APPENDIX L

The following dispatch was sent by Mr. Crampton, British minister to the United States, to Viscount Palmerston:

WASHINGTON, September 17, 1849.

MY LORD: Mr. Clayton, having requested me to call upon him at the Department of State, said that he wished to converse with me frankly and confidentially upon the subject of the proposed passage across the Isthmus by way of Nicaragua and the River San Juan, with regard to which he had long felt a great deal of anxietyan anxiety lately very much increased by intelligence he has received from Mr. Elijah Hise, who has arrived at Washington from Guatemala, where he has been for some years chargé d'affaires of the United States.

Mr. Hise has, 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 Nicaragua by which the latter grants to the United States an exclusive right of way across her territories, including therein the River 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 enumerated 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 the United States guarantees to Nicaragua 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 has 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 the way of Nicaragua were, he observed, known to me, and had been, as I was aware, communicated by his direction to Her Majesty's Government; these would, he 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. Squire, who has been lately sent as United States chargé d'affaires to Nicaragua. By these Mr. Squire is directed not only not to negotiate any treaty with that Government on the subject of the passage across the Isthmus, but not to give his support 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 situation. You know, he said, that the Government has no majority in the Senate; you know that the treaty will he called for by Congress; the substance of it, indeed, has already found its way into newspapers; you are aware of the opinion which, whether right or wrong, is generally entertained in this country of the claim of the Mosquito Chief to any part of the territory claimed by Nicaragua; and you can form an idea of eagerness of 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 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. Abbot Lawrence, who is now at Boston preparing for his departure for England, on the 26th instant, and that he would put him into full possession of the views of the United States Government with regard to this subject. He begged me in the meantime to communicate the substance of what had been said to me to your lordship.

I have, etc.,

Viscount PALMERSTON, G. C. B.

JOHN F. CRAMPTON.

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In a subsequent letter, dated October 1, 1849, Mr. Crampton writes again to Lord Palmerston and details what Mr. Clayton said to him about this matter:

Mr. Clayton observed: "You affirm the Mosquito title; we deny it. There we are at issue, and if that controversy be not arranged amicably, the canal will probably never be made for either of us.' He thought it could be easily settled by a little mutual forbearance, but he would prefer to leave to your lordship the suggestion of the best means of effecting an object so desirable.

He then proceeds to discuss the question of the Mosquito King and his jurisdiction and sovereign power, as was asserted by Great Britain within the realm of Nicaragua as follows:

Mr. Clayton then recurred to the embarrassing situation in which the friends of this great enterprise would be placed should Her Majesty's Government continue to oppose the Mosquito claim to the arrangement now proposed. The existence of the treaty signed by Mr. Hise and the privileges conferred by it on the United States, are, he said, no secrets in this country. The universal feeling would be for its adoption; and a reason for clamoring for its instant ratification would be that this might defeat what would be represented and believed to be a plan on the part of Great Britain to secure for herself a monopoly of the most eligible passage between the two oceans. The executive government of the United States would be without excuse for withholding the treaty from the Senate; and it is impossible to doubt, under the influence of the public excitement which there is already an evident design to rouse with regard to this question, what would be the result.

The general tenor of this contract is in accordance with the instructions given to Mr. Squier on the subject, more particularly article 36, which stipulates that vessels of all nations shall be permitted to pass through the proposed canal, subject to no higher rates or charges than those imposed on vessels of the United States. Some of the stipulations, however, Mr. Clayton observed, were objectionable, particularly that of the preamble, which seems to confine the directorship of the company to American citizens, and that of article 9, which requires that a majority of the shareholders shall be American citizens. The United States Government, he said, wishes to see nothing of an exclusive character in any part of the arrangement. Mr. Clayton conceives, however, that should the joint action of Her Majesty's Government with the Government of the United States in the matter be once secured there can be little difficulty in remodeling the contract as to these points or as to such others as may be agreed upon.

Mr. Cass, while he was Secretary of State, writing to Mr. Dallas, who was then minister at the Court of St. James, in 1859, says:

In our negotiations in that quarter no reserve had been exercised toward the British Government, but as soon as the Cass-Yrissari treaty had been negotiated it was made a subject of free conversation with Lord Napier, who communicated a copy of it to his Government, by which it was soon after approved. The treaty itself, in the very spirit of the Clayton-Bulwer treaty, provides for the enjoyment of the same free transit across the isthmus by other nations which it secures to the United States. It was supposed then that, after a frank interchange of views between General Lamar and Sir W. G. Ousley, it would be determined to commence the work of amicable adjustment in Central America by securing the prompt ratification of the CassYrissari treaty. A notice to Nicaragua that this was the first step in the proposed negotiations would readily have accomplished the desired object, and could not have failed to be followed by the most favorable results.

Another purpose which Sir W. Gore Ousley was expected to accomplish was the conclusion of a treaty of commerce and transit with Nicaragua similar in its terms to the Cass-Yrissari treaty.

If the latter treaty had been ratified, another treaty of the same general character could have been negotiated without any difficulty whatever. Incontestably, therefore, it was not of pressing importance that this should be the first subject to receive the attention of the British envoy. The great object to be obtained was the amicable settlement of the Central American questions which were in controversy between the United States and Great Britain, and both Governments doubtless expected that this object would be speedily accomplished.

He proceeds further:

While the Cass-Yrissari treaty has not been ratified, and the Mosquito protectorate has not been relinquished, a treaty has been made with Great Britain, and confirmed by Nicaragua, without serious difficulty or delay. This treaty, which is for the most

part a copy of our own, contains an additional clause on the subject of armed expeditions, whose effect, if it should be accepted, must be to control the legislation of Great Britain and prevent it from repealing, should it be inclined to do so, its foreignenlistment act.

He then goes on at a very considerable length into a more complete discussion of the conduct of Sir William Gore Ouseley in his dealing with those Central American States. He drew upon that special minister the remonstrance and rebuke of his Government, and they recalled him because he was setting up pretensions, or encouraging pretensions to be set up by Nicaragua, in that quarter, which were violative of the spirit of equity and justice and wise international policy which had been established, as they all agreed at that time, in the Clayton-Bulwer treaty.

In his letter of instructions to Mr. Lamar, our minister to Nicaragua, dated July 25, 1858, the contents of which were made known to the British Government, General Cass said:

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 powers of Europe -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 of their power.

The reasons for the attitude they have assumed have been fully promulgated, and are everywhere well known. There is no need upon this occasion to recapitulate them. They are founded on the political circumstances 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 concerning the balance of power, and other subjects of controversy arising out of the condition 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 contiguous or remote. The years which have passed by since the principle of separation was first announced by the United States have served still 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 extend along the Atlantic and Pacific coasts and demand the speediest and easiest modes of communication. While the 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 none 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 isolation, 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 relations as would prevent their general

use.

The United States do not seek either the control or the exclusive use of these routes. They desire that the advantage should be equally common to all nations. Nor do they claim to interfere with the local governments in the determination of the question connected with the opening of the routes 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.

But, besides these general considerations applicable to this subject there are others which impose additional obligations upon these isthmian 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 cooperation of the capital and industry and enterprise of the world in order to open these lines of communications. The citizens of the United States have contributed 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.

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 construction is a fair object of competition for the citizens and subjects of all other powers.

The work is 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 interests for the United States or which would justify their intervention.

The first is, that no contract with M. Belly, or with anyone, indeed, should interfere with engagements previously existing with American citizens, but that all such engagements should be preserved in violate; 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 unjust for these Governments, in a desire to make these great undertakings profitable to themselves, without furnishing any contribution toward their construction, to levy onerous charges upon the persons and property destined to pass over them, and by this means interpose serious obstacles to their general use. These local Governments should look to the vast benefit which these enterprises bring to the countries through which they pass, 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.

Without confidence these great enterprises must fail; nor is it probable that one of them requiring a heavy outlay would now be undertaken and completed without more sure guaranty for their protection than would be furnished by the engagements of these Central American States. The danger of violating them is too well known and appreciated to justify the expectation of the investment of capital under such unpropitious circumstances. So long as the pecuniary object is supposed to furnish a motive for rescinding existing contracts and forming new ones, without a regard to vested rights, no progress will be made in the construction of canals or of other permanent and expensive works of transportation.

The United States, acting in behalf of their citizens, object to this system of confiscation, and they do not doubt but that they will have the concurrence of all other powers which 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 Nicaraguan 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, the Government will consider itself warranted, whenever a proper case arises, in interposing by such 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.

The fourteenth and fifteenth articles of the Cass-Yrissari treaty are as follows:

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 by land or water, which may now or hereafter exist or be constructed under the authority 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, however, reserving its right of sovereignty over the same. XV. The United 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 to induce them to guarantee such neutrality and protection.