gotiations she might undertake for opening the canal might not be paralyzed, and, moreover, offered a pecuniary indemnity for the lands that might be transferred to her till to the lake shore. (Proposition of Dn. Felipe Molina, of 1848.)

At this moment the question is presented under very different aspects. Your excellency desires it to be understood that the intervention in the affairs of the interoceanic canal attempted by Costa Rica "does not alone cover a friendly offer, but that it also constitutes a right, growing especially out of her conterminous position," and asserts "that none of the reasons adduced by Mr. Zavala are sufficient to extenuate for the negative, considering the friendly spirit of the offer, as to impugn the right Costa Rica possesses of intervening in a work the character whereof is eminently national."

This entirely new pretense lays open the serious inconveniences encountered by Nicaragua from the announcement of a direct intervention and joint action in the canal enterprise, and it alone would be enough to justify the apprehensions your excellency attributes to Mr. Zavala, to the government, and to the people of this republic, because the spontaneous and fraternal offers of Costa Rica toward the shortest and securest result of the negotiations upon this important work are not accepted immediately. For some time Nicaragua is endeavoring to remove the impediments thrown in her way by the boundary treaty, and the government would not be justifiable at all if, instead of doing away with those inconveniences, it contracted compromises which would raise up more insurmountable ones. If your excellency, with merely beginning colloquies upon the subject, means to leave understood a basis for future questions with Nicaragua, how many will then not be raised after celebrating a convention whose clauses may be subject to a thousand interpretations.

I repeat to your excellency what the president, in conversation, has told you several times, namely, that the government, convinced that the boundary treaty is an obstacle to the aggrandizement of Nicaragua, she will sincerely procure to modify it in terms more favorable to the republic, and that if not able to obtain that, he would prefer to continue the status quo, else he would have to respond to the nation, which feels injured by that treaty, when he would be called upon to account for what he had contracted, still more onerous compromises for the country.

At this moment I do not deem it advisable to explain the arguments of the govern ment for considering the boundary treaty imperfect or to impugn those advanced by your excellency to prove its subsistence, for, as Mr. Zavala said, very correctly, the gov ernment is not the competent authority to decide on its validity or nullity, nor does it intend to impede its execution until the sovereign of Nicaragua (Congress) has given its decision. And, moreover, notwithstanding the serious difficulties encountered in the way of a definite and satisfactory settlement of this grave question, the hope must not be lost that one day patriotism, disinterestedness, and a spirit of strict justice will find the road leading to a lucky unraveling, which will mark an era of prosperity for both countries.

From this explanation your excellency will see that this government's policy as to the boundary treaty of 1858 has nothing undecided, but is, on the contrary, clear and very firm. If, on one hand, as has been said so many times, the treaty is considered null, not alone for the reasons stated but for being extremely onerous to the interests of the country and humbling to its dignity, it is, on the other hand, certain that it has respected it, and will continue to respect it as long as it be not reformed by a fraternal understanding, or, as I have just said, be declared invalid by a legal enact

ment.

My government understands that if the boundary question could be discussed independent of that of the interoceanic canal, it would not be difficult to reach a satisfactory solution. Nicaragua has never pretended to curtail Costa Rica of any part of her territory, or to deprive her of any advantage ours might offer her. All our country has claimed is, not to be impeded in its own growth by the pretensions of its neighbor, and so true is it that the claims of Nicaragua have been limited to that, that pending the negotiations of Mr. Molina in 1848 the offer was made to Costa Rica to have for all times the superficiary possession of the lands contiguous to the right bank of San Juan River she might need to open roads for the exportation of her pro

ducts.

The question of partnership of action and interest in the interoceanic canal is of a more grave character and difficult to solve.

Since these two republics consider themselves as two distinct political entities, as two sovereign and independent nations, the joint participation of the one in the great affairs of the other would be nothing else than an impracticable idea, an inexhaustible source of questions and disagreements, productive of serious conflicts, because it would be difficult to avoid that the action of the one should not interfere with the interests of the other.

Yet, what difficulty is in the way of identifying the interests of both peoples, instead of uniting their action in one enterprise?

The undersigned and his government are of opinion that the only means possible for obtaining the result which his excellency Mr. Guardia had in view in proposing

to Nicaragua a joint action of both republics in the execution of the canal, is: the union of the two republics into one people. Only thus the resources of the one and the other country could be made to combine in that vast enterprise without running the risk of raising rivalries likely to undo the most vigorous efforts in its behalf. And not only would by this means a satisfactory end upon the most favorable terms for both countries be attained, but the step would at once solve the pending questions, for which there would not be any further cause, and would forever cut off every germ of misunderstanding between two nations who, by all its circumstances, are called upon to form one.

Don Gregorio Juarez, in 1848, negotiator on the part of Nicaragua, with Mr. Molino, envoy of Costa Rica, for settling the question of Guanacaste and fixing the boundaries of the two republics, said in a note to his government, when asking for enlarging his instructions: "If Costa Rica, together with Nicaragua, became one sole nation, and erected upon the territory in dispute the throne of their sovereignty, then the world would see springing from such small incidents wonderful events, whereof his tory furnishes many examples; but since, unfortunately, such occurrence is so far remote from us," &c.

At that epoch it seemed almost impossible to reach a result, the beneficial consequences whereof could not be denied, but to which a thousand prejudices of various classes were opposed. But to-day, in presence of the probable realization of the interoceanic canal, which will bring about a salutary transformation in the sections of Central America, and, may be, in the other sister republics of the continent, and whose immense advantages Nicaragua and Costa Rica will most immediately earn; to-day, when both nations have passed the difficult experiment, united to sustain their independence, and have reason to hope for more intimate relations by means of telegraphs and railroads, should not the moment have come to consider seriously and maturely the ways by which to realize the intentions of nature, that these two peoples should constitute one? Why not remove the weak barriers between them that separate members of the same family? My government deems the realization of this idea of unity not difficult, which would present in relief the high sentiments of fraternity whereof, as your excellency says, your government is inspired, and mine abounds, and which, perhaps, will serve as a salutary example to the other sister republics.

Since your excellency, after the dispatch to which I am replying, has submitted to me a new memorandum for the settlement of the boundary question, which contains stipulations unacceptable for Nicaragua, the government has considered the subject more maturely, and in the hope that the present negotiations would lead to an arrangement satisfactory to both parties, has authorized me to transmit to you the inclosed project of a treaty, which I submit to your consideration. Your excellency will perceive from it that all concessions possible within the competency of the government, are made to Costa Rica, and, may be, some even transcending it, in exchange whereof the obstacles thrown in the road of the aggrandizement of Nicaragua by the treaty of 1858 are removed.

But should your excellency, notwithstanding this new intimation, still insist upon withdrawing, without waiting for your enlarged instructions, which the undersigned and his government would much regret, as they had expected from this mission an entire termination of the pending questions, then the undersigned is authorized to designate to your excellency to-day, four o'clock p. m., for taking your official leave. Again assuring your excellency, &c., &c.,

A. H. RIVAS.

Extracts from a treaty project submitted by the Nicaraguan minister of foreign affairs to the Costa Rican plenipotentiary, in twenty articles.

ART. 2. The line between the two republics shall commence from a point three geographical miles south from the right bank of the mouth of the Colorado River, and shall follow parallel the course of that river to its bifurcation, also three miles distant; thence parallel to and at the same distance along the right bank of San Juan River, following all its windings till to a point three miles distant from its origin in the lake; thence parallel and at the same distance along the south lake shore to the intersection with Lapoa River; thence a straight astronomical line shall be drawn to the central point of Salinas Bay in the Pacific.

ART. 4. Costa Rica is to have the right of free navigation on the lake and on rivers San Juan and Colorado in the same manner and subject to the same laws as Nicaragmans; the eminent domain and summum imperium on lake and rivers remain with Nicaragua. In the same way shall Costa Rica have the free use of the bay and port of San Juan del Norte. On the other hand shall the Nicaraguans have the same right of free navigation on rivers Sarapiqui, San Carlos, and Frio, to Costa Rica competing the eminent domain.

ART. 5. Costa Rica to have the right of opening upon Nicaraguan territory the necessary roads for importation and exportation from respectively, to the lake, Colorado and San Juan Rivers, and San Juan Port, and to be for all times superficiary owner of those roads.

ART. 6. The bay of Salinas to be common; both republics to defend it and the bay of San Juan del Norte.

ART. 7. In case of war between the two republics, no act of hostility to be committed upon the waters declared common and their banks.

ART. 8. In case of the excavation of a canal, its right bank to be the boundary from the Caribbean Sea to the lake; thence the south shore of the lake to the Lapoa River; thence the right (this is a plain mistake, it means the left or south,) bank of said canal to its mouth; provided that it does not deviate more than six geographical miles from the line drawn in article 2. Nicaragua reserves over the canal its sovereign rights. ART. 11. Costa Rica to have a consulting vote on any contract entered into by Nicaragua on the interoceanic canal.

ART. 12. Nicaragua binds herself to stipulate in behalf of Costa Ricans the same advantages in the use and navigation of the canal and in the tariff of goods and passengers (sic) as for Nicaragua.

ART. 16. A telegraph to be established between the two republics.

ART. 17. Minting of coins, weights, and measures according to decimal system.
ART. 18. Extradition of criminals, &c., &c.

[Inclosure 2.-Translation.]

Boundary treaty between Nicaragua and Costa Rica.

Preamble and article 1 unimportant.

ART. 2. The dividing line between the two republics, beginning at the Mar del Norte, (Caribbean,) shall start at the extremity of Punta de Castillo, at the mouth of San Juan River, and shall run along its right bank to a point three English miles distant from Castillo Viejo, measured from the outside fortifications of said Castillo; thence in a curve of three miles distance, whereof the fortifications form the center, to a point above Castillo two miles distant; thence in the direction to Lapoa River, that flows into Lake Nicaragua, following a course always two miles distant from the right bank of San Juan River, with its windings, to its origin from the lake, and from the lake shore to said Lapoa River, striking it parallel with said shore; from that point, also distant two miles from the lake, a straight astronomical line shall be drawn to the central point of Salinas Bay on the Pacific, where the demarkation of the dividing line between the territories of the two republics shall end.

ART. 3. The corresponding survey of this dividing line shall be taken for a whole or a portion thereof, by commissioners of the two governments, these agreeing upon a time when it shall be done. Said commissioners may, if by common understanding they may be able to find natural landmarks, deviate some in the curve around Castillo, as well as in the parallel line along the river bank and the lake shore, or in the straight astronomical line from Lapoa to Salinas.

ART. 4. San Juan del Norte and Salinas Bays shall be common to both republics, and, consequently, so their advantages and the obligation to contribute to their defense; and Costa Rica shall be bound for the portion corresponding to her on the bank of San Juan River, in the same manner as Nicaragua, by treaty, to join in watching it in the proper manner, on which both republics will agree, for its defense in case of aggression from outside, and they will do it with all the power at their command.

ART. 5. As long as Nicaragua be unable to recover full possession of all her rights in the port of San Juan del Norte, the Punta de Castillo shall be of absolute common and equal use and possession, both for Costa Rica and Nicaragua, fixing, during the time this community lasts, as limit thereof, the whole course of Colorado River. And it is, moreover, stipulated that as long as the said port of San Juan del Norte has to exist as a "free" port, Costa Rica can recover from Nicaragua no port duties in Punta Castillo. ART. 6. The republic of Nicaragua shall have the exclusive domain and summum imperium over the waters of San Juan River from its outlet from the lake to its mouth into the Atlantic; but the republic of Costa Rica shall enjoy in said waters the perpetual right of free navigation from said mouth up to three English miles from Castillo Viejo, for the object of commerce, be it with Nicaragua or with the interior of Costa Rica by the river San Carlos or Sarapiqui, or by any other ways coming from the portion of the banks of the San Juan which will be determined to belong to that republic. The vessels of either country may indistinctly make fast upon the river banks wherever navigation is common without being subject to any class of taxes, provided such are not established by an agreement of the two governments.

ART. 7. Has only a transitory interest.

ART. 8. Should, ere the Nicaraguan government had received cognizance of this convention, the contracts entered into for canalization, or for transit, have, for any reason whatever, become null, then Nicaragua binds herself not to enter into another upon those subjects without previously learning the opinion of the Costa Rican government on the inconveniences it may have for either country, provided that this opinion be communicated within thirty days after the receipt of the inquiry, in case Nicaragua represents the case as urgent; and if, by the contract, the natural rights of Costa Rica are not harmed, then her opinion shall be merely consultive.

ART. 9. For no motive whatever, nor in case of war, in which, unfortunately, the republics of Costa Rica and Nicaragua may be drawn against each other, shall they be permitted to commit acts of hostility in the port of San Juan del Norte, or in the river of that name, or on Lake Nicaragua.

ART. 10. The stipulations of the foregoing article being essentially important to a dne security of the port and river against foreign aggressions, affecting the general interests of the country, the strict fulfillment thereof is placed under the special guarantee, which, in the name of the mediating government, (San Salvador,) its minister plenipotentiary present is disposed to grant, and actually does grant, by virtue of the full powers he declares to be conferred upon him by his government.

ART. 11. In witness of the good and cordial understanding now established between the republics of Costa Rica and Nicaragua, they renounce upon all the assets they may possess against each other up to the signing of the present treaty, under whatever title they may be held, and, in like manner, do the two high contracting parties abstract from all reclamations for indemnity to which they may deem themselves entitled against each other.

ART. 12. This treaty shall be ratified, and its ratifications exchanged, within forty days of its being signed at Santiago de Managua.

In witness whereof we sign the present in three copies, together with the honorable minister of San Salvador, at San José, capital of Costa Rica, the 15th April, 1858.

Approved, San José, the 16th April, 1868, by

JOSÉ M. CAÑAS,
MAXIMO JEREZ,

PEDRO ROMULÓ NEGRETE.

Protocols of exchange.

Thomas Martinez, President of the republic of Nicaragua, and Juan Rafael Mora, President of that of Costa Rica, fully and completely authorized by the respective Congresses of Nicaragua and Costa Rica to proceed to the exchange of the ratifications of the territorial boundary treaty, signed by the plenipotentiaries of either republic, and by that of Salvador, as mediating power, on the 15th of April of this year, at San José, capital of Costa Rica, &c., being met at the town of Rivas, in Nicaragua, for the abovesaid purpose, we have executed the exchange of the respective official documents of ratification of said treaty of 15th of April, undersigning as we do in three copies, countersigned by the ministers for foreign relations of Nicaragua and of Costa Rica, April 26, 1858.

TOMAS MARTINEZ.

GREGORIO JUAREZ, Minister.
JUAN RAFAEL MORA.

NAZARIO TOLEDO, Minister.

No. 123.]

No. 321.

Mr. Riotte to Mr. Fish.

UNITED STATES LEGATION,

Leon, October 20, 1872. (Received Nov. 18.) SIR: This government has recently published a treaty celebrated with that of Italy, March 6, 1868, article 4 whereof contains the following stipulation, viz:

"The citizens of the contracting parties can equally practice in the ports of the two countries the coastwise trade and cabotage, not paying at each port higher duties than those paid by the national vessels."

Considering that Nicaragua possesses no mercantile marine at all, the stipulation redounds to the benefit of Italy. Our treaty with Nicaragua, on the contrary, Article II, in fine, prohibits the coastwise trade, a clause the operation whereof, for the reason stated, works only against our shipping.

Now there seems no doubt that, by virtue of the most-favored-nation clause in our treaty with Nicaragua, we may claim the same privilege as that accorded to Italy. But there exists a grave consideration which has prevented me from so doing, and upon which I would like to be instructed. At the first glance it would seem as if, under the circumstances, the admission of the cabotage would be strictly in our favor, yet, if we could claim the right of the coastwise trade in Nicaragua, her flag would, of course, be entitled to the same privilege on our shores. Now, I do not apprehend that the Nicaraguans would at once become a seafaring nation, but I do apprehend that European merchantmen would procure Nicaraguan nationality, to the end of practicing the coastwise trade along the coasts of the United States. And it seems to me as if the disadvantages arising to our marine thus would be a good deal graver than any advantages it might be able to reap from the coastwise trade in Nicaragua.

Practically the steamships of the Panama Railroad Company, with the full knowledge and approval of the Nicaraguan authorities and to the benefit of the country, are carrying on coastwise trade between the ports of Corinto and that of San Juan del Sur; and fearing that under changed circumstances, so easy to happen in these countries, this might be taken as a cause for complaint against the steamers, in conversation with the president and ministers I have several times urged upon them the expediency of surrendering that privilegium, which for this country is, indeed, an odiosum, referring at the same time to the absolute want and impossibility of land communication between their ports on either ocean, and the lack of a national marine, and explaining the history and ends of Minister Sully's invention of cabotage. They agreed fully with my views; but, being blindly wedded to old and particularly French precedents, and ever suspicious of being overreached at intimations coming from American sources, also being too indolent to study a question out of the beaten track, they have never moved in the matter. I am firmly persuaded that the permission of coastwise trade by our merchant marine along the Nicaraguan coasts would benefit even more Nicaragua than ourselves, and that, in case of the construction of the interoceanic canal, it will become a positive necessity.

I have, &c.,

C. N. RIOTTE.

No. 6.]

XXVI-PERU.

No. 322.

Mr. Thomas to Mr. Fish.

LEGATION OF THE UNITED STATES,

Lima, Peru, September 26, 1872. (Received October 21.)

SIR: In the relation, which I had the honor of addressing to the Department, of the events which terminated with the death of President Balta, and the proclamation of President Pardo as the constitutional ruler