may deem proper, among any of its native citizens, or the citizens of the adjoining States, upon giving notice to the Company of such intention through The United States' Consul in the city of Leon. IX. It is further stipulated that a majority of the stock of said canal shall always be owned by citizens of The United States; in evidence of which the stock-books of said Company shall always be open to inspec- tion at the principal office of the Company, wherever the same may be locjited. X. The Company binds itself to commence the preliminary surveys for said works within the period of 12 months from the date of the rati- fication of this contract, and also to complete the said canal within 12 years from the same date. But if any fortuitous or unforeseen events, beyond the control of the Company, — as for example, earthquakes, epi- demics, wars, or any other events of this nature, — should appear during the progress of the work to suspend its execution, the time thus lost shall not be reckoned as a part of the stii)ulated time above given for CLA.YTON-BULWER TREATY, AND MONEOE DOCTRINE. 197 its completion. In case such event should occur, the Company Shall give immediate notice to the Government of the same, for the purpose of deciding, in connection with the Company, upon the nature of such event. XL If none of the events which are expressed in the preceding Ar- ticle should occur, and the work shall not be completed within the said period of 12 years, then, whatever may have been done by the Company to that time in the prosecution of the work, shall be forfeited to, and become the property of, the State without 'any indemnity. XII. The State gives to the said Company the right to take, free of any charge or indemnity, any of the public lands or forests within the State, all the wood, stone, lime, timber, or any other materials which it may require for the construction and use of said canal and its dependencies. And the said State hereby farther gives to the Company the right ta taiie and make use of such portions of the public lands as it may require for the establishment or erection of houses, stores, docks, wharfs, sta- tions, and all other useful objects connected with the works of said canal. XIII. In case the Company shall require any materials, such as wood, lime, stone, &c., which may be found in or upon the lands of particular individuals, it shall be obligated to pay for the same at such price as may be agreed upon between the Company and such individuals. But all the lands which may be required for the passage of the canal in its entire route, shall be at the expense of the State, and the Companj shall not be liable to pay any indemnity for t!he same. XIV. All the articles that the Company may require, both for the sur- veys and explorations, and for the construction and use of the works of the canal, such as machines, instrument-!, tools, &c., and all other nec- essary materials, shall be admitted into the State free of duties of all kinds, and may be discharged in any of its harbors, or at any other point within its territory that the Company may select; in this last case, however, giving notice of such intention to the proper Government officer. But the Company shall have no right to introduce within the territory of the State any goods, merchandize, or any other articles of commerce for sale or ex{jhange without paying the duties established by law. And they are also prohibited from importing any articles or ma- terials, which may be monopolised or prohibited by the State, for any purpose, except for the use of the works of the canal. XV. The State binds itself to facilitate and aid in every posssible way the engineers, contractors, employes, and laborers who may be em- ployed in the explorations and surveys of the route, and in the construc- tion of the works of the canal ; and to this end stii)ulates that all citizens of the country who may be so employed by the Company, shall be free and exempt from all civil or military service of the State whatsoever; but to entitle them, however, to the right of exemption from such mili- tary service, they shall have been previously in the employ of the Com- pany, for at least the period of 1 month. The State also guarantees to all foreigners who may be employed on the works of the canal the same rights, liberties, and privileges as are enjoyed by inhabitants of the country; and also that they shall not be molested or disturbed in their labours while thus employed, by any internal commotions or disorders of the country ; and at the same time that they shall be free and exempt from all taxes, duties, or direct contributions whatsoever during the time they may be in the Company's employ. XVI. The said Company agrees to receive from the State as labourers upon the works of the canal any convicts who may be capable of labour^ 198 PROPOSED INTEEOCEANIC CANAL, upon such terms as may be agreed upon between the Company and the State. XVII. The said Company agrees to transport across the said canal all passengers, goods, merchandize, and materials of every description which may be intrusted to it ; and also stipulates that the canal shall be open to the transit of vessels of all nations, subject to fixed and uniform rates of tolls that may be established by the Company. XVIII. The Company shall establish a tariff of fees or tolls for the transportation of all passengers, goods, wares, merchandize, and prop- erty of every description, and for vessels of all kinds passing through or along the said canal, which shuU have the force of law from the mo- ment in which it shall be communicated to the Government of Nicaragua, which shall be obliged to sanction the same within 8 days after its recep- tion; and at the same time, with a view to induce the largest and most extended business by this route, the said Company agree to fix the said tariff of fees or tolls for the same, at the lowest possible rate consistent with the mutual interests, both of the State and the Company ; and in case that the Company should determine at any time to alter such tariff, it shall be incumbent upon it to give 6 months' previous notice of such determination in the State paper of Nicaragua and in the principal sea- port towns of The United States. XIX. The rate of tolis and charges for the transit of the products and manufactures of the State of Nicaragua and the adjoining States shall be regulated by a particular and more favourable tariff, which shall be agreed upon between the State and the Company. XX. The State grants to all steamers and vessels of the Company during the continuance of this contract, the right of ingress and egress to, from, and through all its harbors, rivers, and waters both on the Pacific and Atlantic Oceans, and the interior, and the use of the same free of all duties or charges of any kind whatsoever, as, foT example, anchorage, tonnage, &c. XXI. The State hereby stipulates that all vessels and steamers of the Company, and also all goods, merchandize, manufactured articles, or any other property which may be conveyed therein passing through the said canal from one sea to the other in either direction to any foreign country, shall be free and exempt from all kinds of Government duties or taxes whatsoever, aud shall also be secure and protected from all interruption or detention in their course on the part of the State. XXII. The Company shall furnish tq the State annually a list of all its vessels employed in the navigation of the route, containing the names and descriptions of each of such vessels, which shall be registered in the archives of the State, and thereupon the State shall give to the Com- pany a separate certificate of the register of each one of the said vessels, signed by the proper officer of the Government, which certificate shall serve always as a passport for said vessels through all the harbours of the State, upon presenting the same to the custom-house or harbour officer. XXIII. The exclusive right which the Company has acquired by this contract of navigating the said lakes, rivers, and waters of the said State by means of steam vessels, from one sea to the other, is under- stood as not to exclude the natives of the country from free interior navigation by means of sailing, or any other vessels, excepting steam- vessels. , XXIV. The Company binds itself to transport by the said canal, on board of any of its vessels, all the principal officers of the Government and its subalterns, in case of Government necessity, from one point of CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 199 said route to any other one at which said vessels may stop, without any charge to the State therefor. XXV. The Company is to convey by any of its steamers or vessels, free of cost or charge over the route of the said canal, all the offlcial correspondence of the State, in consideration of which the State agrees not to collect or recover any postage or duties of any kind upon any of the correspondence of the said Company. XXVI. The Company binds itself to construct, at its own expense, bridges upon that part of the canal that may be made between the lakes and the Pacific, upon such principal highways as may be agreed upon between the State and the Company. The said State, with the consent of the Company, shall establish rates of toll or charges upon such persons or things as may pass over said bridges, the profits from which shall be appropriated to redeem the capital invested in their con- struction, and the interest thereon, at the rate of 7 per cent, per annum ; and when such capital and interest shall have been reimbursed to the Company, then the profits shall be divided equally between the State and the Company for the remaining period of this contract, but such bridges shall continue under the control and management of said Com- pany. XXVII. The State of Nicaragua, with the object of facilitating the colonization of the lands contiguous to the Eiver St. John, and the ad- jacent rivers, and of the canal which in or along it may be constructed, makes a free donation to the Company of 8 stations or sections of land to be located at such points upon either one or both of the banks of the said river or canal as the Company may elect, each one of which stations shall be of 6 English miles in length, fronting upon the river or canal, and 6 miles in width, measured from the bank of the canal or river to- wards the interior. And the State further grants to the Company the right of alienating-the lands which compose said sections to settlers, or any other person or persons who may wish to locate themselves upon the same. Said sections of laud are granted upon the following condi- tions: 1. They shall be located by the Company in such a manner that they shall be at least 3 English miles distant from each other. 2. That no one of them shall be located within the distance of 4J English miles from the mouth of the St. John's river. 3. The State reserves to itself the right to such points as shall be necessary for its military fortifications and public buildings. 4. That the lands granted shall not be alieuated to settlers until 6 months after the commencement of the survey of the roate of the said canal. 5. The State reserves to itself the supreme dominion and sovereignty over said lands and their iahabitants. 6. That said lands shall not be alieuated by the Company to any Gov- ernment whatsoever. XXVIII. The colonies which the Company may establish upon said lands shall be colonies of Nicaragua, and thereupon the settlers shall be subject to the laws of the State the same as the natives of the country, being, however, exempt for the term of 10 .years from all taxes and di- rect contributions, and from all public service, as soon as each colony shall contain at least 50 settlers. XXIX. The State further agrees that in case any event may hereafter oocar, as named in the preceding Article X, to suspend or prevent the construction of the canal, or if the said contract shall become forfeited, or annulled by either or both of the parties, and also in case the said 200 PROPOSED INTEEOCEANIC CANAL, contract shall contiuue in force for the full period of 85 years, men- tioned in the preceding Article IV, the said State shall always acknowl- edge as private property the lands which may have been alienated or ceded by the Company to settlers or other persons in virtue of the legal title which the Company has acquired by this contract to the said lands. XXX. The Company shall have the exclusive right to construct rail or carriage roads, and bridges, and to establish steam-boats and steam- vessels on the said rivers and lakes as necessary accessories to and in furtherance of the execution of the canal ; but the Company hereby stipulates and agrees that in case the construction and completion of the said canal or any part of it becomes impossible by any unforseen event or insurmountable obstacle of nature, to construct a railroad or rail and carriage road, and water communication between the two oceans, provided the same may be practicable, within the same period as is stipulated for the building of the said canal, and subject to the same terms, conditions, regulations, and restrictions, as far as they can be made applicable to the same. XXXI. The State hereby binds itself not to sell or dispose of any of its public lands located upon or near the River St. John's, or upon or near any of the routes or points designated in Article 1 of this contract, until after the surveys shall have been made, and the route determined of the said canal. XXXII. The State also binds itself to protect and defend the Com- pany in the full enjoyment of the rights and privileges granted in this contract, and also binds itself not to contract with, or cede to, any Gov- ernment, individual, or companies whatsoever, the right of constructing a ship canal, railroad, or any other communication across its territory between the two oceans, or the right of navigating by means of steam- vessels any of its livers or lakes which may be occupied by this Com- pany while this contract continues in force. But, should this contract become forfeited or annulled, then the' State shall be privileged and free to contract with any other individuals or companies as it may deem proper. XXXIII. In case any dispute or controversy shall arise, during the existence of this contract, between the State and the Company, the same shall be determined by a reference to 5 Commissioners, to be chosen in the following manner, viz, 2 to be nj^med on the part of the State, 2 named by the Company, and the fifth to be selected by the 4 thus ap- pointed, who shall hear and determine the matters in contsoversy, and decide upon the same; which decision of the said Commissioners shall be final and without appeal, and binding upon both the State and the Company. XXXIV. It is further provided, that in the event of the 4 Commis- sioners thus chosen not being able to agree upon the selection of the fifth, the State and the Company shall then choose 3 individuals, out of which number they shall select one to act as such fifth Commissioner; but should they disagree iu such selection, then the choice shall be made out of said number by lot. XXXV. After the period of the 85 years herein granted to the Com- pany shall have expired, the Company shall surrender to the State the canal or roads, and its dependencies, revenues, and privileges, free from all indemnity, for the capital which may have been invested in the said work. But it is nevertheless stipulated that the Company shall receive 15 per cent, annually out of the net profits of the canal for the period of 10 years after such surrender, provided the cost of the same shall be less than 20,000,000 of dollars ; but should the cost be 20,000,000 of dol- CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 20 1 lars or more, then the Company shall receive said 15 per cent, for the period of 20 jears after such surrender. XXXVI. It is expressly stipulated on the part of the State of Nica- ragua that the vessels, products, manufactures, and citizens of all na- tions shall be permitted to pass upon the proposed canal through the territory of the State, subject to no other or higher duties, charges, or taxes than shall be imposed upon those of The United States ; provided always, that such nations shall first enter into such Treaty stipulations and guarantees respecting said canal as may hereafter be entered into between the State of Nicaragua and The United States. XXXVII. It is finally stipulated that this contract, and the rights and privileges which it confers, shallbe held inalienable by the individ- uals composing the Company herein named and their associates; aud that it shall never, in whole or part, be transferred or assigned to any other Company, nor in any way become dependent upon or connected with any other Company, whatever may be the objects of the same. XXXVIII. The present contract shall be ratified by the Legislature of the State in the shortest possible period ; and on the part of David L. White shall be ratified immediately after, as agent of the Company which he represents, in virtue of the powers conferred on him to this effect. In testimony of which we, the respective Commissioners, have signed and sealed the present contract in triplicate, in the city of Leon, in the State of Nicaragua, the 27th day of August, in the year of our Lord 1849. , (L. S.) HERMEND. ZEPEDA. (L. S.) CEEGOEIO JUAEES. (L. S.) DAVID L. WHITE. DOCUMENT No. 29. 15. — Mr. Crampton to Lord Palmerston. Washington, September 15, 1849. (Eeceived October 3.) My Lord : Mr. Clayton having requested me to call upon him at the Department of State, said that he wished to converse with mefrankly and confidentially upon the subject of the proposed passage across the Isth- mus, by way of Nicaragua and the Eiver San Juan, with regard to which he had long felt a great deal of anxiety — an anxiety lately very much in- creased by intelligence he has received from Mr. Elijah Hise, who has ar- rived at Washington from Guatemala, where he has beeu for some years charge d'affaires of the United States. Mr. Hise has, it appears, upon his own responsibility, and without instructions either from the late or from the present administration, signed, on the part of the United States, a treaty with the State of Nic- aragua, by which the latter grants to the United States an exclusive right of way across her territories, including therein the Eiver San Juan, for the purpose of joining the two oceans by a canal across the Isthmus. The treaty contains a number of provisions, such as stipulations for the construction of forts and military works upon the banks of the San Juan for the protection of the proposed passage. These Mr. Clayton enum- erated to me ; but he read to me, at length, the article which he regards as the most objectionable in the treaty, by which it is stipulated that 202 PROPOSED INTEROCEANIC CANAL, the United States guarantees to ISTicaragua forever the whole of her territory, and promises to become a party to every defensive war in which that state may hereafter be engaged for the protection of that territory. To the whole of this treaty, as well as to the "absurd stipulation" which he had just read, Mr. Clayton said that it was scarcely necessary to remark that he was entirely opposed. His views and wishes with respect to the construction of a canal across the Isthmus by way of Nic- aragua were, he observed, known to me, and had been, as I was aware, communicated by his direction to Her Majesty's Government; these would, be trusted, have convinced your lordship that the Government of the United States have no views of exclusive advantage to themselves in this matter. He felt most anxious that the signature of the present treaty by Mr. Hise should not produce a contrary impression in any quarter ; and with this view he proceeded to read to me a portion of the Instructions which have been given to Mr. Squier, who has been lately sent as United States charg6 d'affaires to Nicaragua. By these Mr. Squier is directed not only not to negotiate any treaty with that Government on the subject of a passage across the Isthmus, but not to give his sup- port or countenance to any contract entered into by private citizens of the United States with Nicaragua on that subject, of an exclusive nature, or such as might bring the United States into collision with any other power. The signature of the present treaty has, Mr. Clayton remarked, placed the Government of the United States in a most embarrassing situa- tion. You know, he said, that the Government have no majority in the Senate; you know that the treaty will' be called for by Congress; -the substance of it, indeed, has already found its way into the newspapers; you are aware of the opinion which, whether right or wrong, is gener- ally entertained in this country of the claim of the Mosquito chief to anj' part of the territory claimed by Nicaragua ; and you can form an idea of eagerness with which the party opposed to the Government will avail themselves of the opportunity of either forcing us into collision with Great Britain on this subject, or of making it appear that we have abandoned, through pusillanimity, great and splendid advantages fairly secured to the country by treaty. It will require great caution on both sides, said Mr. Clayton, to prevent the two Governments being brought into collision on account of this intrinsically worthless country. Mr. Clayton concluded by saying that he would immediately send for Mr. Abbott Lawrence, who is now at Boston preparing for his departure for England on the 26th instant, and that he would put him into full pos- session of the views of the United States Government with regard to this subject. He begged me in the meantime to communicate the sub- stance of what he had said to me to your lordship. I have, &c., JOHN P. CRA.MPTON. Viscount Palmerston, G. C. B. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 203 DOCUMENT No. 30. 16. — Mr. Crampton to lord Palmerston. [Extract.] Washington, October 1, 1849. (Received October 13.) Mr. Clayton, nevertheless, yesterday took an opportunity of entering upon the subject with me, with greater earnestness and at greater length than on any previous occasion ; and I am the more anxious to report accurately to your lordship the substance of his remarks, from the circumstance that the President, who happened to come into Mr. Clayton's room upon other business, on being informed of the subject on which we were engaged, waived all ceremony and joined in our con- versation with great frankness, and every appearance of a wish to make proof of the most friendly feeling toward Her Majesty's Government, by evincing a disposition to deal with entire openness with regard to the affair in question. The junction of the two oceans by a canal, Mr. Clayton observed, was an object so important to the whole of the commercial world, that it was matter for surprise that an attempt had not long since been made to eftect it. The increase of population on the western coast of this conti- nent had, however, now rendered it certain that such an attempt would ere long be made. The Government of the United States are strongly in favor of such an undertaking ; but they are as earnestly opposed to its execution being made a subject for jealou<y Sir Hans Sloane, who was in Jamaica at the time 4909 CONG 15 226 PEOPOSED INTEROCEANIC CANAL, of the alleged submissiou to the Duke of Albemarle, the governor, and was his faniily physician, and of course in a position to know all about it. The authority most often cited is a memoir by Bryan Edwards, en- titled " Some account of the British Settlements on the Mosquito Shore, drawn up for the use of Government in 1773." The history of this memoir is a little curious. It purports to have been drawn up for the use of Government in 1773. It was printed anonymously, and was in 1776 "laid before Parliament" with the case of the Morning Star, to which I shall soon allude. The treaties of 1783 and 1786 having been concluded, the subject dropped. Twentyyears afterwards, Mr. Edwards . published his " History of the West Indies," in one of the foot-notes to which he states that the settlement in Mosquito having been surrendered to Spain by the treaty of 1786, it did not come within the plaa of his work to treat of them, but referred all curious on this subject to this memo- rial. , In 1819, iu the fifth edition of his history (the first published after his death), this memorial was for the first time printed with the history, and under his name. It is now produced by the Foreign OflSce in the "correspondence," &c., on this subject, submitted to Parliament in 1848. That you may see how history has been perverted, I give you in parallel columns what Sir Hans Sloane really did say (copied from his printed history) and what Mr. Edwards represents him as saying : Sir Hans Sloane. ' One King Jeremy came from the Mos- quito's (an Indian People near the Prov- inces of Nicaragua, Honduras, and Costa Mica). He pretended to be a king there, and came from the others of his country, to beg of the Duke of Aliemarle, governor of Jamaica, his Protection, and that he would send a Governor thither with a power to war on the Spaniards and Pi- rats. This he alleged to be due to his country from the Crown of England, who had in the reign of King Charles I sub- mitted itself to him. The Dake of Alie- marle did nothing in this matter, being afraid it might be a trick of some people to set up a Government for Bucaniers or Pirats. This King Jeremtj, in coming to Town, asking many questions, about the Island, and not receiving as he thought, a satisfactory account, he pulled off his European cloaths his friends had put on, and climb'd to the top of a tree to take a view of the country. The memorial and substance of what he, and the people with him represented to the Duke of Albema/rle, w;a8, That in the reign of King diaries I of ever Blessed memory, the Earl of Warwick (by virtue of letters of reprisal granted by his said majesty for damages received from the Subjects of his Catholic majesty (did pos- sess himself of several islands in the West Indies, particularly that of Providence (since called by the Spaniards St. Calalina) which is sitnated in 13 deg. 10 m. N. Lat., lying east from Cape Gratios de Dios (vul- garly known by the name of tlie jldnsldios) between Thirty and Forty leagues ; which put the said Earl upon trying all ways and means of future correspondence with fhe natives of the said Cape, and neigh- Mr. Edwards. The memorial and substance [says Sir Hans] of what he (the Mosquito King), and the people with him represented to the Duke of Albemarle was that in the reign of Charles I. the Earl of Warwick, by virtue of letters of reprisal, possessed' himself of several islands in the West In- dies, particularly that of Providence, (since called by the Spaniards St. Cata- lina), which is sitnated 13° 10 m. N. lat.,' lying east from Cape Graoios a Dios (vul- garly known by the name of the Mosqui- tos) between thirty and forty leagues, which put the said Earl upon all ways and means of future correspondence with the natives of the said cape and neighbor- ing country : and in some little time he , was so successful as to gain that point. CLAYTON-BULW.ER TREATY, AND MONROE DOCTRINE. 227 boring country, and in some little time and prevailed with them so far as to per- was so successful as to gain that Point, suade them to send home^'he Kiog'a son, and fuother prevailed with them so fat, as leaving one of his people as a hostage for to persuade them to send home the King's him, which was Col. Morris, now living son, leaving one of his People as Hostage in New Yorlc. The Indian prince, going for him, which was Col. Morris, now liv- home with the said Earl, staid in England ing at New York. The Indian Prince go- three year.t, in which time the Indian ing home with the said Earl, staid in £u- king died, and the natives, having in that gland three years, in which time the In- time iuterconrseand commerce with those dian King died, and the said natives hav- of Providence, were soon made sensible ing in that time had intercourse of Friend- of the grandeur of his Majesty of Great shiV and Commerce with those of Frovi- Britain, and how necessary his protec- dence were soon made sensible of the tion was tothem. Upon the return of the grandeur of his Majesty of Great Britain said ludian Prince, they persuaded him to and how necessary his Protection was to resign up his authority and power over them. Upon the return of the said In- them, and with them unaniiriously de- dian Prince, they persuaded him to resign olare themselves the subjects of his said np his authority and power over them. Majesty of Great Britain : in which opinion and (with them) unanimously declare [continues Sir Hans] they have ever since themselves the subjects of his said Maj- persisted, and do own no other supreme esty of Great Britain, in which opinion command over them, they have ever since persisted, and do , own no other Supreme command over them. I am sure you will agree with me that a worse perversion of history than this cau scarcely be fouud elsewhere. The original authority, when produced, states expressly that the Dukeof Albemarle did nothing iu the matter. Mr. Edwards suppresses the fact that Lord Warwick's expedition was hostile to Spain ; and the opinion attributed to Sir Hans at the close of the extract is found to be not his, but the language of the memorial. But I am able to go a step further in the history of this curious title, and show the equivalent which the Indian Esau received for his birth- ■ right. In a pamphlet first published in 1699 (eight years before the publication of Sir Hans Sloane), and afterwards republished in the sixth volume of Churchill's Voyages, containing an account of the Mosquito shore from a very intelligent person, evidently well acquainted from ob- servation, is the following passage: He [the King] says that his father, Oldman, King of the Mosquito meu, was carried over to England soon after the conquest of Jamaica, and there received fiom his brother King a crown and commission, which the present Old Jeremy still keeps safely by him, which ia lut a cocked hat. and a ridiculous piece of writing that he should kindly me r. L." g'i VE. HEEEAN. 254 DOCUMENT No. 57. 43. — Lord Napier to Lord Clarendon. No. 5.] Washington, March 12, 1857. (Received March 29.) My Lord: I had this afternoon an interview with General Cass, when I requested that he would communicate to me the views taken in the Senate with reference to the Central American treaty, as far as was consistent with the secrecy of the pending deliberation. The Secretary of State replied that the subject was at that very hour under discussion, and that opinions were divided in the following man- ner : Some held that the treaty should be sanctioned in its original form, others that it should be accepted with certain modifications, while a third party advocated its rejection, but proposed to temjer this course by the adoption of certain resolutions embodying sentiments of a friendly dis- position towards Great Britain, and approving a settlement of the Cen- tral American question in conformity with the spirit of the treaty agreed to by your lordship and Mr. Dallas. General Cass appeared to antici- pate that the last alternative would prevail. I remarked that I was not surprised by the result which he predicted, for impressions of a similar character had been imparted to me at New York; but I added that Her Majesty's Government would certainly learn with concern that all the efforts of Mr. Dallas, aided by your lord- ship's generous co-operation, had not succeeded in framing an arrange- ment acceptable to the Senate; such an issue had not been anticipated by the United States minister, and your lordship's expectations of the success of the treaty had been confirmed by the intelligence derived from Mr. Dallas that he (General Cass) had given the measure his sup- port in the first instance. The Secretary of State explained that at an early period a general outline of the projected arrangement had reached him, and had certainly obtained his warm approval, but that when he came to know the details more accurately he recognized in them principles of foreign interven- tion repugnant to the policy of the United States. The treaty engaged the Government of the United States to combine with that of Great Britain in urging a certain course of conduct on a foreign state. This could not be allowed ; it was not consistent with the common practice of his country. The object, indeed, was good, and he hoped it might be attained in another shai)e. It miglit be prosecuted by a direct and dis- tinct negotiation between Great Britain and Nicaragua, in which Her Majesty's Government would, if necessary, have the good ofQces of the President. General Cass then passed some reflections on the Clayton-Bulwer treaty ; he had voted for it, and in doing so he believed that it abro- gated all intervention on the part of England in the Central American territory. The British Government had put a different construction on the treaty, and he regretted the vote he had given in its favor. He did not, however, pretend that ,the British Government should now uncon- ditionally abandon the Mosquitos, with whom they had relations of an ancient date ; it was just and consistent with the practice of the United States that those Indians should be secured in the separate possession of lands, the sale of which should be prohibited, and in the enjoyment of rights and franchises, though in a condition of dependency and protec- tion. The British Government had already removed one impediment to the execution of the Bulwer-Clayton treaty by the cession of their claims on Euatan ; two difBculties now remained, the frontier of Belize and the delimitation and settlement of the Mosquito tribe. If the fron- CLAYTON-BULWEK TEEATY, AND MQNEOE DOCTRINE. 255 tier could be defined, and if the Mosquitos could be placed in the enjoy- ment of their temtory by treaty between Great Britain and Nicaragua, in which the concessions and guarantees of the latter in favor of the Indians should be associated with the recognition of the sovereignty of . Nicaragua — so I understood the general — then the Bulwer-Olay ton treaty might be a permanent and satisfactory settlement between the contract- ing parties. The United States desired nothing else but an absolute and entire neutrality and independence of the Central American region, free from the exercise of any exclusive influence or ascendency what- ever. The Secretary of State terminated a rather desultory conversation on. these matters by stating that his present remarks were to be regarded as of a merely general and speculative nature. The Senate had not yet pronounced; as soon as the decision was known and the resolutions- taken they should be transmitted to your lordship through Mr. Dallas, and communicated to myself. General Cass, before I took my leave, offered me an emphatic assur- ance of good will to the Government of Great Britain, and expressed the satisfaction which he hoped to find in his correspondence with Her Majesty's mission. J have, &c., NAPIER. The Earl of Clarendon. DOCUMENT No. 58. 44. — Lord Napier to Lord Clarendon. [Extract.] No. 14.] Washington, Jfa^ 6, 1857. (Received May 25.) On r>pceiving your lordship's dispatch of the 17th ultimo on the 2d instant, informing me that Her Majesty's Government had not found it expedient to ratify the Central American treaty in its altered shape, and instructing n.e to propose the conclusion of a new treaty embodying all the resolutions of the United States Senate, with the single addiiiou framed as a safeguard for British interests in the Bay Islands, I deter- mined not to .carry your lordship's orders into execution without pre- viously soliciting an interview with the President. His excellency did me the honor to appoint an early day for this purpose, but an attack of illness prevented me from availing myself of his goodness, and it was not until this afternoon that I was enabled to pay my respects to his- excellency. , , . , „ I found the President fully informed of the grounds on which Her Majesty's Government had based their resolution, and of their desire to enter into new engagements, but 1 think he entertained an impression that the reason alleged by Her Majesty's Government did not really express the whole or the most cogent motive of their objections, and he was not apprised of the terms of the simple qualification which Her Majesty's Government proposed to add to the treaty as modified by the Senate. , ■, -, j. ^^ t^ ■■, ^ I placed your lordship's instructions in the hands of the President. He assured me that he was now quite convinced that the non-ratifica- tion of the Honduras treaty formed the true and only motive for the rejectioi of that negotiated by your lordship with Mr. Dallas; that he 256 PROPOSED INTEROCEANIC CANAL, could hardly understand the importance attached to this point by Her Majesty's Government ; that he deeply regretted their determination^ and that it was the last ground on which he had anticipated any reluc- tance. The President thought ■ Her Majesty's Government had acted un- wisely in neglecting this ojiportunity to close the Central American dis- cussions and place the relations of the two countries on a satisfactory basis at a moment when the public feeling was so friendly on either side of the Atlantic. After reading the article proposed by Her Majesty's Government he told me, not without some appearance of regret, that unless he changed his opinion, of which he saw little prospect, he could not assent to a stipulation which would involve the recognition by his Government of a treaty between Great Britain and Honduras relative to the Bay Islands, and if he did accept such a stipulation it would infallibly be rejected by the Senate. I argued that whatever there was repugnant to the feelings of the Senate in reference to slavery, or whatever there was unacceptable in regard to trade or government in the treaty of August 27, 1856, might be subjected to some change, and I offered to bring his views on this subject under your lordship's notice, but his excellency held out no hope ; his objection pointed to the recognition of any treaty at all — to the bare allusion to it. Great Britain and Honduras might frame any settlement they pleased for the future government of the islands; it was their business, not that of the United States. The United States could not take cognizance of those arrangements in any degree, how- ever remote and indirect. Finding the President quite firm in this position, I shifted the discus- sion to the relations of the two countries in case of the official rejection of your lordship's present proposal, remarking that we should fall back on the Olayton-Bulwer treaty, a basis which, if not fixed by arbitration or in some other way, would break up under our feet. The President denounced the Olayton-Bulwer treaty as one which had been fraught with misunderstanding and mischief from the begin- ning; it was concluded under the most opposite constructions by the contracting parties. If the Senate had imagined that it could obtain the interpretation placed upon it by Great Britain, it would not have passed. If he had been in the Senate at the time, that treaty never would have been sanctioned. With reference to arbitration (which I had only thrown in as a suggestion of my own), he observed that he could not give any opinion at present. The President also inveighed against the success of treaties, affirming that they were more frequently the cause of quarrel than of harmony, and that, if it were not for the interoceanic communications, he did not see there was any necessity for a treaty respecting Central America at all. NAPIBE. The Earl of Clarendon. DOCUMENT No. 59. 45. — General Cass to Lord Napier. Washington, May 29, 1857. Mt Lord : I have received your lordship's note of the 6th instant, com- municating the resolution of the British Government to advise the Queen not to ratify the treaty of the 17th October, 1856, respecting the affairs CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 257 of Central America, and which had been modified by the Senate of the United States, and in its modified form submitted for the consideration and action of your Government. I have laid before the President this note, together with the accompanying proj6t of a new treaty, and I have received his instructions to make known to you his views upon the subject. The Clayton-Bulwer treaty, concluded in the hope that it would put an end to the differences which had arisen between the United States and Great Britain concerning Central American affairs, had been ren- dered imperative in some of its most essential provisions by the differ- ent constructions which had been reciprocally given to it by the parties ; and little is hazarded in saying that had the interpretation since put upon the treaty by the British Government, and yet maintained, been anticipated it would not have been negotiated under the instructions of any Executive of the United States nor ratified by the branch of the Government intrusted with the power of ratification. A protracted discussion, in which the subject was exhausted, failed to reconcile the conflicting views of the parties ; and as a last resort a negotiation was opened for the purpose of forming a supplementary treaty which should remove, if practicable, the difficulties in the way of their mutual good understanding, and leave unnecessary any further discussion of the controverted provisions of the Clayton-Bulwer treaty. It was to effect this object that the Government of the United States agreed to open the negotiations which terminated in the treaty of Oc- tober 17, 1856, and though the provisions of that instrument, even with the amendments proposed by the Senate, were not wholly unob- jectionable either to that body or to the President, still, so important did they consider a satisfactory arrangement of this complicated sub- ject that they yielded their objections and sanctioned, by their act of ratification, the convention as amended. It was then transmitted to Lon- don for the consideration of Her Britannic Majesty's Government, and having failed to meet its approbation has been returned unratified. The parties are thus thrown back upon the Clayton-Bulwer treaty, with its disputed phraseology and its conflicting interpretations ; and, after the lapse of seven years, not one of the objects connected with the po- litical condition of Central America, which the United States had hoped to obtain by the arrangement, has been accomplished. Under these circumstances your lordship informs me that the Brit- ish Government, appreciating the differences which this subject has caused " between the two countries," have determined to propose to the United States the conclusion of a new treaty, and in conformity with your instructions this proposition is accompanied with the projSt of & convention which, if ratified by the President and Senate of the United States, it is engaged will be ratified by Her Britannic Majesty. The draft presented is identical in its language with the treaty of October, as ratified by the Senate, except that to that clause of the second separate article which provides for the recognition of the Bay Islands "as under the sovereignty and as part of the Eepublic of Hon- duras" there is added the provision: Whenever aud so soon as the Republic of Honduras shall have concluded and rati- fied a treaty with Great Britain by which Great Britain shall have ceded, and the Republic of Honduras shall have accepted, the said islands, subject to the provisions and coiiditions contained in the said treaty. , This provision is a substitute for the provision relating to the same subject contained in the rejected treaty, and which referred to a subsist - 4909 CONG ^17 258 PROPOSED INTEROCEANIC CANAL, ing convention with Honduras for tlie cession to that Eepublic of the Bay Islands. Taken in connection with this convention, of which your lord- ship was good enough on the 10th instant to communicate a copy to this Department, upon my application, that provision, whilst declaring the Bay Islands to be " a free territory under the sovereignty of the Eepub- lic of Honduras," deprived that country of rights without which its sovereignty over them could scarcely be said to exist. It separated them from the remainder of Honduras, and gave them a government of their own, with their own legislative, executive, and judicial ofQcers, elected by themselves. It deprived the Government of Honduras of the taxing power in every form, and exempted the people of the Bay Islands from the performance of military duty, except for their own defense, and it prohibited the Republic from providing for the protection of these isl- ands by the construction of any fortifications whatsoever, leaving them open to invasion from any quarter. Had Honduras ratified this treaty, she would have ratified the establishment of an "independent" State within her own limits, and a State at all times liable to foreign influence and control. I am not, therefore, surprised to learn from your lordship that " Her Majesty's Government do not expect that this treaty, in its present shape, will b6 definitely sanctioned by that Republic." But, while this expectation may be justified by the event, it is certain that the new provision, like the former one, contemplates the cession of the Bay Islands to Honduras, only upon certain " conditions," and that these conditions are to be sanctioned by this Government. The propo- sition, therefore, though changed in form, is the same in substance with that which was recently rejected by the Senate of the United States, and a just respect for the Senate would prevent the President from now consenting to its insertion in a new treaty. The action of that body, moreover, met his cordial approbation,beeause itis his firm conviction that the Bay Islands area part of the territory of Honduras, and justly subject to its government and to no other authority. Entertaining this opinion, it would be impossible for him to sanction any arrangement by which their restoration may be made dependent upon conditions either already pre- scribed or left to be prescribed hereafter. The case of these islands, as your lordship is aware, stands out in bold relief from all the other sub- jects embraced in the Clayton-Bulwer treaty. That instrument pro- vided that neither of the parties should "colonize" any portion of Cen- tral America; and yet more than a year after its ratiflca1;ion, the colony of the Bay Islands was established by an act of the British Government. The United States have always considered that proceeding a violation of the treaty, even with the British construction of it ; and the claim for its justification that the Bay Islands are dependencies of the Belize settle- ment cannot, it is believed, be maintained with success upon either Amer- ican or British authority. It is directly at variance with the description given by Sir Charles Grey, the secretary of state for the colonies, in 1836, of the boundaries of the Belize settlement; and, from the discus- sions between the two Governments which took place in London in 1854 it cannot be doubted that it was opposed also to the deliberate opiniou of Lord Aberdeen, then at the head of the British cabinet. Independently, however, of these considerations there is another view of the subject which interposes insuperableobstacles to the desired action of the United States upon this treaty. The character or the extent of the concessions which England may demand of Honduras is nowhere defined in that instrument. Any grant, however, inconsistent with the inde- pendence or the rights of that republic, if not inconsistent with the CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 259 express provisions of the treaty, may be demanded by Great Britain, and, if rejected, what then will be the condition of the parties ? Great Britain would retain the possession of these islands, with the implied concurrence of the United States, and this valuable group, overlooking one of the great avenues of communication of the world, and in the free- dom and security of which the United States have a far deeper interest than any other nation, might thus eventually become a permanent por- tion of the British Empire. That the United States should decline to make themselves a party to such an arrangement can surely occasion neither surprise nor disappointment to the people or statesmen of Great Britain. I am, therefore, directed by the President to announce to your lord- ship that he cannot accept the projSt of a treaty which, agreeably to your instructions, you have presented for his consideration. But, while feeling it his duty so to decide, he fully reciprocates the desire of your Government to cement the amicable relations of the. two countries, and, during his administration no effort shall be wanting on his part to pre- vent any interruption of that friendly intercourse which both Great Britain and the United States have so many powerful motives to pro- mote. I have, &c., LEWIS CASS. DOCUMENT No. 60. 46. — Lord Napier to Lord Clarendon, [Extract. ] No. 19.] Washington, June 22, 1857. (Received July 7.) It is probable that if the pending discussions regarding Central America be not closed during the present summer an attempt will be made in the next session of Congress to set aside the Clayton-Bnlwer treaty. My impression to this effect; is constantly deepened by reflec- tion and by the information which reaches me from several quarters. There can be no doubt of the views of the President and Cabinet in this matter. NAPIEE. The Earl of Clarendon. DOCUMENT No. 61. 47. — Lord Napier to Lord Clarendon. [Extract.] Washington, October 12, 1857. (Eeceived October 30.) My Lord : I am now assured that the American Cabinet will shortly receive Mr. Trissari in the quality of minister from Nicaragua, and that a treaty will be negotiated with him for the protection of the interoce- anic passage by the river San Juan similar to that contracted between , Great Britain and Honduras for the guarantee of the railway projected across the territory of the latter State. 260 PROPOSED INTEROCEANIC CANAL, At the same time the Government of Nicaragua have recognized th( existence of the old "American Atlantic and Pacific Ship-Canal Com pany," which appeared to have lapsed during the operations of the "Ac cessory Transit Company," of filibustering notoriety. The original char ter of the former association has been modified under the deliberations of the Nicaraguan minister and Mr. Joseph White, the legal adviser ol that body. The company is under the nominal presidency of Mr. Ste yens, of New York, and is said to comprise some persons of credit and substantial resources, but Mr. White is the active agent in the enter prise. If not ofBcially recognized, his project is viewed with favor bj the American Cabinet, and I think it may very probably be carried into operation. * » * « • * « NAPIER. DOCUMENT No. 62. 48. — General Cass to Lord Napier. Washington, October 20, 1857. My Lord : I have had the honor to receive your lordship's communi- cation of the.Oth instant, in reference to the existing relations between Nicaragua and Costa Eica, and have submitted it to the consideration of the President. These relations have attracted the earnest attention of the President, not only from the importance of the San Juan transit to the commerce of the world, but from the interest which is naturally felt by the United States in the neighboring republics of this continent. The President has withessed, therefore, the restoration of peace to Nicaragua and Costa Eica with the highest gratification; and he sincerely hopes that it may not again be interrupted either by the calamity of civil war or the inva- sion of their territory from other countries. Their security and welfare would undoubtedly be promoted by a just and friendly settlement be- tween them of their mutual boundaries and jurisdiction; and I need hardly add that such an adjustment would be viewed with satisfaction by the United States. This Government, however, has never admitted the pretensions of Costa Eica to an equal control with Nicaragua of the San Juan Eiver, but has regarded the sovereignty of the river, and con- sequently of the interoceanic transit by that route, as rightfully belong- ing to the Eepublic of Nicaragua. A similar view of the question appears to have been recognized by Great Britain, and, whatever may be the rights of Costa Eica j^ith re- spect to the free passage of her own products by the river to the ocean, it is better, probably, that what has been thus acquiesced in, and has led moreover to important contracts and responsibilities, should not now be disturbed. But undet any circumstances the commercial nations o( the world can never permit the interoceanic passages of the Isthmus to be rendered useless for all the great purposes which belong to them in consequence of the neglect or incapacity of the States through whos€ territories they happen to run. The United States, as I have before had occasion to assure your lordship, demand no exclusive privileges in these passages, but will always exert their influence to secure their free and unrestricted benefits, both in peace and war, to the commerce of the world. The rumored invasion of Central America, which your lordship apprehends may delay the re-establishment of the transit service through Nicaragua, has not escaped the attention of the President, and his views CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 261 on the subject are clearly indicated in the circular from this Department of the 18th ultimo, which has been printed in the public journals, and has not escaped your lordship's notice. No nation on earth, it is believed, appreciates its national rights and duties more highly than the United States, and no one is more ready to concede to other nations, whether strong or weak, that measure of jus- tice which it claims for itself. Any such expedition as that which has been mentioned, is forbidden, under severe penalties, bj'the laws of this country, and these laws the President will take care, on all proper occa- sions, to enforce. I have thus endeavored to meet the frank suggestions of your lord- ship by restating, with corresponding frankness, the general policy of the United States with respect to the Governments and the interoce anic transits of Central America ; but since your lordship has referred to the Clayton-Bulwer treaty of 1850 as contemplating a " harmonious course of action and counsel between the contracting parties in the set- tlement of the Central American interests," you will pardon me for re- minding your lordship that the differences which this treaty was intended to adjust between the United States and Great Britain still remain un- settled, while the treaty itself has become the subject of new and em- barrassing complications. Until these disagreements can be removed, and the states of Central America can be left to that independent control of their own affairs, with which the continued claims of Great Britain in that quarter seem to this Government quite inconsistent, itis easy to see that the harmony of action and counsel between this Government and that of Her Britan- nic Majesty, to which your lordship refers, must be always attended with difficulty, rf not found impossible. It was hoped that these differences would be removed by the ap- proval, on the part of Great Britain, of the amended treaty of October 17, 1856, which had been sanctioned by the President, in a spirit of amity towards that kingdom , although its provisions were not wholly in accordance with his views. But the British Government found it nec- essary to withhold their approval, and the treaty was returned from London unratified. It was impossible for this Government to consent to the treaty in its original form, for reasons which your lordship well understands, and no further discussion has been had on the subject between the two Gov- ernments. The President still entertains an earnest hope that all subjects of •disagreement which now exist between the United States and Great Britain may be harmoniously adjusted at an early day, but he cannot be insensible to the long delay which has attended their negotiations on the subject of Central America, or to the serious difQculties which the continuance of this delay is calculated to produce. I avail, &c., LEWIS CASS. DOCUMENT No. 63. 19.— Lord Wapier to Lord Clarendon. [Extract. ] No. 26.] Washington, October 22, 1857. (Eeceived November 9.) On receiving an intimation from your lordship that Her Majesty's Government had determined to send out a special minister to Central America, with a view of adjusting the questions under discussion in 2G2 PROPOSED INTEEOCEANIC CANAL, that quarter, I sought an interview with the President for the purpose of communicating this intelligence to his Excellency. The President received me on the afternoon of the 19th instant, and I was enabled to report to your lordship by the mail of the same day, in a private form, the substance of a conversation which I have now the honor to submit to your lordship with more accuracy and extension. I stated to the President that, since the failure of the late overtures consequent on the non-ratification of the treaty of 1856, Her Majesty's Government had considered the several alternatives of action which were open to their selection, and on a review of the whole case, had re- solved to dispatch a representative of authority and experience to Cen- tral America, charged to make a definitive settlement of all the mat- ters with regard to which the United States and England were still at variance. This conclusion had been embraced for some time past, and the delay which had occurred was referable partly to the difficulty of selecting a competent person for a duty which involved much personal inconven- ience, and demanded peculiar qualifications, and partly to the nature of the intelligence from India, which had of late absorbed the attention of the English cabinet. Her Majesty's Government had, however, now appointed Sir William Gore Ouseley for the service alluded to, and felt the greater satisfaction in doing so because he was intimately known to the President and en- joyed his good opinion. I could not state exactly the character of the instructions with which Sir William Ouseley would be charged, but I might infer from all that had reached me that they would virtually be to the following effect: The efforts of the new plenipotentiary would be directed to those ob- jects which had been dealt with in the treaty of 1856, now laid aside, viz, the cession of the Bay Islands to Honduras, the substitution of the sovereignty of Nicaragua for the protectorate of England in Mosquito, and the regulation of the frontiers of Belize. In short, I believed it was the intention of Her Majesty's Government to carry the Olayton-Bulwer treaty into execution according to the gen- eral tenor of the interpretation put upon it by the United States, but to do so by separate negotiation with the Central American Eepublics, in lieu of a direct engagement with the Federal Government. The President commenced his observations by referring to the Clay- ton-Bulwer treaty as a fruitful source of misunderstanding between the contracting parties. Without that treaty the United States and Great Britain might long since have co-operated for the welfare of Central America. That treaty had never been acceptable to the people of the United States, and would not have obtained a vote in the Senate had the least suspicion existed of the sense in which it was to be construed by Great Britain ; yet if it were now the intention of Her Majesty's Government to execute it according to the American interpretation, that was as much as he could insist upon. In any arrangement entered into with this purpose, he must, how- ever, remark that the Government of the United States could not rec- ognize as satisfactory the cession of the Bay Islands to Honduras, with stipulations similar to those contained in the treaty lately negotiated between England and that Republic, which left the Bay Islands as much under the protection of Great Britain as Mosquito. He did not know what had become of that treaty. I replied that I felt convinced it had been the intention of Her Maj- CLAYTON-BULWER TREATY, AND MONEOE DOCTRINE. 263 esty's Government to deliver the islands to Honduras in full sover- eignty, and tHat the franchises awarded to them by the treaty were de- signed for the freedom of trade, the protection of the vested interests of British subjects, and the welfare of the inhabitants. I added that his excellency was well aware of the convictions con- scientiously held in England respecting slavery, and of the respect which Her Majesty's Government owed to public feeling on that sub- ject. I might plainly affirm that a principal motive in framing securi- ties for the after' government of the Bay Islands had been the appre- hension that, when relinquished by the English authorities, those islands would be settled by planters from the United States, who would bring their negroes with them, and thus establish slavery on soil which had, justly or unjustly, been declared to be a colonial dependency of Great Britain. Her Majesty's Government, moreover, regarded the Bay Islands as forming, in a manner, one of the termini of the Honduras transit route, and therefore desired to see them endowed with the privileges of a free port, the Island of Tigre, in the Gulf of Eonsega, at the other extremity, having long possessed those immunities. The President contended that the stipulations were uncalled for and that Her Majesty's Government might have surrendered the islands freely, and subsequently enforced on the Government of Honduras a due respect to the claims of British settlers. In reply to his excellency, I allowed that the articles establishing the administrative independence of the islands might have been larger than was necessary. I had observed the same impression in the corre- spondence of Mr. Wyke, Her Majesty's charg6 d'affaires at Guatemala, who seemed to admit that a greater participation in the internal gov- ernment might be granted to the authorities of Honduras ; that I made no doubt Her Majesty's Government would entertain any reasonable sug- gestions which might be afforded to them in that sense. As far as I knew the discussion was not closed, and Sir William Ouseley would, probably, have power to enter upon it in a liberal spirit. I then went on to animadvert upon the danger of some movement in the approaching Congress which would interfere with the contemporary negotiation of Sir William Ouseley, remarking that should the Presi- dent in his message allude to the position of the two countries in refer- ence to Central America, and if, in consequence of his excellency's re- flections a resolution should be proposed for the abrogation of the Clay- ton-Bulwer treaty, such a step would not only frustrate the purposes of Sir William Ous6ley's mission, but would have a calamitous influence on the future relations of England and America. It would, therefore, be highly gratifying to me to be enabled to assure your lordship that, pending the negotiation intrusted to Sir William Ouseley, no proposal to annul the treaty would be sanctioned or encouraged by his excel- lency or 'by the members of his Government. The President stated, in reply, that it was certainly his intention to give an account in his message of all that has passed between the two Governments respecting the Dallas-Clarendon treaty. He appeared to intimate that the effect of such a narrative would be to place the con- duct of Great Britain in an unfavorable light, and he added that the passage in which he commented upon these transactions was already pre- pared ; but his excellency went on to affirm, with emphasis, that if the resolutions of Her Majesty's Government were such as I had related, if they really meant to execute the Clayton-Bulwer treaty according to the Ame»ican interpretation, and would, before the meeting of Congress, 2fi4 PROPOSED INTEEOCEANIC CANAL, make some communication to him in that sense, such as he could use, he would cancel what he had written and insert another passage refer- ring to the mission of Sir William Ouseley, and that " nothing would give him greater pleasure than to add the expression of his sincere and ardent wish for the maintenance of friendly relations between the two countries." His excellency also distinctly declared that, under the circumstances here described, no attempt against the Clayton-Bulwer treaty in Con- gress would have any countenance from him whatevei*. To him it was indifferent whether the concessions contemplated by Her Majesty's Gov. ernment were consigned to a direct engagement between England and the United States, or to treaties between the former and the Central American Eepublics. The latter method might, in some respects, be even more agreeable to him, and he thought it would be more conven- ient to Her Majesty's Government, who might, with greater facility, accede to the claims of the weaker party. I thanked the President for his assurances, and expressed my hope that your lordship would be enabled to make a full communication of Sir William Ouseley's instructions to the American Cabinet, and even to direct that minister to visit Washington, on his way to Central America, if his excellency thought such a step would be advisable. The Presi- dent replied that a written communication would be sufflcient, even if it reached him a few days before the meeting of Congress. In the course of this interview the President touched incidentally upon the Honduras Eailway, which he trusted might prove a success- ful enterprise, although the impressions which reached him were un- favorable to its practicability, or, at least, to its profitable execution. In this sentiment I concurred with the President, and avowed my appre- hension that the undertaking would be the grave of a vast amount of British capital, which had been already so extensively wasted on the American continents. Allusion having been made to the relations of Costa Eica and Mca- ragua, the President asserted that the United States aimed at no ex- clusive privileges and at no possession in that region ; their interests and those of Great Britain were identical. I answered that such had always been my persuasion and my language, and that the parties who had obtained concessions from Costa Eica for the transit or the naviga- tion of the river San Juan, acted, in my belief, without any sanction or authority from Her Majesty's Government. The jurisdiction of the transit was vested in Nicaragua; but Her Majesty's Government, I thought, would desire to secure the beneficial use of the river to Costa Eica for the purposes of import and e:;^port trade — a claim which seemed equitable and consistent with the views of the United States with refer- ence to the navigation of the Amazon. I have the pleasure of reporting to your lordship that the President took occasion to .declare his satisfaction- in the sympathy which had been displayed throughout the United States towards England since the out- break of the Indian mutiny, and his own confidence in the success of Her Majesty's arms, which was to be desired in the interest of the na- tives of Hindostan. At the conclusion of the interview, as I rose to take my leave, the President resumed the subject and eaid : I shall be satisfieil on condition iJiat the British Governinent sends a minister to Central America, instructed to settle all the questions which have been controverted between the two Governments according to the American construction of the treaty, and upon receiving an official assurance to this effect I shall change the charapter of my message. CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 265 In afflrming the present policy of Her Majesty's Government to be " the execution of the Clayton-Bulwer treaty according to the general tenor of the interpretation placed upon it by the United States," I trust that I have not misconstrued the views of Her Majesty's Government in the mission of Sir William Ouseiey. I am careful in my language on this subject to mark that I spoke on a broad impression of your lordship's intentions, and not on a particu- lar official knowledge of the decision of Her Majesty's Government. I need not add that the engagements of the President need not depend in any degree on what I have hazarded on my own responsibility, but are altogether contingent on the nature of the communication which his excellency may receive before the 4th of next December, when Con- gress will assemble. NAPIEE. The Earl of Clarendon. DOCUMENT No. 64. 50.— GassTrisarri treaty, November 16, 1857. The Republic of Nicaragua and the United States of America, being desirous to maintain with each other the most friendly relations, to pro- mote the commercial intercourse of their respective citizens, and to make some mutual arrangement with respect to a communication between the Atlantic aud Pacific Oceans by the river San Juan de Nicaragua and either or both the lakes of Nicaragua and Managua, or by any other route through the territories of said Eepublic of Nicaragua, have deemed it expedient to conclude a treaty of friendship, commerce, and naviga- tion, and for this purpose have named the following plenipotentiaries, that is to say : The Eepublic of Nicaragua, Antonio Jos6 de Yrisarri, her envoy ex- traordinary and minister plenipotentiary in the United States of America ; and the President of the United States of America, Lewis Cass, Sec- retary of State of the United States; who, after having communicated to each other their full powers, found to be in due and proper form, have agreed upon and concluded the following articles : Article I. There shall be perpetual amity between the United States and their citizens, on the one part, and the Government of the Eepublic of Nica- ragua and its citizens on the other. ABjTICLB II. There shall be, between all the territories of the United States and the territories of the Eepublic of Nicaragua, a reciprocal freedom of commerce. The subjects and citizens of the two countries, respectively, shall have full liberty, freely and securely, to come, with their ships and cargoes, to all places, ports, and rivers, in the territories aforesaid, to which other foreigners are, or may be, permitted to come, to enter into the same, and to remain and reside in any part thereof, respectively;' also, to hire and occupy houses and warehouses, for the purposes of their commerce ; and generally the merchants and traders of each nation, re- 266 ■ PROPOSED INTEEOCEANIC CANAL, spectively, shall enjoy the most complete protection and security for their commerce, subject always to the laws and statutes of the two countries, respectively. In like manner the respective ships of war and post-offlce packets of the two countries shall have liberty, freely and securely, to come to allf harbors, rivers, and. places to which other foreign ships of war and packets are, or may be, permitted to come, to enter the same, to anchor, and to remain there and refit, subject always to the laws and statutes of the two countries, respectively. By the right of entering places, ports, and rivers, mentioned in this article, the privilege of carrying on the coasting trade is hot understood, in which trade national vessels only of the country where the trade is carried on are permitted to engage". f Artiole III. It being the intention of the two high contracting parties to bind themselves, by the preceding articles, to treat each other on the footing of the most favored nation, it is hereby agreed between them that any favor, privilege, or immunity whatever, in matters of commerce and navigation, wliich either contracting party has actually granted, or may grant hereafter, to the subjects or citizens of any other State, shall be extended to the subjects of the other contracting party gratuitously, if the concession in favor of that other nation sha,ll have been gratuitous, or in return for a compensation, as nearly as possible, of proportionate value and effect, to be adjusted by mutual agreement if the concession shall have been conditional. Abtiolb IV. No higher nor other duties shall be imposed on the importation into the territories of the United States of any article being the growth, pro- duce, or manufacture of the Eepublic of Nicaragua, and no higher or other duties shall be imposed on the importation into the territories of the Eepublic of Nicaragua of any articles being the growth, produce, or manufacture of the territories of the United States than are, or shall be, payable upon the like articles being the growth, produce, or man- ufacture of any other foreign country ; nor shall any other or higher duties or charges be imposed in the territories of either of the high con- tracting parties on the exportation of any articles to the territories of the other than such as are, or may be, payable on the exportation of the like articles to any other foreign country; nor shall any prohibition be imposed upon the exportation or importation of any articles the growth, produce, or manufacture of the territories of the United States or the Eepublic of Nicaragua, to or from the said territories of the United States, or to or from the Eepublic of Nicaragua, which shall not equally extend to all other nations. ' Article Y. No higher nor other duties or payments, on account of tonnage, of light or harbor dues, or pilotage, of salvage in case of either damage or shipwreck, or on account of any local charges, shall be imposed in any of the ports of Nicaragua on vessels of the United States than those payable by Nicaraguan vessels ; nor in any of the ports of the United States on Nicaraguan vessels than shall be payable in the same ports on vessels of the United States. CLAYTON-BULWEK TREATY, AND MONEOE DOCTRINE. 26/ Article VI. The same duties shall be paid on the importation into the territories of the Kepublic of Nicaragua of any article being the growth, produce, and manufacture of the territories of the United States, whether such importations shall be made in Nicaraguan vessels or in vessels of the United States ; and the same duties shall be paid on the importation into the territories of the United States of any article being the growth, produce, or manufacture of the Eepublic of' Nicaragua, whether such importation shall be made in United States or Nicaraguan vessels. The same dues shall be paid and the bounties and drawbacks allowed on the exportation to the Eepublic of Nicaragua of any articles being the growth, produce, or manufacture of the territories of the United States, whether such exportations shall be made in Nicaraguan or United States vessels ; and the same duties shall be paid and the same bounties and drawbacks allowed on the exportation of any articles being the growth, produce, or manufacture of the Republic of Nicaragua to the territories of the United States, whether such exportation shall be made in the vessels of the United States or of Nicaragua. Article VII. All merchants, commanders of ships, and others, citizens of the United States, shall have full liberty in all the territories of the Republic of Nicaragua to manage their own affairs themselves, as permitted by the laws, or to commit them to the management of whomsoever they please, as broker, factor agent, or interpreter; nor shall they be obliged to em- ploy any other persons in those capacities than those "employed by Nica- raguans, nor to pay them any other salary or remuneration than such as is paid in like cases by Nicaraguan citizens; and absolute freedom shall be allowed in all cases to the buyer and seller to bargain and fix the price of any goods, wares, or merchandise imported into, or exported from, the Repu,blic of Nicaragua, as they shall see good, observing the laws and established customs of thes country. The same privileges shall be -enjoyed in the territories of the United States by the citizens of the Eepublic of Nicaragua under the same conditions. The citizens of the high contracting parties shall reciprocally receive and enjoy full and perfect protection for their persons and property, and shall have free and open access to the courts of justice in said countries, respectively, for the prosecution and defense of their just rights; and they shall be at liberty to employ, in all cases, the advocates, attorneys, or agents, of whatever description, whom they may think proper ; and they shall enjoy, in this respect, the same rights and privileges therein as native citizens. Article VIII. In whatever relates to the police of the ports, the lading and unlad- ing of ships, the safety of the merchandise, goods, and effects; the suc- cession to personal estates, by will or otherwise ; and the disposal of personal property of every sort and denomination, by sale, donation, exchange, testament, or any other manner whatsoever, as also the ad- ministration of justice, 'the citizens of the two high contracting parties shall reciprocally enjoy the same privileges, liberties, and rights as na- tive citizens ; and they shall not be charged, in any of these respects, with any higher imposts or duties than those which are, or may be, paid 268 PROPOOED INTEROCEANIC CANAL, by native citizens, submitting, of course, to the local laws and regula- tions of each country, respectively. The foregoing provisions shall be applicat(le to real estate situated within the States of the American Union or within the Republic of Nicaragua, in which foreigners shall be entitled to hold or inherit real estate. But in case real estate situated within the territories of one of the, contracting parties should fall to a citizen of the other party, who, on account of his being an alien, could not be permitted to hold such prop- erty in the state in which it may be situated, there shall be accorded to the said heir, or other successor, such term as the laws of the state will permit to sell such property; he shall be at liberty at all times to with- draw and export the proceeds thereof without difiiculty, and without paying to the Government any other charges than those which, in a similar case, would be paid by an inhabitant of the country in which the real estate may be situated. K any citizen of either of the two high contracting parties shall die without a will or testament in any of the territories of the other, the minister or consul or other diplomatic agent of the nation to which the deceased belonged (or the representative of such minister or consul or other diplomatic agent, in case of absence), shall have the right to nominate curators to take charge of the property of the deceased, so far as the laws of the country will permit, for the benefit of the lawful heirs and creditors of the deceased, giving proper notice of such nomi- nation to the authorities of the country. Article IX. 1. The citizens of the United States residing in Nicaragua, or the cit- izens of Nicaragua residing in the United States, may intermarry with the natives of the country, hold and possess, by purchase, marriage, or descent, any estate, real or personal, without thereby changing their national character, subject to the laws which now exist or may be en- acted in this respect. 2. The citizens of the United States residents in the Republic of Nic- aragua, and the citizens of Nicaragua residents in the United States, shall be exempted from all forced (or compulsory) military service what- soever, by land or sea; from all contributions of war, military exactions, forced loans in time of war; but they shall be obliged in the same man- ner as the citizens of each nation to pay lawful taxes, municipal aud other modes of imposts and ordinary charges, loans, and contributions in time of peace (as the citizens of the country are liable), in just pro- portion to the property owned. 3. Nor shall the property of either, of any kind, be taken for any pub- lic object, without full and just compensation to be paid in advance; and, 4. The citizens of each of the two high contracting parties shall have the unlimited right to go to any part of the territories of the other, and in all cases enjoy the same security as the natives of the country where they reside, with the condition that they duly observe the laws and or- dinances. Article X. It shall be free for each of the two high contracting parties to appoint consuls for the protection of trade, to reside in any of the territories of the other party. CLAYTON-BULWER TEEATY, AND MONROE DOCTRINE. 269 But before any consul shall act as such, he shall, in the usual form, be approved and admitted by the government to which he is sent, and either of the high contracting parties may except from the residence of consuls such particular places as they judge fit to be excepted. The diplomatic agents of Nicaragua and consuls shall enjoy in the territories of the United States whatever privileges, exemptions, and immunities whatever as are, or shall be, allowed to the agents of the same rank belonging to the most favored nations ; and, in like manner, the diplomatic agents and consuls of the United States in Nicaragua, shall enjoy, according to the strictest reciprocity, whatever privileges, exemptions, and immunities that are, or may be, granted in the.Eepub- lic of Nicaragua to the diplomatic agents and consuls pf the most favored nations. Article XI. For the better security of commerce between the citizens of the United States and the citizens of Nicaragua it is agreed that if at any time any interruption of friendly intercourse or any rupture should unfortunately take place between the two high contracting parties, the citizens of either, who may be within the territories of the other, shall, if residing on the coast, be allowed six months, and if in the interior, a whole year, to wind up their accounts and dispose of their property; and a safe con- duct shall be given to them to embark at any port they themselves may select. Even in case of a rupture all such citizens of either of the high contracting parties, who are established in any of the territories of the other in trade or other employment, shall have the privilege of remain- ing and of continuing such trade or employment without any manner of interruption, in the full enjoyment of liberty and property, so long as they behave peacefully and commit no offense against the laws, and their goods and effects, of whatever description they may be, whether in their own custody or intrusted to individuals, or to the state, shall not be liable to seizure or sequestration nor to any other charges or demands than those which maybe made upon the like effects or property belong- ing to the native citizens of the country in which such citizens may reside. In the same case, debts between individuals, property out in public funds, and shares of companies, shall never be confiscated nor detained. Article XII. The citizens of the United States and the citizens of the Republic of Nicaragua, respectively, residing in any of the territories of the other party shall enjoy in their houses, persons, and property the protection of the Government, and shall continue in possession of the guarantees which they now enjoy. They shall not be disturbed, molested, or an- noyed in any manner on account of their religious beliel^^ nor in the proper exercise of their religion, agreeably to the system of tolerance established in the territories of the high contracting parties, provided they respect the religion of the nation in which they reside, as well as the constitution, laws, and customs of the country. Liberty shall be also granted to bury the citizens of either of the two high contracting parties who may die in the territories aforesaid, in burial places of their own, which, in the same manner, may be freely established and maintained ; nor shall the funerals or sepulchres of the dead be disturbed in any way or upon any account. 270 PROPOSED INTEEOCEANIC CANAL, Aeticle XIII. Whenever the citizens of either of the contracting parties shall be forced to seek refuge or asylum in the rivers, bays, ports, or dominions of the other, with their vessels, whether merchant or war, public or pri- vate, through stress of weather, pursuit of pirates or enemies, or want of provisions or water, they shall be received and treated with human- ity and given all favor and protection for repairing their vessels, pro- curing provisions and placing themselves in all respects in a condition to continue their voyage without obstacle or hinderance of any kind. Article XIV, The Eepublic of Nicaragua hereby grants to the United States, and to their citizens and property, the right of transit between the Atlantic and Pacific Oceans through the territories of that republic on any route of communication, natural or artificial, whether by land or water, which may now or hereafter exist or be constructed under the authority of Mcaragua, to be used and enjoyed, in the same mannerand upon equal terms by both republics and their respective citizens, the Eepublic of Nicaragua, however, reserving its right of sovereignty over the same. Akticle XV. The CTnited States hereby agree to extend their protection to all such routes of communication as aforesaid, and to guarantee the neutrality of the same. They also agree to employ their influence with other nations tq induce them to guarantee such neutrality and protection. And the Eepublic of Nicaragua on its part undertakes to establish two free ports, one at each of the extremities of the communications aforesaid on the Atlantic and Pacific Oceans. At these ports no ton- nage or other duties shall be imposed or levied by the Government of Nicaragua on the vessels of the United States, or on any effects or mer- chandise belonging to citizens or subjects of the United States, or upon the vessels or effects of any other country intended bona fide for transit across the said routes of communication and not for consumption, within the Eepublic of Nicaragua. The United States shall also be at liberty to carry troops and muni- tions of war in their own vessels or otherwise to either of the said free ports, and shall be entitled to their conveyance between them without obstruction by the authorities of Nicaragua, and without any charges or tolls whatever for their transportation on either of said routes of com- munication. And no higher or other charges or tolls shall be imposed on the conveyance or transit of persons or property of citizens or sub- jects of the United States or of any other country across the said routes of communication than are or may be imposed on the persohs and prop- erty of citizens of Nicaragua. And the Eepublic of Nicaragua recog- nizes the right of the Postmaster-General of the United States to enter into contracts with any individuals or companies to transport the mails of the United States along the said routes of communication, or along any other routes across the isthmus, in its discretion, in closed bags, the contents of which may not be intended for distribution within the said republic, free from the imposition of aU taxes or duties by the Gov- ernment of Nicaragua; but this liberty is not to be construed so as to permit such individuals or companies, by virtue of this right to trans- port the mails, to carry also passengers or freight. 6LATT0N-BULWER TEEATY, AND MONROE BOCTEINE. 271 Article XVI. The Republic of Nicaragua agrees that, should it become^necessary at any time to employ military force for the security and protection of persons and property passing over any of the routes aforesaid, it will employ the requisite force for that purpose ; but, upon failure to do this for any cause whatever, the Government of the United States may, after notice to the Government of Nicaragua, or to the minister thereof in the United States, employ such force, for this and for no other pur- pose ; and when the necessity ceases, such force shall be immediately withdrawn. Article XVII. It is understood, however, that the United States, in according pro- tection to such routes of communication, and guaranteeing their neu- trahty and security, always intend that the protection and guarantee are granted conditionally, and may be withdrawn if the United States should deem that the persons or company undertaking or managing the same adopt or establish such regulations concerning the traffic there- upon as are contrary to the spirit and intention of this treaty, either by making unfair discriminations in favor of the commerce of any nation or nations over the commerce of any other nation or nations, or by impos- ing oppressive exactions or unreasonable tolls upon mails, passengers, vessels, goods, wares, merchandise, or other articles. The aforesaid protection and guarantee shall not, however, be with- drawn by the United States without first giving six months' notice to the Republic of Nicaragua. Article XVIII. And it is further understood and agreed that in any grants or con- tracts which may hereafter be made or entered into by the Government of Nicaragua having reference to the interoceanic routes above referred to, or either of them, the rights and privileges granted by this con- vention to the Government and citizens of the United States shall be ftilly protected and reserved. And if any such grants or contracts now exist of a valid character, it is further understood that the guarantee and protection of the United States stipulated in Article XV of this treaty shall be held inoperative an d void until the holders of s uch grants or contracts shall recognize the concessions made in this treaty to the Government and citizens of the United States with respect t6 such interoceanic routes, or either of them, and shall agree to observe and be governed by those concessions as fully as if they had been embraced in their original grants or contracts ; after which recognition and agree- ment, said guarantee and protection shall be in full force ; provided that nothing herein contained shall be construed either to affirm or deny the validity of any of the said contracts. Article XIX. After ten years from the completion of a railroad or any other route of communication through the territory of Nicaragua, from the Atlantic to the Pacific Ocean, no company which may have constructed, or be in possession of the same, shall ever divide, directly or indirectly, by the issue of new stock, the payment of dividends, or otherwise, more than fifteen per cent, per annum, or at that rate, to its stockholders from 272 PEOPOSED INTEROCEANIC CANAL, tolls collected thereupon; but whenever the tolls shall be found to yield a larger profit than this, they shall be reduced to the standard of fifteen per cent, per annum. Article XX. It is understood that nothing contained in this treaty shall be con- strued to affect the claim of the government and citizens of the Eepub- lic of Gosta Eica to a free passage by the San Juan Eiver for their per- sons and property to and from the ocean. Article XXI. The two high contracting powers, desiring to make this treaty as dur- able as possible, agree that this treaty shall remain in full force for the term of twenty years from thg day of the exchange of the ratifications; and either party shall have the right to notify the other of its intention to terminate, alter, or reform this treaty, at least twelve months before the expiration of the twenty years ; if no such notice be given, then this treaty shall continue binding beyond the said time, and until twelve months shall have elapsed from the day on which one of the parties shall notify the other of its intention to alter, reform, or abrogate this treaty. ' Article XXII. The present treaty shall be ratified, and the ratifications exchanged, at Washington City, within the space of nine months, or sooner, ^ possible. ^ In witness whereof the respective plenipotentiaries have signed the same, and afEixed thereto their respective seals. Done at the city of Washington, this sixteenth of Kovember, in the year of our Lord one thousand eight hundred fifty-seven. LEWIS CASS. A. J. DE YEISAEEI. DOCUMENT No. 65. 51. — Lord Najpier to General Cass. [Extract.] Washington, November 30, 1857. Sir: * * * * » " 2. In framing stipulations for the compensation, the government, and the preservation of the Mosquito Indians under the sovereignty of Nica- ragua, Sir William Ouseley, will be guided by the provisions of the treaty of 1856, which, although it did not acquire the validity of an international engagement, may on this point be held to express the policy and opin- ions of the contracting parties. The limits of the territorial reserve may besubject to modification, but the boundaries proposed to Nicaragua and Honduras will certainly not be less favorable than those indicated by the treaty alluded to ; they will in no degree trespass on the terri- tory applicable to transit purposes, and in the settlement of details Her Majesty's envoy will grant an indulgent consideration to the wishes and CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 273 necessities of the Central American Governments when they are com- patible with the safety and the welfare o^ those native tribes'which have previously enjoyed the protection of the British crown. 3. The regulation of the frontier of British Honduras will be effected by negotiation with the Government of Guatemala. Her Majesty's Gov- ernment trusts to obtain from this Eepublic a recognition of limits, which, if we may judge from previous communication on this subject, may be accepted in a spirit of conciliation if not with absolute approval by the President. Such is, in outline, the basis of the negotiation committed to Sir Wil- liam Ousely, as far as regards the construction and execution of the provisions of the Clayton-Bulwer treaty. The interpretation of that instrument thus practically sanctioned by Her Majesty's Government may not strictly coincide with that which is adopted, no doubt in perfect sincerity by the United States ; but the present resolution of Her Maj- esty's Government involves no slight relaxations of the sense in which, in equal good faith, the engagements of 1850 were contracted by Great Britain. It is hoped that the concessions of Her Majesty's Government will be met in a similar temper by the Government of the United States, that the mission of Sir William Ouseley will be regarded with benevo- lence, and that, if successfully accomplished, its results will be embraced as an honorable compromise of contending opinions, and as a definitive settlement of those disputed points which have so long attracted the anxious attention of our respective Governments. * * * * # * * lifAPIEE. DOCUMENT Kg. 66. 52. — President Bttchanan's message to Congress, December 8, 1857. [Extract. ] The diplomatic difficulties which existed between the Government of the United States and that of Great Britain at the adjournment of the last Congress, have been happily terminated by the appointment of a British minister to this country, who has been cordially received. Whilst it is greatly to the interest, as I am convinced it is the sincere desire, of the Governments and people of the two countries to be on terms of intimate friendship with each other, it has been our misfortune almost always to have had some irritating, if not dangerous, outstanding ques- tion with Great Britain. Since the origin of the Government we have been employed in nego- tiating treaties with that power, and afterwards in discussing their true intent and meaning. In this respect the convention of April 19, 1850, commonly called the Clayton and Bulwer treaty, has been the most un- fortunate of all ; because the two Governments place directly opposite and contradictory constructions upon its first and most important arti- cle. Whilst in the United States we believed that this treaty would place both powers upon an exact equality by the stipulation that neither will ever " occupy, or fortify, or colonize, or assume or exercise any domin- ' ion" over any part of Central America, it is contended by the British Government that the true construction of this language has left them in the rightful possession of all that portion of Central America which was in their occupancy at the date of the treaty ; in fact, that the treaty 4909 CONG 18 274 PROPOSED INTBEOCEANIC CANAL, is a virtual recognition on the part of the United States of the right of Great Britain, either as owner or protector, to the whole extensive coast of Central America, sweeping round from the Eio Hondo to the port and harbor of San Juan de Nicaragua, together with the adjacent Bay Islands, except the comparatively small portion of this between the Sarstoon and Cape Honduras. According to their construction, the treaty does no more than simply prohibit them from extending their possessions in Central America beyond the present limits. It is not too much to assert that, if in the United States the treaty had been consid- ered susceptible of such a construction, it never would have been nego- tiated under the authority of the President, nor would it have received the approbation of the Senate. The universal conviction in the United States was, that when our Government consented to violate its tradi- tional and time-honored policy, and to stipulate with a foreign govern- ment never to occupy or acquire territory in the Central American por- tion of our continent, the consideration for this sacrifice was that Great Britain should, in this respect, at least, be placed in the same position with ourselves. Whilst we have no right to doubt the sincerity of the British Govern- ment in their construction of the treaty, it is at the same time my delib- erate conviction that this construction is in opposition both to its letter and its spirit. Under the late administration, negotiations were instituted between the two Governments, for the purpose, if possible, of removing these dif- ficulties ; and a treaty having this laudable object in view was signed at London on the 17th October, 1856, and was submitted by the Presi- dent to the Senate on the following 10th of December. Whether this treaty, either in its original or amended form, would have accomplished the object intended without giving birth to new and embarrassing complications between the two governments, may perhaps be well questioned. Certain is is, however, it was rendered much less objectionable by the different amendments made to it by the Senate. The treaty, as amended, was ratified by me on the 12th March, 1857, and was transmitted to London for ratification by the British Govern- ment. That government expressed its willingness to concur in all the amendments made by the Senate, with the single exception of the clause relating to Euatan and the other islands in the Bay of Honduras., The article in the original treaty, as submitted to the Senate, after reciting that these islands and their inhabitants — having been by a convention bearing date the 27th day of August, 1856, between Her Britannic Majesty and the Republic of Honduras, constituted and declared afrea territory under the sovereignty of the said Republic of Honduras — stipulated that — the two contracting parties do hereby mutually engage to recognize and respect in all future time the independence and rights of the said free territory as a part of the Re- public of Honduras. Upon an examination of this convention between Great Britain and Honduras of the 27th August, 1856, it was found that, whilst declaring the Bay Islands to be " a free territory under the sovereignty of the Ee- public of Honduras," it deprived that republic of rights without which its Bovereignty over them could scarcely be said to exist. It divided them from* the remainder of Honduras, and gave to their inhabitants a separate government of their own, with legislative, executive, and judi- cial officers, elected by themselves. It deprived the goverhment of Hondiiras of the taxing power in every form, and exempted the people CLAYTOJf-BULWEK TREATY, AND MONKOE DOCTRINE. 275 of the islands from the performance of military duty, except for their own exclusive defense. It also prohibited that republic from erecting fortifications upon them for their protection, thus leaving them open tp invasion from any quarter ; and, finally, it provided " that slavery shall not at any time hereafter be permitted to exist therein." Had Honduras ratified this conventiou, she would have ratified the establishment of a state substantially independent within her own lim- its, and a state at all times subject to British influence and control. . Moreover, had the United States ratified the treaty with Great Britain in its original form, we should have been bound " to recognize and re- spect in all future time " these stipulations to the prejudice of Honduras. Being in direct opposition to the spirit and meaning of the Clayton and Bulwer treaty, as understood in the United States, the Senate rejected the entire clause, and substituted in its stead a simple recognition of the sovereign right of Honduras to these islands, in the following lan- guage : The two contracting parties do hereby mutually engage to recognize and respect the islands of Kuatan, Bonaco, Utila, Barbaretta, Helena, and Morat, situate iu the Bay of Honduras, and olf the coast of the Republic of Honduras, as under the sovereignty and as part of the said Republic of Honduras. Great Britain rejected this amendment, assigning as the only reason that the ratifications of the convention of the 27th August, 1856, be- tween her and Honduras, had not been " exchanged owing to the hesi- tation of that government." Had this been done, it is stated that " Her Majesty's Government would have had little difficulty in agreeing to the modification proposed by the Senate, which then would have had, in effect, the same signification as the original wording." Whether this would have been the effect; whether the mere circumstance of the ex- change of the ratifications of the British convention with Honduras prior, in point of time, to the ratification of our treaty with Great Britain would "in effect" have had "the same signification as the original wording," and thus have nullified the amendment of the Senate, may well be doubted. It is, perhaps, fortunate that the question has never arisen. The British Government, immediately after rejecting the treaty as amended, proposed to enter into a new treaty with the United States, similar in all respects to the treaty which they had just refused to ratify, if the United States would consent to add to the Senate's clear and unqualified recognition of the sovereignty of Honduras over the Ba-y Islands, the following conditional stipulation: Whenever and so soon as the Republic of Honduras shall have concluded and rati- fied a treaty with Great Britain, by which Great Britain shall have ceded, and the Republic of Honduras shall have accepted, the said islands, subject to the provisions and conditions contained in such treaty. This proposition was, of course, rejected. After the Senate had re- fused to recognize the British convention with Honduras of the 27th August, 1856, with full knowledge of its contents, it was impossible for me, necessarily ignorant of "the provisions and conditions" which might be contained in a future convention between the same parties, to sanction them in advance. The fact is, that when two nations like Great Britain and the United States, mutually desirous, as they are, and I trust ever may be, of main- taining the most friendly relations with each other, have unfortunately concluded a treaty which they understand in senses directly opposite, the wisest course is to abrogsite such a treaty by mutual consent, and 276 PROPOSED INTEEOCEANIC CANAL, to commence anew. Had this been done promptly, all difficulties in Central America would most probably ere this have been adjusted to the satisfaction of both parties. The time spent Jn discussing the mean- ing of the Clayton and Bnlwer treaty would have been devoted to this praiseworthy purpose, and the task would have been more easily accom- plished because the interest of the two countries in Central America is identical, being confined to securing safe transits over all the routes across the Isthmus. Whilst entertaining these sentiments, I shall nevertheless not refuse to contribute to any reasonable, adjustment of the Central American questions which is not practically inconsistent with the American inter- pretation of the treaty. Overtures for this purpose have been recently made by the British Government in a friendly spirit, which I cordially reciprocate; but whether this renewed effort will result in success lam not yet prepared to express an opinion. A brief period will determine. DOCUMENT No. 67. 53. — Lord Napier to General Cass. Washington, February 15, 1858. SiE : On the 30th of November last I had the honor to convey to you, under the instructions of Her Majesty's Government, a proposal to sub- mit the controverted points in the treaty of 1850, respecting Central American affairs, to the free arbitration of any European power which the Government of the United States should prefer to select for that office. In a separate" note, under the same date, I imparted to the Govern- ment of the United States an outline of the instructions under which Sir William Gore Ouseley has been charged to proceed on a special mission to the Central American republics, with a view to the settle- ment, by direct negotiation with those states, of the questions which the correspondence of last year in London had failed to adjust. Some- thing in the nature of an alternative was thus offered to the American Cabinet. Should the expedient of arbitration be adopted, a great por- tion of Sir William Ouseley's duty would be transferred to other agen- cies. Should arbitration be declined it was hoped that the efforts of Her Majesty's envoy would result in a settlement agreeable to the United States, inasmuch as in essential points it would carry the treaty of 1850 into operation in a manner practically conformable to the Ameri- can interpretation of that instruction. The note which 1 had the honor of addressing to you, in reference to the mission of Sir W. Ouseley, has received the official sanction of the Earl of Clarendon, and may therefore be regarded as an authoritative exposition of the intentions of Her Majesty's Government. In that com- munication, however, I indicated that two obstacles had arisen which might possibly modify the resolutions of Her Majesty's Government : first, the cotemporary negotiation of a convention for the protection of the transit route between the Government of the United States and that of Nicaragua; and secondly, the invasion of the Nicaragnan territory by a band of adventurers, who were engaged in an attempt to subvert the lawful Government recognized by Great Britain. The impediments to which I alluded do not now exist. In the treaty contemplated between the United States and Nicaragua, CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 277 Her Majesty's Government do not see any obstacle in the realization of aeir designs committed to the management of Sir William Ouseley, while the projects of Walker and his confederates have been arrested by the interposition of the United States Navy, and we may hope definitely extinguished by the reprobation expressed, and the measures adopted by the President of the United States. Satisfied in respect to the relations between the Government of the United States and Nicaragua, and relieved of the apprehensions raised by the renewed disturbances of the peace of Central America, Ser Majesty's Government are prepared, if necessary, to sanction the depart- ure of Sir William Ouseley on his mission and the execution of his in- structions in the most conciliatory spirit. Her Majesty's Government have, however, received no reply to their proposal for arbitration, a measure which they still regard as embodying the most unexceptionable method for the settlement of existing difficul- ties. In requesting to be informed of the definitive resolution of the United States Government on this point, I am enabled to add that, if their determination should be an adverse one, Her Majesty's Government would give a friendly consideration to any observations which you may be disposed to offer on the objects of the mission intrusted to Sir William Ouseley. i I have, &c., NAPIER. DOCUMENT No. 68. 54. — Lord Napier to Lord Malmeshury. No. 56.] Washington, JfarcA 22, 3858. (Eeceived April 5.) My Lord : The overtures made by Her Majesty's late cabinet to the Government of the United States for the adjustment of pending con- troversies in Central America are known to your lordship from the cor- respondence between the foreign of&ce and Her Majesty's legation on this subject. ThosQ proposals comprise an alternative submitted to the selection of the American Government. Her Majesty's Government have offered to refer all the controverted points in the treaty of 1850 to the free arbitra- tion of any European power, or, if more agreeable to the United States, they design to adjust the matters under discussion by negotiation with the Isthmus Eepublics, to which, through the medium of Sir William Ouse- ley's mission, they are prepared to make such concessions as would carry the treaty of 1850 into operation in the most important pa;:ticuiars, according to the construction placed upon that instrument by*<^^,Oab- inet of Washington. .' "•, These modes of settlement both involve the maintenance of the Clay- ton-Bulwer treaty in its essential principle, viz, the neutrality of the Central American region, the exclusion of the contracting parties from territorial acquisition in a country which, from its configuration and po- sition, possesses a common and momentous interest to the maritime powers. The conciliatory inclinations of Her Majesty's Government have, how- ever, not stopped here. Prompted by an impression, derived from many sources, that theobligg,tions of the Clayton-Bulwer treaty were repugnant ; 278 PEOPOSED INTEROCEANIC CANAL, to the people of the United States, and influenced, no doubt, by the decla- ration of the President in his latu iiuss-apo to Congress, in which he inti- mates a desire for the amicable dissolution of that convention, the Earl of Clarendon authorized me to inform General Cass that Her Majesty's Government would not decline the consideration of a proposal for the abrogation of the treaty by mutual concert. An ofScial character was not given to this communication, because the recent overtures of Her Majesty's Government are still under the consideration of the President, and because it seems most natural that the proposal for the repeal of the treaty should emanate from the party to which we are told it has been onerous and unacceptable. I have, accordingly, on two occasions informed General Cass that if the Government of the United States be still of the same mind, and con- tinue to desire the abrogation of the treaty of 1850, it would be agree- able to Her Majesty's Government that they should insert a proposal to that effect in their reply to my note respecting arbitration, and to that in which I explained the character and motives of the mission intrusted to Her Majesty's commissioner in Central America. Some conversation ensued regarding the manner in which the disso- lution of the treaty should be effected, and the condition by which it might be accompanied, and on these topics I have held the following language, premising that the views expressed were altogether sponta- neous and personal, t'w I had no information ot the intentions of Her Majesty's Government beyond the bare fact that tiiey would entertain a proposal to cancel the engagements of 1850, emanating from the United States. I stated that, in my o])inion, the treaty in question could only be re- pealed by a new treaty in the usual forms, and that it might be desira- ble that such atreaty should not be restricted to a single article annulling its predecessor. Both for considerations of decency and policy, I advo- cated the insertion of stipulations involving an expression of a common policy in Central America, and the disavowal of any exclusive or monop- olizing projects on either side. I said that I thought a treaty might be framed of three articles. The first should declare the desire of the contracting parties to en- courage and protect the organization of transit routes in the inter- oceanic region, and bind those parties never to negotiate for any rights or privileges of transit with the Central American states of a j)refer- ential or exclusive character, to which other nations might not, by negotiation, be equally admitted, establishing thus the principle of an equal enjoyment of those avenues of trade for all the countries of the world. The second article might recognize the jurisdiction of the transit route by the San Juan River as being vested in the Government of Nicaragua. This has been already avowed by the United States in a treaty negotiated with that Eepublic. It had not been definitely affirmed by Great Britain, and might seem to (jlash with the claims of the King of Mosquito to territorial possession or authority in those parts. I thought, however, that in regard to the views lately expressed by Her Majesty's Government in the course of recent negotiations, in consider- ation of the necessity of obtaining a suitable treaty with Nicaragua, and for the purpose of placing themselves in harmony with the course pursued by the United States, Her Majesty's Government might, on this head, accede to an article which would practically restrict their protectorate in Mosquito, and prevent the imputation of any interfer- CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 279 «nce on their part, with the territory traversed by the river, and there- fore by the transit route. Finally, I suggested that Article III of the treaty should simply de- clare the provisions of the treaty of 1850 to be void and of no effect. I added that the question of future territorial acquisition in Central America would thus be thrown open to the United States; that Her Majesty's Government, on the other hand, would retain the colony of Honduras in the proportions which might be given to it by treaty ar- rangements with Guatemala, and that the Bay Islands would remain attached to the British Crown. Indeed, I affirmed, still as a personal opinion, but of the most positive character, that in case of the dissolu- tion of the Clayton-Bulwer treaty, the Bay Islands would not be relin- quished by Her Majesty's Government. I felt bound to make this statement, having observed in some quarters an impression that Her Majesty's Government might be disposed not only to annul the treaty, thus opening a path for the eventual annexation of the Isthmus to the Federal Union, but to give np the Bay Islands as well; a notion alto- gether unfounded in any intimation which has hitherto reached me from the foreign office, and which could not be reconciled in my opinion to the interests of England. In reply to my observations the Secretary of State remarked that he would reserve the subject for the consideration of his Government. He added, as a personal impression, that he was in favor of a naked, unquali- fied repeal of the Clayton-Bulwer treaty without conditions, aud that such a repeal should be effected in the form of a treaty, though he alluded, with a certain deprecation, to the contingency of the dissolution of the treaty by an act of Congress. He also thought, however, that the mat- ters at issue might be adjusted through the mission of Sir William Ouseley. I was most careful to remark throughout that the opinions I enun- ciated with reference to the conditions under which the treaty should be abrogated were exclusively my own ; and that it belonged to the Government of the United States to offer a suggestion for the purpose in question, as the overture should proceed from them. The only point on which I spoke with determination was that of the surrender of the Bay Islands, in which I trust that I have not misinterpreted the senti- ments of Her Majesty's Government. On the whole, I did not think that my informal communication was as favorably received as the pre- vious declarations of the President and the Secretary of State on this subject might have warranted me in expecting. I have, &c., NAPIBE. The Eael of Malmesbury. ^ DJOUMENT No. 69. 55.— Lord Malmesbury to Lord Napier. No. 58.] Foreign Office, April 8, 1858. My Lord : I have received your lordship's dispatch of the 22d ultimo, reporting your conversation with General Cass upon the disposition of iBCer Majesty's Government to concur in a proposal to set aside the Clay- ton-Bulwer treaty, and I have to acquaint your lordship that Her Maj- esty's Government entirely approve of your having placed on record, by 280 PROPOSED INTEEOCEANIC CANAL, delivering to General Cass copies of those dispatches, that they were ready to abrogate that treaty. In this state of things it will be proper that your lordship should ab- stain from any further discussion on that point, leaving the G-overnment of the United States to appreciate as they may the announcement which you have thus made of the readiness of Her Majesty's Government to concur with the view of the subject expressed in the President's mes- sage ; and your lordship, without further adverting to the question of abrogation, will only press for an early and decided answer to .the pro- posal respecting arbitration which you have submitted to the Govern- ment of the United States. You will evince no eagerness for the accept- ance of that proposal ; neither will you exhibit anxiety for the abrogation of the treaty ; and if the proposal is rejected you will not officially bring forward as the alternative the abrogation of the Clayton treaty, but an- nounce your intention to report home and wait for instructions. Her Majesty's Government, if the initiative is still left to them by the unwillingness of the United States themselves to propose abrogation, desire to retain full liberty as to the manner and form in which any such proposal shall be laid on their behalf before the Cabinet at Washington; but, without pronouncing any decided opinion at the present moment, I think it right to point out to your lordship that the effect of such an article as that suggested in your dispatch as the second might be to per- petuate an entanglement with the 'Government oi the United Statesj and to place that Government in a position to question or control the free action of Her Majesty's Government in everything that relates to Central America. The Clayton-Bulwer treaty has been a source of un- ceasing embarrassment to this country, and Her Majesty's Government, if they should be so fortunate as to extricate themselves from the diffi- culties which have resulted from it, will not involve themselves, dire'ctly or indirectly, in any similar difficulties for the future. Her Majesty's Government would have no objection to enter with the United States into a seif-denying engagement, such as that suggested in your first article, by which both parties should renounce all exclusive advantage in the use of any of the interoceanic routes, and should bind themselves each to the other, not to interfere with free transit. Such an article would be a suitable substitute for the Clay ton-Bulwer treaty, for it would secure, as regards the contracting parties, the avowed ob- ject of that treaty — the freedom of interoceanic communication. But beyond this Her Majesty's Government, as at present advised, are not prepared to contract any engagement as a substitute for the Clayton- Bulwer treaty, and from the abrogation of that compact, if it should take place, they will hold themselves as free to act in regard to Central America in the manner most conducive to the advancement of British interests and the fulfillment of British obligations as if the treaty had never been concluded. Your lordship was, therefore, perfectly right in using decided lan- guage, such as that reported in your dispatch respecting t]je Bay Islands, and whenever the subject of the abrogation of the Clay tou-Bulwer treaty is mooted in your presence, you will mike it perfectly clear to the Gov- ernment of the United States that to abrogate the treaty is to return to the status quo ante its conclusion in 1850; that Her Majesty's Govern- ment have no kind of jealousy respecting American colonization in Cen- tral America, whi«b, indeed, it would help to civilize; and that we neither ask nor wish for any exclusive privileges whatever in those regions. I am, &c., MALMESBUEY. Lord Napiee. CLAYTON-BULWER TREATY, AND MONEOE DOCTRINE. 281 DOCUMENT No. 70. 56. — Mr. Gass to Mr. Lamar. [Extract.] No. 9.] Department of State, Washtngton, July 25, 1858. Sir: " * * These great avenues of intercommunication are vastly interesting to all commercial powers, and all may well join in securing their freedom and use against those dangers to which they are exposed from aggressions or outrages originating within or without the territories ' through which they pass. But the establishment of a political protectorate by any of the pow- ers of Btirope over any of the independent states of this continent, or, ' in other words, the introduction of a scheme or policy which would carry with it a right to interfere in their concerns, is a measure to which the United States have long since avowed their opposition, and which, should the attempt be made, they will resist by all the means in their power. The reasons for the attitude they have assumed have been fully pro- mulgated, and are everywhere well known. There is no need upon this occasion to recapitulate them. They are founded on the political cir- cumstances of the American continent, which has interests of its own, and ought to have a policy of its own, disconnected from many of the questions which are continually presenting themselves in Europe, con- cerning the balance of power and other subjects of controversy arising out of the conditioii of its states, and which often find their solution or their postponement in war. It is of paramount importance to the states of this hemisphere that they should have no entangling union with the powers of the Old World, a connection which would almost necessarily make them parties to wars having no interest in them, and which would often involve them in hostilities with the other American states, con- tiguous or remote. The years which have passed by since this principle of separation was first announced by the United States have served stil 1 more to satisfy the people of this country of its wisdom and to fortify their resolution to maintain it happen what may. The progress of events has rendered the interoceanic routes across the narrow portions of Central America vastly important to the commercial world, and especially to the United States, whose possessions extending along the Atlantic and Pacific coasts demand the speediest and easiest modes of communication. While the just rights of sovereignty of the States occupying this region should always be respected, we shall expect that these rights will be exercised in a spirit befitting the occasion and the wants and circumstances that have arisen. Sovereignty has its duties as well as its rights, and noue of these local governments, even if administered with more regard to the just demands of other nations than they have been, would be permitted, in a spirit of Eastern isola- tion, to close these gates of intercourse on the great highways of the world, and justify the act by the pretension that these avenues of trade and travel belong to them, and that they choose to shut them, or, what is almost equivalent, to encumber them with such unjust regulations as ■would prevent their general use. The United States do not seek either the control or the exclusivei use of these routes. They desire that the advantages should be equally common to all nations. Nor do they claim 282 PROPOSED INTEROCEANIC CANAL, to interfere with the local governments in the determination of the ques- tions connected with the opening of the roiites, and with the persons with whom contracts may be made for that purpose. What they do desire, and mean to accomplish, is that the great interests involved in this subject should not be sacrificed to any unworthy motive, but should be guarded from abuse, and that when fair contracts are fairly entered into with American citizens they should not be wantonly violated. Other nations will no doubt pursue the same course in relation to their citizens or subjects who may have similar interests. ^ i But besides these general considerations applicable to this subject, there are others which impose additional obligations upon these isth- mian powers, and which bear with equal force upon their relations with other nations. Several of these powers, and Nicaragua especially, have in fact, by their public proceedings, invited the co-operation of the cap- ital, and industry, and enterprise of the world in order to open these lines of commuuication. The citizens of the United States h^ve con- tributed their full share toward the accomplishment of the enterprise, and this Government intends to use the means in its power to protect them in the enjoyment of their rights. The good faith of Nicaragua has been committed, and large sums have been expended looking to its faithful observance. A paper has recently appeared in the public journals, to which I have already referred, purporting to be a contract between the Governments — the presidents rather — of Costa Eica and of Nicaragua and M. Belly, a French citizen, and his associates, constituting a new canal-route com- pany, and providing for its operations. Nothing is known here ofBcially of the authenticity of this paper, but it carries with it a strong proba- bility that it is genuine, and, presuming it to be so, it furnishes you with an occasion to lay before these governments the views of the United States respecting their own interests and the interests of their citizens Involved in the contracts for opening transit routes. So far as regards the action of Costa Kica, the President adheres to the views' laid down in the instructions to our special agent, Mr. Jones, a copy of which has been communicated to those governments, and also furnished to your- self. And the United States, while they interpose no objection to an amicable adjustment by those republics of the question of their bound- ary line, will recognize no arrangement which interferes with the exist- ing transit interests as insisted on in those instructions. The United States no more claim for their citizens an exclusive right to form contracts for opening these transit routes than they claim for them the exclusive use of the routes when the work is completed. Their con- struction is a fair object of competition for the citizens and subjects of all other powers. The work is as open to M. Belly and his associates as to any other enterprising person. There are but two points connected with this matter which have any interest for the United States, or which would justify their intervention. The first is, that no contract with M. Belly, or with any one, indeed, should interfere with engage- ments previously existing with American citizens, but that all such engagements should be preserved inviolate ; and the second is, that the regulations and conditions of the grant should be such as to render the routes free and safe to all nations, but controlled by no one, and upon moderate and reasonable terms. It would be equally impolitic and un- just for these Governments, in a desire to make those great undertak- ings profitable to themselves, without furnishing any contribution to wards their construction, to levy onerous charges upon the persons and prop- ClATTON-BULWER TREATY, AND MONROE DOCTRINE. 283 terty destined to pass over them, and by this means interpose serious obstacles to their general nse. These local governments should look to the vast benefits which these enterprises will bring to the countries • through which they i)ass, and not strive by excessive impositions to make them sources of revenue, and defeat, by this ill-judged measure, the very object sought to be obtained. It is not necessary that I should enter into a detailed examination of M. Belly's contract. There are physical and financial obstacles, as well as political ones, in the w^y of its execation-, some of which can hardly be overcome. I shall, therefore, only advert to one of the provisions, rather with a view to the future proceedings of these Governments than from any practical bearing it will have in this case. But previously to doing so J will bring to your notice one extraordi- nary stipulation which it could scarcely have been expected would be acceptable to the United States, and which must have been entered into' in the anticipation of their objections to it. Those objections are in- surmountable. This obnoxious arrangement provides that the French Government shall have the right to keep two ships of war stationed in the waters of Lake Nicaragua for the entire duration of the works. I am persuaded that this proposition will meet no favor from the French Government, and that its name has been introduced here un- warrantably and without its knowledge. The equality and security of these interoceanic routes constitute a great portion of their value to the . world, and all commercial powers are interested in their maintenance. An exclusive right in one of these powers to exercise a permanent armed intervention would give serious cause of dissatisfaction to all the others, and the United States freely avow their determination to (oppose such a measure should the Governments of Costa Eica and Nic- aragua attempt to carry it into effect. ' But there are additional conditions applicable to this contract with M. Belly and to other contracts for similar purposes entered into by the Government of Nicaragua which commend themselves to the Govern- ment of the United States, and will not be disregarded. There are several American citizens who, with different interests, claim to have formed engagements with the proper authorities of Nicaragua for open- ing and using the transit routes, with various stipulations defining their privileges and duties, and some of these contracts have already been in Operation. This Government has neither the authority nor the disposi- tion to determine the conflicting interests of these claimants ; but what it has the right to do, and what it is disposed to do, is to require that the Government of Nicaragua should act in good faith towards them, land should not arbitrarily and wrongfully divest them of rights justly acquired and solemnly guaranteed. The United States believe it to be their duty, and they mean to execute it, to watch over the persons and property of their citizens visiting foreign countries, and to inter- vene for theif protection when such action is justified by existing cir- cumstances and by the law of nations. Wherever their citizens may- go through the habitable globe, when they encounter injustice they may appeal to the Government of their country, and the appeal will be ex- amined into with a view to such action in their behalf as it may be proper to take. It is impossible to define in advance and with precision those cases in which the national power may be exerted for their relief, or to what extent relief shall be afforded. Circumstances as they arise inust priescribe the rule of action. In countries where well-defined and 284 PKOPOSED INTEROCEANIC CANAL, established laws are in operation, and where their administration is committed to able and independent judges, cases will rarely occur where such intervention will be necessary. But these elements of con- fidence and security are not everywhere found, and where that is unfort- unately the case the United States are called upon to be more vigilant in watching over their citizens, and to interpose efftciently for their pro- tection when they are subjected to tortious proceedings, by the direct action of the Government, or by its indisposition or inability to dis- charge its duties. But there is yet another consideratioo which calls for the attention of this Government. These contracts with their citizsens have a national importance. They affect not ordinary interests merely, but questions of great value, political, commercial, and social, and the United States are fully justified by the considerations already adverted to in taking care that they are not wantonly violated, and the safe establishment of an interoceanic communication put to hazard or indefinitely postponed. The course of the Government of Nicaragua with relation to these en- gagements contains nothing in it reassuring, for the future contracts duly executed with all the forms of law, carrying with them important vested rights, have been arbitrarily set aside by executive decrees — a mode of proceeding not recognized in the contracts themselves — and without resorting to the action of judicial tribunals. The facts in dis- pute have been unjustly assumed, and the hand of violence has been laid upon solemn engagements whiph ought to have found their secur- ity in the good faith of the Government. I am not aware that in any case has the forfeiture of a contract been declared in any other way than by an arbitrary executive decree. This is a state of things to which no nation is bound to submit. It is vain to expect that the means of men and money required from other nations for the execution of these works will be furnished in the face of such manifestations of bad faith. Without confidence these great enterprises must fail ; nor is it probable that one of them requiring a heavy outlay would now be un- dertaken and completed without some surer guarantee for their protec- tion than would be furnished by the engagements of these Central American States. The danger of violation is too well known and ap- preciated to justify the expectation of the investment of capital under such unpropitious circumstances. So long as a pecuniary object is supposed to furnish a motive for re- scinding existing contracts and forming new ones, without any regard to vested rights, no progress will be made in the construction of canals or of other permanent and expensive works for transportation. The United States, acting in behalf of their citizens, object to this system of confiscation, and they do not doubt but what they will have the concurrence of all other powers who have similar interests in these vastly important measures. What the United States demand is, that in all cases where their citizens have entered into contracts with the proper Mcaraguan authorities, and questions have arisen, or shall arise, respecting the fidelity of their execution, no declaration of forfeiture, either past or to come, shall possess any binding force unless pronounced in conformity with the provisions of the contract, if there are any, or if there is no provision for that purpose, then unless there has been a fair and impartial investigation in such a manner as to satisfy the United States that the proceeding has been just and that the decision ought .to be submitted to. Without some security of this kind, this Government will consider CLAYTON-BUIiWER TREATY, AND MONROE DOCTRINE. 285 itself warranted, whenever a proper case arises, in interposing sach means as it may think justifiable, in behalf of its citizens who may have been or who may be injured by such unjust assumption of power. ******* I am, &c., LEWIS CASS. DOCUMENT No. 71. 57. — Mr. Cass to Lord Napier. Department op State, Washington, November 8, 1858. My Lord : I have had the honor to receive the copy which your lord- ship did me the favor to send me of Lord Malmesbury's dispatch to your lordship of August 18, in reference to Sir William Ouseley's mis- sion, and have submitted it to the consideration of the President. Prom the statement of Lord Malmesbury that the British Government has no remaining alternative but that of "leaving the Cabinet of Washington to originate any further overtures for an adjustment of these controver- sies," it is quite obvious that the position of the President on this sub- ject is not correctly understood by Her Majesty's Government. Since the announcement by your lordship in October, 1857, of Sir William Ouseley's special mission, the President has awaited not so much any new proposition for the adjustment of the Central American questions as the statement in detail which he had been led to expect of the method by which Sir William Ouseley was to carry into effect the previous proposition of the British Government. To make this plain, your lord- ship will pardon me for making a brief reference to what has occurred between the two Governments in respect to Central America since the ratification of the Olayton-Bulwer treaty of 1850. While the declared object of that convention had reference to the con- struction of a ship-canal, by the way of San Juan and the lakes of Nicara- gua and Managua, from the Atlantic to the Pacific Oceans, yet it avowed none the less plainly a general principle in reference to all practicable communications across the Isthmus, and laid down a distinct policy by which the practical operation of this principle was likely to be kept free from all embarrassment. The principle was that the interoceanic routes should remain under the sovereignty of the states through which they ran, and be neutral and free to all nations alike. The policy was, that in order to prevent any Government outside of those states from obtaining undue control or influence over these interoceanic transits, no such nation should " erect or maintain any fortifications command- ing the same, or in vicinity thereof, or should occupy or fortify or colo- nize or assume or exercise any dominion over Nicaragua, Costa Eica,the Mosquito coast, or any part of Central America." So far as the United States and Great Britain were concerned, these stipulations were expressed in unmistakable terms, and in reference to other nations it was declared that the contracting parties in this conven- tion engage to invite every state with which both or either have friendly intercourse to enter into stipulations with them similar to those which they iave entered into with each other. At that time the Dnited States had no possessions whatever in Central America and exercised no dominion therel In respect to this Government, therefore, the provisioiis of tHe 286 PROPOSED INTEEOCEANIC CANAL, first article of the treaty could operate only as a restriction for the fu- ture, but Great Britain was in the actual exercise of dominion over nearly the whole eastern coast of that country, and in relation to her this article had a present as well as a prospective operation. She was to abandon the occupancy which she already had in Central America, and was neither to make acquisitions nor erect fortifications or exercise do- minion there in the future. In other words, she was to place herself in the same position, with respect to possessions and dominion in Central America, which was to be occupied by the United States, and which both the contracting parties to the treaty engaged that they would en- deavor to induce other nations to occupy. This was the treaty as it was understood and assented to by tlie United States, and this is the treaty as it is still understood by this Government. Instead, however, of giv- ing effect to it in this sense, the British Government proceeded in 1851, only a few months after the signature of the treaty, to establish a new British colony in Central America under the name of the " Bay Islands"; and when this Government expressed its great surprise at this proceeding and at the failure of Great Britain to comply with the terms of the con- vention; Her Majesty's Government replied that the Islands already be- longed to Great Britain at the date of the treaty, and that the conven- tion,, in their view of it, interfered with none of their existing posses- sions in Central America, but was wholly prospective in its character and only prevented them from making new acquisitions. It is unneces- sary to do more than simply refer to the earnest and able discussions which followed this avowal, and which show more and more plainly the opposite constructions which were placed upon the treaty by the two Governments. • In 1854 it was sought to reconcile these constructions and to termi- nate the Central American questions by the convention which was signed at London by the American minister and Lord Clarendon, usually designated tiie Dallas-Clarendon treaty. The terms of this treaty are, doubtless, familiar to your lordship. It provides — 1. For the withdrawal of the British protectorate over the Mosquito Indians, and for an arrangement in their behalf upon principles which were quite acceptable to the United States. 2. It regulated the boundaries of the Belize settlements within which Great Britain claimed to exercise certain possessory rights upon terms which, although not wholly acceptable to this Government, were yet in a spirit of generous concession ratified by the United States Senate. 3. It provided for a cession of the Bay Islands to Honduras (in the opiniou of this Government their rightful proprietor), but this conces- sion was made dependent upon an unratified treaty between Great Britain and Honduras, whose terms were not ofl&cially known to this Government, but which, so far as they had uuofftcially appeared, were not of a satisfactory character. The Senate, therefore, in ratifying the Dallas-Clarendon treaty, felt obliged to amend it by striking out all that part of it which contem- plat€d the concurrence of this Government in the treaty with Honduras, and simply providing for a recognitSon by the two Governments of the sovereign right of Honduras to the islands in question. Great Britain found itself unable to concur in this amendment, and the Dallas Claren- don treaty, therefore, fell to the ground. It was clear, however, that the objections of the Senate to the Honduras treaty were not deeinetl unreasonable by Her Majesty"? Government, because in your lordship'^ interview with the President on the 22d Octob]6r, 1857, your lordship CL.A.YTON-BULWEE TREATY, AND MONROE DOCTRINE. 287 " allowed that the articles establishing the administrative independence of the islands might have been larger than was necessary." "I had observed," you added, " the same impression in the Correspondence of Mr. Wyke, Her Majesty's charge d'affaires at Guatemala, who seemed to admit that a greater participation in the internal government might be granted to the authorities of Honduras," and you made " no doubt that Her Majesty's Government would entertain any reasonable sugges- tions which might be offered to them in that sense." And again, in your lordship's note to this Department of November 30, 1857, you recognize the same probability " that the intervention of the Honduras Government in the administration of, the islands may have been more limited than was necessary or even advisable." Such was doubtless the opinion of Honduras, for as long ago as May 10, 1857, 1 was informed by your lordship that the treaty remained un- ratified "owing to some objections on the part of the Government of Honduras," and that " Her Majesty's Government does not expect that the treaty in its present shape will be definitely sanctioned by that Ee- public." In view of the objectionable provisions of this convention with Hon- duras, and of its failure to be sanctioned by that Eepublic, your lord- ship, by the authority of Lord Clarendon, informed me on the 6th of May, 1857, that Her Majesty's Government was prepared to sanction a new treaty, in respect to the Central American questions, which should in all respects conform to the Dallas-Clarendon treaty, as ratified by the Senate, except that to the simple recognition in the Senate's sub- stitute for the second separate article of the sovereignty of Honduras over the Bay Islands there was to be added the following passage : " Whenever and so soon as the Eepublic of Honduras shall have con- cluded and ratified a treaty with Great Britain by which Great Britain shall have ceded and the Eepublic of Honduras shall have accepted the said islands subject to the provisions and conditions contained in said treaty." While this condition contemplated a new treaty with Hondu- ras which might possibly avoid the objectionable provisions of the old one, yet it was quite impossible for the United States to become a party, either directly or indirectly, to a convention which was not in existence, or whose terms and conditions it could neither know nor control. For this reason I informed your lordship in my communication of May 29 that your lordship's proposition was declined by this Government. The attempts to adjust the Central American questions by means of a supplementary treaty having thus failed of success, and the subject not being of a character, in the opinion of the United States, to admit of their reference to arbitration, the two Governments were thrown back upon their respective rights under the Claytou-Bulwer treaty. While each Government, however, had continued to insist upon its own con- struction of this treaty, there was reason to believe that the embarrass- ments growing out of their conflicting views of its provisions might be practically relieved by direct negotiations between Her Majesty's Gov- ernment and the states of Central America. In this way it seemed possible that, without any injustice to those states, the treaty might be rendered acceptable to both countries as well as operative for the disinterested and useful purposes which it hajd b^en designed to serve. The President, therefore, was glad to learn from your lordship, on the 19th of October, 1857, that Her Majesty's Government had " resolved to dispatch a representative of authority and experience to Central America, to make a definitive settlemient of all the matters with regard to whidx th© tf nited States an^d England were 288 PEOPOSED INTEROCEANIC CANAL, still at variance, and who would be instructed," as your lordship be- lieved, '' to carry the Clayton -Bui wer treaty into execution according to the general tenor of the interpretation put upon it by the United States, but to do so by separate negotiation with the Central American repub- lics in lieu of a direct engagement with the Federal G-overnment." This announcement could not fail to be received with satisfaction by thePresi- dent, because it contemplated the substantial accomplishment of the very purposes in respect to the treaty which the United States had always had in view, and so long as these were accomplished he assured your lordship that " to him it was indifferent whether the concession contemplated by Her Majesty's Government were consigned to a direct engagement between England and the United States or to treaties be- tween the former and the Central American republics ; the latter method might, in some respects," he added, "be even more agreeable to him, and he thought it would be more convenient to Her Majesty's Government, who might, with greater facility, accede to the claims of the weaker party." It is unnecessary to refer at length to what was said in this conversa- tion, or to a second one on the same subject which your lordship had with the President on the evening of October 23 ; but there can be no doubt that in both interviews the expected mission of Sir William Ouse- ley (who it is was understood had been selected as the plenipotentiary re- ferred to), in connection with what your lordship indicated as his prob- able instructions, was favorably regarded by the President. So much was this the case, that he gave your lordship his full assurance that should your lordship's announcement be confirmed by any oflflcial infor- mation such as he could use, he would change that part of his message which related to Great Britain, would encourage no attempt in Congress to annul the treaty while the mission was in progress, and nothing would give him greater pleasure, he said, " than to add the expression of his sincere and ardent wish for the maintenance of friendly relations between the two countries." At the close of the second interview, he even went so far as to remark, in reference to the extended boundary claimed by Great Britain for the Belize (to which he had ever objected), that he could take no absolute engagement in this matter ; but he would say this much, " that if the Bay Islands were fairly and handsomely evacuated, such a measure would have a great effect with him, and with the American people, in^ regard to the settlement of the other points at issue." Sir William Ouseley arrived in Washington about the middle of No- vember, and on the 30th of November I received from your lordship an official statement in outline of the purposes of his mission. On the 5th December your lordship inclosed to me a copy of Lord Clarendon's dispatch of November 20, in which your lordship's previous statement was substantially conflrmed,and in which it was further stated that " Sir William Ouseley, during his visit to Washington, will, in pur- suance of his instructions, have explained with the utmost frankness to the Government of the United States the nature of the instructions with which he is furnished, and your lordship, as the duly accredited organ of Her Majesty's Government, will have given similar explana- tions." The objects of Sir William Ouseley's mission, as thus made known tp the United States, were : 1. To provide for the transfer by Great Britain of the Bay Islands to the Government of Honduras ; and in this transfer it was especially de- clared that the stipulations in the British treaty with Honduras were not CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 289 to be rigidly adhered to. Sir William JOuseley, on the contrary, while re- quiring provisions to secure the vested rights of British subjects in the Bay Islands, was to be left at liberty to contract engagements with Hon- duras which should embody not only an unmistakable recognition of its sovereignty over these islands, but should allow of a more direct government and a more efficient protection over them by that republic than had been contained in the convention of 1856. 2. The second object of Sir William Ouseley's mission was the settle- ment of the question of the Mosquito protectorate with Nicaragua and Honduras. Whilst he was to provide for the compensation, the govern- ment, and the protection of the Mosquito Indians under the sovereignty of Nicaragua, this was to be done upon terms not less favorable than those which had received the approbation of the Senate in the Dallas- Clarendon treaty. In no degree was the Indian reserve to trespass on the territory applicable to transit purposes. 3. The regulation of the frontier of British Honduras was to be effected by negotiation with the Government of Guatemala. Her Maj- esty's Government trusted to obtain from that republic a recognition of limits " which, if we may judge from previous communications on the subject, may be accepted in a spirit of conciliation, if not with absolute approval, by the President." Such were the overtures communicated by your lordship's note to this Department of November 30, and which were again referred to in Lord Clarendon's note to your lordship of November 20, of which you inclosed to me a copy in your lordship's note of December 5. Inasmuch as the announcement of Sir William Ouseley's mission, with the explanation by your lordship of its general purposes, had been received with much satisfaction by the President, there were some expressions in this note of Lord Clarendon's which it was not easy to understand ; but which, nevertheless, did not materially change the general character of the overtures. It was still stated in that dispatch " that the objections enter- tained in the United States to. the construction placed upon that treaty by the British Government art), as'every impartial person must admit, in a fair way to be removed by the voluntary act of the latter; and while the objects of Sir William's mission continued to be mentioned in only general terms, it was yet added that during his visit to Washing- ton he will, in pursuance of his instructions, have explained with the utmost frankness the nature of the instructioiis with which he is fur- 'nished, and your lordship, as the duly accredited organ of Her Majesty in the United States, will have given similar explanations.'' The President did not hesitate, therefore, in his message to Congress, to refer to these overtures as having recently been made by the British Government in a friendly spirit, which he cordially reciprocated. He could do no more than this, whatever might be his hopes for the success of Sir William's mission, until he had received the further explanations concerning it which he had been led to expect, and which he was pre- pared to consider in the kindest and most respectful manner. The gen- eral remarks contained in the outline of November 30 must have been molded into some specific form, in order to enable this Government to arrive at a practical decision upon the questions presented to it. This I understood to be the view of your lordship and Sir William Ouseley, as well as that of the President and this Department. Indeed, it was wholly in conformity with this view that Sir William Ousely was understood to have called at Washington on his way to Central America. Had he proceeded directly to his destination, and there, by seperate treaties with the Central American republics, given substanfal effect to the 4909 CONG 19 290 PEOPOSED INTEKOCEANIC CANAL Clayton-Bulwer convention, according to the general tenor of the Ameri- can construction of that Instrument, the Central American controversy would then have been fortunately terminated to the satisfaction of both Governments. But since this Government, in spirit of comity, which the President fully appreciates, was asked to co-operate in accomplish- ing this result, it was surely not unreasonable that it should know spe- cifically the arrangements which it was expected to sanction. The general objects in view, we were acquainted with and approved, but there was no draft of a treaty, no form of separate article, no defi- nition of measures. The Bay Islands were to be surrendered, but under what instructions ? The Dallas-Clarendon treaty was to be modified, but what were the modifications t The rights of British subjects and the in- terests of British trade were to be protected in Euatan, but to what extent and by what coaditious ? Honduras was to participate more largely in the government of the Bay Islands than she was allowed to do by the convention of 1856, but how far was she to be restrained and what was to be her power? These and other similar questions naturally arose upon the general overtures contained in your lordship's note of l^oveaiber 30, and seemed naturally enough to justify the hope which was entertained of some further explanation of these overtures. In all my conversations with your lordship on the subject of Sir William's mission subsequent to the meeting of Congress, this expectation of some further and more definite communication concerning it was certainly taken for granted, and until time was given to receive such a communication, you did not press for any answer to your lordship's note of November 30. In the beginning your lordship seemed to think that some embarrassment or delay in prosecuting the mission might be occasioned by the expedition to Nic- aragua which had been undertaken by General Walker, and by the Cass-Yrisarri treaty which had been negotiated with that republic by the United States ; but the treaty was not disapproved by Her Majesty's Government and the expedition of Walker was promptly repressed^ so that no embarrassment from these sources could be further apprehended. As the delay still continued, it was suggested by your lordship, and fully appreciated by me, that Her Majesty's Government was necessarily occupied with the affairs of Her Majesty's possessions in India, which then claimed its immediate attention to the exclusion naturally of busi- ness which was less pressing, and hence I awaited the expected instruc- tions without any anxiety whatever. All this is precisely what your lordship very frankly describes in your lordship's communication to this Department of April 12, 1858. "I addressed my Government," your lordship says, " with a view to obtaining further explanations and in- structions, and I informed you that it was not my desire to press for an official reply to the overtures of the Earl of Clarendon pending an answer from London." The explanations, however, anticipated by your lordship and by my- self, were not received, and about three months after the arrival of Sir William at Washington you expressed to me your regret that you had held out expectations which proved unfounded and which had prompted delay, and then for the first time requested an answer to the proposals of Her Majesty's Government, and "especially to that part of them re- lating to arbitration." It was even then suggested that the answer was desired because it was thought to be appropriate as a matter of form and not because the explanations which had been waited for were deemed wholly unnecessary. "I overlooked something due to forms," is yonr. lordship's language in the note of April 12, "in my anxiety to promote CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE 291 a clearer understanding, and^ I eventually learned in an official shaoe that tier Majesty's Government, following their better judgment, de- sired, before making any further communication, a reply to their over- tures, and especially to that part of Ihem referring to arbitration. Should the new profter of arbitration be declined, it was clearly not supposed in your note of February 15 that this result would have any tendency to mtertupt Sir William's efforts; but in that event it was hoped," you informed me, that these efforts " would result in a settlement agreeable to the United States, inasmuch as in essential points it would carry the treaty of 1850 into operation in a manner practically conformable to the American interpretation of that instrument." On the 6th of April I^replied to your lordship's note of February 15, with a very frank and full statement of the views of this Government upon all the points to which your lordship had referred. The renewed offer of arbitration mentioned in a dispatch of Lord Clarendon was e.s- plicitly declined for the same reasons which had occasioned its rejection before, but an earnest hope was expressed for the success of Sir William Ouseley's mission, and I was instructed formally to request from your lordsbip those further explanations concerning it, which had been prom- ised in Lord Clarendon's note of November 20, for which both your lord- ship and myself had waited for three months in vain, and which, up to this time, have never been furnished to the American Government. The disappointment which the President felt at some portions of the corre- spondence which bad occurred, and especially at the failure of Her Maj- esty's Government to inform him more fully than it had done, on the Subject of the mission, was communicated to your lordship without the least reserve, but in the purposes of that mission, so far as he under- Stood them, I was authorized to say that he fully concurred, and to add his sincere hope that they might be successfully accomplished. >' The President," I informed you, " has expressed his entire concur- rence in the proposal for an adjustment of the Central American ques- tions, which was made to him by your lordship last October, and he does not wish that any delay or defeat of that adjustment shall be justly charge- able to this Government. Since, however, he is asked to co-operate in the arrangement by which it is expected to accomplish it, it is essential that he sfiould know with reasonable accuracy what those arrangements are." It was in the hope of this adjustment, as well as with a view to the serious consequences which might flow from a naked repeal of the Olayton-Bulwer treaty, that I made the observations on that subject which are contained in my letter to your lordship of April 6. No de- mand for this abrogation, your lordship is well aware, had then been madeby Her Majesty's Government ; but your lordship had several times suggested to me that such an alternative, if proposed by the United States, would be respectfully considered by Great Britain, and in your lordship's belief might in some form or other be finally adopted. You informed me, however, at the same time, that in that event Great Britain would not be inclined to surrender its possessions in Central America, and would certainly continue to occupy the Bay Islands. In reply to this announcement, I informed your lordship that since it is well known that the views of this Government are wholly inconsistent with these pretensions, and that it can never willingly acquiesce in their mainte- nance by Great Britain, your lordship will readily perceive what serious consequences might follow a dissolution of the treaty, if no provision should be made at the same time for adjusting the questions which led to it. 292 PEOPOSED INTEEOCEANIC CANAL, "If, therefore,"! added, "the President does not hasten to considei now the alternative of repealing the treaty of 1850, it is because he doei not wish to anticipate the failure of Sir William Ouseley's mission, anc is disposed to give a new proof to Her Majesty's Government of his sin cere desire to preserve the amicable relations which now happily subsist between the two countries." Having thus complied with your lordship's request, and given that formal reply to the overtures embraced in Sir William Ouseley's mission, which was desired by Her Majesty's Government, I confidently expected to receive within a reasonable time these additional instructions which appeared to have been delayed for this reply. Such, doubtless, was the hope, also, of your lordship. " The discussion has been deferred,'' you informed me in your note of April 12, " but the interests at stake have probably not suffered." The results of the negotiation between Nicaragua and the United States are not yet disclosed, and it is proba- ble that Sir William Ouseley may proceed to his destination with more advantage when the nature of those engagements is fully defined." " If the American Cabinet," you also said, "as may be inferred from your expressions, be well disposed toward Sir William Ouseley's Inission, and will meet her Majesty's Government in a liberal spirit, on matters of secondary moment, that mission may still conduct us to a happy ter- mination." In further informing me that my communication would be transmitted to Her Majesty's Government, you added, " It remains with Her Majesty's Government to determine whether they can afford the more perfect information desired." This was the state of the negotiation in April, 1858. The purposes of Sir William Ouseley's mission had been announced to the American Government and approved ; reference had been made by Lord Claren- don to your lordship and Sir William Ouseley for further explanations ; these explanations had been asked for from your lordship in repeated interviews, but your lordship had not received the necessary instructions to make them until a reply had been received to the general overtures embraced in your previous notes, and especially to that part of them re- lating to arbitration ; this reply had been given, still approving the mis- sion and rejecting the arbitration; and it had been sent to London for the consideration of Her Majjesty's Government. Under these circumstances, I need not describe to your lordship the surprise with which I received the copy of Lord Malmesbury's dispatch to your lordship, dated at Potsdam, August 18, which you were good enough to inclose to me. In this dispatch, instead of affording any more exact definition of the objects of Sir William Ouseley's mission, your lordship is directed to inform me that Her Majesty's Government "have, in fact, nothing to add to the explanations given by Sir William and your lordship upon the subject." As no explanations whatever had been received from either Sir William or yourself since the communication of November 30, it is obvious that his lordship must labor under some misapprehension on this subject ; and equally clear is it that when his lordship represents me as having declared in my note of the 6th of April that the Government of the United States could not agree to the abro- gation of the Clayton-Bulwer treaty, that he has failed to appreciate fully the views of the United States in reference to that abrogation. The declaration in my note of April 6 was certainly not against any abrogation of the treaty, but against considering the expediency of abro- gating it at that particular time, and until hopes were at an end for a successful termination of Sir William Ouseley's mission. This waiver of a discussion on the subject of abrogation, in deference to the purposes CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 293 " expected by this Government from Sir William Oaseley's mission. Tet even these efforts Lord Malmesbury seems to regard as having been re- jected by the United States, and Her Majesty's Government, he con- cludes, have no alternative but that of leaving to the Cabinet of Wash- ington to originate any further overtures for an adjustment of these controversies. Surely, my lord, there must be some grave misapprehension in all this of the views entertained and expressed by this Government upon the proposals embraced in your lordship's note of November 30, or else this Government has labored under an equally serious error as to what ■was intended by Sir William Ouseley's mission. It is under this im- pression, and in order to prevent two great nations from failing in their attempts to adjust an important controversy from a mere question of form, or a mere misunderstanding of each other's views, that I have en- tered into this extended narrative. It is of no small consequence, either to the United States or Great Britain, that these Central Ameri- can controversies between the two countries should be forever closed. On some points of them, and I have been led to hope on the general policy which ought to apply to the whole Isthmian region, they have reached a common ground, of agreement. The neutrality of the interoceanic routes and their freedom from the superior and controlling" influence of any one Government, the princi- ples upon which the Mosquito protectorate may be arranged, with jus- tice alike to the sovereignty of Nicaragua and the Indian tribes, the sur- render of the Bay Islands under certain stipulations for the benefit of trade and the protection of their British occupants, and the definition of the boundaries of the British Belize — about all these points there is no apparent disagreement except as to the conditions which shall be annexed to the Bay Islands' surrender, and as to the limits which shall be fixed to the settlements of the Belize. Is it possible that, if ap- proached in a spirit of conciliation and good feeling, these two points of difference are not susceptible of a friendly adjustment? To believe this would be to underestimate the importance of the adjustment, and the intelligent appreciation of this importance which must be entertained by both nations. ' What the United States want in Central America, next to the happi- ness of its people, is the security and neutrality of the interoceanic routes which lead through it. This is equally the desire of Great Brit- ain, of Prance, and of the whole commercial world. If the principles and policy of the Clayton-Bulwer treaty are carried into effect, this ob- ject is accomplished. When, therefore. Lord. Malmesbury in^^ites new overtures from this Government upon the idea that it has rejected the proposal embraced in Sir William Ouseley's mission for an adjustment of the Central American questions by separate treaties with Honduras, Nicaragua, and Gautemala, upon terms substantially according with the general tenor of the American interpretation of the treaty, I have to reply that this very adjustment is all that the President ever desired, and that instead of having rejected that proposal he had expressed his cordial acceptance of it so far as he understood it, and had anticipated from it the most gratifying consequences. Nothing now remains for me but to inquire of your lordship whether the overtures contained in your lordship's note of November 30 are to be considered as withdrawn by Her Majesty's Government, or whether the good results expected in the beginning from Sir WUliam Ouseley's mission may not yet be happily accomplished. I have, &c., LEWIS CASS. 294 PEOPOSED INTEEOCEANIC CANAI<, DOCUMENT No. 72. 58. — Lord Malmesbury to Lord Napier. [Extract. ] • Foreign Office, Becemler 8, 1858. My Loed : I have to inform your lordship that Her Majesty's Gov- ernment have received with lively satisfaction the note which General Cass addressed to your lordship on the 8th of November. The friendly tone in which it is written, and the high appreciation which it displays of the importance of terminating the irritating discussions in which both our countries have been so long involved, cannot but tend to render that termination near at hand and permanent. I feel it to be a duty to do justice to the accuracy with which General Cass has recapitulated the circumstances under which the controversy has been sustained, and the efforts hitherto employed to settle it have failed. I am, &c., MALMESBURY. DOCUMENT No. 73. 69. — Convention between Great Britain and Guatemala. Signed at Guate- mala April 30, 1859. ^ Whereas the boundary between Her Britannic Majesty's settlement and possessions in the Bay of Honduras and the territories of the Ee- public of Guatemala has not yet been ascertained and marked out ; Her Majesty the Queen of the United Kingdom of Great Britain and Ire- land, and the Eepublic of Guatemala, being desirous, with a view to improve and perpetuate the friendly relations which happily subsist be- tween the two countries, to define the boundary aforesaid have resolved to conclude a convention for that purpose, and have named as their plenipotentiaries, that is to say: Her Majesty the Queen of the United Kingdom of Great Britain and Ireland, Charles Lennox Wyke, esquire, Her Britannic Majesty's charg6 d'affaires to the Eepublic of Guatemala, and his excellency the Presi- dent of the Eepublic of Guatemala, Don Pedro de Aycinena, councillor of state and minister for foreign affairs; Who, after having communicated to each other their respective full powers, found in good and due form, have agreed upon and concluded the following articles : Aet. I. It is agreed between Her Britannic Majesty and the Eepublic of Guatemala, that the boundary between the republic and the British settlement and possessions iu the Bay of Honduras, as they existed previous to and on the 1st day of January, 1850, and have continued to exist up to the present time, was and is as follows : Beginning at the mouth of the Eiver Sarstoon,in the Bay of Honduras, and proceeding up the mid-channel thereof to Gracias ^ Dios Falls; then turning to the right and continuing by a line drawn direct from Gracias & Dios Falls to Garbutt's Palls, on the Eiver Belize, and from Garbutt's Falls due north until it strikes the Mexican frontier. CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 295 It is agreed and declared between the High Contracting Parties that all the territory to the north and east of the line of boundary above described belongs to Her Britannic Majesty; and that all the territory to the south and west of the same belongs to the Eepublic of Guate^ mala. Art. II. Her Britannic Majesty and the Eepublic of Guatemala shall, within 12 months after the exchange of the ratifications of the present convention, appoint each a commissioner for the purpose of designating and marking out the boundary described in the precei ling article. Such commissioners shall ascertain the latitude and longitude of Gracias & Dios Falls and of Garbutt's Palls, and shall cause the line of boundary between Garbutt's Palls and the Mexican territory to be opened and marked where necessary, as a protection against future trespass. Art. III. The commissioners mentioned in the preceding article shall meet at such place or places as shall be hereafter fixed, at the earliest convenient period after they shall have been respectively named ;, and shall, before proceeding to any business, make and subscribe a solemn declaration that they will impartially and carefully examine and decide, to the best of their judgment, and according to justice and equity, with- out fear, favour, or affection to their own country, upon all the matters referred to them for their decision, and such declaration shall be entered on the record of their proceedings. The commissioners shall then, and before proceeding to any other business, name S9me third person to act as arbitrator or umpire in any case or cases in which they may them- selves differ in opinion. If they should not be able to agree upon the choice of such a third person, they shall each name a person ; and in each and every case in which the commissioners may differ in opinion as to the decision which they ought to give, it shall be determined by lot which of the two persons so named shall be the arbitrator or umpire in that particular case. The person or persons so to be chosen shall, before proceeding to act, make and qjibscribe a solemn declaration, in a form similar to that which shall already have been made and sub- scribed by the commissioners, which declaration shall also be entered on the record of the proceedings. In the event of the death, absence, or incapacity of either of such commissioners, or of either of such arbitrators or umpires, or of his omitting, or declining, or ceasing to act, another person shall be named, in the same manner, to act in his place or steari, and shall make and subscribe such declaration as aforesaid. Her Britannic 'Majesty and the Eepublic of Guatemala shall engage to consider the decision of the two commissioners conjointly, or of the arbitrator or umpire, as the case may be, as final and conclusive on the matters to be respectively referred to their decision, and forthwith to give full effect to the same. Art. IV. The commissioners hereinbefore mentioned shall make to each of the respective governments a joint report or declaration, under their hands and seals, accompanied with a map or maps in quadruplicate (two for each government), certified by them to be true maps of the boundarry defined in the present treaty, and traversed and examined by them. Art. V. The commissioners and the arbitrator or umpire shall keep accurate records and correct minutes or notes of all their proceedings, with the dates thereof, and shall appoint and employ such surveyors, clerk or clerks, or other persons as they shall find necessary to assist them in the transaction of the business which may come before them. The salaries of the commissioners shall be paid by their respective governments. The contingent expenses of the commission, including 296 PROPOSED INTEEOCEANIC CANAL the salary of the arbitrator or umpire, and of the surveyors and clerks, shall be defrayed in equal moieties by the two governments. Art. VI. It is further agreed that the channels in the water-line of boundary described in Article I of the present convention shall be equally free and open to the vessels and boats of both parties, and that any Islands which may be found therein shall belong to that party on whose side of the main navigable channel they are situated. Art. VII. With the object of practically carrying out the views set forth in the preamble of the present convention for improving and per- petuating the friendly relations which at present so happily exist be- tween the two High Contracting Parties, they mutually agree conjointly to use their best efforts, by taking adequate means for establishing the easiest communication (either by means of a cart-road or employing the rivers, or both united, according to the opinion of the surveying eugl- neers) between the fittest place on the Atlantic coast, near the settlement of Belize and the capital of Guatemala, whereby the commerce of Eng- land on the one hand, and the material prosperity of the Eepublic on the other, cannot fail to be sensibly increased, at the same time that the limits of the two countries being now clearly defined, all further en- croachments by either party on the territory of the other will be effect- ually checked and prevented for the future. Art. yill. The present convention shall be ratified, and the ratifi- cations shall be exchanged at London or Guatemala as soon as possible within the space of 6 months. In witness whereof, the respective plenipotentiaries have signed the same, and have afBxed thereto the seals of their arms. Done at Guatemala, the 30th day of April, in the year 1859. [L. g.l CHARLES LENNOX WTKE. L. S.l P DE AYCINENA. DOCUMENT No. 74. 60. — Treaty between Great Britain and Honduras respecting the Bay Isl- ands, the Mosquito Indians, and the rights and claims of British sub jects, signed at Comayagua, November 28, 1859. Her Majesty the Queen of the United Kingdom of Great Britain and Ireland, and the Eepublic of Honduras, being desirous to settle in a friendly manner certain questions in which they are mutually interested, have resolved to conclude a Treaty for that purpose, and have named as their Plenipotentiaries, that is to say : Her Majesty the Queen of the United Kingdom of Great Britain and Ireland, Charles Lennox Wyke, esquire. Companion of the Most Honor- able Order of the Bath, Her Britannic Majesty's Envoy Extraordinary and Minister Plenipotentiary, on a special mission to the Eepublics of Central America ; and His Excellency the President of the Eepublic of Honduras, Don Francisco Cruz, Political Chief of the Department of Comayagua. Who, after having communicated to each other their respective full powers, found in good and due form, have agreed upon and concluded the following articles: Art, I. Taking into consideration the peculiar geographical position CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 297 of Honduras, and in order to secure the neutrality of the islands adjacent thereto, with reference to any railway or other line of interoceanic com- munication which may be constructed across the territory of Honduras on the mainland, Her Britannic Majesty agrees to recognize the Islands of Kuatan, Oruanaca, Elena, Utile, Barbarete, and Morat, known as the Bay Islands, and situated in the Bay of Honduras, as a part of the Republic of Honduras. > The inhabitants of the said islands shall not be disturbed in the en- > joyment of any property which they may have acquired therein, and shall retain perfect freedom of religious belief and worship, public and pri- vate, but remaining in all other respects subject to the laws of the Ee- public. If any of them should wish to withdraw from the islands, they shall be at full liberty to do so ; to dispose of their fixed or other prop- erty as they may think fit, and to take with them the proceeds thereof. The Eepubhc of Honduras engages not to cede the said islands, or any ot them, or the right of sovereignty^ over such islands, or any of them, or any part of such sovereignty, to any nation or state whatsoever. Art. II. Her Britannic Majesty engages, subject to the conditions and engagements specified in the present Treaty, and without prejudice to any question of boundary between the Republics of Honduras and Nicaragua, to recognize as belonging to and under the sovereignty of the Republic of Honduras the country hitherto occupied or possessed by the Mosquito Indians within the frontier of that Republic, whatever that frontier may be. The British protectorate of that part of the Mosquito territory shall cease 3. months after the exchange of the ratifications of the present treaty, in order to enable Her Majesty's Government to give the necessary instructions for carrying out the stipulations of said treaty. Art. III. The Mosquito Indians in the district recognized by Article n of this treaty as belonging to and under the sovereignty of the Re- public of Honduras shall be at liberty to remove, with their property, from the territory of the Republic, and to proceed whithersoever they may desire, and such of the Mosquito Indians who remain within the said district shall not be disturbed in the possession of any lands or other property which they may hold or occupy, and shall enjoy, as na- tives of the Republic of Honduras, all rights and privileges enjoyed generally by the natives of the Republic. The Republic of Honduras being desirous of educating the Mosquito Indians, and improving their social comlition in the district so occupied by them, will grant an annual sum of 5,000 dollars, in gold or silver, for the next 10 years, for that purpose, to be paid to their headman in the said district, the payment of such annual sum being guaranteed them by a mortgage on all woods and other natural productions (whatever they may be) of the state lands in the Bay Islands and the Mosquito terri- tory. These payments shall be made in half yearly installments of 2,500 dollars each, the first of which payments shall be made 6 months after the exchange of the ratifications of the present treaty. Art. IV. Whereas British subjects have, by grant, lease, or other- wise, heretofore obtained from Ihe Mosquito Indians interests in vari- ous lands situated within the district mentioned in the preceding arti- cle, the Republic of Honduras engages to respect and maintain such interests ; and it is further agreed that Her Britannic Majesty and the Republic shall, within 12 months after the exchange of the ratifications of the present Treaty, appoint two commissioners, one to be named by each party, in order to investigate the claims of British subjects arising 2y8 PJiOPOSED INTEROCBANIC CANAL, out of such grants or leases, or otherwise, and all British subjects whose claims shall, by the commissioners, be pronounced well founded and valid, shall be quieted in the possession of their respective interests iu the said lands. Art. V. It is further agreed between the contracting parties that the commissioners mentioned in the preceding article shall also examine and decide upon any British claims upon the Government of Honduras that may be submitted to them, other than those specified in that article, and not already in a train of settlement ; and the Republic of Honduras agrees to carry into effect any agreements for the satisfaction of Brit- ish claims already made, but not yet carried into effect. Art. VI. The commissioners mentioned in the preceding articles shall meet in the city of Guatemala, at the earliest convenient period after they shall have been respectively named, andi shall, before proceeding to any busine.ss, make and subscribe a solemn declaration that they will impartially and carefully examine and decide, to the best ot their judgment, and according to justice and equity, without fear, favor, or affection, to their own country, all the matters referred to them for their decision, and such declaration shall be entered on the record of their proceedings. The commissioners shall then, and before proceeding to any other business, name some third person to act as an arbitrator or umpire in any case or cases in which they may themselves differ in opinion. If they should not be able to agree upon the selection of such a person, the commissioner on either side shall name a pecson ; and in each and every case in which the commissioners may differ in opinion as to the ■ decision which they ought to give, it shall be determined by lot which of the two persons so named shall be arbitrator or umpire in that par- ti(jular case. The person or persons so to be chosen shall, before pro- ceeding to act, make and subscribe a solemn declaration, in a form sim- ilar to that which shall already have been made and subscribed by the commissioners, which declaration shall also be entered on the record of the proceedings, In the event of the death, absence, or incapacity of such person or persons, or of his or their omitting, or declining, or ceasing to act as such -arbitrator or umpire, another person or persons shall be named as aforesaid to act as arbitrator or umpire in his or their place or stead, and shall make and subscribe such declaration as aforesaid. Her Britannic Majesty and the Republic of Honduras hereby engage to consider the decision of the commissioners conjointly, or of the arbi- trator or umpire, as the case may be, as final and conclusive on the matters to be referred to their decision ; and they further engage forth- with to give full effect to the same, ^sftssjj I Art. VII. The commissioners and the arbitrator or umpire shall keep an accurate record and correct minutes or notes of all their proceedings, with the dates thereof, and shall appoint and employ a clerk or other persons to assist them in the transaction of the business which may come before them. The salaries of the commissioners shall be paid by their respective governments. The contingent expenses of the commission, including the salary of the arbitrator or umpire, and of the clerk or clerks, shall be defrayed in equal halves by the two governments. Art. VIII. The present Treaty shall be ratified, and the ratifications shall be exchanged at Oomayagua as soon as possible within 6 months from this date. CLAYTON-BULWER TEEATY, AND MONEOE DOCTEINE. 299 In witness whereof, the respective plenipotentiaries have signed the same, and have affixed thereto their respective seals. Done at Comayagua the 28th day of November, in the year of our Lord 1859. [^- S-] 0. LENNOX WYKB. l^- S-J FRANCISCO OEUZ, DOCUMENT No. 75. &1-— Treaty between Great Britain and Nicaragua relative to the Mosquito Indians and to the rights and claims of British subjects. Signed at Managua January 28, 1860. Her Majesty the Queen of the United Kingdom of Great Britain and Ireland, and the Eepublic of Nicaragua, being desirous to settle in a friendly manner certain questions in which they are mutually interested, have resolved to conclude a Ti-eaty for that purpose, and have named as their plenipotentiaries, that is to say : Her MHJesty the Queen of the United Kingdom of Great Britain and Ireland, Charles Lennox Wyke, esquire. Companion of the Most Honor- able Order of the Bath, Her Britannic Majesty's Envoy Extraordinary and Minister Plenipotentiary on a special mission to the Republics of Central America ; and his Excellency the President of the Eepublic of Nicaragua, Don Pedro Zeledon, Minister for Foreign Affairs. Who, after having communicated to each other their respective full powers, found in good and due form, have agreed upon and concluded the following articles : Aet. I. On exchanging the ratifications of the present Treaty, Her Britannic Majesty, subject to the conditions and engagements specified therein, and without prejudice to any question of boundary between the Republics of Nicaragua and Honduras, will recognize as belonging to and under the sovereignty of the Republic of Nicaragua the country hith- erto occupied or claimed by the Mosquito Indians within the frontier of that Republic, whatever that frontier may be. The British protectorate of that part of the Mosquito territory shall cease three months after the exchange of the ratifications of the present Treaty; in order to- enable Her Majesty's Government to give the neces- sary instructions for carrying out the stipulations of said Treaty. II. A district within the territory of the Eepublic of Nicaragua shall be assigned to the Mosquito Indians, which district shall remain, as above stipulated, under the sovereignty of the Republic of Nicaragua. Such district shall be comprised in a line, which shall begin at the month of the river Eama, in the Caribbean Sea; thence it shall run up the mid-course of that river to its source, and from such source proceed in a line due west to the meridian of 84° 15' longitude west from Green-, wich; thence due north up the said meridian until it strikes the river Hueso, and down the mid-course of that river to its mouth in the sea, as laid down in Baily's map at about latitude from 14° to 15° north, and longitude 83° west from the meridian of Greenwich; and thence southerly along the shore of the Caribbean sea to the mouth of the river Eama, the point of commencement. But the district thus assigned to the Mosquito Indians may not be ceded by them to any foreign per- son or state, but shall be and remain under the sovereignty of the Re- public of Nicaragua. 300 PROPOSED INTEEOCEANIC CANAL, III. The Mosquito Indians within the district designated in the pre- ceding article shall enjoy the right of governing according to their own customs, and according to any regulations which may from time to time be adopted by them, not inconsistent with the sovereign rights of the Republic of Nicaragua, themselves, and all persons residing within such district. Subject to the above-mentioned reserve, the Republic of Nic- aragua agrees to respect and not to interfere with such customs and regulations so established or to be established within the said district. IV". It is understood, however, that nothing in this treaty shall be construed to prevent the Mosquito Indians at any future time from agreeing to absolute incorporation into the Republic of Nicaragua on the same footing as other citizens of the republic, and from subjecting themselves to be governed by the general laws and regulations of the republic instead of by their customs and regulations. "V. The Republic of Nicaragua, being desirous of promoting the so- cial improvement of the Mosquito Indians, and of providing for the maintenance of the authorities to be constituted under the provisions of Article III of this treaty, in the district assigned to the said In- dians, agrees to grant to the said authorities, for the space of ten years, with a view to such purposes, an annual sum of 5,000 hard dollars. The said sum shall be paid at G-reytown, by half-yearly payments, to such person^ as may be authorized by the chief of the Mosquito In- dians to receive the same, and the first payment shall be made six months after the exchange of the ratifications of the present treaty. For the payment of this sum Nicaragua will levy and especially con- sign a duty, to be levied according to weight, on all packages of goods that are imported into that port for consumption in the territory of the republic; and in case this duty shall not suffice for the payment of said sum, the deficit shall be made up from the other duties levied in the republic. VI. Her Britannic Majesty engages to use her good offices with the chief of the Mosquito Indians, so that he shall accept the stipulations wbich are contained in this convention. VII. The Republic of Nicaragua shall constitute and declare the port of Greytown, or San Juan del Norte, a free port under the sovereign authority of the republic. But the Republic, taking into consideration the immunities heretofore enjoyed by the inhabitants of Greytown, con- sents that trial by jury in all cases, civil or criminal, and perfect freedom of religious belief and worship, public and private, such as has hitherto been enjoyed by them up to the present moment, shall be guaranteed to them for the future. No duties or charges shall be imposed upon vessels arriving in or de- parting from the free port of Greytown, other than such as may be sufficient for the due maintenance and safety of the navigation, for pro- viding lights and beacons, and l^or defraying the expense of the police of the port; neither shall any duties or charges be levied in the free port on goods arriving therein, in transit from sea to sea. But nothing con- tained in this article shall be constructed to prevent the Republic of Nicaragua from levying the usual duties on goods destined for consump- tion within the territory of the republic. VIII. All bona fide grants of land for due consideration, made in the name and by the authority of the Mosquito Indians since the 1st of January, 1848, and lying beyond the limits of the territory reserved for the said Indians, shall be confirmed, provided the same shall not exceed in any case the extent of 100 yards square, if within the limits of San Juan or Greytown, or one league square if without the same, and pro- CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 301 vided that such grant shall not interfere with other legal grants made previously to that date by Spain, the Eepublic of Central America, or Nicaragua; and provided further, that no such grant shall include ter- ritory desired by the government of the latter state for forts, arsenals, or other public buildings. This stipulation only embraces those grants of land made since the 1st of January, 1848. In case, however, any of the grants referred to in the preceding par- agraph of this articleshould be found to exceed the stipulated extent, the commissioners hereinafter mentioned shall, if satisfied of the bona fides of any such grants, confirm to the grantee or grantees, or to his or their representatives or assigns, an area only equal to the stipulated extent. And in case any bona Ude grant, or any part thereof, should be de- sired by the government for forts, arsenals, or other public buildings, an equivalent extent of land shall be allotted to the grantees elsewhere. * It is understood that the grants of land treated of in this article shall not extend to the westward of the territory reserved for the Mos- quito Indians in Article II further than 84° 30' of longitude, in a line parallel and equal with that of said territory on the same side ; and if it should appear that any grants have been made further in the interior of the republic, the lands acquired bona fide shall be replaced with those that are within the limits defined under the regulations agreed upon. IX. Her Britannic Majesty and the Eepublic of Nicaragua shall within 6 months after the exchange of the ratifications of the present treaty, appoint each a commissioner for the purpose of deciding upon the bona fides of all grants of land mentioned in the preceding article as having been made by the Mosquito Indians of lands heretofore possessed by them, and lying beyond the limits of the territory described in Article I, X. The commissioners mentioned in the preceding article shall, at the earliest convenient period after they shall have been respectively named, meet at such place or places as shall be hereafter fixed ; and shall, before proceeding to any business, make and subscribe a solemn declaration that they will impartially and carefully examine and decide, to the best of their judgment, and according to justice and equity, without fear, favor, or affection to their own country, all the matters referred to them for their decision; and such declaration shall be entered on the record of their proceedings. The commissioners shall then, and before proceeding to any other busi- ness, name some third person to act as arbitrator or umpire in any case or cases in which they may themselves differ in opinion. If they should not be able to agree upon the selection of such a person, the commis- sioner on either side shall name a person, and in each and every case in which the commissioners may differ in opinion as to the decision which they ought to give, it shall be determined by lot which of the two persons so named shall be arbitrator or umpire in that particular case. The person or persons so to be chosen shall, before proceeding to act, make and subscribe a solemn declaration, in a form similar to that which shall already have been made and subscribed by the cond- missioners, which declaration shall also be entered on the record of the proceedings. In the event of the death, absence, or incapacity of such person or persons, or of 'his or their omitting, or declining, or ceasing to act as such arbitrator or umpire, another person or other persons shall be named as aforesaid to act in his or their place or stead, and shall make and subscribe such declaration as aforesaid. ' See deoIara.tion, August 2d, 1860, page 303. 302 PROPOSED INTEROCEANIC CANAL Her Britannic Majesty and the Eepublic of Nicaragua shall engage to consider the decision of the two commissioners conjointly, or of the arbitrator or umpire, as the case may be, as final and conclusive on the matters to be referred to their decision, and forthwith to give full effect to the same. XI. The commissioners and the arbitrators or umpires shall keep accurate records and correct minutes or notes of all their proceedings, with the dates thereof, and shall appoint and employ such clerk or clerks, or other persons, as they shall find necessary to assist them in the transaction of the business which may come before them. The salaries of the commissioners and of the clerk or clerks shall be paid by their respective governments. The salary of the arbitrators or umpires and their contingent ex- penses shall be defrayed in equal moieties by the two governments. XII. The present Treaiy shall be ratified by Her Britannic Majesty, and by the Congress of the Eepublic of Nicaragua, and the ratifications shall be exchanged at London as soon as possible within the space of six months. In witness whereof the respective plenipotentiaries have signed the same, and have af&xed thereto their respective seals. Done at Managua, this 28th day of January, in the year of our Lord 1860. L. s. L. s. CHARLES LENNOX WYKE. PEDRO ZELEDON. DECLARATION. In proceeding to the ex:change of the ratifications of the Treaty con- cluded and signed at Managua on the 28 of January, 1860, between Hei' Majesty the Queen of the United Kingdom of Great Britain and Ireland, and the Eepublic of Nicaragua, relative to the Mosquito Indians and to the rights and claims of British subjects, the undersigned. Her Britannic Majesty's principal Secretary of State for Foreign Affairs, and the Envoy Extraordinary and Minister Plenipotentiary of the Republic of Nicara- gua, hereby declare that the limitation laid down in the paragraph added by the Congress of the Eepublic to Article YIII* of the said Treaty applies to grants of land to the west of the meridian of 84° 30' of longi- tude throughout the whole extent of the territory hitherto occupied or claimed by the Mosquito Indians within the frontier of the Republic, but not to grants in any part of the said territory to the east of that meridian line. In witness whereof the undersigned have signed the present declara- tion, and have affixed thereto their respective seals. Done at London, the 2d day of August, in the year of our Lord 1860. L. s. L. S. J. RUSSELL. J. DE MARCOLETA. ' Page 301. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 303 DOCUMENT No. 76. 62. — President Buchanan's message to Congress, December 3, 1860. [Extract.] The discordant constructions of the Clayton and Bulwer treaty be- tween the two governments, which, at diftbrent periods of the discus- sion, bore a threatening aspect, have resulted in a final settlement en- tirely satisfactory to this Government. In my last annual message 1 informed Congress that the British Gov- ernment had not then Completed treaty arrangements with the Republics of Honduras and Nicaragua, in pursuance of the understanding between the two governments. It is, nevertheless, confidently expected that this good work will ere long be accomplished. This confident expectation has since been fulfilled. Her Britannic Majesty concluded a treaty with Honduras on the 28th November, 1859, and with Nicaragua on the 28th August, 1860, relinquishing the Mos- quito protectorate. Besides, by the former the Bay Islands are rec- ognized as a part of the Eepublic of Honduras. It may be observed that the stipulations of these treaties conform in every important par- ticular to the amendments adopted by the Senate of the United States to the treaty concluded at London on the 17th October, 1856, between the two governments. It will be recollected that this treaty was rejected by the British Government because of its objection to the just and im- portant amendment of the Senate to the article relating to Euatan and the other islands in the Bay of Honduras. DOCUMENT No. 77. 63. — Mr. Seward to Mr. Adams. No; 1745.1 Department op State, Washington, April 25, 1866. Sir : Towards the close of Mr. Polk's administration the British Gov- ernment, disturbed, perhaps, by the recent acquisition of territory by the United States on the Pacific, showed what we thought to be a disposi- tion to contend with the Governments of the Central American States, with the ultimate object, as was supposed, of acquiring dominion there, and also a control of any ship-canal which might be made between the two oceans by the way of the San Juan Eiver and Lake Nicaragua. British subjects had long before that time lent those Governments money, the interest on which was in arrears, chiefly in consequence of the strife between the states which ensued upon their separation and as a confederacy. • ^. ■ ■ . . War measures were determined upon to recover this interest ; among others, the seizure of the island of Tiger, belonging to Honduras, in the Bay of Fonseca, was made by a British naval force m October, 1849. This seizure was protested against by Mr. Squier, the United States charge d'affaires in Nicaragua, and a disavowal of the proceed- ings by the British Government was required by Mr. Clayton in an in- struction to Mr. Abbott Lawrence, at London, of the 29th of December, 1849. 304 PROPOSED INTEEOCEANIC CANAL, Insomucli as one route (by some supposed the best route) for the ship- canal from the lalje to the Pacific lay along the Estero Eeal, which empties into the Bay of Fonseca, near Tiger Island, Mr. Squier deemed himself warranted in incorporating in a general commercial treaty with Honduras, which he signed on the 28th of September, 1S49, provisioas for acquiring land for naval stations on that island or on the continent in its vicinity. By what is called a protocol, of the same date, Hondu- ras ceded Tiger Island to the United States, pending the ratification or rejection of the general treaty, provided that the time should exceed eighteen months. These stipulations were entered into by Mr. Squier without instruc- tions from the Department, and when the treaty and additional articles were received, he was reproved for them. They were never laid before the Senate. It is not to be doubted, however, that they occasioned un- easiness to the British Government, and in a great degree led to the Clayton-Bulwer treaty of the 19th of April, 1850. The preamble of that treaty states that its object was to fix the views and intentions of the parties in regard to the ship-canal. The first article of the treaty, still referring to the ship-canal, stipu- lates that neither party will erect fortifications commanding the same, or in the vicinity thereof, or occupy, or fortify, or colonize, or assume of exercise dominion in any part of Central America. It seems Obvious that the renunciation by the parties to this instru- ment of a right to acquire dominion in Central America was intended to prevent either of them from obtaining control over the proposed ship- canal. At the time the treaty was concluded there was every prospect that that work would not ouly soon be begun, but that it would be carried to a successful conclusion. For reasons, however, which it is not necessary to specify, it never was even commenced, and at present there does not appear to be a likelihood of its being undertaken. It may be a question, therefore, supposing that the canal should never be begun, whether the renunciatory clauses of the treaty are to have per- petual operation. Technically speaking, this question might be decided in the negative. Still, so long as it should remain a question, it would not comport with good faith for either party to do anything which might be deemed con- trary to even the spirit of the treaty. It is becoming more and more certain every day that not only naval warfare in the future, but also all navigation of war vessels in time of peace, must be by steam. This necessity will occasion little or no incon- venience to the principal maritime powers of Europe, and especially to Great Britain, as those powers have possessions in various parts of the globe where they can have stores of coal and provisions for the use of their vessels. We are differently situated. We have no possession beyond the limits of the United States. Foreign colonization has never been favored by statesmen in this country either on general grounds or as in harmony with our peculiar condition. There is no change ^r likely to be any in this respect/ It is indispensable for us, however,' to have coaling stations undet our own flag for naval observation and police, and for defensive war as well as for the protection of our widely-spread commerce when we are at peace ourselves. This want, even for our commercial marine, is nowhere more sensibly felt than on the track between Panama and San Francisco. The question then occurs what points beyond our jurisdiction would be most eligible for this purpose? Whatever opinion might be entertained in regard to any other sites, there would be no question that Tiger Island would be exceedingly de- sirable for that purpose. CLAYTON-BULWEE TREATF, AND MONEOE DOCTKINE. 305 CTiKler these circumstances, you will sound Lord Clarendon as to the disposition of his Government to favor us in acquiring coaling stations in Central America, notwithstanding the stipulation contained in the Clayton-Bulwer treaty. In doing this, however, you will use general terms only, and will by no means allow it to be supposed that we par- ticularly covet Tiger Island. You will exet'ute this instruction at such time and in such way as to you may seem best, and inform the Depart- ment of the result, so that the United States minister to Honduras may be directed to proceed accordingly. It is supposed that you may probably be able to introduce the subject to the Earl of Clarendon's attention by suggesting that a negotiation with a view to the special end meutioiied might be made an element in a general negotiation for settlement of the northwest-boundary question and of the conflicting claims of the two countries which have arisen during the late rebellion in the United States. I am, &c., WILLIAM H. SEWAED. DOCUMENT JTo. 78. 64. — Extract from the report of Mr. Fish, Secretary of Sta,te, accompanying President Grant's message to the Senate of July 14, 1870. Department op State, Washington, July 14, 1870. The avoidance of entangling alliances, the characteristic feature of the foreign policy of Washington, sprang from this condition of things. Bat the entangling alliances which then existed were engagements made with France as a part of the general contract undet which aid was furnished to us for the achievement of our independence. France was willing to wave the letter of the obligation as to her West India pos- sessions, but demanded, in its stead, privileges in our ports which the administration was unwilling to concede. To make its refusal accepta- ble to a public which sympathized with Prance, the Cabinet of General Washington exaggerated the principle into a theory tending to national isolation. The public measures designed to maintain unimpaired the domestic sovereignty and the international neutrality of the United States were independent of this policy, though a]>parently incidental to it. The municipal laws enacted by Congress then and since have been but dec- larations of the law of nations. They are essential to the preservation of our national dignity and honor ; they have for their object to repress and punish all enterprises of private war, one of the last relics of me- diaeval barbarism ; and they have descended to us from the fathers of the Eepublic, supported and enforced by every succeeding President of the United States. The foreign policy of these early days was not a narrow one. During this period we-secured the evacuation by Great Britain of the country wrongfully occupied t>y her on the lake ; we acquired Louisiana ; we measured forces on the' sea with France, and on the land and sea with England ; we set the example of resisting and chastising the piracies of the Barbary States : we initiated in negotiations with Prussia the long 4909 CONG 20 30i3 PROPOSED INTEROCEANIC CANAL line of treaties for the liberalization of war and the promotion of inter- national intercourse; and we steadily demanded, and at length obtained, indemnification from various Grovernments for the losses we had suffered by foreign spoliations in the wars of Europe. To this point in our foreign policy we had arrived when the revolu- tionary movements in Spanish and Portuguese America compelled a modification of our relations with Europe, in consequence of the rise of new and independent states in America. The revolution, which commenced in 1810 and extended through all the Spainish- American continental colonies, after vain efforts of repres- sion on the part of Spain, protracted through twenty years, terminated in the establishment of the independent states of Mexico, Gruatemala, San Salvador, Honduras, Nicaragua, Oosta Eica, Venezuela, Colombia, Ecuador, Peru, Chili, Bolivia, the Argentine Eepublic, tTruguay, and Paraguay, to which the Empire of Brazil came in time to be added. These events necessarily enlarged the sphere of action of the United States, and essentially modified our relations with Europe and our atti- tude to the rest of this continent. The new states were, like ourselves, revolted colonies. They contin- ued the precedent we had set, of separating from Europe. Their as- sumption of independence was stimulated by our example. They pro- fessedly imitated us, and copied our national Constitution, sometimes even to their inconvenience. The Spanish -American colonies had not the same preparation for in- dependence that we had. Each of the British colonies possessed com- plete local autonomy. Its formal transition fjom dependence to inde- pendence consisted chiefly in expelling the British governor of the col- ony and electing a governor of the State, from which to the organized Union was but a step. All these conditions of success were wanting in Spanish America, and hence many of the difficulties in their career as independent states ; and further, while the revolution in British Amer- ica was the exclusive result of the march of opinioii in the British colo- nies, the simultaneous action of the separate Spanish colonies, though showing a desire for iudependence, was principally produced by the ac- cident of the invasion of Spain by France. The formation of these new sovereignties in America was important to us, not only because of the cessation of colonial mouopolies to that extent, but because of the geographical relations to us, held by so many new nations, all, like ourselves, created from European stock, and inter- ested iu excluding European politics, dj'nastic questions, and balances of power from farther influence in the New World. Thus the United States were forced into new lines of action, whicn, though apparently in some respects conflicting, were really in harmony with the line marked out by Washington. The avoidance of entangling political alliances and the maintenance of our own independent neutral- ity became doubly important from the fact that they became applicable to the new republics as well as to the mother country. The duty of non- interference had been admitted by every President. The question came up in the time of the first Adams, on the occasion of the enlistment projects of Miranda. It appeared again under Jefferson (anterior to the revolt of the Spanish colonies) in the schemes of Aaron Burr. It was an ever-present question in the administrations of Madison, Monroe, and the younger Adams, in reference to the questions of foreign enlist- ment or equipment in the United States, and when these new republics entered the family of nations, many of them very feeble, and all too much subject to internal revolution and civil war, a strict adherence to CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 307 our previous policy and a strict enforcement of our laws became essen- tial to the preservation of friendly relations with them ; for, since that time, it has been one of the principal cares of those intrusted with the administration of the government to prevent piratical expeditions against these sister republics from leaving our ports. And thus the changed condition of the New World made no change in the traditional and peaceful policy of the United States in this respect. In one respect, however, the advent of these new states in America did compel an apparent change of foreign policy on our part. It de- volved upon us the determination of the great international question, at what time, and under what circumstances, to recognize a new power as entitled to a place among the family of nations. There was but little of precedent to guide us, except our own case. Something, indeed, could be inferred from the historical origin of the Netherlands and Switzerland. But our own case, carefully and conscientiously consid- ered, was sufficient to guide us to right conclusions. We maintained our position of international friendship and of treaty obligations toward Spain, but we did not consider that we were bound to wait for its recog- nition of the new republics before admitting them into treaty relations with us as sovereign states. We held that it was for us to judge whether or not they had attained to the condition of actual independ- ence, and the consequent right of recognition by us. We considered this question of fact deliberately and coolly. W e sent commissioners to Spanish America to ascertain and report for our information concern- ing their actual circumstances, and in the fullness of time we acknowl- edged their independence; we exchanged diplomatic ministers, and made treaties of amity with them, the earliest of which, negotiated by Mr. John Quincy Adams, served as the model for the subsequent treaties with the Spanish- American republics. We also, simultaneously there- with, exerted our good offices with Spain to induce her to submit to the inevitable result, and herself to accept and acknowledge the inde- pendence of her late colonies. We endeavored to imluce Eussia to join us in these representations. In all this our action was positive, in the direction of promoting the complete political separation of America from Europe. A vast field was thus opened to th« statesmen of the United States for the peaceful introduction, the spread; and the permanent establish- ment of the American ideas of republican government, of modification of the laws of war, of liberalization of commerce, of religious freedom and toleration, and of the emancipation of the New World from the dynastic and balance of power controversies of Europe. Mr. John Quincy Adams, beyond any other statesman of the time in this country, had the knowledge and experience, both European and American, the comprehension of thought and purpose, and the moral convictions which peculiarly fitted him to introduce our country into this new field, and to lay the foundation of an American policy. The declaration known as the Monroe doctrine, and the objects and pur- poses of the congress of Panama, both supposed to have been largely inspired by Mr. Adams, have influenced public events from that day to this, as a principle of government for this continent and its adjacent islands. ^ „ , /. t It was at the period of the congress of Aix-la-Ohapelle and ot Liay- bach when the "holy alliance'' was combined to arrest all political changes in Europe in the sense of liberty, when they were intervening in Southern Europe for the re-establishment of absolutism, and when they were meditating interference to check the progress of free govern- 308 PROPOSED INTEROCEANIC CANAL, inent in America, that Mr. Monroe, in his annual message of December, 1823, declared that the Dnited States would consider any attempt to extend the European system to any portion of this hemisphere as dan- gerous to our peace and safety. " With the existing colonies or depend- encies of any European power," he said, "we have not interfered and shall not interfere. But with the governments who have declared their indejiendence, and maintained it, and whose independence we have on great consideration and on just principles acknowledged, we could not view any interposition for the purpose of oppressing them, or control- ling, in any other manner, their destiny, by any European power, in any other light than as the manifestation of an unfriendly feeling towards the United States." This declaration resolved the solution of the immediate question of the independence of the Spanish- American colonies, and is supposed to have exercised some influence upon the course of the British cabinet in regard to the absolutist schemes in Europe as well as in America. It has also exercised a permanent influence on this continent. It was at once invoked in consequence of the supposed peril of Cuba on the side of Europe; it was applied to a similar danger threatening Yucatan; it was embodied in the treaty of the United States and Great Britain as to Central America; it produced the successful opposition of the United States to the attempt of Great Britain to exercise dominion in Nicaragua under the cover of the Mosquito Indians; and it operated in like manner to prevent the establishment of a European dynasty in Mexico. The United States stand solemnly committed by repeated declarations and repeated acts to this doctrine, and its application to the att'airs of tliis continent. In his message to the two houses of Congress at the commencement of the present session, the President, following the teach- ings of all our history, said that the existing " dependencies are no longer regarded as subject to transfer from one European power to another. When the present relation of colonies ceases, they are to become inde- pendent powers, exercising the rigJit of choice and of self-control in the determination of their future condition and relations with other powers." This policy is not a policy of aggression ; but it opposes the creation of European dominion on American soil, or its transfer to other Euro- pean powers, and it looks hopefully to the time when, by the voluntary departure of European Governments from this continent and the adja- cent islands, America shall be wholly American. It does not contemplate forcible intervention in any legitimate con- test ; but it protests against permitting such a contest to result in the increase of European power or influence ; and it ever impels this Gov- ernment, as in the late contest between the South American republics and Spain, to interpose its good offices to secure an honorable peace. The congress of Panama was planned by Bolivar to secure the union of Spanish America against Spain. It had originally military as. well as political purposes. In the military objects the United States could take no part ; and indeed the necessity for such objects ceased when the full effects of Mr. Monroe's declarations were felt. But the pacific ob- jects of the Congress, the establishment of close and cordial relations of amity, the creation of commercial intercourse, of interchange of po- litical thought, and of habits of good understanding between the new republics and the Ujiited States and their respective citizens, might per- haps have been attained, had the administration of that day received the united support of the country. Unhappily they were lost ; the new states were removed from the sympathetic and protecting influence of CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 309 our example, and their commerce, which we might then have secured, passed into other hands, unfriendly to the United States. In looking back upon the Panama congress from this length of time, it is easy to understand why the earnest and patriotic men who endeav- ored to crystallize an American system for this continent failed. Mr. Clay and Mr. Adams were far-sighted statesmen, but unfortunately they struck against the rock of African slavery. One of the questions proposed for discussion in the conference was "The consideration of the means to be adopted for the entire abolition of the African slave trade," to which proposition the committee of the United States Senate of that day replied, "The United States have not certainly the.right, and ought never to feel the inclination, to dictate to others who may differ with them upon this subject, nor do the committee see the expediency of in- sulting other states, with whom we are maintaining relations of perfect amity, by ascending the moral chair, and proclaiming from thence mere abstract principles, of the rectitude of which each nation enjoys the per- fect right of deciding for itself."' The same committee also alluded to the possibility that the condition of the islands of Cuba and Porto Eico, still the possessions of Spain, and still slaveholding, might be made the subject of discussion and of contemplated action by the Panama con- gress. "If ever the United States [they said] permit themselves to be associated with these nations in any general congress assembled for the discussion of common plans in any way affecting European inter- ests, they will, by such act, not only deprive themselves of the ability they now possess of rendering useful assistance to the other American states, but also produce other effects prejudicial to their own interests." Thus the necessity at that day of preserving the great interests of the Southern States in African slavery, and of preventing a change in the character of labor in the islands of Cuba and Porto Eico, lost to the United States the opportunity of giving a permanent direction to the political and commercial connections of the newly enfranchised Spanish- American States, and their trade passed into ha,nds unfriendly to the United States, and has remained there ever since. Events, subsequent to that date, have tended to place us in a posi- tion to retrieve our mistakes; among which events maybe particularly named the suppression of the rebellion, the manifestation of our unde- veloped and unexpected military power, the retirement of the French from Mexico, and the abolition of slavery in the United States. There is good reason to believe that the latter fact has had an impor- tant influence in our favor in Spanish America. It has caused us to be regarded there with more sympathetic as well as more respectful con- sideration. It has relieved those republics from the fear of flllibuster- ism which had been formerly incited against Central America ami Mexico in the interest of slave extension ; and it has produced an im- pression of the stability of our institutions and of our public strength suiflcient to dissipate the fears of our friends or the hopes of those who wish us ill. Thus there exists in the Spanish-American republics confidence toward the United States. On our side they find a feeling of cordial amity and friendship, and a desire to cultivate and develop our common interests on this continent. With some of these states our relations are more intimate than with others, either by reason of closer similarity of cons.titutional forms, of greater commercial intercourse, of proximity in fact, or of the construction or contemplated construction of lines of transit for our trade and commerce between the Atlantic and the Pacific. With several of them we have peculiar treaty relations. The treaty of 310 PROPOSEE INTEROCEANIC CANAL, 1846 between the United States and New Grenada contains stipulations of guaranty for the neutrality of that part of the Isthmus within the present territory of Colombia, and for the protection of the rights of sovereignty and property therein belonging to Colombia.. Similar stip- ulations appear in the treaty of 1867 with Nicaragua, and of July, 1864, with Honduras. Those treaties (like the treaty of alliance made with France in 1778 by Dr. Franklin, Silas Deane, and Arthur Lee) con- stitute pro tanto a true protective alliance between the United States and each of those republics. Provisions of like effect appear in the treaty of April 19, 1850, between Great Britain and the United States. DOCUMEMT No. 79. 65. — Mr. Fish to General Schenck. No. 375.] Department of State, Washington, April 26, 1873. Sir : You are aware that a main object of the Clayton-Bulwer treaty, so called, of the 19th of April, 1850, was to provide against obstruction by either party to a ship-canal to the Pacific through Nicaragua. A work of that kind was then deemed specially necessary and desirable for us, as California had recently been acquired, the only practicable way to which was across the Isthmus of Panama, or around Cape Horn. For some time previously to date of that instrument, and especially during the considerable period when the United States were without a diplomatic representative in Central America, it seemed to be the policy of the British Government to avail itself of what was called its protect- orate of the King of Mosquitos to wrest from Nicaragua that part of its territory claimed on behalf of that Indian chief, including, of course, the mouths of the San Juan River, by the way of which it was sup- posed the proposed ship-canal must pass. The Clayton-Bulwer treaty eff'ectually checked this pretension. It also, in terms, forbade either party to occupy or fortify in any part of Central America. The British Government, probably actuated by an apprehension that this stipula- tion might be construed against their claims at Belize, Honduras, in- structed Sir H. L. Bulwer to make the declaration of 39th of June, 1850, when the ratifications were to be exchanged, to the effect that they did not understand the engagements of the convention to apply to Belize and its dependencies. In a note to Sir Henry of the 4th of July, 1850, Mr. Clayton acknowledged that it was not the purpose of the conven- tion to apply to Belize and its dependencies. A similar acknowledgment is contained in a memorandum of the 5th of July, 1850, signed by Mr. Clayton, whicli says that he at the same time declined to affirm or deny the British title in their settlement or its alleged dependencies. Among the latter what are called the Bay Islands were claimed to belong. The British Government, however, having converted them into a separate colony, this and the continuance of its protectorate, so called, over the Mosquito Indians, were regarded as virtually such breaches of the Clayton-Bulwer treaty as to call for the remonstrances which Mr. Buchanan, aud subeequently Mr. Dallas, were instructed to address, and which they did address, to that govern- ment. The answer of that government was in substance that the Clayton- Bulwer treaty was merely designed to provide for the future, and was not «LAYTON-BULWER TREATY, AND MONROE DOCTRINE. 311 intended to affect any rights or claims which Great Britain may have had in Central America at the time of its conclusion. This pretension was effectually answered by Mr. Buchanan in his reply to Lord Clarendon's memorandum on the subject, wMch you will find on the file or record of your legation. Ultimately, on the 17th of October, 1856, a treaty which is called the Dallas-Clarendon treaty was signed at London. The ob- ject of this instrument was to compose the differences between the two governments, especially in regard to the Bay Islands and the Mosquito protectorate. When the treaty reached here it must have been obvious to the Execiutive that if it accomplished either of those purposes, it was in an incomplete and unacceptable way. Still the treaty was laid before the Senate, which body, though it did not absolutely reject it, appended to it so many and such important amendments that they were not ac- cepted by the British G-overnment, and the whole business proved abor- tive. The British Government then sought negotiations with Nicaragua, Guatemala, and Honduras, separately, to attain the principal objects which it hoped to compass by means ,of the Dallas-Clarendon treaty, if it had gone into effect as it was signed. The purposes of that government were in the main accomplished. On the 28th of January, 1860, a treaty between Great Britain and Nic- aragua was signed at Managua. Though this instrumeht restored to that republic the nominal sovereignty over that part of its territory which had previously been claimed as belonging to the kingdom of the Mosquitos, it assigned boundaries to the Mosquito Eeservation proba- bly beyond the limits which any member of that tribe' had ever seen, even when in chase of wild animals. Worst of all, however, it confirmed the grants of land previously made in Mosquito territory. The similar stipulation on this subject in the Dallas Clarendon treaty was perhaps the most objectionable of any, as it violated the cardinal rule of all Eu- ropean colonists in America, including Great Britain herself, that the aborigines had no title to the soil which they could confer upon indi- viduals. This rule has repeatedly been confirmed by judicial decisions, and especially by the Supreme Court of the United States. It is supposed to be superfluous to add that it is understood the grantees of the Mos- quito chief, respecting whose interests the British Government was so solicitous, were the subjects of the latter. It is supposed that the expedition of Walker to Nicaragua made such an unfavorable impression on public opinion there, in respect to this country, as to prepare the way for the treaty with Great Britain. A rumor was current in that quarter, and was by many belived to be true, that Walker was an agent of this government, which, it was supposed, had covertly sent him thither to obtain control of the country. This, however, was so far from the truth that everything within its power was donfe by this government towards preventing the departure of Walker. Besides the treaty with Nicaragua, just adverted to, there was a treaty between Great Britain and Honduras, signed on the 2Sth November, 1859, the main object of which was the restitution to the latter of the Bay Islands, which had for some time before been converted into a British colony. This treaty also contained stipulations in regard to Mosquito Indians in Honduras territory similar to that in the treaty with Nicaragua. On the 30th of April, 1859, a treaty between Great Britain and Guate- mala was also signed, by which the boundaries of the British settle- 312 PEOPOSKD INTEROCEANIC CANAL, ' ment at Belize, so called, were extended to the Sarstoon Eiver. This instrument contained provisions for the appointment of commissioners to mark the boundaries, and for the construction of a road from Guate- mala to the fittest place on the Atlantic coast near Belize. By a sup- plementary convention between the parties, of the 5th of August, 18^, Great Britain agreed, upon certain conditions, to contribute fifty thou- sand pounds sterling towards the construction of the road referred to. From the note of the ith of December last, addressed to this Depart- ment by M. Dardon, the minister of Guatemala here, it appears that when the joint commission for running the boundary-line reached the Sarstoon Eiver the British commissioner, finding that his countrymen were trespassing beyond that limit, refused to proceed, and the stipu- lation on the subject, if not virtually canceled, has, at least, been sus- pended. The supplementary convention not having been ratified by Guate- mala in season, it is stated that the British Government has notified that of Guatemala that it would regard the stipulation on the subject of the road contained in the treaty of 1859 as at an end. Other important information on these subjects is contained in the letter and its accompaniments of Mr. Henry Savage to this Depart- ment of the 16th of October last. He is a native of this country, an^ at one time was consul at Guatemala. He has frequently, in the absence of a diplomatic agent of the United States in that quarter, furnished this Department with valuable infor- mation in regard to Central American affairs. Mr. Dardon says that his government also regards its treaty of 1859 with Great Britain at an end, and requests on its behalf the co-opera- tion and support of this Government towards preventing further en- croachments by British subjects on the territory of Guatemala. It is believed that if such encroachments are authorized or countenanced by that government it will be tantamount to a breach of its engagement not to occupy any part of Central America. Before, however, officially mentioning the subject to Earl Granville, it would be advisable to as- certain the correctness of the representation of Mr. Dardon as to the cause of the discontinuance of the demarkation of the boundary. If the statement of that gentleman should prove to be correct, you will then formally remonstrate against any trespass by British subjects, with the connivance of their government, upon the territory of Guate- mala, as an infringement of the Clayton-Bulwer treaty which will be very unacceptable in ttfis country. I am, &c., HAMILTON FISH. DOCUMENT No. 80. 66. — Message of President Hayes to Congress, March 8, 1880, [Extract. ] The policy of this country is a canal under American control. The United States cannot consent to the surrender of this control to any European power, or to any combination of European powers. If exist- ing treaties between the United States and other nations, or if the rights of sovereignty or property of other nations stand in the way of this policy — a contingency which is not apprehended — suitable steps CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 313 should be taken by jnst and liberal negotiations to promote and estab- lish the American policy on this subject, consistently with the rights of the nations to be affected by it. The capital invested by corporations or citizens of other countries in such an euterprise must, in a great degree, look for protection to one or more of the great powers of the world. No European power can inter- vene for such protection without adopting measures on this continent which the United States would deem wholly inadmissible. If the pro- tection of the United States is relied upon, the United States must ex- ercise such control as will enable this country to protect its national interests and maintain the rights of those whose private capital is em- barked in the work. An interoceanic canal across the American Isthmus will essentially change the geographical relations between the Atlantic and Pacific coasts of the United States, and between the United States and the rest of the world. It will be the great ocean thoroughfare between our Atlantic and our Pacific shores, and virtually a part of the coast line of the United States. Our merely commercial interest in it is greater than that of all other countries, while its relations to our power and pros- perity as a nation, to our means of defense, our unity, peace, and safety, are matters of paramount concern to the people of' the United States. No other great power would, under similar circumstances, fail to assert a rightful control over a work so closely and vitally affecting its interest and welfare. Without urging further the grounds of my opinion, I repeat, in con- clusion, thiit it is the riglit and the duty of the Uuited States to assert and maintain such supervision and authority over any interoceanic canal across the isthmus that connects North and South Armericaas will pro- tect our national interests. This I am quite sure will be found not only compatible with, but promotive ofj the widest and most permanent ad- vantage to commerce and civilization. DOCUMENT No. 81. &J.— Extract from the~report of Mr. Uvarts, Secretary of State, accompany- iny President Hayes's message [No. 66) and the Wyse concession for the Panama Canal, which it inclosed. The recent contract or concession made by the Government of Colom- bia with an association of foreign projectors, the text of which is herewith annexed (inclosure No. 5), brings to attention some considerations of more or less practical importance, according as we may estimate the feasibility of the project and the financial prospects of the projectors. It does, however, present an occasion for a deliberate indication by the Government of the United States of its relations to enterprises of this nature, both in its position as an American power, and under its specific treaty rights and obligations towards the United States of Colombia. In the mere aspect of a contribution of capital, in the motive of profit; to the investors, on the one part, and of a proprietary administration by Colombia of the transit through its territory as a source of legitimate revenue and local prosperity, the proposed canal might seem to fall within the ordinary conditions of pecuniary enterprise and internal de- velopment, which the general interests of commerce favor, and which it has been the policy of this Government to stimulate and assist. 314 PROPOSED INTEEOCEANIC CANAL, But this view of the subject is quite too narrow and too superficial. It overlooks the direct relations of the other American nations to the contemplated change in the route of water-borne commerce, and the in- direct but equally weighty considerations by which the relations of the American nations to the great powers of Europe will be modified by this change. It does not penetrate the formal character of the contract as between private capital and local administration, and appreciate its real and far-reaching operation upon the commercial and political interests of the American continent. The United States, therefore, as the great commercial and political power of America, becomes, necessarily, a principal party to any project which shall exhibit such solidity and proportions as to distinguish it from the unsubstantial and illusory schemes which have from time to time proposed to solve the problem of iuteroceanic transit. The ques- tion involved presents itself distinctly to this government as a territo- rial one, in the administration of which, as such, it must exercise a potential control. While this attitude of the United States to the political and commer- cial problem of an interoceanic canal, at whatever point, would seem to attach to their position on the continent, the particular rights and obli- gations in reference to any transit across the Isthmus of Panama, which grow out of the mutual engagements of the treaty with Colombia, fix more definitely the interest of this government in any material changes of that Isthmus as the theater of these rights and obligations. It is manifest that so stupendous a change from the natural configu- ration of this hemisphere as transforms the Isthmus of Panama from being a barrier between the Atlantic and Pacific Oceans into a gateway and thoroughfare between them for the navies and merchant ships of the world bears directly upon the weight and burden of our guarantees under that treaty. It is equally manifest, and only less important, that the organization and nationality of an immense capital and the admin- istration of a great and growing force of managers and laborers, and the throng of population likely to attend the prosperity of the enter- prise, affect essentially the conditions under which the United States may be called upon to perform the engagements of that treaty. The guarantee of the neutrality of the transit and of the sovereignty and i property of Colombia in the Isthmus are one thing while the Isthmus remains in its natural and unpeopled state, and quite another when it shall have been opened to the interests, the cupidities, and the ambi- tions of the great commercial nations, and occupied by populations of vforeign allegiance and discordant habits. So obvious are these propositions that it may well be assumed that no contract or negotiations could ever be entered into between private pro- jectors and the Government of Colombia except in contemplation of this position of the United States under the treaty, and of the necessity that both the private interests and the public engagements involved, in reli- ance upon the power and faith of this Government for their protection, must be conformed to ito rightful participation and control in any arrange- ments that may seriously affect the discharge of its stipulated respon- sibilities. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 315 (Inolosare in No. 67.— Translation from the Diario Ofloial of Bogota, Wedneaday, May 22, 1878.] Law 28th of 1878 (18th of May) " approving the contract for the construction of an inter- oceanic canal across Colombian territory." The Copgresa of the United States of Colombia, after an examination raot, which is verbatim as follows: , of the con- tract, CONTRACT FOE THE CONSTRUCTION OP AN INTEROCEANIC CANAL ACROSS COLOMBIAN TEKRITORY. Eustorgio Salgar, secretary of the interior and of foreign relations of the United States of Colombia, duly authorized, of the oue part, and of the other part, Lucien N. B. Wyse, chief of the Isthmus Scientific Surveying Expedition in 1876, 1877, and 1878, member and delegate of the board of directors of the International luteroceanic Canal Association, presided by General Etienne Tttrr, in conformity with powers be- stowed at Paris, from the 27th to the 29 th of October, 1877, have celebrated the fol- lowing contract: Article 1.* The Government of the United States of Colombia grants to Mr. Lucien N. B. Wyse, who accepts it in the name of the civil International luteroceanic Canal Association, represented by their board of directors, the exclusive privilege for the construction across its territory, and for the operating of a canal betweenthe Atlantic and Pacific Oceans. Said canal may be constructed without restrictive stipulations of any kind. This concession is made under the following conditions : 1st. The duration of the privilege shall be for ninety-nine years from the day on which the canal shall be wholly or partially opened to public service, or when the grantees or their representatives commence to collect the dues on transit and naviga- tion. 2d. From the date of approbation by the Colombian Congress for the opening of the interoceanic canal, the government of the republic cannot construct, nor concede to any company or individual, under any consideration whatever, the right to con- struct another canal across Colombian territory which shall communicate the two oceans. Should the grantees wish to construct a railroad as an auxiliary to the canal, the government (with the exception of existing rights) cannot grant; to any other company or individual, the right to build another interoceanic railroad, nor to do so, itself, during the time allowed for the construction and use of the canal. 3d. The necessary studies of the ground, and the route for the line of the canal, shall be made, at the expense of the grantees, by an international commission of in- dividuals and competent engineers, in which two Colombian engineers shall take part. The commission shall determine the general route of the canal and report to the Colombian Government directly, or to its diplomatic agents in the United States or Europe, upon the results obtained, at the latest in 1881, unless unavoidable circum- stances, clearly proven, should prevent their so doing. The report shall comprise in duplicate the scientific labors performed, and an estimate of the projected work. 4th. The grantees shall then have a period of two years to organize a universal joint stock company, which shall take charge of the enterprise, and of the construc- tion of the canal. This term shall commence Irom the date mentioned in the pre- ceding paragraph. 5th. The canal shall be finished and placed at the public service within the subse- quent twelve years after the formation of the company which will undertake its con- struction, but the executive power is authorized to grant a further maximum term of six years iu the case of encountering superhuman obstacles beyond the power of the company, and if, after one- third of the canal is built, the company should acknowl- edge the impossibility of concluding the work in the said twelve years. 6th. The canal shall have the length, depth, and all other conditions req^^isite in order that sailing vessels and steamships measuring up to 140 meters long, 16 meters in width, and 8 meters in draught shall, with lowered topmasts, be able to pass the canal. 7th. All public lands which may be required for the route of the canal, the ports, stations, wharves, moorings, warehouses, and iu general for the coustruotion and service of the canal as well as for the railway, should it be convenient to build it, shall be ceded gratis to the grantees. 8th. These unoccupied public lands shall revert to the government of the republic, with the railroad and canal, at the termination of this privilege; there is also granted for the use of the canal a belt of land two hundred meters wide on each side of its banks throughout all the distance which it may run, but the owners of lauds on its banks shall have free access to the canal and its ports as well as to the right of use of •This article modified by Colombian Congress. See decree which follows. 316 PROPOSED INTEROCEANIC CANAL, any loads which the grantees may open there ; and this without paying any dues to the company. 9th. If the lands through which the canal shall pass, or upon which the railroad may be built, should, in whole or in part, be private property, the grantee shall have the right to demand their expropriation by the government according to all the legal formalities in such cases. The indemnity whicli shall be made to the land owners, and which shall be based on their actual value, shall be at the expense of the com- pany. The grantees shall enjoy in this case, and in those of temporary occupation of private property, all the rights and privileges which the existing legislation confers. 10th. The grantees may establish and operate at their cost the telegraphic lines which they may consider useful as anxiliaries in the building and nianagemeu t of the canal. Akt. 2.* Within the term of twelve months afterthe international commission shall have presented the result of their definitive surveys, the grantees will deposit in the bank or banks of London, which the national executive power may designate, the sum of seven hundred and fifty thousand francs as security for the accomplishment of the work. The receipt of said bank or banks shall be avoucher of the iulfiilment of said engagement. The deposit shall be made in certificates of the foreign debt of Colom- bia, at the current market price on the day of delivery. It is understood that should the grantees forfeit this deposit by virtue of the provisions of clanse 2, article i!2, of this contract, the said sum with its interest shall become the sole property of the Co- lombian Governirteut. On the conclusion of the canal the amount deposited as secu- rity shall remain to the credit of the treasuiy as indemnity to the national govern- ment for the expenses incurred in the erection of buildings for the use of public offices. Akt. 8.* Should the route of the canal from one ocean to the other pass to the west and to the north of the imaginary straight line which connects Cape Tiburou with Garachine Point, the grantees must make i friendly awangement with the Panama Railroad Company, or pay an indemnity which shall be determined in accordance with the provisions of law 46, of August 16, lStJ7, "which approves the contract cele- brated July 5, 1867, reformatory of that of April 15, 1850, for the construction of a railroad from ocean to ocean, across the Isthmus of Panama." In case the international commission selects the Atrato, or some other stream now navigable, as one of the entrances of ihe canal, the canalized moiitlj shall be con- sidered as one of the parts of the principal work, and maintained in eqiially good condition. Eiver navigation in the upper part of the stream, so far as it has not for its object the use of the canal, shall be open to commerce, and free from all dues. Art. 4.* In addition to the lands granted by paragraphs 7 and 8 of article 1, there are gratuitously given to the grantees, and at their choice five hundred thousand hec- tares of the unoccupied public land, with the mines which they may contain. This allotment shall be made directly by the national executive power. The public lands situated on the sea-coast, or on the border of the canal, or at the rivers, shall be di- vided as closely as possible in alternate lots between the Government and the company, forming, if the ground will permit, areas of one and two thousand hectares. The measurement for the allotment or location shall be made at the cost of the grantees, and with the intervention of commissioners of the government. Unoccupied lands so granted, withthe mines which they may hold, shall be awarded to the grantees as soon as they request them after the deposit of the security. In a belt of two myriameters on each side of the canal, and during five years after the conclusion of the work, the government cannot transfer other lands beyond the said .lots until the company shall have obtained the whole of the lands which are granted to it gratuitously. Art. 5.* The government of the republic dc' lares neutral, for all time, the ports of each terminus of the canal and the waters of the latter from one sea to the other, and consequently in case of war between other nations or between one or more of these and Colombia, the transit of the canal shall not be interrupted on that account, and the merchant vessels and individuals of all nations of the world may outer said ports, and navigate the canal without let or hinderance. In general any ship what- ever may navigate the canal freely v^ithout discrimination, exclusion, or preference of persons or nationalities, by paying the dues and abiding by the regulations laid down by the company for the use of said canal and its dependencies. Exception is made of foreign troops, which cannot pass without permission from Congress. Art. 6.* The entrance to the canal shall be rigorously prohibited to the war vessels of those nations which are at war with another or others, and whose destination mani- fests their intention to take part in hostilities. Art. 7. The grantees will enjoy the right during the whole time of the privilege to use the ports at the termini of the canal, as well as intermediate points, for the anchor- age and repair of ships, and the loading, depositing, transshipping, or landing of mer- chandise. The ports of the canal shall be open and free to the commerce of all na- tions, and no import duties shall be exacted except on merchandise destibcd to bein- *This article modified by Colombian Congress. See decree which follows. CLAYTON-BULWKR TKEATY, AND MONROE DOCTRINE. 317 traduced for the consumption of the rest of the republic. The said ports shall, there- fore, be open to importations from the commeucemeut of the work, and the custom- houses, aud the revenue service which the sovernment may deem convenient for the collection of duties on merchandise destined for other portions of the republic, shall be established, in order to prevent introduction of smuggled goods. Art. S." The executive power shall issue the necessary regulations for the protection of its revenues by preventing smuggling, and shall appoint the number of men neces- sary for this service at its own expense. Of the employes indispensable for this, ten shall be paid by the company, and their salaries shall not exceed those paid to ofiSoials of the same grade in the cnstom-house at Barranrjuilla. When necessary, the company shall transport, free of charge, by the canal or by the auxiliary railroad, the men at the service of the union or destined for police duty, with the object of gnarding pub- lic service without, or preserving public order within. If the company should not own ships or tugs, they shall pay the passage of these men across the isthmus. The sustenance of the public force necessary for the security of the interoceanic transit shall also be at the expense of the company. Art. 9. The grantees shall have the right to introduce, free of import or other duties of whatever class, all the instruments, machinery, tools, fixtures, provisions, clothing for laborers, which they may need during all the time allowed to them for the con- struction and use of the canal. The ships carrying cargoes for the use of the enter- prise shall enjoy free entry to whatever points shall aflford theni easy access to the line of the canal. Art. 10. No taxes, either national, municipal, of the State, or of any other class, shall be levied upon the canal, the ships that navigate it, the tngs and vessels at the serv- ice of the grantees, their warehouses, work-shops, and offices, factories of whatever class, stc rehouses, wharves, machinery, or other works or property of whatever char- acter beloTiging to them, and which they may need for the service of the canal and its dependeucies,dufingthe time conceded for itsconstrnctiou and operation. Thegrantees shall also have the right to take from unoccupied lands the materials of any kind which they may require without paying any compensation for the same. Art. 11. The passengers, money, precious metals, merchandise, and articles and effects of all kinds which may be transported over the canal, shall also be exempt from all duties, national, municipal, transit and others. The same exemption is extended to all articles and merchandise for interior or exterior commerce which may remain in deposit, according to the conditions which may be stipulated, with the company in the storehouses and stations belonging to them. • Art. 12. Ships dfesiring to cross the canal shall present at the port of the terminus of the canal at which they may arrive, their respective registers and other sailing pa- pers, prescribed by the laws and public treaties, so that the vessels may navigate with- out interruption. Vessels not having said papers, or which should refuse to present them, may be detained and proceeded against acccording to law. Art. 13.* The Government allows the immigration and free access to the lapds and work-shops of the grantees of all employes and laborers, of whatever nationality, con- tracted for the enterprise, or who may come to engage themselves in the service of the canal, on condition that such employes or laborers submit to existing laws, and to the regulations established by the company. The Government assures them aid and pro- tection and the enjoyment of their rights and privileges, according to the constitution and laws of the nation, during the time they live in Colombian territory. Art. 14.* As a comi)ensatiou to the grantees for the expenses of the building, pres- ervation and operation of the canal, which are for their account, they shall have the right during all the period of this privilege to charge and collect for passage over the canal, .Tnd the ports dependent upon it, dues for light-houses, anchorage, transit, navi- gation, repairs, pilotage, towing, hauling, storage, and station, as per the t.nriif they may establish, and which may. be modified at any time under the following express conditions: 1st. These dnes shall be imposed without exception or favor upon all ships in iden- tical conditions. 2d. The tariff shall be published four months before going into operation in the Diario Oficial of the government, as well as in the capitals and principal commercial ports of the countries affected thereby. , , „ yd. The principal dues to be collected on vessels shall not exceed the rate of ton francs for each cubic meter, resulting from the multiplication of the principal dimen- sions of the submerged portion of the ship in transit (length, breadth, and draught). 4th. The principal dimensions of the ship in transit, that is to say, the greatest exterior length and beam of vessel, as well as the greatest draught of water, shall be nautical dimensions, inserted in the official clearance papers, with the exception of snchmoditications as may result in the course of the voyage. The captains of ships and agents of the company may require anew measurement to l»e taken, which opera- tion shall be effected at the expense of the solicitor. • This article modified by Colombian Congress. See decree which follows. 318 PROPOSED INTEEOCEANIC CANAL, i 5th. The same meaBurement, that is to say, the parallelepiped described by the sub- merged part of the ship, shall serve as the basis for the determination of the other accessory charges. 6th. Special dues for navigation shall be reduced in proportion to the excess when the net profits derived therefrom shall exceed 12 per cent, of the capital employed in the enterprise. Art. 15.* By way of compensation for the right and exemptions which are con- ferred upon the grantees by this contract, the government of the republic shall enjoy a participation equal to 5 per cent, of the gross earning which shall accrue to the enterprise, as per the tariif to be fixed by the company. Art. 16. The grantees are authorized to require payment in advance of any charges which they may establish ; nine-tenths of these charges shall be made payable in gold, and only the remaining one-tenth part shall he payable in silver of twenty-five grammes, of a fineness of 900. Art. 17. The ships which shall infringe upon the rules established by the company shall be subject to the payment of a fine, which said company shall fix in its regula- tions, of which due notice shall be given to the public at the time of the issue of the tariff. Should they refuse to pay said fine, nor furnish sufficient security, they may be detained and prosecuted according to the laws. The same proceedings may-be ob- served for tbe damages they may have caused. Art. 18. If the opening of the canal shall be deemed financially possible, the grant- ees are authorized to form, under the immediate protection of the Colombian Govern- ment, a universal joint-Stock company, which shall undertake the execution of the work, taking charge of all financial transactions which may be needed. As this en- terprise is essentially international, and for public utility, it is understood that it shall always be kept free from political influences. The company shall take the name of " The Universal Interoceanic Canal Associa- tion"; its residence shall be fixed in Bogota, New York, London, or Paris, as the grantees may choose ; branch offices may be established wherever necessary. Its con- tracts, shares, bonds, and titles of its property shall never be subjected by the Gov- ernment of Colombia to any charges for registry, emission, stamps, or any similar imposts upon the sale or transfer of these shares or bonds, as well as on the profits produced by these values. Art. 19. The company is authorized to reserve as much as 10 percent, of the shares emitted, to form a fund of shares, to the benefit of the founders and promoters of the enterprise. Of the products of the concern, the company take, in the first place, what is necessary to cover all expenses of repairs, op rations, add administration, and the share which belongs to the government, as well as the sums necessary for the payment of the interest and the amortization of the bonds, and, if possible the fixed interest or dividend of the shares; that which remains will be considered as net profit, out of which 80 per cent, at least will be divided among the shareholders. Art. ^0.* The Colombian Government, should it consider it important, may name a special commissioner in the board of directors of the company. This delegate shall enjoy all the advantages conceded to the other directors by the statutes of the com- pany. The grantees are obliged to appoiiit in Bogota, near the national government, an agent duly authorized to resolve all doubts and to present all demands to which this contract may give rise. Reciprocally, and with the same intention, the govern- ment shall name a resident agent in the principal establishment of the company on the canal. In every case the difficulties which may arise between the contracting parties shall be submitted to a committee of arbitrators, composed of four individ- uals, two of whom shall be selected by the executive power from among the mem- bers of the federal supreme court, and the other two named by the company. In case of a tie in the votes of this committee, the said arbitrators shall name a fifth party. The decision pronounced by this tribunal shall be finalj Art. 21. The grantees, or those who in future may succeed them in their rights, may transfer those rights to other caijitalists or financial companies, but it is abso- lutely prohibited to cede or mortgage them under any consideration whatever to any nation or foreign government. Art. 22.* The grantees or their representatives shall forfeittheir acquired rights in the following cases : 1st. If they do not deposit within the term stipulated the amount required as se- curity for the execution of the work. 2d. If in the first of the twelve years allowed for the construction of the canal the work is not already begun. In this case the company shall forfeit the sum deposited as a guarantee, and which shall go to the benefit of the republic. 3d. If at the termination of the period fixed by paragraph fifth of article one, the canal is not navigable. 4th. If they do not oomply with the provisions of article 21. * This article modiiied by Colombian Congress. See decree which follows. CLAYTON-BULWEE TREATY, AND MONEOE DOCTRINE. 31» obttocle^ *^^ service of the canal should be ioterrupted without some superhuman In cases 2, 3 4, and 5, the federal supreme court shall decide whether the privilege has become null or not ™f^^" ^^■*^-^? ^i^ ''^?%^ of declaration of nullity, the public lands mentioned inpara- grapns 7 and 8 of article 1, and those not alienated among those conceded in article 4, will return to the possession of the republic in the state iS which they are found, aui without any indemnity whatever, and also the buildings, materials, works, and im- provements of which the grantees hold possession in th? caual. These shall reserve only tneir capital, vessels, provisions, and, in general, their movable property. 1 +^ I'lve years previous to the expiration of the ninety-nine years of the privi- lege, tne executive power shall appoint a commissioner to examine the condition of the canal and annexes, and, with the knowledge of the company or its agents on the istnmus, to make an official report, describing in every detail the condition of the same and pointing out what repairs may be necessary. This report will serve to establish in wbat condition the canal and its dependencies shall be delivered to the national government on the day of expiration of the privilege now granted. Akt. 25. The enterprise of the canal is reputed to be of public utility. A"?''" na fjif contract, which will serve as a substitute for the provisions of law 33, ot May ^b, 1876, and the clauses of the contract celebrated on the 28th of May of the game year, shaU be submitted for the approval of the President of the union and the dehnite acceptance by the Congress of the nation. In witness whereof they sign the present in Bogota, on the 20th March, 1878. EUSTOEGIO SALGAE. LUCIEN N. B. WYSE. Bogota, March 23, 1878. Approved. , The President of the union : AQUILEO PAEEA. The secretary of the interior and of foreign relations : EUSTOEGIO SALGAE. The foregoing contract is hereby approved, with the following modifications : Article 1, with the addition of the follo\fing paragraph : J — It is, however, stipulated and agreed that if, before the payment of the security- determined upon in article 2, the Colombian Government should receive any formal proposal, sufficiently guaranteed, in the opinion of the said government, to construct the canal in less time and under more advantageous conditions for the United States of Colombia, said proposal shall be communicated to the grantees or their representa- tives, that they may be substituted therein, in which case they shall be preferred ; but if they do not accept said substitution, the Colombian Government, in the new con- tract which they may celebrate, shall exact, besides the guarantee mentioned in arti- cle 2, the sum of three hundred thousand dollars in coin, which shall be given as in- demnity to the grantees. Article 2, thus : Art. 2. Within the term of twelve months from the date at which the international commission shall have presented the definite results of their studies, the grantees shall deposit in the bank or banks of London, to be designated by the national execu- tive power, the sum of seven hundred and fifty thousand fraucs, to the exclusion of all paper money, as security for the execution of the work. The receipt of said banks shall be a voucher for the fulfillment of said deposit. It is understood that if the grantees should lose that deposit by virtue of the stipulations contained in clauses 2 and 3 of article 22 of the present contract, the sum referred to, with interest accrued, shall become in toto the property of the Colombian Government. After the conclusion of the canal, said sum, without interest, which latter will in this case belong to the frantees, shall remain for the benefit of the treasury, for the outlays which it may ave incurred or may incur in the construction of buildings for the service of the public officers. Article 3, thus: Art. 3. If the line of the canal to be constructed from sea to sea should pass to the west and to the north of the imaginary straight line which joins Cape Tiburon with Garaohin^ Point, the grantees must enter into some amicable arrangement with the * This article modified by Colombian Government, See decree which follows. 320 PROPOSED INTEKOCEANIC CANAL, Panama Railroad Company, or pay an indemnity, wh ich shall be established in accord- ance with the provisions of law 46, of August 16, ItiB?, 'approving the contract cele- brated on July 5, 1867, reformatory of the contract of April 15, la50, for the construc- tion of an iron railroad from one ocean to the other through the Isthmus of Panama.' Incase the international commission should choose the Atratoor some other stream already navigable as one of the entrances to the canal, the ingress and egress by such stream, and the navigation of its waters, so long as it is not intended to cross the canal shall be open to commerce and free from all imposts. Article 4, thus: Art. 4. Besides the lands granted in paragraphs 7 and ti of article 1, there shall be awarded to the grantees, as an aid for the accomplishment of the work, and not other- wise, five hundred thousand hectares of pnblic lands, with the mines they may com- prise, in the localities which tiie company may select. This award shall be made directly by the national executive power. The public lands situated on the sea-coast, on the borders of the canal or of the rivers, shall be divided in alternate lots between the government and the company, forming areas of from one to two thousand hec- tares. The measurements for the allotment or location shall be made at the expense of the grantees, and with the intervention of government commissions. The public lands thus granted, with the mines they may hold, shall be awarded to the grantees as fast as the work of construction of the canal progresses, and in accordance with rules to be laid down by the executive power. Within a belt of two myriameters on each side of the canal, and during five years- after the termination of the work, the government shall not have the right to grant other lands beyond the said lots, jintil the company shall have called for the whole number of lots granted by this article. Article 5, thus : Art. 5. The government of the republic hereby declares the ports at each end of the canal, and the waters of the latter from sea to sea, to be neutral for all time; and consequently, in case of war among other nations, the transit through the canal shall not be interrupted by such event, and the merchant vessels and individuals of all na- tions of the world may enter into said ports and travel on the canal without being molested or detained. In general, any vessel may pass freely without any discrimi- nation, exclusion, or preference of nationalities or persons, on payment of the dues and the observance of the rules established by the company for the use of the canal and its dependencies. Exception is to be made of foreign troops, which shall not have the right to pass without permission from Congress, and of the vessels of nations which, being at war with the United States of Colombia, may not have obtained the right to pass through the canal at all times, by pnblic treaties wherein is guaranteed the sover- eignty of Colombia over the Isthmus of Panama and over the territory whereon the canal is to be cut, besides the immunity and neutrality of the said canal, its ports, bays, and dependencies, and the adjacent seas. Article 6, thus: Art. 6. The United States of Colombia reserves to themselves the right to pass their vessels, troops, ammunitions of war at all times and without paying any dues what- ever. The passage of the canal is strictly closed to war vessels of nations at war with another or other nations, and which may not have acquired, by public treaty with the Colombian Governments, the right to pass by the canal at all times. Article 8, thus : Art. 8. The executive power shall dictate, for the proteetion of the financial inter- ests of the republic, the regulations conducive to the prevention of smuggling, and shall have the power to station, at the cost of the nation, the number of men which they may deem necessary tor that service. Out of the indispensable officials for that service, ten shall be paid by the com- pany, and their salaries shall not exceed those enjoyed by employes of the same rank in the Barrauquilla custom-house. The company shall carry gratis through the canal, or on the auxiliary railway, the men destined for the service of the nation, for the service of the state through whose territory the canal may pass, or tor the service of the police, with the object of guard- ing against foreign enemies, or for the preservation of public order, and shall also transjiort gratis the baggfige of such men, their war materials, armament, and cloth- ing which they may need for the service assigned to them. The subsistence of the public force which may be deemed necessary for the safety of the iuteroceanic transit shall likewise be at the expense of the company. Article 13, thus : Art. 13. The government allows the immigration and free access to the lands and shops of the grantees of all the employes and workingmen of whatever nationality, who may be contracted for the work, or who may come to engage themselves to work on the canal, on condition that such employes or laborers shall submit to the existing laws, and to the regulations established by the company. The government promises them support and protection, and the enjoyment of their rights and guarantees, in CLAYTON-BOLWEE TREATY, AND MONROE DOCTRINE. 321 conformity with the national constitution and laws, during the time they may sojourn on Colombian territory. The national peons and laborers employed on the work of the canal shall be exempt from all requisition of military service, national as well as of the state. Article 14, thus: Art. 14. In order to indemnify the grantees of the construction, maintenance, and working expenses incurred by them, they shall have, during the whole period of the privilege, the exclusive right to establish and collect, for the passage of the canal and its ports, the dues for light-houses, anchorage, transit, navigation, repairs, pilotage, towage, hauliug, stowage, and of station according to the tariff which they may issue, and which they may modify at any time under the following express conditions : 1st. They shall collect these dues, without any exceptional favor, from all vessels in like circumstances. 2d. The tariffs shall be published four months before their enforcement in the Diario Oficial of the government, as well as in the capitals and the principal commercial ports of the countries interested. 3d. The principal navigation dues to bo collected shall not exceed the sum of ten francs for each cubic meter resulting from the multiplication of the principle dimen- sions of the submerged part of the ship in transit (length, breadth, and draught). 4th. The principal dimensious of the ship in transit, that is to .say, the maximum exterior length aud breadth at th^ water-line, as well as the greatest draught, shall be the metrical dimension inserted m the official clearance papers, excepting any modi- fications supervening during the voyage. The ships' captains and the company's agents may demand a new measurem^t, which operations shall be carried out at the expense of the petitioner ; and 5th. The same measurement, that is to say, the number of cubic meters contained in the parallelopipedon circumscribing the submirged part of the ship, shall serve as a basis for the determination of the other accessory dues. Article 15, thus: Art. 15. By way of compensation for the rights and exemptions which are al- lowed to the" grantees in this contract, the government of the republic shall be enti- tled to a share amounting to five per cent, on all collections made by the company, by virtue of the dues which maybe imposed in conformity with Article 14, during the first twenty-five years after the opening of the canal to the public service. From the twenty-sixth up to the fiftieth year, inclusive, it shall be entitled to a share of (6%) six per cent. ; from t h e fifty-first to the seventy-fifth to seven per cent . ; and from the seventy- sixth to the termination of the privilege to eight per cent. It is understood that these shares shall be reckoned, as has been said, on the gross income from all sources, with- out any deductions whatever for expenses, interest on shares, or on loans or debts against the company. The government of the republic shall have the right to ap- point a commissioner or agent, who shall intervene iu the collections and examine the accounts, aud the distribution or payment of the shares coming to the government shall be made in due half-yearly installments. The product of ihe five, six, seven and eight per cent, shall be distributed as follows: Four-fifths of it shall go to the government of the repnblic, and the remaining one- fifth to the government of the state through whose territory the canal may pass. The company guarantees to the Government of Colombia that the share of the latter shall in no case be less than the sum of two hundred and fifty thousand dollars a year which is the same as that received as its share in the earnings of the Panama Railroad, so that if in any year the five per cent, share should not reach said sum, it shall be completed out of the Common funds of the company. Article 20, thus: -ijii-ii,!,.!^ Art 20 The Colombian Goyernment may appomt a special delegate in the board of directors of the company whenever it may consider it usfeful to do so. This delegate shall enjoy the same advantages as are granted to the other directors by the by-laws of the company. . , . i, -j. i /^ iu • ^i. The grantees pledge themselves to appomt in the capital of the union, near the national government, a duly-authorized agent for the purpose of clearing up all doubts and presenting any claims to which this contract may give rise. Reciprocally and in the same sense, the government shall appoint an agent, who shall reside in the principal establishment of the company situated on the line of the canal; and, according to the national constitution, the difficulties which may anse between the contracting parties shall be submitted to the decision of the federal supreme court. Art? 22. The grantees, or their representatives, shall lose the right hereby acquired in the following cases: v t, i, j 1st. If they do not deposit, on the terms agreed upon, the sum which by way of seouritv must insure the execution of the work. 2. If in the first year of the twelve that are allowed for the construction of the ' 4909 CONG 21 322 PROPOSED INTEROCEANIC CANAL canal, the works are not already commenced, in this case the company shall lose the sum deposited by -way of seciii-ity, together with the interest that may have accrued; all of which will remain for thfe benefit of the republic. 3d. If, at the end of the second period fixed in paragraph 5 of Article 1, tbe canal is not txansitable, in this case also the company shall lose the sum deposited as secu- rity ; which, with the interests accrued, shall remain for the benefit of the republic. 4th. If they violate the prescriptions of Article 21; and, 5th. If the service of the canal should be interrupted for a longer period than six months without its being occasioned by the acts of God, &c. In cases 2, 3, 4, and 5, the federal supreme court shall have the right to decide whether the privilege has become annulled or not. ^Article 23, thus: Art. 23. In all cases of decisions of nullity, the public lands mentioned in clauses 7 and 8 of Article 1, and such lauds as are not settled or inhabited from among those granted by Article 4, shall revert to the possession of the republic in the condition they may be found in, and without any indemnity whatever, as well as the buildings, materials, works, and improvements which the grantees may possess along the canal and its accessories. The grantees shall only retain their capital, vessels, provisions, and in general all movable property. Given at Bogota on the seventeenth day of May, eighteen hundred and seventy- eight. The president of the senate of plenipotentiaties : The president of the chamber of represeiitatives : The secretary of the senate of plenipotentiaries : The secretary of the chamber of representatives : RAMON GOMEZ. BELISARIO ESPONDA. ' JULIO E. PEREZ. ENRIQUE GAONA. Bogota, May 18, 1878. Let it be published and enforced. The President of the Union: [SEAL.] JULIAN TRUJILLO. The secretary of the interior and foreign relations : FRANCISCO J. ZALDUA. Note from Mr. Lucien N. B. Wyse, wherein he declares he accepts all the modificatioM made by law 28 to the contract for the construction of the iuteroceanic canal. To the liotwratle Secretary of the Interior and Foreign Melations : I have the honor to inform you that I accept each and all of the modifications intro- duced by Congress to the contract which I celebrated with Senor Eustorgio Salgar, your worthy predecessor in the department of the interior and foreign relations, for the construction of the interoceauio canal, which contract was approved by the exec- utive power under date of March 23 last. The modifications to which I have alluded are those recorded in law No. 28 of the 18th instant. I hasten to lay this declaration before the Government of Colombia, so that it may be taken in consideration, in order that said law may be effective in all its parts. Bogota, May 18, 1878. LUCIEN N. B. WYSE, Chief of the International Scientific Commission for the Survey of the Isthmus, Member and Delegate from the Board of Directors of the Interooeanic Canal A8sq(Mition. DOCUMENT No. 82. 68. — Mr. Blaine to Mr. Lowell. No. 187.] Department of State, Washington, June 24, 1881. Sir : It has fallen under tbe observation of the President, through the current statements of the European press and other usual channels of communication, that the great powers of Europe may possibly be con- CLAYTON-BUL WEE TREATY, AND MONROE DOCTRINE. 323 sidering the subject of jointly guaranteeing the neutrality of the inter, oceanic canal now projected across the Isthiqus of Panama. The United States recognizsa-a--iM5aper.-guarantee of- neutrality as, essential to the construction and successful operation of any highway across the Isthmus of Panama, and in the last generation every step was taken by this Governmiint that is deemed requisite in the premises. The necessity was foreseen and abundantly provided for, long in advance of any possible call for the actual exercise of power. In 1840 a memorable and important treaty was negotiated and signed between the Unitefl States of America and' the Republic of New Gran- ada, now the United States of Colombia. By the thirty-fifth article of that treaty, in exchange^-for certain concessions made "to the United States, we guaranteed " positively and eflQcaciously " the perfect neutral- ity of the Isthmus and of any jnteroceanic communications that might be constructed upon or over it for the maintenance of free transit from seato sea ; and we also guaranteed the rights of sovereignty and prop- erty of the United States of Colombia ove'r the territory of the Isthmus as included within the borders of the State of Panama. In the judgment of the President this guarantee, given by the United States of America, does not require re-enforcement, or accession, or as- sent from any other power. In more than one instance this Government has been called upon to vindicate the neutrality thus guaranteed, and there is no contingency, now foreseen or apprehended, in which such vindication would not be within the power of this nation. There has never been the slightest doubt on the part of the United States as to the purpose or extent of the obligation then assumed, by which it became surety alike for the free transit of the world's commerce , over whatever land-way or water-way might be opened from sea to sea, and for the protection of the territorial rights of Colombia from aggres- sion or interference of any kind. Nor has there ever been room to ques- tion the full extent of the advantages and benefits, naturally due to its geographical position and political relations on the Western continent, which the United States obtained from the owner of the Isthmian ter- ritory in exchange for that far-reaching and responsible guarantee. If the foreshadowed action of the European powers should assume tangible shape, it would be well for you to brinir to the notice of Lord Granville the provisions of the treaty of 1846, and especially of its thirty-fifth article, and to intimate to him that any movement in the sense of supplementing the guarantee contained therein would neces- sarily be regarded by this Government as an uncalled for intrusion into a field where the local and general interests of the United States of America must be considered before those of any other power save those of the United States of Colombia alone, which has already derived and will continue to derive such eminent advantages from the guarantee of this Government. The President deems it due to frankness to be still more explicit on this subject, and to elucidate the views of the United States Govern- ment with somewhat of detail, to the end that no uncertainty shall sub- sist as to the integrity of our motives or the distinctness of our aims. It is not the wish or the purpose of the United States to interfere with any commercial enterprise in which the citizens or subjects of any foreign power may see fit to embark under a lawful privilege. The fact of the stock and franchises of the Panama Canal or the Panama Rail- way being owned in Europe, either in whole or principally, is no more a subject of complaint on the part of the United States than is the cir- cumstance that the stock of many of its, own great lines of railway is 324 PEOPOSED INTEROCEANIC CANAL, largely held abroad. Such ownership, with its attendant rights, is in the United States amply saoarel by the laws of the land, and on the Isth- mus is doubly secured by the local laws of Colombia, under the superior guarantee of the United States. Nor, in time of peace, does the United States^ seek to have any ex- clusive privileges accorded to American ships in respect to precedence or tolls through an interoceanic canal any more than it has sought like privileges for American goods in transit over the Panama Railway, under the exclusive control of an American corporation. The extent of the privileges of American citizens and ships is measurable under the treaty of 1846 by those of Colombian citizens and ships. It would be our earnest desire and expectation to see the world's peaceful commerce enjoy the same just, liberal, and rational treatment. It is as rega rd s the politica l control of such a canal, as distinguished from its merely administrative or commercial regula^tion, that the Pres- ident feels called upon to Ispeak with directness and with emphasis. During any war to which the United States of America or the United States of Colombia might be a party, the passage of armed vessels of a hostile nation through the canal of Panama would be no more admis- sible than would the passage of the armed forces of a hostile nation over the railway lines joining the Atlantic and Pacific shores of the United States or of Colombia. And the United States of America will insist rupon her right to take all needful precautions against the possibility of I the Isthmus transit being in any event used ofifensively against her in- [ terests upon the laud or upon the sea. The two republics between which the guarantee of neutrality and possession exists have analogous coiiditions with respect to their terri- torial extension. Both have a long line of coast on either ocean to pro- tect as well as to improve. The possessions of the United States upon the Pacific coast are imperial in extent and of extraordinary growth. Even at their present stage of development they would supply the larger part of the traffic which would seek the advantages of the canal. The States of Caliibrnia and Oregon, and the Territory of Washington, larger in area than England and France, produce for export more than a ton of wheat for each inhabitant, and the entire freight.s demanding water transportation eastward, already enormous, are augmenting each year with an accelerating ratio. While the population and products of the pacific slope are thus increasing upon a vast scale, the railway sys- tem connecting the Gulf of Mexico with the interior and with the Great Lakes is being rapidly extended, thus affording additional facilities for < enlarging the commerce that must seek the coast-line to the Pacific, of which the projected canal at Panama will form a part, and be as truly a channel of communication between the Eastern and far WesternT^t^s aFouFOwu IrausContmeirtal railwary^. 'T.|-|jf^ thejwfwijifih oT^t^^ dn- mestic function of the longrsougfet wafer^wayjbetweenjthe two seas that border the Eepublic which has caused the project to be regarded as of vital importance by this Government. The history of the enterprise is marked from the outset by the numerous expeditions which have, from time to time, been sent out by the United States at large expense to explore the various routes, and thus facilitate the work when the time should be ripe and the vast capital be forthcoming for the undertaking. If the proposed canal were a channel of communication near to the countries of the Old World, and employed wholly, or almost wholly, by their commerce, it might very properly be urged that the influence of the European powers should be commensurate with their interests. With the exercise of such influence the United States could find no fault, espe- CLAYTON-BULWEE TREATY, ANlJ MONROE DOCTRINE. 325 daily if assured of equal participation in the peaceable enjoyment of the commercial facilities so afforded. The case, however, is here reversed, and an agreement between the European states to jointly guarantee the neutrality and in effect control the political character of a highway of commerce, remote from them anAnear to us, forming substantially a part of our coast-line and promising to become the chief means of trans- portation between our Atlantic and Pacific States, would be viewed by this Government with the gravest concern. The policy of the United States is one of peace and friendly inter- course with every Government and people. This disposition is frankly avowed, and is, moreover, abundantly shown in the fact that our arma- ments by land and sea are kept within such limits as to afford no ground for distrust or suspicion of menace to other nations. The guarantee en- tered into by this Government in 1846 was manifestly in the interest of peace, and the necessity imposed by circumstances upon the United States of America to watch over a highway between its two coasts was so imperative that the resultant guarantee was the simplest justice to the chief interests concerned. Any at_tainp t to sup ersede that guaran- t ee by an agreement between JKuro^^~pow2rs, whicETQaiirtaiii vast armies and patrol the sea wiFhTmniense tieetsTan'il whose interest in the canal and its operations can never be so vital and supreme as ours, would partake of the nature of an alliance against the United States, and would be regarded by this Government as an indication of unfriendly feeling. It would be but an inadequate response to the good-will we bear them and to our cheerful and constant recognition of their own rights of domestic policy, as well as those resulting from proximity or springing from neighborly interest. The great European powers have repeatedly united in agreements) such as guarantees of neutrality touching the political condition of states like Luxembourg, Belgium, Switzerland, and parts of the Orient, where the localities were adjacent or where the interests involved con-, cerned them nearly and deeply. Eecognizing these facts, the Unitedj States has never offered to take part in such agreements or to make any' agreements supplementary to them. ^ While thus observing the strictest neutrality with respect to complF cations abroad. It is the long-settled conviction of this Government that any extension to our shores of the political system by which the great, powers have controlled and determined events in Europe would be at- tended with danger to the peace and welfare of this nation. While the Government of the United States has no intention of ini- tiating any discussion upon this subject, it is proper that you should be prepared, in case of concerted action or conference or exchange of opin- ions thereon between the great powers of Europe, to communicate to the Government to which you are accredited the views of the President as frankly and as fully as they are herein set forth. And at suitable times in your personal and friendly intercourse with your colleagues of the diplomatic body at London, you may find it proper to give discreet expression to the policy and motives of your Government in the premises. You will be careful, in any conversations you may have, not to rep- resent the position of the United States as the development of a new policy or the inauguration of any advanced, aggressive steps to be taken by this Government. It is nothing more than the pronounced adher- ence of the United States to principles long since enunciated by the highest authority of the Government, and now, in the judgment of the President, firmly inwoven as an integral and important part of our national policy. 326 PROPOSED INTEROCEANIC CANAL, In his address upon taking the oath of office the President distinctly proclaimed the position which the Government of the United States would hold upon this question, and if the European cabinets have failed to observe or give due heed to the declarations then made, it may be well for you on some proper occasion to call the attention of the minister of foreign affairs to the language used by the President. I am, &c., JAMES G. BLAroE. Sent mutatis mutandis to the United States ministers in Europe. DOCUMENT No. 83. 69. — Mr. Hoppin to Mr. Blaine. No. 218.J Legation op the United States, London, November 11, 1881. (Received November 26.) Sir : Referring to your instructions No. 187, of the 24th of June last, and No. 188, of the 25th of June last, to Mr. Lowell, in relation to the proposed guarantee by European powers of the neutrality of the pro- jected, canal across the Isthmus of Panama, I have the honor to acquaint you that Mr. Lowell, agreeably to the suggestion in No. 187, left a copy of that instruction at the foreign office on the 12th of July last. I have to-day received a letter from Lord Granville in reply to that instruction, and I beg to inclose a copy of the same herewith. I have, &c., W. J. HOPPIN. [Incloaare with No. 218.] Lord Granville to Mr. Hoppin. Foreign Office, Novernbe/r 10, 1881. Sir: You are doubtless aware that Mr. Lowell left with this department on the 12th of July last a copy of a dispatch which had been addressed to him by Mr. Blaine on the ■24th of June, in which tjie Secretary of State calls attention to the right and duty -which are imposed on the United States Government under the treaty signed in 1846 between the United States of America and the republic of New Granada, now known as the United States of Colombia, to guarantee the neutrality of the interoceanic canal which is projected across the Isthmus of Panama. Mr. Blaiue further points out the special interest which the United States have iu the preservation of this neu- trality, and in preventing the nse of the canal in a manner detrimental to themselves during any war in which the United States or Colombia might be a party. Bnt the point on which special stress is laid iu this dispatch is tlie objection enter- tained by the Government of the United States to any concerted action of the Euro- pean powers for the purpose of guaranteeing the neutrality of the canal or determin- ing the conditions of its use. I have now the honor to state to you that although some time has elapsed since the views of the United States Government on this question were communicated to Her Majesty's Government, they liave not failed in the mean while to bestow upon it all the consideration to which the importance of the subject gives it every claim, and if it has riot received an earlier recognition the delay has been mainly cansed by the sus- pense which so long existed as to the termination of the sad tragedy of the 2d of July. Her Majesty's Government have noted with satisfaction tbe statement made by Mr. Blaine that there is no intention on the part of the Government of the United States to initiate any discussion upon this subject, and in the same spirit I do not now pro- pose to enter into a detailed argument in reply to Mr. Blaine's observations. CLAYTON-BUtWER TREATY, AND MONROE POCTRINE. 327 I should wisti, therefore, merely to point out to you that the position of Great Bntaiu and the United States with reference to the canal, irrespective of the magni- tude of the commercial relations of the former power with countries to and from which, if completed, it will form the highway, is determined by the engagements en- tered into by them, respectively, in the convention which was signed at Washington on the 19th of April, 1850, commonly kuowA as the Clayton-Bulwer treaty, and Her Majesty's Government rely with confidence upon the observance of all the engage- ments of that treaty. I have, &c., GKANVILLJi. DOOUMBNT No. 84. 70. — Mr. Blaine to Mr. Lowell. 270.] Dbpaetmekt OF State, Washington, November 19, 1881. Sir : In pursuance of the premises laid down in my circular note of June 24 of this year touching the determination of this Government with respect to the guarantee of neutrality for the interoceanic canal at Panama, it becomes my duty to call your attention to the convention of April 19, 1850, between Great Britain and the United States, com- monly known as the Clayton-Bulwer treaty. According to thearticles of thatconvention the high contracting parties, in referring to an interoceanic canal through Nicaragua, agreed "that neither the one nor the other will ever obtain or maintain for itself any exclusive control over said ship-canal, and that neither will ever erect or maintain any fortifications commanding the same or in the vicinity thereof." In a concluding paragraph the high contracting parties agreed "to extend their protection by treaty stipulations to any other practi- cal communications, whether by canal or railway, across the Isthmus * * * which are now proposed to be established by way of Tehuan- tepec or Panama." This convention was made more than thirty years ago, under excep- tional and extraordinary conditions which have long since ceased to •exist— conditions which at best were temporary in their nature, and which can never be reproduced. > The remarkable development of the tTnited States on the Pacific coast fiince that time has created new duties for this Government, and de- volved new responsibilities upon it, the full and complete discharge of which requires in the judgment of the President spme essential modifi- cations in the Clayton-Bulwer treaty. The interests of Her Majesty's Government involved in this question, in so far as they may be prop- erly judged by the observation of a friendly power, are so inconsider- able in comparison with those of the United States that the President hopes a readjustment of the terms of the treaty may be reached in a spirit of amity and concord. The respect due to Her Majesty's Government demands that the ob- jections to the perpetuity of the convention of 1850, as it now exists, should be stated with directness and with entire frankness. And among the most salient and palpable of these is the fact that the operation of the treaty practically concedes to Great Britain the control of whatever canal may be constructed. The insular position of the home Government, with its extended colo- nial possessions, requires the British Empire to maintain a vast naval establishment, which, in our continental solidity, we do not need, and in 328 PROPOSED INTEEOCEANIC CANAL, time of peace shall never create. If the United States binds itself not to fortify on land, it concedes that Great Britain, in the possible case of a struggle for the control of the canal, shall at the outset have an ad- vantage which would prove decisive, and which could not be reversed except by the expenditure of treasure and force. The presumptive in- tention of the treaty was to place the two powers on a plane of perfect equality, with respect to the canal, but in practice, as I have indicated, this would prove utterly delusive, and would instead surrender it, if not in form, yet in effect, to the control of Great Britain. The treaty binds the United States not to use its military force in any precautionary measure, while it leaves the naval power of Great Britain perfectly free and unrestrained ; ready at any moment of need to seize both ends of the canal, and render its military occupation on land a matter entirely within the discretion of Her Majesty's Government. The military power of the United States, as shown by the recent civil war, is without limit, and in any conflict on the American continent alto- gether irresistible. The ClaytonBulwer treaty commands this Govern- ment- not to use a single regiment of troops to protect its interests in connection with the interoceanic canal, but to surrender the transit to the guardianship and control of the British navy. If no American soldier is to be quartered on the Isthmus to protect the rights of his country in the interoceanic canal, surely, by the fair logic of neutrality, no war vessel of Great Britain should be permitted to appear in the waters that control either entrance to the canal. A more comprehensive objection to the treaty is urged by this Govern- ment. Its provisions embody a mlisconception of the relative positions of Great Britain and the United States with respect to the interests of each Government in questions pertaining to this continent. The Gov- ernment of the United States has no occasion to disavow an aggressive disposition. Its entire policy establishes its pacific character, and among its chief aims is to cultivate the most friendly and intimate relations with its neighbors, both independent and colonial. At the same time, this Government, with respect to European states, will not consent to perpetuate any treaty that impeaches our right and long-established claim to priority on the American continent. The United States seeks only to use for the defense of its own inter- ests the same forecast and provision which Her Majesty's Government so emphatically employs in defense of the interests of the British Empire. To guard her Eastern possessions, to secure the most rapid transit for troops and munitions of war, and to prevent any other nation having equal facilities in the same direction, Great Britain holds ajad fortifies all the strategic points that control the route to India. At Gibraltar, at Malta, at Cyprus, her fortifications give her the masterj- of the Medi- terranean. She holds a controlling interest in the Suez Canal, and by her fortifications at Aden and on the island of Perim she excludes all other powers from the waters of the lied Sea and renders it a mare clausum. It would, in the judgment of the President, be no more unreasonable for the United States to demand a share in these fortifications, or to demand their absolute neutralization, than for England to make the same demand in perpetuity from the United States with respect to the transit across the American Continent. The possessions which Great Britain thus carefully guards in the Bast are not of more importance to her than is the Pacific slope, with its present development and assured growth, to the Government of the United States. The States and Territories appurtenant to the Pacific Ocean and de- pendent upon it for commercial outlet, and hence directly interested in CLAYTON-BULWER TREATY, AND MONKOB DOCTRINE. 329 the canal, comprise an area of nearly eight hundred thousand square miles, larger in extent than the German Empire and the four Latin countries of Europe combined. This vast region is but fairly beginning its prosperous; development, bix thousand miles of railway are already constructed within its limits, and It IS a moderate calculation to say that within the current decade the number of miles will at least be doubled. In the near future the money value of its surplus for export will be as large as that of British India, and perhaps larger. Nor must it be forgotten that India is but a distant colony of Great Britain, while the region on the Pacific is an integral portion of our national Union, and is of the very form and body ot our state. The inhabitants of India are alien from England in race, language, and religion. The citizens of California, Oregon, and Nevada, with the adjacent Territories, are of our own blood and kin- dred—bone of our bone and flesh of our flesh. ' Grea,t Britain appreciates the advantage and perhaps the necessity of maintaining, at the cost of large military and naval establishments, the interior and nearest route to India, while any nation with hostile intent is compelled to take the longer route and travel many thousand additional miles through dangerous seas. It is hardly conceivable that the same great power which considers herself justified in taking these precautions for the safety of a remote colony on another continent should object to the United States adopting similar but far less demonstrative measures for the protection of the distant shores of her own domain, for the drawing together of the extremes of the Union in still closer bonds of interest and sympathy, and for holdiug, in the quiet determination of an honorable self-defense, the absolute control of the great waterway which shall unite the two oceans, and which the United States will, always insist upon treating as part of her coast line. If a hostile movement should at any time be made against the Pacific coast, threatening danger to its people and destruction to its property, the Government of the United States would feel that it had been un- faithful to its duty and neglectful towards its own citizens if it permitted itself to be bound by a treaty which gave the same right through the canal to a war-ship bent on an errand of destruction that is reserved to its own Navy, sailing for the defense of our coast and the protection of the lives of our people. And as England insists by the might of her power that her enemies in war shall strike her Indian possessions only by doubling the Cape of Good Hope, so the Government of the United States will equally insist that the interior, more speedy, and safer route of the canal shall be reserved for ourselves, while our enemies, if we shall ever be so unfortunate as to have anj^, shall be remanded to the voyage around Cape Horn. A consideration of controlling influence in this question is the well- settled conviction on the part of this Government that only by the United States exercising supervision can the Isthmus canals be definitely and at all times secured against the interference and obstruction incident to war. A mere agreement of neutrality on paper between the great pow- ers of Europe might prove ineffectual to preserve the canal in time of hostilities. The first sound of a csinnon in a general European war would in all probability annul the treaty of neutrality, and the strategic posi- tion of the canal, commanding both oceans, might be held by the first naval power that could seize it. If this should be done the United States would suffer such grave inconvenience and loss in her domestic com- merce as would enforce the duty of a defensive and protective war on 330 PE0P08ED INTEROCEANIC CANAL, her part for the mere purpose of gaining that control which in advance she insists is due to her position and demanded by ber necessities. I am not arguing or assuming that a general war, or any war at all, is imminent in Europe. But it must not be forgotten that within the past twenty-five years all the great powers of Europe have been en- gaged in war; most of them more than once. lu only a single instance in the past hundred vears has the United States exchanged a hostile shot with any European power. It is in the highest degree improbable that for a hundred years to come even that experience will be repeated. It consequently becomes evident that the one conclusive mode of pre- serving any Isthmus canal from the possible distraction and destruc- tion of war is to place it under the control of that governmenj; least likely to be engaged in war, and able, in any and every event, to en- force the guardianship which she shall assume. For self protection to her own interests, therefore, the United States in the first instance asserts her right to control the Isthmus transit. And, secondly, she offers by such control that absolute neutralization of the canal as respects European powers which can in no other way be certainly 'attained and lastingly assured. Another consideration forcibly suggests the necessity of modifying the convention under discussion. At the time it was agreed to. Great Britain and the United States were the only nations prominent in the commerce of Central and South America. Since that time other lead- ing nations have greatly enlarged their commercial connections with that country, and are to day contending for supremacy in the trade of those shores. Within the past four years, indeed, the number of French and German vessels landing on the two coasts of Central America far exceeds the number of British vessels. While, therefore. Great Britain and the United States may agree to do nothing, and, according to the present convention, each remains bound to the other in common helplessness, a third power, or a fourth, or a combination of many, may step in and give direction to the project which theClayton-Bulwer treaty assumed was under the sole control of the two English-speaking nations. Indeed, so far as the canal scheme now projected at Panama finds a national sponsor or patron, it is in the Eepublic of France, and the non-intervention enjoined upon this coun- tiy by the Clayton Bulwer treaty, if applied to that canal, would para- lyze the arm of the United States in any attempt to assert the plain rights and privileges which this Government acquired through a solemn treaty with the Eepublic of Colombia anterior to the Olayton-Bulwer convention, so that the modification of the treaty of 1850, now sought, is not only to free the United States from unequal and inequitable obli- gations to Great Britain, but also to empower this Government to treat with all other nations seeking a foothold on the Isthmus on the same basis of impartial justice and independence. One of the motives that originally induced this Government to assent to the Clayton-Bulwer treaty, not distinctly expressed in the instru- ment, but inferable from every line of it, was the expected aid of British capital in the construction of the Nicaraguan canal. That expectation has not been realized, and the changed condition of this country since 1850 has diminished, if it has not entirely removed from consideration, any advantage to be derived from that source. Whenever, in the judg- ment of the United States Government, the time shall be auspicious and the conditions favorable for the construction of the Nicaraguan canal, no aid will be needed outside of the resources of our own Government and people; and while foreign capital will always be welcomed and CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 331 never repelled, it cannot henceforth enter as an essential factor in the determination of this problem. It is earnestly hoped by the President that the considerations now presented will have due weight and influence with Her Majesty's Gov- ernment, and that the modifications of the treaty desired by the United States will be conceded in the same friendly spirit in which they are asked. The following is a summary of the changes necessary to meet the views of this Government : First. Every part of the treaty which forbids the United States forti- fying the canal and holding the political control of it in conjunction with the country in which it is located to be canceled. Second. Every party of the treaty in which Great Britain and the United States agree to make no acquisition of territory in Central America to remain in full force. As an original proposition, this Gov- ernment would not admit that Great Britain and the United States should be put- on the same basis, even negatively, with respect to terri- torial acquisitions on the American continent, and would be unwilling to establish such a precedent without full explanation. But the treaty contains that provision with respect to Central America, and if the United States should seek its annulment, it might give rise to erroneous and mischievous apprehensions among a people with whom this Govern- ment desires to be on the most friendly terms. The United States has taken special occasion to assure the Spanish- American republics to the south of us that we do not intend and do not desire to cross their borders or iu any way disturb their territorial integrity, and we shall not willingly incur the risk of a misunderstanding by annulling the clauses in the Clayton -Bui wer treaty which forbid such a step with Central America. The acquisition of military and naval stations neces- sary for the protection of the canal and voluntarily ceded to the United States by the Central American States not to be regarded as a viola- tion of the provisions contained in the foregoing. Third. The United States will not object to maintaining the clause looking to the establishment of a free port at each end of whatever canal may be constructed, if England desires it to be retained. Fourth. The clause in which the two governments agreed to make treaty stipulations for a joint protectorate of whatever railway or canal might be constructed at Tehuantepec or Panama has never been per- fected. No treaty stipulations for the proposed end have been suggested by either party, although citizens of the United States long since con- structed a railway at Panama, and are now engaged in the same work at Tehuantepec. It is a fair presumption, in the judgment of the Presi- dent, that this provision should be regarded as obsolete by the non- action and common consent of the two governments. Fifth. The clause defining the distance from either end of the canal where in time of war captures might be made by either belligerent on the high seas was left incomplete, and the distance was never determined. In the judgment of the President, speaking in the interest of peaceful commerce, this distance should be made as liberal as possible, and might, with advantage, as a question relating to the high seas and common to all nations, be a matter of stipulation between the great powers of the world. , In assuming as a necessity the political control of whatever canal or canals may be constructed across the Isthmus, the United States will act in entire harmony with the governments within whose territory the canals shall be located. Between the United States and the other American republics there can be no hostility, no jealousy, no rivalry, 332 PROPOSED INTEROCEANIC CANAL, no distrust. This government entertains no design in connection with this project for its own advantage which is not also for the equal or greater advantage of the country to be directly and immediately affected. Nor does the United States seek any exclusive or narrow commercial advantage. It irankly agrees and will by public proclamation declare at the proper time, in conjunction with the republic on whose soil the canal may be located, that the same rights and i)rivileges, the same tolls and obligations for the use of the canal, shall apply with absolute im- partiality to the merchant marine of every nation on the globe. And equally in time of peace, the harmless use of the canal shall be freely granted to the war vessels of other nations. In time of war, aside from the defensive u'se to be made of it by the country in which it is con- structed and by the United States, the canal shall be impartially closed against the war vessels of all belligerents. It is the desire and determination of the United States that the canal shall be used only for the development and increase of peaceful com- merce among all the nations, and shall not be considered a strategic point in warfare which may tempt the aggression of belligerents or be seized under the compulsions of military necessity by any of the great powers that may have contests in which the United States has no stake and will take no part. If it be asked why the CJnited -States objects to the assent of Euro- pean governments to the terms of neutrality for the operation of the canal, my answer is that the right to assent implies the right to dissent, and thus the whole question would be thrown open for contention as an international issue. It is the fixed purpose of the United States to con- fine it strictly and solely as an American question, to be dealt with and decided hy the American Govei nment. In presenting the views contained herein to Lord Granville, you will take occasion to say that the Government of the United States seeks this particular time for the discussion as most opportune and auspicious. At no period since the peace of 1783 have relations between the British and American Governments been so cordial and friendly as now. And I am sure Her Majesty's Government will find in the views now sug- gested and the propositions now submitted additional evidence of the desire of this Government to remove all possible grounds of controversy between two nations which have so many interests in common and so many reasons for honorable and lasting peace. You will, at the earliest opportunity, acquaint Lord Granville with the purpose of the United States touching the Olayton-Bulwer treaty, and in your own way you will impress him fully with the views of your Govern- ment. I refrain from.directing that a copy of this instruction be left with his lordship, because in reviewing the case I have necessarily been compelled, in drawing illustrations from British policy, to indulge somewhat freely in the argumentum ad hominem. This course of reasoning in an instruction to our own minister is alto- gether legitimate and pertinent, and yet might seem discourteous if addressed directly to the British Government. You may deem it expe- dient to make this explanation to Lord Granville, and if, afterward, he shall desire a copy of this instruction, you will of course furnish it. I am, &c., JAMBS G. BLAINE. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 333 DOCUMENT No. 85. 71. — Mr. Blaine to Mr. Lowell. So. 281.] Dbpaeticent of State, Washington, November 29, 1881. Sir : One week after mailing my instructions to you, on the 19th in- stant, touching the presentation to Her Majesty's Government of a pro- posal for the modification of the convention between the two countries of April 19, 1850, better known as the Clayton-Bulwer treaty, I received Mr. Hoppin's No. 218, of the 11th instant, communicating the response of Lord Grranville to my circular note of the 24th of June last, in rela- tion to the neutrality of any canal across the Isthmus of Panama. I regret that Mr. Hoppin should not have advised me by telegraph of the purport of his lordship's reply, as it would have enabled me to present the arguments of my dispatch of the 19th instant in a more specific form, as meeting a positiveissue, rather than as generally dealing with a sub- ject which, for thirty years, has been regarded in but one light by the public opinion of the United States. It seems proper now, however, in reply to his lordship's note of November 10, to give a summary of the historical objections to the Clayton-Bulwer treaty, and the very de- cided differences of opinion between the two Governments to which its interpretation has given rise. I need hardly point out to you the well-known circumstance that, even at the time of the conclusion of the Clayton Bui wer treaty, a very con- siderable opposition was shown thereto on the part of the far-.sighted men in public life who correctly estimated the complications whicli the uncertain terms of that compact might occasion. It was ably contended in Congress that its provision did not, even then, suffice to meet the real points at issue with respect to the guarantee of the neutrality of the v/hole American Isthmus on bases comporting with the national in- terests of the United States, and the differences of interpretation be- came soon after so marked as to warrant the extreme proposal of Her Majesty's Government to refer them to the arbitration of a friendly power. The justice of those doubt? became still more evident six years later, when the pretensions put forth by Her Majesty's Government toward territorial protection, if not absolute control, of portions of Nicaragua and of the outlying Bay Islands brought up the precise question of how far the provisions of the Clayton-Bulwer compact operated to restrain the projected movement, and thereupon the interpretations respectively put npon that instrument by the United States and Great Britain were perceived to be in open conflict. The attempt made in the Clarendon- Dallas treaty, which was negotiated on the 17th of October, 1856, to reconcile these opposing contentions and to place the absolute and inde- pendent sovereignty of Nicaragua over its territory on an unmistakable footing so far as the United States and Great Britain were concerned, failed to be completed by reason of the rejection by Her Majesty's Gov- ernment of an amendment introduced by the Senate into the Clarendon- Dallas project. From that time onward the inability of the two Govern- ments to agree upon a common interpretation of the letter and spirit of the Clayton-Bulwer treaty may be accepted as a historical fact. In the discussions between the two Governments which attended the failure of the Clarendon-Dallas treaty the attitude of the United States with respect to the Clayton-Bulwer treaty was amply defined. As early 334 PROPOSED INTEEOCEANIO CANAL, as the 12th of March, 1857, I find that General Cass, then Secretary of State, in the course of a conference with Lord Napier, Her Majesty's representative. Passed some reflection on the Claytou-B.ulwer treaty ; he had voted for it, and in doing so he believed that it abrogated all intervention on the part of England in the Central American territory. The British Government had pnt a different constrnction on the treaty, and he regretted the vote he had given in its favor, (Dispatch of Lord Napier to the Earl of Clarendon, March 12, 1857.) On the 6th of May, 1857, President Buchanan, in an audience given to Lord Napier, and in response to his lordship's suggestion that if the attempted adjustment of the difference- between the G-overnments as to the Clarendon Dallas treaty should fail, the Olayton-Bulwer treaty re- mained to fall back upon, characterized that instrument in much stronger terms than General Cass had done. To quote Lord Napier's words : The President denounced the Clayton-Bulwer treaty as one which has been fraught with misunderstanding and mischief from the beginning. It was concluded under the most opposite constructions by the contracting . parties. If the Senate had imag- ined that it could obtain the interpretation placed upon it by Great Britain it would not have passed. If he had been in the Senate at the time that treaty never would have been sanctioned. (Dispatch of Lord Napier to the Earl of Clarendon, May 6, 1857.) These views are more explicity and formally repeated in a note ad- dressed by Secretary Cass to Lord Napier on the 29th of May, 1S57, He says : The Clayton-Bulwer treaty, concluded in the hope that it would pnt an end to the differences which had arisen between the United States and Great Britain concern- ing Central American affairs, had been rendered inoperative in some of its most essen- tial provisions by the different constructions which had been reciprocally given to it by the parties. And little is hazarded in saying that, had the interpretation sinoe put upon the treaty by the British Government, and yet maintained, been anticipated, it would not have been negotiated under the instructions of any Executive of the United States nor ratified by the branch of the Government intrusted with the power of ratification. The publicity of these statements, and the strong feeling which then prevailed in all quarters that the Clayton-Bulwer convention was inad- equate to reconcile the opposite views of Great Britain and the United States towards Central America, led to a very decided conviction that the treaty should be abrogated. Lord Napier reflected this growing impression when, on the 22d of June, 1857, he wrote to Lord Clarendon that — It is probable that if the pendiug discussion regarding Central America be not closed during the present summer, an attempt will be made in the next session of Congress to set aside the Clayton-Bulwer treaty. » » • There can be no doubt of the views of the President and Cabjnet on this matter. Before this tendency could, however, find its expression in any official act, a movement on the part of Her Majesty's Government placed the whole matter in a new aspect. Sir William Gore Ouseley was sent out, October 30, 1857, as a special minister, with the double purpose of con- cluding with the Central American states, and especially with Guate- mala and Honduras, settlements of the questions relative to the Bay Islands, the Mosquito territory, and the boundaries of British Honduras, and also of visiting Washington on the way, and conferring with the Secretary of State of the United States for the purpose of ascertaining the views of his Government, and establishing " a perfect understand- ing with the United States upon the points respecting which differences have hitherto existed between the two countries." Among these differences was now superadded to the territorial ques- tion of Mosquito and the islands, the very question which to-day most CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 335 concerns us, the question of iiiteroceanic communication, which had for some time been the occasion of correspondence between General Cass and Lord Napier, and in relation to which General Cass wrote, on the 20th of October, 1857, as follows: . I have thus emleayored to meet the frank sufrsestions of your lordship by restating with correspoudmg fraulcuess the general polie^- of the United States «'ilh respect tS tne goyeraraents and the mteroceanio transits of Central America. But since your lordship has referred to the Clayton Biilwer treaty of 1850, as contemplating a 'har- monious course of a.-tiou and counsel between the contracting parties in the settle- ment ot Central American interests, you will pardon me for reminding your lordship that the differences which this treaty was intended to adjust between the United States and t,reat Britain still remain unsettled, while the treaty itself has become the subject of new and embarrassing complications. ' Prior to the arrival of Sir William Ouseley in the United States Lord JNapier held an important interview with President Buchanan on the 19th of October, 1857, with the object of obtaining "further elucidation of the opinions of the President with reference to the adjustment of the Clayton-Bulwer treaty." On that occasion Lord Napier declared that he believed it the intention of Ber Majesty's Government, in Sir Will- iam Ouseley's mission, " to carry the Olayton-Bulwer treaty into execu- tion according to the general tenor of the interpretation put upon it by the United States ; bnt to do so by separate negotiation with the Central American republics, in lieu of a direct engagement with the Federal Government," and asked that, pending the negotiation intrusted to Sir William Ouseley, "no proposal to annul the [Clayton-Bulwer] treaty would be sanctioned or encouraged" by the President or the- members of the United States Government. To this the President cheerfully consented, and promised to modify the statement in his annual message to Congress accordingly, and under no circumstances to countenance any attempt against the Clayton-Bulwer treaty in Congress. Matters being in this state, with Sir William Ouseley's mission an- nounced, and the benevolently expectant attitude of the United States toward it assured. Lord Napier, on the tilth of October, 1857, in confer- ence with General Cass, brought up contingentlj", as a discarded altern- ative of his Government, a former proposal to refer the disputed ques- tions to arbitration. The general remarked in reply [says Lord Napier, writing to the Earl of Clarendon] that he did not repudiate the principle of arbitration on all occasions ; he had invoked it, and would do so agaiu where it seemed justly applicable; but that in this matter it was declined by the American Government for the following reasons : The language of the treaty was so clear that in his opinion there ought not to be two opinions about it. * * * Then it was a mere question of the interpretation of the English language, and he held that a foreign government was not so competent to decide in such a ques- tion as the United States and England, who possessed that language in common. The Earl of Clarendon, in reply, approved of Lord Napier's course in broaching anew the suggestion of arbitration, and authorized him to renew formally in writing the offer to refer the disputed questions aris- ing out of the interpretation of the Clayton-Bulwer treaty to the decis- ion of any European power (instruction of November 13, 1857), and this - was accordingly done by Lord Napier in a note to General Cass dated November 30, 1857. In his annual message t,o Congress in December, 1867, President Bu- chanan, after narrating the negotiation and failure of the Clarendon- Dallas treaty, said : The fact is, that when two nations like Great Britain and the United States, mutu- ally desirous as they are, and I trust ever may be, of maintaining the most friendly relations with each other, have unfortunately concluded a treaty which they under- stand in senses directly opposite, the wisest course is to abrogate such a treaty by mu- 336 PROPOSKD INTEROCEANIC CANAL, tual consent and to commence anew. » * * Whilst entertaining these sentiments, I shall ueyertheless not refuse to contribute to any reasonable adjustment of the Cen- tral American questions which is not practically inconsistent with the American inter- pretation of the treaty. Overtures for this purpose have been recently made by the British Government in a friendly spirit, which I cordially reciprocate. Meanwhile the Earl of Clarendon had instructed Sir William Ouseley, under date of November 19, 1857, "not to commit Her Majesty's Gov- ernment to any course whatever in respect to the Bay Islands till the intentions of the Congress of the United States in regard to the treaty of 1850 are clearly ascertained." The situation, then, at the close of 1857 presented a triple dead-look. The [Juited States had agreed not to move toward the abrogation of the treaty until it could be seen what interpretation of its provisions would result from Sir William Ouseley's mission. Sir William had re- ceived potsitive instructions not to move until the United States should decide whether to abrogate the treaty or not, and Lord Napier was for- bidden to move until the United States should make formal answer to the proposal for arbitration. The in structions of Lord Clarendon to Lord Napier, January 22, 1858, contained these words: We are decidedly of opinion that it would neither be consistent with our dignity or our interest to make any proposal to the United States (Government until we nave re- ceived a fonnal answer to our forraersoffer of arbitration. In event of the offer being refused, it will be a great and hardly justifiable proof of the spirit of conciliation by which we are animated if we then show ourselves disposed to abrogate the Clayton- Bulwer treaty; but we must not be in too great haste. Tn order, apparently, to break this dead-lock, Lord Napier wrote to General Cass, February 17, 1858, that — Something in the nature of an alternative was thus offered to the American Cabinet. Should the expedient of arbitration be adopted a great portion of Sir William Case- ley's duty would be transferred to other agencies. Should arbitration be declined, it was hoped that the efforts of Her Majesty's envoy would result in a settlement agree- able to the United States, itftismacb as in essential points it would carry the treaty of 1850 into operation in a manner practically conformable to. the American interpreta- tion of that instrument. On the 10th of March, 1868, the Earl of Malmesbury, who had suc- ceeded Lord Clarendon in the foreign office, instructed Lord Napier that until an answer was returnetl to the proposal for arbitration, " no farther steps can be taken by Her Majesty's GovernDient with that of the United States in regard to that matter;" and, further, that — When this point is cleared up, Her Majesty's Government, supposing that the Gov- ernment of the United States deoiine arbitration, will have to determine whether they should originate a proposal for the abrogation of the Clayton-Bulwer treaty or adopt any other course which the circumstances at the moment may seem to recommend. It appears, however, that the proposal to abrogate the treaty which Lord Malmesbury reserved the right to originate had already been com- municated to the Government of the United States by Lord Napier, under instructions from Lord Clarendon. In a dispatch dated March 22, 1858, Lord Napier wrote : The Earl of Clarendon authorized me to inform General Cass that Her Majesty's Government would not decline the consideration of a proposal for the abrogation of the treaty by mutual concert. » » » i have, accordingly, on two occasions, in- formed General Caas that if the Government of the United States be still of the same mind, and continue to desire the abrogation of the treaty of 1850, it would be agree- able to Her Majesty's Government that they should insert a proposal to that effect in their reply to my note respecting arbitration. Lord Napier further reports in detail the conversations had with Gen- eral Cass as to the most proper method of effecting such abrogation, if agreed to. CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 337 In reply to this dispatch of Lord Napier, the Earl of Malmesbury in- structed him, April 8, 1858, that his action was approved, and that he should confine himself to pressing for an answer to his proposal for ar- bitration. His lordship added these significant words : Her Majesty's GoTernment, if the initiative is still left to them by the>ii willing- ness of the United States themselves to propose abrogation, desire to retain;full liberty as to the manner and form in which any such proposal shall be laid on their behalf before the Cabinet at Washington. » * * The Clayton-Bulwer treaty has been a source of unceasing embarrassment to this country, and Her Majesty's Government, if they should be so lortunate as to'extricate themselves from the difficulties which have resulted from it, will not involve themselves, directly or indirectly, in any similar dif- fionlties for the future. The answer of General Oass to Lord Napier's several proposals was, briefly, to the effect that pending the results exi)ected from Sir William Ouseley's mission to the Central American States the United States could not adopt the alternative of arbitration, "even if it,had not been twice rejected before," and, that if — The President does not hasten to consider now the alternative of repealing the treaty of 1850, it is because he does not wish prematurely to anticipate the failure of Sir William Ouseley's mission, and is disposed to give a new proof to Her Majesty's Government of his sincere desire to preserve the amicable relations which now happily subsist between the two countries. (General Cass to Lord Napier, April 6, 1858.) In this posture of affairs the Earl of Malmesbury instructed Sir Will- iam Ouseley to open direct negotiations with the Central American States, and on the 18th of August instructed Lord Napier to inform the Government of the United States of the intentions and x)bject of Her Majesty's Government in the premises. His lordship added : Modification, arbitration, and abrogation of the Clayton-Bulwer treaty have been flatlji rejected [the italics are my ownj. Great Britain and Nicaragua are now about to treat as independent States. I have emphasized the phrase " flatly rejected " in view of a subse- quent instruction of the Earl of Malmesbury to Lord Napier on the 8th V of December, 1858, wherein he said : I think you would have done better if you had not too pointedly brought before the United States Government the notion that the British Government might view witb favor a proposal to abrogate the Clayton-Bulwer treaty. It is not difficult, in following this narrative, to discern that General Cass, though not desiring to express it, had an additional motive for declining at that particular time to propose the abrogation of the Clay- ton-Bulwer treaty. He did not desire by such proposed abrogation to indicate his willingness that Sir William Gore Ouseley should make treaties with the separate States of Central America, unrestrained by the clauses of the Clayton-Bulwer treaty inhibiting the extension of -British power in that region. General Cass, with his accustomed cau- tion and wisdom, clearly perceived that for the United States to propose abrogation on the very eve of Sir William Ouseley's mission woulu lead to injurious inference's, and would imply conclusions which the United States was tiot prepared to admit. ^ Objectionable as General Cass thought the Clayton-Bulwer treaty, he thought it was better than giving the implied consent of this Govern- ment that Great Britain should obtain such treaties as the force of her power might secure in Central America. The subsequent note of Lord Malmesbury, not strained by an unchar- itable construction, throws additional light on the subject, and confirms the wisdom of General Cass in declining to propose abrogation at that time. And, besides, General Cass evidently desired to retain those very 4909 CONG 22 338 PROPOSED INTEKOCEANIC CANAL, "Clauses of the Clayton-Bulwer treaty to which, in my dispatch, of the 19th, I proposed ^n the part of this Government to adhere. I have dwelt with somewhat of detail' on this particular historic epi- sode, partly because it admirably illustrates the spirit with which both Governments have regarded the Clayton-Bulwer treaty from the first, and partly because it had more direct bearing on the question of the guarantee of any isthmian transit than any other discussion of the time. In perusing the voluminous correspondence, unprinted as well as that printed and submitted at the time to Congress and to Parliament, I am more than ever struck by the elastic character of the Clayton-Bulwer treaty, and the admii'able purpose it has served as an ultimate recourse ■on the part of either Government to check apprehended designs in Cen- tral America on the part of the other; although all the while it was frankly admitted on both sides that the engagements of the treaty were misunderstandingly entered into, imperfectly comprehended, contradic- torily interpreted, and mutually vexatious. I am, as I must confess, strengthened in this impression by the circum- stance that, in his response to my dispatch of the 24th of June last, Earl Granville takes the ground that the position of Great Britain and the United States toward the projected Panama Canal is determined by the Clayton-Bulwer treaty. It does not seem likely to become a subject for discussion how far the engagements of that compact in reality ex- tend to the Isthmus of Panama under the provisions of Article YIII thereof in the same precise sense in which they extend to the projected U icaraguan transit. For it will be observed that this article does not stretch the guaran- tees and restrictions of Article I over either the Tehauntepec route through Mexican territory or the Panama route through Colombian territory. It is in terms an agreement to extend the protection of both ■countries, by treaty stipulations, to those or any other practicable waterj ways or railways, from ocean to ocean, across the Isthmus, outside of Ificaragua, Costa Eica, the Mosquito" coaSt, or any part of Central America. So far as this inchoate agreement to hereafter agree is ap- plicable to the Panama transit, I have amply shown, in my No. 270 of the 19th instant, that the obligations embraced on the part of the United States in concluding the prior convention with the Eepublic of New Granada (now Colombia) in 1846 require that the United States should be freed from unequal and inequitable obligations to Great Britain under the vague and, as yet, unperfected compact of 1850. My main object in writing this instruction has been to strengthen joaT hands in any discussion which may now ensue as to the benefits of the Clayton-Bulwer treaty and the mutual interest of the two countries in conserving it as the basis of a settlement of all disputes between them touching Central American and isthmian questions. It will be seen that, from the time of its conclusion in 1850 until the end of 1858, its provisions were thrice made the basis of a proposal to arbitrate as to their meaning, that modification and abrogation have been alike con- tingently considered, and that its vexations and imperfect character has been repeatedly recognized on both sides. The present proposal of this Government is to free it from those embarrassing features, and leave it, as its framers intended it should be, a full and perfect settlement, for all time, of all possible issues between the United States and Great Britain with regard to Central America. If in your conferences with Earl Granville it should seem necessary, you will make free use of the precedents I have cited, and should you, CLAYION-BULWER TREATY, A,ND MONROE DOCTRINE. 339 ^Pithin the discretionary limits confided at the end of my No. 270, have hirt.t*'^^^ thereof to his lordship, you are equally at liberty to let him have a copy of this also, with the same explanation, that it is for Ma^L^t' ^^ °"* written as a formal note for communication to Her JMajesty's Government, lam, &c., JAMES G. BLAINE. DOCUMENT No. 86. -^ 72.— Mr. Lowell to Mr. Blaine. ^°- ^^^•] Legation of the United States, London, December 15, 1881. (Received December 29.) Sir: I have the honor to acquaint you that on the 13th instant I had an interview with Lord Granville at the foreign office, and communi- cated to him the substance of your instruction No. 270, of the 19th ultimo. I then, at his request, read it to him, beginning, however, with the concluding paragraph, for obvious reasoos. At his desire I left a copy with him. I thought it wiser, in a matter of so much moment, that he should re- ceive the views of the President as they were conveyed in the dispatch rather than, perhaps, to weaken their force by communicating them in my own manner, as I was authorized by you to do. ' Lord Granville listened with great attention, and merely said that he should reserve his answer. I have, &c., j. e. LOWELL. DOCUMENT No. 87. 73. — Mr. Lowell to Mr. Blaine. No. 277.] Legation op the United States London, December 27, 1881. (Eeceived January 9, 1882.) Sib : I have the honor to report that so soon as I received your in- struction No. 281, the 29th ultimo, I addressed a private note to Lord Granville informing him of the fact, and asking him when it would be convenient for him to favor me with an interview. In his reply he asked me if I could come to him at Walmer, where he was detained by the hospitalities of the Christmas season. Thinking it important that he should see the dispatch as soon as possible, because it was so nearly related to your No. 270, 1 accordingly went down to Walmer on the 23d instant. I there read the dispatch to him, and at his desire left a copy of it with him. I did not think^it prudent or proper to enter upon any discussion with Lord Granville upon the general topics of the dispatch but as some of the newspapers here had criticised it as untimely I thought it not out of place to remind him that the policy of the United States had already been clearly indicated in a message to Congress by President Hayes, and more strongly reiterated in the same public man- ner by President Garfield. Lord Granville was, as usual, exceedingly courteous and friendly but made no remark except that the publication of No. 270, before an op'por- tunity was given him of replying to it, "seemed to him, to say the least unusual." ' I have, &c., j, e. LOWTCT.t, 340 PKOPOSED INTEROCEANIC CANAL, DOCUMENT No. 88. 74. — Lord Granville to Mr. West. Foreign Office, January 7, 1882. Sir : In nly dispatch 'So. 279a of the 13th ultimo I informed you that the United States minister at this court had communicated to me the substance of a dispatch which he had received from Mr. Blaine, then Secretary of State, on the subject of the convention of the 19th April, 1850. Finding that Mr. Lowell was authorized to give me a copy of this dispatch if I wished it, I requested him to do so, and I have already forwarded to you a copy for your information. , Her Majesty's Government have given their careful consideration to the views set forth in this paper. They entirely agree in the statement made toward its conclusion as to the cordial relations so happily exist- ing between the two countries, and as to the opportunity which this state of things affords for a frank exposition of the views held by either Government without risk of misconstruction. They have no hesitation, therefore, in proceeding to examine the grounds advanced by Mr. Blaine for desiring a modification of the convention. The principles upon which the whole argument of the dispatch is founded are, as far as I am aware, novel in international law.. If a dis- cussion of the subject on the abstract grounds of public right were deemed useful or opportune, it would not be difficult to quote passages from publicists of acknowledged authority in both countries in support of this opinion. But for several reasons it will be better to treat the matter from the side of the practical consideration which it involves, without, of course, being precluded from reverting at any future stage, in case o^ need, to its other aspect. Her Majesty's Government cannot admit that the analogy which it is sought to draw from the conduct of Great Britain in regard to the Suez Canal is correct or justified by the facts. They have made no attempt to fortify the island ofOyprus, or to establish it as an armed position on an importam; scale, though they have an undoubted right toTio so. The fortress of Gibraltar, the island of Malta, and the military establishment at Aden came into the possession of England at a date long anterior to the time when the Mediterranean and the Eed Sea could be regarded as a military route to India. For years afterward the whole mass of re- enforcements for India was sent by the way of Cape of Good Hope. Nor has any serious addition been made to the strength of these positions since the opening of the canal beyond what has been a natural conse- quence of the improvements in military science. Although no doubt well adapted by its situation to command the Straits of Bab-el-Mandeb, the Island of Perim has not in any real sense been made a fortified posi- tion. The fort and garrison on the island are, in fact, sufficient only to protect the light-house, which has been erected there for the general benefit of navigation, from possible attack by predatory Arabs. The Navy Department of the United States must be well aware that Her Majesty's Government have never sought to bar or even to restrict the use of the canal by the naval forces of other countries, and that even during the recent war between Russia and Turkey, when the canal itself formed a portion of the territory of one of the belligerents, when the seat of conflict was close at hand, and when British interests might in many other respects have been nearly involved, they contented them- selves with obtaining an assurance that the sphere of operations should BOt be extended to the canal. Her Majesty's Government cordially concur in what is stated by Mr. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 341 Blaine as regards the unexampled development of the Uuited States on the Pacific coast, and the capacity which they possess for further prog- ress. That development has been watched in this country with admi- ration and interest, and will continue to be so regarded. But though in rapidity it may, and probably has, exceeded the most sanguine cal- culation, Her Majesty's Government cannot look upon it in the light of an unexpected event, or suppose that it was not within the view of the statesmen who were parties on either side to the Olayton-Bulwer treaty. The declarations of President Monroe and of his cabinet, in 1823 and 1824, whatever may be the view taken of their scope and bearing, and of the admissibility of the principles which thev involve, or which it is sought to deduce from them, show at least that at that period— twenty- six years anterior to the treaty now under discussion— th6re was a clear prevision of the great future reserved to the Pacific coast. It is, in the opinion of Her Majesty's Government, an inadmissible contention that the regular and successful operation of causes so evident at the time, and ip their nature so irrepressible, should be held to have completely altered the condition of affairs to the extent of vitiating the founda- tions of an agreement which cannot be supposed to have been concluded without careful thought and deliberation. While recognizing to the fullest degree the extent to which thfe United States must feel interested in any canal which may be constructed across the Isthmus of Panama, Her Majesty's Government would be wanting in regard to their duty if they failed to point out that Great Britain has large colonial possessions, no less than great commercial interests, which render any means of unobstructed and rapid access from the Atlantic to the North and South Pacific Oceans a matter for her also of the greatest importance. The development of these possessions and interests has steadily con- tinued, possibly with less rapidity, but on a scale which has some rela- tions even to that of the Pacific States. Her Majesty's Government do not wish to ignore the share which other nations have acquired in the commerce of Central and South America, nor to exclude from considera- tion the interests of those countries in any canal which may be made across the Isthmus. They are of opinion that such a canal as the water- way between two great oceans and between all Europe and Eastern Asia is a work which concerns not merely the United States or the American continent, but the whole civilized world. This is a view which finds its expression in the VI th article of the treaty of 1850. Her Majesty's Gov- ernment are as anxious as that of the United States that, while all na- tions should enjoy their proper share in the benefits to be expected from the undertaking, no single country should acquire a predominating in- fluence or control over such a means of communication ; and they will not oppose or decline any discussion for the purpose of securing on a general international basis its universal and unrestricted use. With all deference to the considerations which have prompted the pro- posals made in Mr. Blaine's dispatch. Her Majesty's Government cannot believe that they would promote this object or be beneficial in them- selves. The relatioms of the United States with the European powers are fortunately of a nature to give rise to no feelings of suspicion or alarm. The general tendency of their foreign policy gives good promise that they will so continue. But if provision is to be made on one side for a different state of affairs, it must be expected that the course thus indicated will find its natural and logical counterpart on the other. Her Majesty's Government can conceive no more melancholy spectacle than a competition among the nations holding West Indian possessions, and others on the Central and South American continent, in the construe- 342 PROPOSED INTEEOCEANIC CANAL, tion of fortifications to obtain the com maud over the canal and its ap- proaches, in the event of occasion arising for such a measure. They cannot believe that it would be agreeable or convenient to any South American State through which the canal might pass to find itself called upon to admit a foreign power to construct and garrison on its territory a succession of fortresses of increasing magnitude, designed to oppose such attempts, even though that foreign power be a neighboring one, and situated upon the same continent. And when ihe claim to do this is accompanied by a declaration that the United States will always insist on treating the water-way which shall unite the two oceans " as part of her coast line," it is diflBcult to imagine that the States to which the territory lying between that water-way and the United States belongs can practically retain as independent a position as that which they now enjoy. These are the consequences which, in the conviction of Her Majesty's Government, would almost certainly follow from a claim on the part of the United States to assume the supreme authority over the canal and all responsibility for its control. Her Majesty's Government hold, on the contrary, that the principles which guided the negotiators of the convention of 1850 were intrinsically sound, and continue to be applica- ble to the present state of affairs. Their wish would be that those prin- ciples should receive the practical development which was contemplated at the time ; and that effect should be given to that portion of the treaty which provides that the contracting parties shall invite all other States with whom they have friendly intercourse to enter into similar stipula- tions with them. A certain amount of progress was made in this direction by the con- clusion of conventions with Honduras and Nicaragua by Great Britain in 1856 and 1860, and by the United States in 1864 and 1867, and by Nicaragua with France in 1859, with the object of upholding the gen- eral principles inserted in the treaty. During the period when there were still matters to regulate with respect to Grey town, the Bay Isl- ands; the frontier of British Honduras, and the protection of the Mos- quito Indians, and when the construction of a canal still seemed a con- tingency more or less doubtful and remote, it was not strange that the engagement to address other powers should have been allowed to remain dormant ; but the project of the canal has now assumed suflBcient shape to render such an application reasonable and pertinent. Her Majesty's Government believe that the extension of an invitation to all maritime states to participate in an agreement based on the stipu- lations of the convention of 1850 would obviate any objection that may possibly be raised against it as not being adequate in its present condi- tion for the purpose for which it was designed. This course formed the basis of Mr. Fish's proposal to Dr. Cardenas, the Nicaraguan minister, in 1877 ; and Her Majesty's Government would gladly see the United States again take the initiative in an invitation to the powers, and will be prepared either to join it or to support and indorse it in the way that may be found most fitting and convenient, provided it does not con- flict in any way with the Olayton-Bulwer treaty. You are authorized to read this dispatch to the Secretary of State, and to give him a copy of it if he should desire it. I am, &c., GRANVILLE. The Hon. Lionel S. S. West. CLAYTON-BULWER, TREATY, AND MONROE DOCTRINE. 345 DOCUMENT No, 89. 75. — Lord Qranville to Mr. West. ^o. 8.] Foreign Oppicb, January 14, 1882. Sir : In my dispatch 296 of the 31st ultimo I have forwarded to you- a copy of a dispatch from Mr. Blaine to the United States minister at this court, containing further observations in support of his arguments and proposal for a modification of the treaty between this country and the United States of the 19th of April, 1850. In this dispatch Mr. Blaine gives extracts from the correspondence which passed bet-n^ea the two Governments between 1856 and 1858, in consequence of ques- tions that arose as to the construction to be placed on certain provis- ions of the treaty. Mr. Blaine seeks to establish from these extracts. that " the vexatious and imperfect character of the treaty has beea re- peatedly recognized on both sides ; " and he adds that the present pro- posal of the United States Government " is to free it from those embar- rassing features, and to leave it, as its framers intended it should be^ a full and perfect settlement, for all time, of all possible issues between the United States and Great Britain with regard to Central America."" The correspondence in question was laid before Parliament in I860, and the principal papers included in it have also been published in Hertslet's State Papers.* A reference to the context of the passages quoted by Mr. Blaine will be necessary in order to appreciate the char- acter which Mr. Blaine has attributed to them. In cases where the details of an international agreement have given rise to diflflculties and discussions to such an extent as to cause the con- tracting parties, at one time, to contemplate its abrogation or modification as one of several possible alternatives, and where it has yet been found preferable to arrive at a solution as to those details rather than to sacri- fice the general basis of the engagement, it must surely be allowed that such a fact, far from being an argument against that engagement, is an argument distinctly in its favor. It is equally plain that either of the contracting parties which had abandoned its own contention for the purpose of preserving the agreement in its entirety would have reason to complain if the differences which had been settled by its concession were afterwards arged as a reason for essentially modifying those other provisions which it had made this sacrifice to maintain. That both these arguments apply in the present instance a brief review of the cor- respondence will, I think, sufi&ce to show. The treaty of 1860 was concluded (as is declared in the Vlllth Article) with the desire "not only to accomplish a particular object, but also tO' establish a general principle" in regard to the protection, by treaty stipulations, of any practical communications, whether by canal or rail- way, across the isthmus which connects North and South America. . The preamble and first article of the treaty run as follows: Her Britannic majesty and the United States of America, being desirous of consolidat- ing tlie relations of amity which so happily subsist between them, by setting forth and fixing in a convention their views and intentions with referpuio to any means of com- munication by ship-canal, which maybe constructed between the Atlantic and Pacific Oceans, by the way of the river St. Juan de Nicaragua, and either or both of the lakes of Nicaragua or Managua, to any port or place on the Pacific Ocean; * * » Art. I. The Governments of Great Britain and the United States hereby declare that neither the one nor the other will ever obtain or maintain for itself any exclusive con- trol over the said ship-canal ; agreejng that neither will ever erect or maintain any fortifications commanding the same, or in the vicinity theiroof, or occupy, or fortify, or colonize, or assume or exercise any dominion over Nicaragua, Costa Rica, the Mosqui- *Vol. xl, p. 953 ; xli, p. 757; xlii, p. 153 ; xlvi, p. S44 ; xlvii, p. 6til ; xlviii, p. 630 ; 1, p. 126. 344 PROPOSED INTEROCEANIC CANAL, to-coast, or any part of Central America; nor will either make use of any protection; ■which either affords, or may afford, or any alliance which either has, or may have, to or with any State or people, for the purpose of erecting or maintaining any such forti- fications, or of occupying, fortifying, or colonizing Nicaragua, Costa Rica, the Mos- quito coast, or any part of Central America, or of assuming or exercising dominion over the same. Nor will Great Britain or the United States take advantage of any intimacy, or use any alliance, connection, or influence that either may possess with any State or Government through whose territory the said canal may pass, for the pur- pose of acquiring or holding, directly or indirectly, for the subjects or citizens of the one, any rights or advantages in regard to commerce or navigation through the said canal which shall not he offered, on the same terms, to the subjects or citizens of the other. Soon after the signature of the treaty various discussions arose as to the interpretation to be put upon those clauses which debarred either of the contracting parties from occupying, fortifying, or colonizing, or as- suming or exercising any dominion over Nicaragua, Gosta Eica, the Mos- quito coast, or any part of Central America, «&c. Great Britain being at the time in possession of Euatan and other islands off the coast of Honduras, and having a protectorate over the Mosquito Indians legated on the coast of Nicaragua, a lengthened correspondence arose as to the effect to be given to the treaty in this respect, and also as to the bound- ary of British Honduras. A treaty was eventually signed by Lord Clarendon and Mr. Dallas for the settlement of the various questions at issue on the 17th October, 1856; but this agreement was not received with favor by the United States Senate, and the incoming Government of President Buchanan, who had acceded to office in March, 1857, de- clined to confirm it without certain modifications. To these the British Government proposed further amendments, which were not at that time deemed acceptable by that of the United States, and the treaty was never formally ratified. To show how far this part of the discussion belonged in some of its features to a state of aifairs that is now past, one of the objections taken by General Cass to the treaty in its last amended form was that it in- volved a recognition by the United States of a treaty between Great Britain and Honduras for the cession of the Bay Islands to the latter country, in which it was stipulated that slavery should not at any time be permitted to exist there. General Cass stated that " a treaty with such a provision would never be recognized by a United States Senate." (Lord Napier to Lord Clarendon, May 3, 1857.) I now proceed to examine some of the extracts given in Mr. Blaine's dispatch. ThCiflrst paper quoted is one from Lord Napier to the Earl of Claren- don, dated the 12th March, 1857. The only passage quoted is as follows : General Cass then passed some reflections on the Clayton-Bulwer treaty ; he had ■voted for it, and in doing so he believed that it abrogated all intervention on the part of England in the Central American territory. The British Government had put a different construction on the treaty, and he regretted the vote he had given in its favor. But the dispatch goes on to say : He did not, however, pretend that the British Government should now unoondi- tionally abandon the Mosquitos, with whom they had relations of an ancient date; it was just and consistent with the practice of the United States that those Indians should be secured in the separate possession of lands, the sale of which should be pro- hibited, and in the enjoyment of rights and franchises though in a condition of de- pendency and protection. The British Government had already removed one impedi- ment to the execution of the Bui wer-Clayton treaty by the cession of their claims on Ruatan ; two difficulties now remained — the frontier of Belize, and the delimitation and settlement of the Mosquito tribe. If the frontier could be defined, and if the Mos- quitos could be placed in the enjoyment of their territory by treaty between Great CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 345 Britain and Nicaragua, in which the concessions and guarantees of the latter in favor of the Indians should be associated with the recognition of the sovereignty of Nica- ragua—so I understood the general— then the Bulwer-Clayion treaty might he a perma- nent and aatisfaotory settlement hetweeH. the contracting paj ties ; the United States desiring nothing else than an absolute and entire neutrality and independence of the Oentral American region, free from the exercise of any exclusive influence or ascendency what- ever. The next quotation is from another dispatch of Lord Fapier, dated the 6th May, 1857, and the passage given runs thus : The President denounced the Clayton-Bulwer treaty as one which had been fraught with misunderstanding and mischief from the beginning ; it was concluded under the most opposite constructions by the contracting parties. If the Senate had imagined that it could obtain the interpretation placed upon it by Great Britain, it would not have passed. If he had been in the Senate at the time, that treaty never would have been sanctioned. But President Buchanan went on to say : With reference to arbitration (which Lord Napier had only thrown in as a sugges- tion of his own), he could not give any opinion at present. The President also in- veighed agaiinst the excess of treaties, affirming that they were more frequently the cause of quarrel than of harmony, and that if it were not for the interoceanic commu- nications he did not see there was any necessity for a treaty respecting Central Amer- ica at all. It seems, therefore, that the President's condemnation of the Clayton- Bulwer treaty was principally founded on the construction placed upon it by Great Britain at the time, and was also in some measure explained by his objections to treaties in general, but that he admitted that the question of the interoceanic connection made such an agreement neces- sary. Mr. Blaine then quotes a note from Mr. Gass to Lord Napier, of the 29th May, 1857, as follows : The Clayton-Bulwer treaty, concluded in the hope that it would put an end to the differences which had arisen between the United States and Great Britain concern- ing Central American affairs, had been rendered inoperative in some of its most essen- tial provisions by the different constructions which had been reciprocally given to it by the parties. And little is hazarded in saying that, had the interpretation since put upon the treaty by the British Government, and yet maintained, been anticipated, it would not have been negotiated under the instructions of any Executive of the United States, nor ratified by the branch of the Government intrusted with the power of ratification. But how does General Cass continue ? He goes on to say : A protracted discussion, in which the subject was exhausted, failed to reconcile the conflicting views of the parties ; and, as a last resort, a negotiation was opened for the purpose of forming a supplementary treaty which should remove, if practicable, the difficulties in the way of their mutual good understanding, and leave unneces- sary any further discussion of the controverted provisions of the Clayton-Bulwer treaty. It was to elfect this object that the Government of the United States agreed to open the negotiation which terminated in the treaty of the 17th October, 1856, and though the provisions of that instrument, even with the amendments proposed by the Senate, were not wholly unobjectionable either to that body or to the President, still, so important did they consider a satisfactory arrangement of this complicated subject, that they yielded their objections, and sanctioned, by their act of ratlhcation, the conven- tion as amended. It was then transmitted to Loudon for the Consideration of Her Britannic Majesty's Government, and, having failed to meet its approbation, has been returned unratified. The parties are thus thrown back upon the Bulwer-Clayton treaty, with its disputed phraseology and its conflicting iuterpretations ; and, after the lapse of seven years, not one of the objects connected with the political condition of Central America which the United States had hoped to obtain by the arrangement has been accomplished. It was not, therefore, to the principles or basis of the arrangement (the importance of which was fully recognized), but to the unfortunate phraseology of a single portion of the treaty, that objection was taken. 346 PROPOSED INTEROCEANIC OANAL, Mr. Blaine then refers to Sir W. Gore Ouselej-'s mission, the object of which was to settle the points at issue, in a manner practically satis- factory to the United States, by independent negotiations with the Cen- tral American States, after first communicating with the Government at Washington. Mr. Blaine quotes a passage from a letter of General Cass to Lord Napier, of the 20th October, 1857, as follows : I have thus endeavored to meet the frank suggestions of your lordship by restating, with corresponding frankness, the general policy of the United States with respect to the Governments and the interoceanic transits of Central America; but since your lordship has referred to the Clayton-Bulwer treaty of 1850, as contemplating a " har- monious course of action and counsel between the contracting parties in the settle- ment of the Central American interests," you will pardon me for reminding your lord- ship that the differences which this treaty was intended to adjust between the United States and Great Britain still remain unsettled, while the treaty itself has become the subject of new and embarrassing complications. It will be useful to refer to the previous portion of this note to show what was the statement of the " general policy of the United States" thus referred to, and how far that policy corresponds with Mr. Blaine's present proposals. The note begins thus : I have the honor to receive your lordship's communication of the 9th instant, in reference to the existing relations between Nicaragua and Costa Rica, and have sub- mitted it to the consideration of the President. These relations have attracted the earnest attention of the President, not only from the importance of the San .Juan transit to the commerce of the world, but from the interest which is naturally felt by the United States in the neighboring Republics of this continent. The President has witnessed, therefore, the restoration of peace to Nicaragua and Costa Rica with the highest gratification ; and he sincerely hopes that it may not again be interrupted, either by the calamity of civil war or the invasion of their territory from other countries. Their security and welfare would undoubtedly be promoted by a just and friendly settlement between them of their mutual bounda- ries and jurisdiction ; and I need hardly add that such an adjustment would be viewed with satisfaction by the United States. This Government, however, has never ad- mitted the pretensions of Costa Rica to an eqilal control with Nicaragua of the San Juan River, but has regarded the sovereignty of the river, and consequently of the interoceanic transit by that route, as rightfully belonging to the Republic of Nicar- agua. A similar view of the question appears to have been recognized by Great Britain ; and, whatever may be the rights of Costa Rica with respect to the free passage of her own products by the river to the ocean, it is better, probably, that what has been thus acquiesced in, and has led, moreover, to important contracts and responsibilities, should not now be disturbed. But under any circumstances the commercial nations of the world can never permit the interoceanic passages of the Isthmus to be rendered useless for all the great purposes which belong to them in consequence of the neglect or incapacity of the States through whose territories they happen to run. Ths United States, as I have before had occasion to assure your lordship, demand no exclusive privileges in these passages, but will always exert their influence to secure their free and unre- stricted benefits, both in peace and war, to the commerce of the world. And in a later note to Lord N'apier, of the 8th November, 1858, Gen- eral Cass states with still greater clearness the object with which the treaty was concluded, and the grounds on which the difference between the two Governments had arisen. He says : Since the announcement by your lordship, in October, 1857, of- Sir "William use- ley's special mission, the President has awaited, not so much any new proposition for the adjustment of the Central American questions as the statement in detail, which he had been led to expect, of the method by which Sir William Ouseley was to carry into effect the previous proposition of the'British Government. To make this plain, your lordship will pardon me for making a brief reference to what has occurred be- tween the two Governments in respect to Central America since the ratification of the Clayton-Bulwer treaty of 1850. While the declared object of that convention had reference to the construction of a ship-canal by the way of San Juan and the lakes of Nicaragua and Managua, from the Atlantic to the Pacific Ocean, yet it avowed none the less plainly a general principle in reference to all practicable communications aoross the Isthmus, and laid down a difitinct policy by which the practical operation of this principle was likely to be kept free from all CLAYTON BULWER TREATY, AND MONROE DOCTRINE. 347 embarrassment. The principle was that ike iniei'oceanic routes should remain under the sov- ereignty of the States through which they ran, and should be neutral and free to all nations aUke. The policy was that, in order to prevent any Government outside of those States from, obtaining undue control or influence over those interoceanic transits, no such nation should erector maintain any fortifications commanding the same, or in the vicinity thereof , m- should occupy, or fortify, or colonize, or assume, or exercise any dominion over Nicaragua, Costa Mica, the Mosquito coast, or any part of Central America." So far as the United States and Great Britain were concerned, those stipulations were expressed in unmistakable terms; and in reference to other nations, it was declared that the " contracting parties in this convention engage to invite every State with which both or either have friendly intercourse to enter into stipulations with them similar to those which they have entered into with each other. At that time the United States had no possessions whatever in Central America^ and exercised no dominion there. In respect to this Government, therefore, the pro- visions of A.rticle I of the treaty could operate only as a restriction for the future ; but Great Britain was in the actual exercise of dominion over nearly the whole eastern coast of that country, and, in relation to her, this article had a present as well as a prospective operation. She waste abandon the occupancy which she already had in Central America, and was neither to make acquisitions, nor erect fortifications, nor exer- cise dominion there in the future. In other words, she waste place herself in the same position with respect to possessions and dominion in Central America which was to be occupied by the United States, and which both of the contracting parties to the treaty engaged that they would endeavor to induce other nations to oecnpy. This was the treaty as it was understood and consented to by the United States, and this is the treaty as it is still understood by this Government. He then recapitulates the discussions and abortive negotiations which had ensued in consequence of the different interpretations put upon the treaty by the two Governments; and, after criticising and expressing disappointment at the last communication made to him by Lord Napier, he concludes : It is of no small consequence either to the United States or Great Britain that these Central American controversies between the two countries should be forever closed. On some points of them, and, I have been lead to hope, on the general policy which ought to apply to the whole isthmian region, they have reached a common ground of agreement. The neutrality of the interoceanic routes, and their freedonl from the superior and controlling influence of any one Government ; the principles upon whicji the Mosquito protectorate may be arranged, with justice alike to the sovereignty of Nicaragua and the Indian tribes; the surrender of the Bay Islands, under certain stipulations for the benefit of trade and the protection of their British occupants ; and the definition of the boundaries of British Belize ; about all these points there is no apparent disagreement, except as to the conditions which shall be annexed to the Bay Islands' surrender, and as to the limits which shall be fixed to the settlements of Belize. Is it possible that, if approached in a spirit of conciliation and good feeling, these two points of difference are not susceptible of a friendly ad- justment? To believe this would be to underestimate the importance of the adjust- ment, and the intelligent appreciation of this importance which must be entertained by both nations. What the United States want in Central America, next to the hap- piness of its people, is the security and, neutrality of the interoceanic routes which lead through it. This is equally the desire of Great Britain, of France, and of the whole commercial world. If the principles and policy of the Clayton-Bulwer treaty are carried into effect,-thi8 object is accomplished. When, therefore. Lord Malmes- bury invites new overtures from this Government upon the idea that it has rejected the proposal embraced in Sir William Ouseley's mission for an adjustment of the Cen- tral American questions by separate treaties with Honduras, Nicaragua, and Guate- mala, upon terms substantially according with the general tenor of the American interpretation of the treaty, I have to reply to his lordship that this very adjustment is all that the President has ever desired, and that, instead of having rejected that proposal, he had expressed his cordial acceptance of it, so far as he understood it, and had anticipated from it the most gratifying consequences. Further, in a dispatch to Mr. Lamar of July 25, 1858, subsequently communicated to Lord Malmesbury by Mr. Dallas on the 29th April, 1859, General Cass says : These great avenues of intercommunication are vastly interesting to all commercial powers, and all may well join in securing their freedom and use against those dangers to which they are exposed from aggressions or outrages, originating within or with- out the territories through which they pass. 348 PROPOSED INTEROCEANIC CANAL, It is difScult to conceive a more distinct statement of adherence to the general principles of the Clayton-Bulwer arrangement, or a more posi- tive disclaimer of the policy involved in Mr. Blaine's present proposals, than is contained in the passages 1 have just quoted. I return, however, to the extracts given in Mr. Blaine's dispatch. Mr. Blaiue alludes to an important interview which Lord Napier had with President Buchanan on the 19th October, 1857, in which Lord Napier asked that, pending the negotiation intrusted to Sir W. Gore Ouseley, no proposal to annul the Clayton-Bulwer treaty should be sanctioned or encouraged by the President or members of the United States Gov- ernment. Lord Napier's account of the President's language is as follows: The President commenced his observations by referring to the Clayton-Bulwer treaty^ as a fruitful source of misunderstanding between the contracting parties. "Without that treaty the United States and Great Britain might long since have co- operated for the welfare of Central America. That treaty had never been acceptable to the people of the United States, and would not have obtained a vote in the Senate had the least suspicion existed of the sense in which it was to be construed by Great Britain ; yet, if it were now the intention of Her Majesty's Government to execute it according to the American interpretation, that was as much as we could insist upon. And after reporting what passed at the interview with regard to the Bay Islands and Honduras, Lord Napier continued : I then went on to animadvert upon the danger of some movement in the approach- ing Congress which would interfere with the contemporary negotiation of Sir William Ouseley, remarking that should the President, in his message, allude to the position of the two countries in reference to Central America, and if, in consequence of his excel- lency's reflections, a resolution should be proposed for the abrogation of the Clayton- Bulwer treaty, such a step would not only frustrate the purposes of Sir William Ouseley's mission, but would have a calamitous influence on the future relations of England and America. It would, therefore, be highly gratifying to me to be enabled to assure year lordship that, pending the negotiation intrusted to Sir William Ouseley, no proposal to annul the treaty would be sanctioned or encouraged by his excellency or by the members of his Government. The President stated, in reply, that it was certainly his intention to give an ac- count in his message of all that had passed between the two Governments respecting the Dallas-Clarendon treaty. He appeared to intimate that the effect of such a nar- rative would be to place the conduct of Great Britain in an unfavorable light, and he added that the passage in which he commented upon these transactions was already prepared ; but his excellency went on to affirm, with emphasis, thati£Jhere8olHiifliia-~- of Her Ma,iesty's Government weresuoh as I had.related, if they really meant to exe- cute the-Clayton-Bnlwer treaty according to the American interpretation, and would, before the meeting of Congress, make some communication to him in that sense, such as he could use, he would cancel what he had written and insert another passage referring to ihe mission of Sir William Ouseley, and that "nothing would give him greater pleasure than to add tbe expression of his sincere and ardent wish for the maintenance of friendly relations between the two countries." His excellency also distinctly declared that, under the circumstances here.described, no attempt against the Clayton-Bulwer treaty in Congress would have any counte- nance from him whatever. To him it was indifterent whether the concession contem- plated by Her Majesty's Government were consigned to a direct engagement between England and the United States or to treaties between the former and the Central American Republics; the latter method might, in some respects, be even more agree- able to him, and he thought it would be more convenient to Her Majesty's Govern- ment, who might, with greater facility, accede to the claims of the weaker party. I pass over some passages given in Mr. Blaine's dispatch which seem to call for no remark, and I would only observe that the proposal for arbitration alluded to in Lord Napier's note to General Cass of Febru- ary 17, 1858, applied only to the controverted points in the treaty, and not to the whole instrument. Mr. Blaine refers to a conversation with General Cass, reported by Lord Napier in a dispatch of the 22d Match, 1858, in which reference was made to the idea of an abrogation of the treaty. It may be well to CLAYTON-BULWEE TREATY, AND MONROE DOCTRINE. 349 give a larger extract of this dispatch, because, although Lord Napier's remarks were stated to be personal and unofficial, they show his view of the form which such an abrogation should take. He says : I have, accordingly, on two occasions, informed General Cass that if the Govern- ment of the United States be still of the same mind, and continue to desire the abro- gation of the treaty of 1850, it would be agreeable to Her Majesty's Government that they should insert a proposal to that effect in their reply to my note respecting arbi- tration, and to that in which I explained the character and motives of the mission intrusted to Her Majesty's commissioner in Central America. Some conversation ensued regarding the manner in which the dissolution of the treaty should be effected, and the condition by which it might be accompanied, and on these topics I have held the following language, premising that the views expressed were altogether spontaneous and personal, for I had no information of the intentions of Her Majesty's Government beyond the bare fact that they would entertain a pro- posal to cancel the engagements of 1850 emanating from the United States. I stal ed that, in my opinion, the treaty in question could only be repealed by a new treaty in the usual form, and that it might be desirable that such a treaty should not be restricted to a single article annulling its predecessor. Both for considerations of decency and policy I advocated the insertion of stipulations involving an expres- sion of a common policy in Central America, and the disavowal of any exclusive or monopolizing projects on either side. I saidthat I thought a, treaty might be framed of three articles. The first should declare the desire of the contracting parties to encourage and pro- tect the organization of transit routes in the interoceanic region and bind those parties never to negotiate for any rights or privileges of transit with the Central American States of a preferential or exclnsive character, to which other nations might not, by negotiation, be equally admitted, establishing thus the principle of an equal enjoyment of those avenues of trade for all the countries of the world. The second article might recognize the jurisdiction of the transit route by the San Juan Elver as being vested in the Government of Nicaragua. This had been already avowed by the United States in a treaty negotiated with that Republic. It. had not been definitely affirmed by Great Britain, and might seem to clash with the claims of the King of Mosquitia to territorial possession or authority in those parts. I thought, however, that in regard to the views lately expressed by Her Majesty's Government in the course of recent negotiations, in consideration of the necessity of obtaining a suitable treaty with Nicaragua, and for the purpose of placing themselves in harmony with the course pursued by the United States, Her Majesty's Government might, on this head, accede to an article which would practically restrict their protectorate in Mosqujtia, and prevent the importation of any interference on their part with the ter- ritory traversed by the river, and, therefore, by the transit rout6. Finally, I suggested that Article III of the treaty should simply declare the pro- visions of the treaty of 1840 to be void and of no effect. I added that the question of future territorial acquisition in Central America would thu% be thrown open to the United States ; that Her Majesty's Government, on the other hand, would retain the colony of Honduras in the proportions which might be given to it by treaty arrauge- jnents with Guatemala, and that the Bay Islands would remain attached to the British Crown. Indeed, I affirmed, still as a personal opinion, but of the most positive char- acter, that in case of the dissolution of the Clayton-Bnlwer treaty, the Bay Islands would not be relinquished by Her Majesty's Government. 1 felt bound to make this statement, having observed in some quarters an impression that Her Majesty's Gov- ernment might be disposed not only to annul the treaty, thus opening a path for the eventual annexation of the Isthmus to the Federal Union, but to give up the Bay Isl- ands as well ; a notion altogether unfounded in any intimation which has hitherto reached me from the Foreign Office, and which could not be reconciled, in my opinion, to the interests of England. Lord Kapier adds that he was most careful to remark throughout that the opinions he enunciated with, reference to the treaty were exclusively his own. Mr. Blaine gives only a very short extract from Lord Malmesbury's dispatch in reply of the 8th April^ 1858. It will be desirable to quote it more at length. Lord Malmesbury says : Her Majesty's Government, if the initiative is still left to them by the unwillingness of the United States themselves to propose abrogation, desire to retain full liberty as to the manner and form in which any such proposal shall be laid on their behalf be- fore the Cabinet at Washington; but without pronouncing any decided opinion at the present moment, I think it right to point out to your lordship that the effect of 350 PROPOSED INTEEOCEANIC CANAL, such an article as that suggested in your dispatch, as the second, might be to perpetu- ate an entanglement with the Government of the United States,. and to place that Government in a position to question or control the free action of Her Majesty's Gov- ernment in everything that relates to Central America. The Claytou-Bnlwer treaty has been a source of unceasing embarrassment to this country, and Her Majesty's Government, if they should be so fortunate as to extricate themselves from the diffi- culties which have resulted from it, will not involve themselves, directly or indirectly, in any similar difficulties for the future. Her Majesty's Government would have no objection to enter with the United States into a self-denying engagement such as that suggested in your first article, by which both parties sllould renounce all exclusive advantage in the use of any of the interoceanic routes, and should bind themselves, each to the other, not to interfere with free transit. Such an article would be a suitable substitute for the Clayton- Bulwer treaty, for it would secure, as regards the contracting parties, the avowed object of that treaty — the freedom of interoceanic communication. But beyond this Her Majesty's Government, as at present advised, are not pre- pared to contract any engagement as a substitute for the Clayton-Bulwer treaty, and from the abrogation of that compact, if it should take place, they will hold themselves as free to act in regard to Central America in the manner most conducive to the ad- vancement of British interests and the fulfillment of British obligations as if the treaty had never been concluded. Your lordship was, therefore, perfectly right in using decided language such as that reported in your dispatch respecting the Bay Islands ; and whenever the subject of the abrogation of the Clayton-Bulwer treaty is mooted in yonr presence, you will make it perfectly clear to the Government of the United States that to abrogate the treaty is to return to the status quo ante its conclusion in 1850; that Her Majesty's Government have no kind of jealousy respecting American colonization in Central America, which, indeed, it would help to civilize ; and that we neither ask nor wish for any exclusive privileges whatever in those regions. These, then, were the terms upon which Her Majesty's trovernment were alone prepared, if at all, to consider the abrogation of the Clayton- Bulwer treaty. And such an alternative was deprecated by General Oass in a note to, Lord Napier of the 6th April, 1858, in which, while declining the proposal of arbitration on the disputed points of the treaty, he alluded to a personal expression of opinion he had given in favor of an unconditional renunciation of the treaty, and called attention to the serious consequences which might result from its dissolution if no pro- vision were made at the same time for adjusting the questions which led to it. He then concluded with the passage quoted by Mr. Blaine, to the effect that "if, the President does not hasten to consider now the alternative of repealing the treaty of 1850 it is because he does not wish prematurely to anticipate the failure of Sir William Ouseley's mission, and is disposed to give a new proof to Her Majesty's Government of his sincei-e desire to preserve the amicable relations which now happily subsist between the two countries." But subsequent events make it unnecessary to dwell further upon this part of the discussion, for the question was settled by the practical accomplishment of that which the United States Government regarded as the most satisfactory conclusion. It is here that the extracts and account of the negotiation given by Mr. Blaine come to an end, at a point when the most important episode commences. The continuation of the correspondence shows that on the 30th April, 1859, a treaty was concluded between Great Britain and Guatemala for the settlement of the question of the boundary of Belize; that on the 28th November, 1859, another treaty was concluded between this country and Honduras for the transfer of the Bay Islands to that Eepublic, as well as for the settlement of other questions relating to the Mosquito Indians aiid the claims of British subjects, including the with- drawal of the British protectorate, and that on the 28th January, 1860, a third treaty was concluded between this country and Nicaragua, also with reference to the Mosquito Indians and the claims of British sub- jects. CLAYTON-BULWEK TREATY, AND MONROE DOCTRINE. 351 Copies of these three treaties were officially communicated to the United States Government, with the expression of a hope on the part of Her Majesty's Government that they would "finally set at rest the questions respecting the interpretation of the Clayton-Bulwer treaty, which had been the subject of so much controversy between this country and the United States." And in his message to Congress of the 3d December, 1860, Presi- dent Buchanan says the dangerous questions arising from the Clayton- Bulwer treaty " have been amicably and honorably adjusted. The discordant constructions of the Clayton-Bulwer treaty between the two governments, which, at different periods of the discussion bore a threat- ening aspect, have resulted in a final settlement entirely satisfactory to this Government." I have been forced to give the above extracts at considerable length, and I refrain from adding other passages which would tend to illustrate and confirm them. A perusal of them, however, will, I think, suffice to show — 1. That the differences which arose between the two Governments in regard to the treaty, and which occasioned at one time considerable irritation, but which have long since been happily disposed of, did not relate to the general principles to be observed in regard to the means of interoceanic communication across the Isthmus, but had their origin in a stipulation which Mr. Blaine still proposes in great part to main- tain. He wishes every part of the treaty in which Great Britain and the United States agree to make no acquisition of territory in Cent a America to remain in full force, while he desires to cancel those portions of the treaty which forbid the United States fortifying the canal and holding the political control of it in conjunction with the country in which it is located. 2. That the declarations of the United States Government during the controversy were distinctly at variance with any such proposal as that just stated. They disclaimed any desire to obtain an exclusive or preferential control over the canal. Their sole contention was that Great Britain was bound by the treaty to abandon those positions on the mainland or adjacent islands which in their opinion were calcu- lated to give her the means of such a control. Nor did they in any way seek to limit the application of the principles laiil down in the treaty so as to exclude Colombia nor Mexican territory, as Mr. Blaine now suggests, nor urge that such application would be inconsistent with the convention between the United States and ^evr Granada of 1846. On the contrary, they were ready to give those principles their full exten- sion. 3. That at a time when the British Government had been induced by the long continuance of the controversy to contemplate the abrogation of the treaty, they were only willing to do so on the condition of revert- ing to the status quo ante its conclusion in 1850; a solution which was at that time possible, though, as the United States Government justly pointed out, it would have been fraught with great danger to the good relations between the two countries, but which is now rendered impos- sible by the subsequent events. 4. That a better and more conciliatory conclusion,/which for twenty years has remained undisputed, was effected by the independent and voluntary action of Great Britain. The points in dispute were practi- cally conceded by this country, and the controversy terminated in a manner which was declared by President Buchanan to be amicable and honorable, resulting in a final settlement entirely satisfactory to the Government of the United States. 352 You are authorized to read this dispatch to the United States Secre- tary of State, and to offer him a copy of it If he should desire, in the same manner in which a copy of Mr. Blaine's dispatch was offered to me. I have, &c., . GRANVILLE. The Hon. L. S. S. West. DOCUMENT No. 90.* Mr. Frelinghuysen to Mr. Lowell. No. 368.1 Department op State, J-U- V- ' "^""^ ' D "^ N fef- Washington, JD. C, May 8, 1882. DOCUMENT No, 91. 76. — Mr. Lowell to Mr. Frelinghuysen. No. 376.] Legation op the United States, London, June 1, 1882. (Keceived June 13.) Sir : I have the honor to acknowledge the reception of your instruc- tion No. 368, of the 8th of May last, statmg the position of the Govern- ment of the United States in relation to questions growing out of the (so called) Clayton-Bulwer treaty. It arrived on the 27th ultimo, when the members of the Government were leaving town for the Whitsuntide holidays. I have had no opportunity of seeing Lord Granville until yesterday, when I had an interview with him, by appointment, at the foreign offlce. I read the dispatch to him and left a copy of it with him, at his request, agreeably to your directions. I have already informed you of this bv cable. I have, &c., J. E. LOWELL. [S. Ex. Doc. No. 26, 48th Congress, 1st session.] Message from the President of the United States, transmitting, in response to the Senate resolution of the 18th instant, a report of the Secretary of State and accompanying papers relating to the treaty between the United States and Great Britain, signed April 19, 1850. Dbcembbk 19, 1883. — Read and ordered to lie on the table and be printed. To the Senate of the United States : I transmit herewith, in response to the Senate resolution of the 18th instant, a report of the Secretary of State and accompanying papers relating to the treaty between the United States and Great Britain, signed April 19, 1850. CHESTER A. ARTHUR. Executive Mansion, Washington, December 19, 1883. To the President : The Secretary of State, to whom was referred the resolution of the Senate of the 18th instant, requesting the President, " if in his opinion it is not incompatible with the public interest, to furnish the Senate * Same as Document No. 14. CLAYTON-BULWER TREATY, AND MONROE DOCTRINE. 353 with copies of the correspondence in relation to the treaty between the united States and Great Britain, signed the 19th day of April, 1850, which has passed between the two Governments not heretofore com- municated," has the honor to lay the accompanying correspondence be- fore the President for transmission to the Senate in response to the resolution. EespectfuUy submitted. FREDK. T. FEBLINGHUYSEN. Department oir State, Washington, Deeember 19, 1883. List of papers. Lord Granville to Mr. West, December 30, 1888. Mr. Frelinghuysen to Mr. Lowell, May 5, 1883. Lord Granville to Mr. West, August 17, 1883. Mr. Frelinghuysen to Mr. Lowefl, November 22, 1883. DOCUMENT No. 92. 1. — Lord Granville to Mr. West. Foreign Office December 30, 1882. Sir : You have already received, with my dispatch No. 186 of the 17th of June last, a copy of the dispatch addressed by Mr. Frelinghuysen to Mr. Lowell on the 8th May, by whom it was communicated to me on the 31st of that month, in which the views of the Government of the United States are expressed in great detail respecting the traditional conti- nental policy of that Government, and the provisions of the Glayton- Bulwer treaty. Her Majesty's Government have not failed to give their most careful consideratibn to the important questions discussed in Mr. Frelinghny- sen's communication, and I now proceed to convey to you the following remarks upon some of the principal points. You will have observed that three questions are raised by Mr. Fre- linghuysen : 1. The meaning and effect of Article YIII of the Clayton-Bulwer treaty; 2. Whether such acts have been committed by Great Britain in British Honduras in violation of the treaty as would entitle the United States to denounce it ; and 3. The proposed conclusion of a fresh agreement between the two countries, having for its object the retention and renewal of certain provisions of the Clayton-Bulwer treaty, and the deflnitionof the dis- tance from either end of the proposed canal beyond which captures might be made by belligerents in time of war. „ ,, As regards the first point, Mr. Frelinghuysen renews Mr, Blaine's, contention, that the Clayton-Bulwer treaty had reference only to the; interoceanic routes then in contemplation, and that Article VIII of that treaty must be read subject to the provisions of the earlier treaty of 4909 CONG 23 354 PROPOSED INTEEOCEANIC CANAL, 1846 between the United States and New Granada, which, as he al- leges, secures to the United States the sole protectorate of any route across the Isthmus of Panama. Her Majesty's Government are unable to accept that view. The routes in contemplation at the date of the Glaytou-Bulwer treaty were those by way of the river San Juan, and either or both of the lakes of Nicaragua and Managua ; and Article I of the treaty no doubt applied only to those routes. By that article it was declared that neither the one nor the other of the high contracting parties would ever obtain or maintain for itself any exclusive control over any ship-canal which might be constructed between the Atlantic and Pacific Oceans by the way of the river St. Juan de Nicaragua and either or both of the lakes of Nicaragua or Managua, to any port or place on the Pacific Ocean. But by Article VIII the high contracting parties, after declaring that they not only desired in entering into the convention to accomplish a particular object, but also to establish a general principle, agreed — To extend their protection liy treaty stipulations to auy other practicable commnni- oations (that is to say, other than those mentioned in Article I), whether by canal or railway, across the Isthmus which connects North and South America, and especially s to the interoceanic communications, should the same prove to be practicable, whether by canal or railway, which are now proposed to be established by the way ofTehuau- tepec or Panama. , This is in effect an agreement that all the prior provisions with refer- ence to the protection of the particular ship-canal then in contemplation shall in principle be applied to any interoceanic ship-canal thereafter constructed. The contention of Mr, Frelinghuysen that Article VIII "relates only to those projects now (1850) proposed to be established" is opposed to the terms of the article, which expressly refers' to any communications other than those mentioned in Article I, and especially to those then projected. It is also contended that Article VIII " con- templates some future treaty stipulation." But it is none the less an agreement because its application to any canal thereafter made is to be carried into effect by treaty stipulations. The general principle established by Article VIII of the Clayton- Bulwer treaty was that all communications by canal or railway between the Atlantic and Pacific Oceans, " across the isthmus which connects North and South America," should be established on the broad basis that they should be for the general benefit of mankind, and that no country should, on any pretense whatever, reap an advantage which Was not enjoyed by all who should be willing to extend their protection to such enterprises. This "general principle" was not only fully admitted by General Cass in his note to Lord Napier of the 20th October, 1857, as pointed out to you in my dispatch of the 14th January last, and in which Gen- eral Cass said that " the United States demanded no exclusive privileges in the interoceanic passages of the Isthmus," but would always exert their influence to secure their free and unrestricted benefits both in peace and war to the commerce of the world, but it was actually carried out both by Great Britain and the United States in their subsequent trea- ties with Honduras and Nicaragua, in which they respectively agreed to extend their protection and guarantee to the interoceanic communi- cations therein mentioned, in order to insure equal treatment to all na- tions across those public highways, and to prevent the imposition of unfair discriminating duties in matters of commerce or of unequal tran- sit dues. CLaYTON-UULWER treaty, and MONROE DOCTRINE. 855 I refer to the treaties between Great Britain and Honduras of the !7th of August, 1856, and between Great Britain and Nicaragua of the 1th February, 1860, and to the treaties between the United States and londuras of the 4th July, 1864, and between the United States and ficaragua of the lilst June, 1867, which show that Article YIII of the )laytou-Bulwer treaty had reference to the protection and guarantee to le extended to all interoceanic communicatious, and not to any one par- icular scheme or schemes. Moreover, the United States, in their treaty with Nicaragua, not tnly "agreed to extend their protection to all such routes of communi- ation (between the Atlantic and Pacific Oceans), and to guarantee the leutrality and innocent use of the same," but did further "agree to em- )loy their influence with other nations to induce them to guarantee such leutrality and protection." The Government of the United States having therefore, since the lonclusion of its treaty of 1846 with New Granada, entered into trea- ies of a more recent date with Great Britain and other powers, carrying rat the "general principle" established by the Clayton-Bulwer treaty, ¥hlch is opposed to all idea of exclusive advantages in any interoceanic sommunication which may be constructed, they can hardly now appeal, vithout inconsistency, to their treaty with New Granada, as giving them jxclusive rights of protection over the projected canal across the Isth- nus of Panama. Moreover, there is nothing in the terms of the treaty of 1846 which ionfers on the United States any exclusive right of protection, or which s Inconsistent with the joint protection of Qreat Britain and the United States; and in the view, therefore, of Her Majesty's Government, the guarantee given by the United States to New Granada in the treaty of L846 meant no more than the guarantee given by the United States, ointly with this country, in the Olaytou-Bulwer treaty of 1850, or the guarantees given by this country, by France, and by the United States 11 their separate treaties with Honduras and Nicaragua. I now pass to the second point raised by Mr. Frelinghuysen, namely, whether such acts have been committed by Great Britain in British Bonduras in violation of the Clayton-Bulwer treaty as would entitle the United States to denounce it. It is alleged that Great Britain has vio- lated, and continues to violate, its provisions by exercising sovereignty )ver British Honduras, and treating that territory as a British colony. On this point it is important to refer to the following correspondence jn the subject which took place at the time between Sir Henry Bulwer md Mr. Clayton. On the 29th June, 1850, Sir H. Bulwer hauded to Mr. Clayton the following declaration in writing : In proceeding to the exchange of ratificationB of the convention signed at Wash- jneton on the 19th April, 1850, between her Britannic Majesty and the United States )f America, relative to the establishment of a communication by ship-canal between she Atlantic and Pacific Oceans, the undersigned, Her Britannic Majesty's plenipo- jentiary has received Her Majesty's instructions to declare that Her Majesty does not anderstand the engagements of that convention to apply to Her Majesty's settle- ment at Honduras, or to its dependencies. Her Majesty's ratification ot the said con- tention is exchanged under the ex,plicit declaration above mentioned. Done at Washington the 29th day of June, IfciSO. ottt t