real interests of this State, but also to the future commercial prosperity of all nations, by smoothing the difficulties in the way of the construction of a great Interoceanic Canal, a work so vast and important in its results as to confer honour and credit on all those engaged in its completion.

As it is of the greatest importance that the Undersigned should be made acquainted with the views of the Nicaraguan Government on this subject with as little delay as possible, as well as that he may have an opportunity of discussing in detail the Articles of the proposed Treaty with the Minister for Foreign Affairs, he requests that high functionary to name as early an appointment for that purpose as will suit his convenience.

M. Castellon.

I have, &c.

CHARLES LENNOX WYKE.

(Inclosure 2.)-M. Castellon to Consul-General Wyke.

SIR, (Translation.) Managua, July 29, 1852. I HAVE informed my Government of your very courteous communication, dated the 26th instant, with which you were pleased to send a copy of the bases which the Governments of Great Britain and The United States propose to Costa Rica and Nicaragua for the amicable arrangement of the difficulties which exist between those 2 countries in regard to territorial limits.

The Chargé d'Affaires of the American Union had already submitted this important matter to the consideration of my Government, which, in conformity with the Decree of the Legislative Chambers, copy of which I have the honour to inclose to you, was pleased to direct me to reply to that gentleman in the terms contained in the aforesaid copy, which I also transmit. In it you will see that, if the Government of Nicaragua has not acceded to the bases proposed for an arrangement with that of Costa Rica, it is nevertheless disposed to terminate, by an impartial arbitration, all the questions which actually exist between the 2 States-a measure the adoption of which presents no inconveniences, since it is one of those which are generally and usually employed to reconcile differences between nations; so that the mere compliance with that measure fully proves the desire of my Government not to prolong a state of things which may retard the future prosperity and progress which is reserved for these 2 countries, because arbitration, as well as compromise, harmonizes particularly with those cases in which the pretensions of the contending parties present matter of doubt, whilst Nicaragua believes with the utmost good faith that its rights are clear, certain, and incontestable, such as any other Power whatsoever might vindicate and defend to the last without the slightest compromise.

My Government is persuaded that yours will find, as well in the form as in the substance of these 2 documents, that the dignity of Nicaragua has gone hand in hand with its justice and good faith ; and with this conviction it has deemed it proper to authorize its Minister in Washington to arrange this business in a manner which, by conciliating the interests of Nicaragua and Costa Rica, may remove all obstacles to the great work of peace and the construction of the Interoceanic Canal-an object that has not, and never will be, lost sight of by my Government.

This Government feels a lively regret that the intervention of the 2 High Powers who propose the bases in question has not been as efficacious as could be desired. Perhaps the results would have been more fortunate if the Governments of the American Union and Great Britain had authorized you and the Honourable Mr. Kerr to mediate in their names, and preside over the Conferences which might have taken place between Nicaragua and Costa Rica by means of Ministers Plenipotentiary commissioned for that purpose: in that case the Representatives of those 2 Great Powers, having listened to the contending parties, might perhaps have discovered some easier mode of adjustment without further delay.

If you were to be invested with the full powers required, it would be very agreeable to my Government to treat with you upon so interesting a subject, and to share with you, in addition to its earnest desire for the happy conclusion of these questions, the satisfaction of co-operating, with the goodwill of Great Britain and The United States, to secure to these inestimable sections of Central America the ineffable blessings of peace, and to the whole world the benefits of an interoceanic communication over the Isthmus of Nicaragua.

My Government, nevertheless, being desirous of manifesting more and more its good dispositions in this respect, has directed me to transmit to you the modifications which, in its judgment, might be made of the aforesaid bases, in order that you may communicate them, if you think proper, to your august Sovereign for her consideration.

These modifications have also been communicated to the Chargé d'Affaires of The United States, with the request that he would forward them to his Government, in the hope that they would meet with a favourable reception, and, in such event, M. Marcoleta, Minister Plenipotentiary in Washington for Nicaragua, is authorized to confer, in regard to these same modifications, with the American Cabinet.

As to the rest, my Government, as well as myself individually, will take a singular pleasure in tendering, upon all occasions, to Mr. Wyke, every attention due to his merits and worth; and I can now assure you, that the interest which you have evinced for the

happiness and welfare of Nicaragua is a circumstance which will inspire us with the greatest desire to cultivate your goodwill.

C. L. Wyke, Esq.

I have, &c.

FRANCO. CASTELLON.

(Inclosure.)-Decree.
(Translation.)

The Director of the State of Nicaragua to his citizens.

By the present the Legislative Assembly have decreed the

following:

The Senate and Chambers of the State of Nicaragua in Congress assembled:

Decree:

ART. I. The State of Nicaragua refuses to accept the proposed Convention or basis agreed upon severally, 30th April last, between his Excellency Daniel Webster, Secretary of State, and his Excellency John F. Crampton, Minister Plenipotentiary of Her Britannic Majesty in Washington, respecting an arrangement of territorial limits between Nicaragua, Costa Rica, and Mosquito.

II. The Government of Nicaragua would desire that the beforementioned subjects, with reference to the above bases, should be heard before an impartial arbitration.

III. The State of Nicaragua most solemnly protests against all foreign interference in the affairs of their administration, and against any force which might be employed to compel them to act against their own free will.

Given in the Hall of the Assembly of Representation, Managua, July 14, 1852.

Approved of

AUGUSTIN AVILEZ, R.P.
S. JOAQUIM CUADIA, R.S.

S. MANANO BOLANOS, R.S.

Poder Ejecutivo.

Senate Hall, Santiago de Managua, July 19, 1852.
MIGUEL R. MORALE, S.P.
J. GUERRA, S.S.
JOSE DE J. ROBERTO, S.S.

To the Minister of Foreign Affairs.
Approved-

Managua, July 19, 1852. J. LAUREANA PINEDA.

Managua, July 29, 1852.
CASTELLON.

SIR,

(Inclosure 4.)-M. Castellon to Mr. Kerr.

(Translation.)

Managua, July 20, 1852. As I informed you in my despatch of 26th June last, my Government have examined the bases as stipulated between the Secretary of State to the American Union and Her Britannic Majesty's Minister Plenipotentiary in Washington on the 30th April last, for the purpose of settling the boundary question between Nicaragua, Costa Rica, and Mosquito.

My Government is fully aware of the rights and importance of this affair, and not being possessed with the full powers requisite for deciding upon subjects so important as those contained in the bases, found itself under the necessity of submitting it for the consideration of the Legislative Assembly, in order that they might report upon the same. In virtue of which the Camaras have given the subject their attention, and acting in the best faith, not only with regard to the justice of the cause of Nicaragua, whose rights they consider most sensibly affected, but also the illustration and moderation of principles of the Government of Great Britain and The United States, and the guarantee secured us in our international rights, in favour of all the States, have taken it upon themselves to refuse acceptance of the before-mentioned bases, declaring, in the name of Nicaragua, its disposition to decide, by means of an impartial arbitration, the questions which may arise as contained in that Treaty. In consequence of this, please refer to the Decree which, in a former despatch, I had the honour to inclose you.

My Government, however, in conformity with said Decree, has desired me to say that, notwithstanding the deference which it is inclined to observe towards the Government of The United States and Great Britain, in every way in which it may be consistent with the honour and dignity of the State, it finds itself under the painful necessity of being obliged to refuse the proposed bases, without however depreciating your friendly offices and the sentiments which you have expressed in the name of Great Britain and The United States in sending to them propositions which, with the character of recommendations, have been submitted to the consideration of Nicaragua and Costa Rica. You will find in this declaration, that if my Government has not acceded to the basis of a settlement which had been addressed to it, it is not the less on that account disposed to cultivate with the Governments of the American Union and Great Britain the relations of friendship and good understanding happily established, such as belong to peace and general welfare. Would that on the part of those Governments similar feelings were entertained, and that, appreciating at their just value the sentiments of the Government of Nicaragua, they may devote their friendly interference to the reasonable measure of impartial arbitration proposed by Nicaragua, to be adopted by Costa Rica and Great Britain to terminate harmoniously the territorial questions which now occupy us. As regards the stipulations between Great Britain and The United States in relation to the affairs of the Atlantic and Pacific Company and the Accessory Transit Company in Articles IV, V, VI, VII, of the aforesaid basis, my Government protests that it will not accede as it now has not acceded to any arrangements which in any way may alter the conditions of the previous contracts of 22nd September, 1849, the modifications of 11th April, 1850, and the Convention of 19th August, 1851, which in any event will be the invariable rule of its conduct; nor will it accede to any other arrangements which directly or indirectly may injure the rights of Nicaragua either in its ports, rivers, or lakes, or in the canal and its dependencies, or in any other part of its territory, whose integrity it desires to preserve, whether such arrangements be made between the 2 aforesaid Governments of the American Union and Great Britain or with any other Power, as long as a Minister Plenipotentiary for this State does not concur in them, and as what may be done by said Minister is not ratified by the Legislative Power.

With this exposition, which I hope you will be good enough to bring to the high knowledge of your Government, as I request you. to do, I reply by order of mine to your esteemed and courteous communications dated 23rd of last June and 13th of the present month.

Mr. Kerr.

I have, &c.

CASTELLON.

(Inclosure 5.)-Modifications of Proposed Territorial Treaty.

(Translation.) Managua, July 29, 1852. MODIFICATIONS by which the basis established in Washington, the 30th April last, for the settlement of territorial limits, may be rendered acceptable to Nicaragua.

ART. I. The Mosquito Indians, and the territory of that name, remain for ever incorporated and united with that of Nicaragua, enjoying the same rights, and being subject to the same duties, as the other inhabitants of the State, according to the terms of the fundamental charter. The said territory will be considered a department of the State, and as such will send its respective Representatives and Senators to the Legislative Chambers, in the form and upon the basis which may be determined on by a particular law. In conse quence, the trade between that territory and the other parts of the State will be entirely free and untrammelled, as also in its ports, rivers, and lakes, and in its respective sections for the navigation in transit of vessels and vehicles, which shall enjoy perfect security.