Nicaragua of the only safeguard and defence of her own rights, when, contrary to this determination, they admitted then as they admit now the rights which are claimed by Costa Rica, in order to contribute to the spoliation which was attempted to be imposed on Nicaragua.

It is not then possible to admit now this contradiction, without incurring the reproach of partiality and of flagrant injustice.

If Costa Rica desires the common good, if she wishes to exhibit fraternal feelings towards Nicaragua, there remains not the least doubt that she will agree to the projet which is here proposed; on the contrary. she will prove evidently that it is not the desire of common prosperity which she cherishes in her heart, but a selfish feeling which the present generation and posterity will designate as that of ambition-accusing Costa Rica, with abundant reason, of being the favorer, the instigator and promoter of fatal intestine discords, and the only obstacle that lies in the way of the well being of two nations that have the same origin, like interests and similarity in their religion, language, habits and customs.

In respect to Great Britain, the government of Nicaragua entertains the firm conviction that that power is actuated by the most generous sentiments; sentiments and feelings worthy of her strength, her greatness and her power, and that she will not sully her, glory and her national pride by the recollection of past resentments, nor by humiliating, degrading and ruining a weak State, whose only means of defence are no other than the conviction that she possesses in the rights that she believes belong to her, in the conscious rectitude of her motives, the natural desire of her own self-perservation and the duty which devolves upon her to defend and watch over her most precious and dearest interests.

In respect to the United States of North America, Nicaragua appeals in the last place to the fraternal feelings which unite both countries, to the homogeneousness of their political institutions, to the mutual sentiments which now reign in the hearts of their sons, respectively, founded on the one side, and more closely connected on the other, by the indissoluble bonds of a community of interests and relations.

Nicaragua, then, must trust and hope that so many and such close interests will not cease to have their influence on the minds of those now charged with the duty of directing the destinies of this great republic, and that they will contribute by their powerful support and influence to a reconciliation of the parties, by causing them to accept the means which Nicaragua offers as the expedient best adapted to terminate at once differences so serious, of such long standing, and so prejudicial to the interests of all.

Nicaragua comes forward to contribute, on her part, to the common stock of sacrifices and abnegation, and hopes confidently that her conduct will be imitated, chiefly by her sister State of Costa Rica.

Nicaragua trusts, likewise, in the magnanimity of sentiments and intentions of her Britannic Majesty, and in the sympathy and friendship of the American people.

On the bases contained in the enclosed projet, the undersigned can proceed to discuss and sign the proper stipulations, being almost able

to assure the honorable Secretary of State that his government will not hesitate to sanction them, as he can in the same way assure him that in the new instructions which have been requested Nicaragua will not submit to the long catalogue of sacrifices which had before been required of her.

The undersigned embraces this occasion to renew to the honorable Secretary of State the assurances of his most distinguished consideration. J. DE MARCOLETA.

Hon. DANIEL WEBSTER,

Secretary of State.

[Translation.]

roject and means proposed by the legation of Nicaragua for a final settlement of the questions relating to the port of San Juan, the Mosquito coast, and the question of limits between Nicaragua and Costa Rica.

PORT OF SAN JUAN AND THE MOSQUITO COAST.

1. The port of San Juan del Norte shall be restored to Nicaragua, whose government accepts the limits lastly proposed by her Britannic Majesty's minister to the country and to the Mosquito coast, to wit: To the northward, from Cape Gracias a Dios, following the river Segovia, towards the interior, as far as the parallel eighty-four and a half of longitude, and from thence descending in a direct line by west. until faces the south, to the cape of Punta Gorda, which they will reach by an horizontal line.

2. Nicaragua shall pay such indemnity as may be stipulated for the improvements introduced in the port of San Juan, from the 1st of January, 1848.

The aforesaid indemnity shall not be required to be paid at once, but little by little and by degrees, according as the circumstances of the government of Nicaragua shall permit, which trusts in the sentiments. of justice and moderation of the great powers interested in the matter, in order that said indemnity may be reduced to the lowest possible figure, in view of the peculiar position of Nicaragua, the deterioration of her revenues, and the internal convulsions which have unhappily occurred there, especially in latter times.

3. Great Britain and Nicaragua shall adjust a treaty of peace, friendship, and commerce, on the same terms as that discussed between the United States and Nicaragua, with the exception of some provisions, which shall determine to the judgment of the parties, the particular and local circumstances of the two powers.

4. The United States of America and Great Britain guaranty the integrity of the territory of Nicaragua, especially that portion of it which is to be occupied by the canal or railway, if the latter should be established, and they shall protect the works on these routes of com

munication; guarantying, also, the neutrality of these important works.

5. Said powers shall also stipulate the number of maritime miles to which the aforesaid neutrality is to extend, at the two extremities of the canal or railway.

Question of limits between Nicaragua and Costa Rica.

1. Nicaragua shall yield, in perpetuity, to Costa Rica the district of Nicoya or Guanacaste.

2. Costa Rica shall desist from her pretensions to the right bank of the river San Juan, which shall continue to form an integral part of the dominions of Nicaragua.

3. Nicaragua shall insure to Costa Rica the freedom and absolute immunity for the importation and exportation of her trade by the rivers San Juan and Sarapiqui.

4. Nicaragua shall cede to Costa Rica, if this government should request it, the land necessary for the construction of a waggon road, and for the erection of a custom-house and revenue stations.

5. Costa Rica shall make a formal renunciation of all sums or amounts which she may think herself entitled to claim from Nicaragua, whether said sum be the result of pecuniary advancements or whether it proceed from any kind or species of supplies furnished.

6. Nicaragua and Costa Rica shall conclude a treaty of peace, amity and commerce, in which there shall not only be stipulated the foregoing clauses, but even the free introduction, exportation and transit in the respective territories of the produce of their soil, and articles manufactured on the same; but articles manufactured in foreign countries, and the produce of foreign soil, shall be subject to the customhouse regulations of the two governments in regard to importation, exportation and transit.

J. DE MARCOLETA, The Minister of Nicaragua.

[Extract.]

Mr. Webster to Mr. Walsh.

DEPARTMENT OF STATE. Washington, April 29, 1852.

SIR: The disputes between the republics of Costa Rica and Nicaragua, and between the latter and the Mosquito Indians, in regard to the boundary between their respective territories, have threatened to be so serious an obstacle to the commencement of the interoceanic canal by the way of the San Juan river and Lake Nicaragua, that the governments of the United States and Great Britain have deemed themselves warranted in offering their good offices for the purpose of adjusting them. For this purpose Mr. Crampton, the British minister here,

and myself have drawn up and signed the paper a copy of which you will herewith receive. This paper consists of a preamble setting forth the motives for the settlement of the disputes, seven articles of a basis for that settlement, and a conclusion adverting to the alternative which Great Britain and the United States will deem themselves justified in adopting, should their recommendation to Costa Rica and Nicaragua not be substantially adopted by them. Until recently hopes were entertained that Mr. Molina, the minister of Costa Rica here, would have joined in the instrument. The accompanying copy of a correspondence between this department and him will, however, apprize you that as he has been unwilling to permit the canal company to locate certain sections of land granted them by Nicaragua on the right bank of the San Juan river, it has been deemed advisable not to yield. to him on this point, and we have signed the paper without him. A motive for this on my part was an apprehension that he might ultimately object to some of the terms in which the boundary between Costa Rica and Nicaragua is described. As it is presumed that his scruples were in obedience to instructions from his government, it is deemed expedient that a person on the part of this government should proceed to San José, the capital of Costa Rica, for the purpose of inducing that government to accede to the recommendation embodied in the paper adverted to. You have accordingly been selected for the occasion. A letter introducing you to the minister for foreign affairs of Costa Rica is herewith enclosed. On reaching San José, you will lose no time in presenting this and in making known the object of your visit. For this purpose, you will present to the minister the document executed by Mr. Crampton and myself, and will request that it may be taken into immediate consideration. In order that you may be prepared to meet any objections to its adoption by that government, it is proper that you should be apprized of the full extent of its claims in respect to Nicaragua. It is understood that Costa Rica asserts that her boundary begins at the mouth of the San Juan, at its confluence with the sea, and extends therein to its source in Lake Nicaragua, and thence to a point on that lake nearest the mouth of the river La Flor, on the Pacific; and thence by a direct line to the mouth of that river. Nicaragua, on the other hand, contends that Costa Rica has no right to claim the region on the south bank of the San Juan or the district of Guanacaste. From the attention which I have been able to bestow upon the subject, I incline to the opinion that the claim of Costa Rica to the south bank of the San Juan is good as far as the mouth of the Sarapiqui river, but that her pretensions to the Guanacaste district will not bear a strict and impartial investigation. By the proposition we make to her, therefore, she would apparently lose, in the first place, the delta between the San Juan and the Colorado. This, however, would only be an apparent loss, when it is considered that the Colorado may be deemed a branch of the San Juan, and as it discharges a much larger volume of water than the branch which empties into the sea at Greytown, it may be said to be the main branch of the stream. When, also, it is considered that the delta referred to is uninhabitable and otherwise valueless, Costa Rica cannot justly be said to make any material sacri

fice in adopting the Colorado as her boundary. It is not improbable that she has hitherto been influenced in her pretensions by a reluctance that Nicaragua should have exclusive control of the canal, and by an impression that, if the Costa Rican boundary were to extend to the south bank of the San Juan and were to embrace the Guanacaste district, she might have the canal within her jurisdiction, especially as the port of Salinas, on the Pacific, which has sometimes been spoken of as the best terminus for the work, would then be hers. The Atlantic and Pacific Ship Canal Company have, however, made a thorough survey of the region between Lake Nicaragua and the Pacific, and have ascertained that not only the most practicable, but the only practicable, course for the canal will be from a point on that lake, within the acknowledged territory of Nicaragua, to Brito on the Pacific, also in her territory. Inasmuch, therefore, as there cannot be two canals in that quarter, and as capitalists will prefer the cheapest and most eligible route, Costa Rica cannot, in any event, expect to have the canal within her territory. As it is probable, however, that the San Juan itself will, in a part of its course at least, be used as the canal, by means of locks and dams, it is indispensable that the canal company should have exclusive control over the waters of that river for the purposes of the canal. If, therefore, Costa Rica should acquire, by so good a title as the guaranty of the United States and Great Britain, the rich and extensive region of Guanacaste at so small apparent a sacrifice, it is difficult to imagine why her government could reasonably hesitate to adopt our recommendation.

But, it may be asked, why should Nicaragua have the exclusive right to navigation by steam on the San Juan and the lake? To this it may be answered, that steam navigation was first introduced there under the auspices of Nicaragua, in the belief that she had exclusive jurisdiction over the river and lake; that the company, to whom she has granted the privilege, accepted it under this impression, and have invested a large capital in carrying their grant into effect. If Costa Rica should make a similar grant to another company, it would probably result in material loss, if not ruin, to that holding under Nicaragua, and indeed to both, and would ultimately lead to ceaseless bickering and perhaps arrest all steamboat navigation in that quarter. The competition between the Nicaraguan route, to and from the Pacific, and those by the way of Panama and Tehuantepec, when the latter shall be open, will make it for the interest of the Nicaragua company so to reduce their rates for passage and freight that none of the usual objections to a monopoly can be urged against them.

If, however, the Costa Rican authorities should not acknowledge the reasonableness of the plan of accommodation proposed, and should persist in asserting all their pretensions against Nicaragua, you will say to them that this will not prevent the United States from entering into a convention with Great Britain to protect both the transit and the ship canal company. Should such a convention go into effect, it would, if necessary, be the right and duty of both parties to it to use other means than persuasion to induce Costa Rica to abstain from trenching on the privileges or interfering with the operations of either of those companies.