cions, in consequence of the excesses and irregularities committed by their agents in Nicaragua, the tone and complexion of their official communications, and especially on account of their having evaded, under specious pretexts, the performance of many of the obligations to which they were pledged by the contracts of April 22, 1849, and of August 19, 1851.

With regard to the territorial boundaries between Nicaragua and Costa Rica, although Nicaragua is of opinion that this is a family question which ought to be settled between its own members, avoiding thereby those rocks upon which all the efforts that have been made, until now, for the settlement of the main question have been wrecked, which have, at the same time, served as an obstacle against the consummation of the splendid project of peace and good harmony between all, and for the establishment of a canal on the Isthmus of Nicaragua, yet the government being desirous to give some evidence of the wishes by which it is actuated, to secure a good understanding between two sister republics, comes forward to manifest its solicitude for the mutual welfare of both, without jeopardising, however, the important interests which said government is bound to protect and to defend.

And if by chance the government of the United States thinks it proper that the settlement of this question should henceforth be resolved and included in some treaty, which circumstances may give occasion for, Nicaragua makes the following propositions:

"The boundaries between Nicaragua and Costa Rica shall be the same as were formerly comprised by the old province of Nicaragua, to wit: from the Rio del Salto, in the Pacific, following a diagonal line towards the interior to the Rio Paritina, in the Atlantic.

"At the same time, Nicaragua pledges herself that the navigation of those rivers which are located within the boundaries of Nicaragua, from the point where they begin to be navigable, as well as the waters of the lake, lakes, and all navigable waters generally, shall be entirely free and common to the subjects of each State, without any restriction, nor any special condition favoring one party more than the other, it being understood that the citizens of Costa Rica, as well as those of Nicaragua, shall be subject to the only limitation established by the 23d article of the contract concluded with the canal company on the 22d of September, 1849, and that they shall conform with all the regulations concerning the navigation law and the other laws of the State."

Costa Rica shall, moreover, enjoy the following privileges:

"1. Entire exemption from importation duties for the port of San Juan during a period of ten years.

"2. Absolute exemption, for all time, from duties on exported articles of her own produce and manufacture for said port.

"3. Equal immunity and freedom, for all time, to navigate the Rio Serapiqui, with the obligation of constructing, at her own expense, (Costa Rica's) the works necessary to render said river navigable, and to preserve it in the condition it will be after the works necessary for such purpose shall have been executed.

"4. To establish at the confluence of the rivers San Juan and Sera

piqui, or at any other point she may think proper, custom-houses, stores, warehouses and revenue station.

"5. The privilege empowering her subjects to keep, in the port of San Juan, warehouses for depositing such merchandize as they may have to import through the interior of her territory, for a period of fifteen years. These points to be adjusted and agreed upon by means of a special convention, which shall, at the same time, designate the mode and the manner in which the boundaries of the frontier between the two States have to be established."

The government of Nicaragua hopes that the foregoing modifications and propositions, which embrace the various points in question, will meet with the approbation of the government of the United States, and that, with the zeal and interest it has always manifested for good harmony and friendly relations between the parties interested, it will contribute to the acceptation, on the part of all, of an arrangement which Nicaragua considers the most just and equitable for the common and general interests, obtaining in this manner, and very briefly, the results which are desired.

The undersigned begs the honorable acting Secretary of State that he will be pleased to submit the contents of this dispatch to the President of the republic, and at the same time he avails himself of this new opportunity to renew to him the assurances of his high and distinguished consideration.

Hon. MR. CONRAD,

J. DE MARCOLETA.

Acting Secretary of State, Washington.

Mr. Molina to Mr. Everett.

LEGATION OF COSTA RICA, Washington, November 11, 1852.

The undersigned, minister of Costa Rica, has the honor of addressing himself to the honorable Secretary of State, for the purpose of calling his attention to the unfinished state of the negotiations set on foot by this government in the month of last April, respecting the settlement of the territorial differences and other matters pending between the State of Nicaragua and the republic of Costa Rica, and between the former State and the Mosquito Indians.

Mr. Everett is, no doubt, aware that his illustrious and lamented predecessor in office, the honorable Daniel Webster, in concert with Mr. Crampton, her Britannic Majesty's minister to this government, and with a view of facilitating the construction of the contemplated ship canal, took pains to draw a plan of adjustment in as fair and equitable terms as it was possible, under existing circumstances, to devise.

That project having been agreed upon and signed on the 30th of April, it was to be recommended to the immediate and earnest consideration of the governments of Costa Rica and Nicaragua respectEx. Doc. 25-9

ively, by means of special agents sent there for the purpose, as it appeared desirable to insure their prompt decision. Mr. Walsh was accordingly appointed, on the part of the United States, and was authorized to communicate on the subject with the governments aforesaid, acting in connexion with Mr. Wyke, the newly appointed British consul general to Central America, then on his way to his future sphere of action.

For greater dispatch the two commissioners were conveyed to their destination in an American man-of-war, showing thereby that there was a determination to bring matters to a speedy issue.

The commissioners directed their course first to San José, where they met the cordial welcome that the nature of their errand and their personal merits entitled them to expect.

The government of Costa Rica, however, having fully considered the propositions presented by them, could not fail to find strong objections in regard to some of the arrangements contemplated. The direct advantages of the interoceanic communication were intended by these arrangements to accrue exclusively to Nicaragua, as long as the companies' charters lasted, the boundary of Costa Rica was to be removed from the northernmost branch of the river San Juan to the Colorado branch, the Atlantic-Pacific Ship Canal Company was to be allowed to locate, on the Costa Rican side of the river San Juan, certain sections of land that Nicaragua had granted to it, in defiance of the sovereignty of Costa Rica over those territories.

It is a well known fact that neither the government of Nicaragua, nor the company to which the already mentioned privileges had been granted, had in their mutual transactions paid any regard to the claims of Costa Rica, as if the latter republic had no right to be a party in the affair. And it was natural, therefore, for the government of Costa Rica to feel itself aggrieved on the subject.

Nevertheless, desirous of removing any difficulties that might impede the success of the canal enterprise, on the conviction that it is always judicious to compromise matters in dispute, and from a sense of grateful regard for the powers that were thus exerting their kind mediation and proffering their advice, the government of Costa Rica gave, on the 22d of June, with the sanction of the legislature, an unqualified assent to the propositions recommended, confining itself to invoke the friendly offices of the mediating powers, in order to obtain some slight modifications in favor of Costa Rica.

Nicaragua, on the other side, who had been the most favored party, by the provisions of the proposed adjustment, has shown a quite different disposition. The government of that country has rejected the project in a manner which, to say the least, deserves to be qualified as very inconsiderate, while the counter propositions of the 29th of July, presented to the commissioners in that quarter, require no comment on the part of the undersigned, such propositions being nothing more than a demand that every point at issue should be settled according to the views of that government. This unsatisfactory result must have proved to the American cabinet that there is no hope of ever bringing that State to a correct appreciation of its position, interests, and duties.

In the meantime, Costa Rica stands on a false position, having pledged herself to abide by the opinion of the governments of the United States and Great Britain, as set forth in the propositions, without obtaining in exchange any security against the assumptions and encroachments of Nicaragua; the adoption of other means of self defence being denied to her, whilst her rights are actually disregarded, and her interests deeply injured in various ways.

It seems to the undersigned, that the governments of the United States and Great Britain are both pledged by the concluding words of the project to take a final action on the premises. Costa Rica, trusting on this declaration, did not hesitate to concur in their views. The undersigned, therefore, in compliance with the repeated instructions he has received from his government, begs leave to call the attention of the honorable Secretary of State to the expediency and propriety of concluding a treaty between Costa Rica and the United States, according to the tenor of the propositions; Costa Rica, on one part, agreeing to convey, on her own and indisputable title, to the American Atlantic-Pacific Ship Canal Company the right of way, privileges of navigation, and sections of land; all of which concessions that company is in need of at present, in order to legitimate the tenure of its charters; and the United States, on the other part, engaging to support Costa Rica in the maintenance of her boundaries. and rights against the assumptions of Nicaragua.

This proceeding appears to the undersigned to be the only course now open for both parties, in order to terminate this affair, which has been kept in suspense since Mr. Walsh's return, three months ago. Any further attempts at negotiation with Nicaragua would, no doubt, result in fresh disappointments.

The minister of Costa Rica earnestly and respectfully requests Mr. Everett's early attention to the contents of this note, trusting that the conduct of Costa Rica in the premises has been duly appreciated by the American government.

And he has the honor of renewing to Mr. Everett the assurance of his very distinguished consideration, with which he begs to remain his most obedient humble servant,

Hon. EDWARD EVERETT,

Secretary of State of the United States.

F. MOLINA.

MR. MOLINA'S PROJECT FOR THE SETTLEMENT OF CENTRAL AMERICAN AFFAIRS.

Suggestions as to the course that may be adopted for the settlement of the Central American affairs.

Firstly. A treaty can be signed between the United States and Costa Rica as I have proposed, providing the maintenance of the state of things contemplated by the propositions of April, as regards Costa Rica and Nicaragua and the canal company; such state of things to be considered as a finality.

Secondly. Should not this plan seem advisable, a treaty could be concluded between the United States and Costa Rica, stipulating the maintenance of the contemplated arrangements as regards Costa Rica, Nicaragua, and the canal company, only as a temporary settlement, to be kept until such a time as the governments of Costa Rica and Nicaragua shall effect a peaceful adjustment of their differences, either by a direct agreement or through arbitration. Provided that these temporary settlements shall not prejudice any of the claims of the contending parties, which claims shall be discussed and adjudicated upon in their full extent and in all their bearings.

Thirdly. With reference to the Mosquito part of the affair, should it appear advisable to transfer Greytown to Costa Rica, this republic will accept the transfer on the terms proposed to the advantage of the Mosquito Indians; granting likewise municipal privileges to the inhabitants of that port, and a perfect freedom of trade. Costa Rica would be willing, likewise, to hold that place only as a kind of trust, until such a time as Nicaragua shall give its acquiescence on the same conditions, and reimburse Costa Rica of the outlays which she would have made in order to pay the indemnity to the Mosquito Indians, or for other objects, regarding the possession of that port.

WASHINGTON, November 17, 1852.

Mr. Walsh to Mr. Everett.

[Extracts.]

WASHINGTON, November 19, 1852.

SIR: I have had the honor to receive your communication of yesterday, enclosing an extract from a note of the minister of Nicaragua, in which I am accused of grossly improper conduct towards the government of that country. I at once pronounce the accusation to be false.

After accomplishing my mission to Costa Rica I proceeded, in pursuance of my instructions, to Managua, for the purpose of getting any dispatches which our chargé d'affaires might wish to send by me to the United States. Before my arrival there the propositions of Great Britain and the United States, for the settlement of boundaries, had been rejected by the government of Nicaragua, in a way that indicated feelings of great irritation. I remained a few days in Managua to give Mr. Kerr time to prepare his dispatches, and deemed it proper, whilst there, to pay my personal respects to the minister of foreign affairs. Accordingly, I called upon him in company with Mr. Kerr, by whom I was introduced in due form. In the same apartment with him were the president and two other ministers of state, and to them, also, I was presented, although my visit was only meant for Mr. Castillon. After a few complimentary allusions to the beauty of their country, I said that although I held no official position in regard to them, and had, therefore, no right to speak to them on official matters,