mented cost of a few millions of dollars. The canal will be remunerative at any rate. But it is understood that neither government will be. interested in its construction beyond the guarantee of the treaty of 1850. Yet each may assist by its advice and encouragement. The presen British cabinet, following the example of the last, is, I think, inclined to give to private individuals embarking in this scheme, the aid of its countenance. I respectfully suggest that the same course may be pursued at Washington with great benefit to the country by entering into communication with capitalists and others who might be disposed to aid in completing this most important work.

I have, &c.,

ABBOTT LAWRENCE.

31.—Arrangement for settling Central American affairs agreed upon between Mr. Crampton and Mr. Webster.

WASHINGTON, April 30, 1852.

The undersigned, Daniel Webster, Secretary of State of the United States, and John Fiennes Crampton, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, having taken into consideration the state of the relations between the Republics of Costa Rica and Nicaragua in respect to the boundaries between those republics, and between the Republic of Nicaragua and the territory claimed by the Mosquito Indians; and being mutually desirous that all pending differences respecting those questions should be amicably, honorably, and definitely adjusted, do in behalf of their respective governments earnestly recommend to the respective governments of the Republics of Nicaragua and Costa Rica an accommodation and settlement of these differences upon the following basis:

ARTICLE I.

The Mosquito Indians may reserve to themselves out of the territory heretofore claimed or occupied by them on the eastern coast of Central America, a district of country, and the jurisdiction over the same to be bounded as follows, namely: beginning on the shore of the Caribbean Sea at the mouth of the river Rama, which is (according to Bailey's mapof Central America, published in London in November, 1850) in 11° 34' north latitude and 83° 46′ west longitude; running thence due west to the meridian 84° 30' west longitude from Greenwich; thence due north on said meridian to the river Segovia, Fantasma, or Wanx; thence down said river to the Caribbean Sea; thence southerly along the shore of said sea to the place of beginning; and all the rest and remainder of the territory and lands lying southerly or westerly of said reservation heretofore occupied or claimed by the said Mosquitos, including Greytown, they shall relinquish and cede to the Republic of Nicaragua, together with all jurisdiction over the same in consideration of the net receipts for a period of three years from all duties levied and collected at Greytown at the rate of 10 per cent. ad valorem on all goods imported into the State.

The period of three years to commence on the day when Nicaragua shall formally take possession of and enter into the occupancy of said town. And the said net receipts shall be payable quarterly, or every

three months, to such agent or agents as may be appointed to receive them.

And the said Republic of Nicaragua hereby agrees not in any way to molest or interfere with the Mosquito Indians within the territory herein reserved by them.

It is also understood that any grants of land which may have been made by the said Mosquitos since the 1st of January, 1848, in that part of the Mosquito territory hereby ceded to Nicaragua, shall not be disturbed, provided the said grants shall not interfere with other legal grants made previously to that date by Spain, by the Central American Confederation, or by Nicaragua, or with the privileges or operations of the Atlantic Ship-Canal Company, or Accessory Transit Company, and shall not include territory desired by the Nicaraguan Government for forts, arsenals, or other public buildings.

II.

It is also understood that nothing in the preceding article shall preclude the conclusion of such voluntary compact and arrangements between the State of Nicaragua and the Mosquito Indians, by which the latter may be definitively incorporated and united with the State of Nicaragua, it being stipulated that in such case the said Mosquito Indians shall enjoy the same rights and be liable to the same duties as the other citizens of the said State of Nicaragua. The municipal and public authority in the town of Greytown shall be held and exercised by the Government of Nicaragua, but said government shall levy no duties of tonnage nor any duties of import on goods imported into Greytown, intended for transit across the isthmus or for consumption in any other state than that of Nicaragua, except such tonnage duty as may be necessary for the preservation of the port and harbor, and the erection and maintenance of necessary light-houses and beacons, and no duty for this or similar purposes shall exceed say 12 cents per ton on each vessel.

III.

The boundary between the Republics of Nicaragua and Costa Rica shall begin on the south bank of the Colorado at its confluence with the sea at high-water mark on said river; thence along said south bank, also at high-water mark, to the confluence of the Colorado with the river San Juan; thence, at high-water mark, along the south bank of the San Juan to its source on Lake Nicaragua; thence, at high-water mark, along the south and west shore of that lake to the point nearest the mouth of the river La Flor; thence by a direct line drawn from that point to the mouth of the said river in the Pacific Ocean. It is understood, however, that Costa Rica retains the right, in common with Nicaragua, to navigate said rivers and lake by said vessels, barges, or vessels towed, but not by steam; but this right is by no meaus to interfere with the paramount right in Nicaragua or her grantors to appropriate the waters of said rivers and lake for a ship-canal from ocean to ocean, or from the Caribbean Sea to said lake.

It is also understood that the said company entitled "The American Atlantic and Pacific Ship-Canal Company" shall have the privilege of locating on the south bank of the St. John River four of the eight stations or sections of land referred to in the XXVIIth article of the amended charter of said company, as ratified by the Government of Nicaragua on the 11th of April, 1850. If, however, the said company

should desire to locate more than the said four sections on the south side of the San Juan, the Governments of Nicaragua and Costa Rica will amicably agree in regard to the terms of such location.

IV.

Neither the Government of Nicaragua nor the Government of Costa Rica should be at liberty to erect, or suffer to be erected, any wharf, wall, embankment, or other structure, or to do, or suffer to be done, any thing or act whatever, in the harbor of Greytown, in any part of the Colorado or San Juan Rivers, or on the shore of Lake Nicaragua, which shall obstruct the free operations of the ship-canal or transit company, or hinder the passage of their boats in, along, and through the said harbor of Greytown and rivers Colorado or San Juan. And if, after the proper survey of a route for a ship-canal between the two oceans, it shall be found that it would be preferable for that canal to pass in part along the southern bank of the river San Juan or the Colorado River, the Government of Costa Rica engages to grant any lands and to afford any facilities which may be necessary for the construction of the said canal.

V.

Whereas it is stipulated by Article II, of the convention between Great Britain and the United States of America, concluded at Washington on the 19th day of April, 1850, that vessels of the United States or Great Britain traversing the said canal shall, in case of war between the contracting parties, be exempt from blockade, detention, or capture by either of the belligerents, and that that provision should extend to such a distance from the two ends of the said canal as might thereafter be found expedient to establish; now, for the purpose of establishing such distance within which the vessels of either of said nations shall be exempt from blockade, detention, or capture by either of the belligerents, it is hereby declared that it shall extend to all waters within the distance of twenty-five nautical miles from the termination of said canal on the Pacific and on the Atlantic coasts.

VI.

Whereas by Article VII of the said convention it was among other things stipulated that if any persons or company had already made with any state through which the ship-canal might pass, a contract for the construction of such a canal as that specified in said convention, to the stipulations of which neither of the contracting parties in that convention had any just cause to object; and the said persons or company had moreover made preparations and expended time, money, and trouble on the faith of such contract, it was thereby agreed that such persons or company should have a priority of claim over every other person or persons, or company, to the protection of the Governments of the United States and Great Britain, and should be allowed a year from the date of the exchange of ratifications of that convention for concluding their arrangements, and presenting evidence of sufficient capital subscribed to accomplish the contemplated undertaking; it being understood that if at the expiration of the aforesaid period, such persons or company should not be able to commence and carry out the proposed enterprise, then the Governments of the United States and Great Britain should be free to afford their protection to any other persons or

company that should be prepared to commence and proceed with the construction of the canal in question. And whereas at the time of the signature of the said convention, a company styled the American Atlantic and Pacific Ship-Canal Company had with the Government of the Republic of Nicaragua a contract for constructing a ship-canal between the said oceans, but, for reasons deemed sufficient by the Governments of Great Britain and the United States, have not hitherto been able to comply with the stipulation which gave them a claim to the protection of the said governments; and whereas no other company has claimed such protection on the same conditions, it is therefore agreed that the further time of one year from the exchange of the ratifications of this convention shall be allowed to the said company to comply with the stipulation aforesaid.

VII.

And whereas by another charter (of April 11, 1850) to the American Atlantic and Pacific Ship-Canal Company, the State of Nicaragua, with a view to facilitate the construction of the canal, has authorized the said company to separate from their said contract of September 22, 1849, the part relating to the navigation of the waters of Nicaragua by steam, under the title of the Accessory Transit Company; and whereas the said Accessory Transit Company has been for some time past in full and successful operation, the Governments of Great Britain and the United States hereby engage to extend their protection to the said Accessory Transit Company in the same manner and to the same extent as by the aforesaid convention of April 19, 1850, and by this convention the said protection is extended to the Atlantic and Pacific Ship-Canal Company; but as the main object of the said convention between Great Britain and the United States of America was to provide for an interoceanic ship-canal between the Atlantic and Pacific, and as that object is still deemed paramount to every other mode of transit, the protection hereby extended to the Accessory Transit Company shall not be construed to interfere with the right to construct said canal by the company which has undertaken to construct the same, or, in case of their failure, by any other persons or company which may be authorized to construct the same; and every grant and privilege conferred upon said Accessory Transit Company shall be subject to the paramount right and privilege of any other persons or company to construct, maintain, and use such canal.

Finally, these propositions, so far as they respect the Governments of Nicaragua and Costa Rica, are advisory and recommendatory; and the immediate consideration of those governments to their consideration is earnestly invoked.

To insure a prompt decision, Mr. Wyke, consul-general of Her Britannic Majesty, clothed with full powers for that purpose, Mr. Kerr, chargé d'affaires of the United States to Nicaragua, and Mr. Walsh, appointed special agent of the United States to the Government of Costa Rica, are authorized to communicate the arrangement proposed to those governments respectively; and, unless the aforesaid Governments of Nicaragua and Costa Rica shall promptly, and without loss of time, concur in the general basis of this arrangement, and adopt proper measures for carrying it into effect, then the Governments of Great Britain and the United States will immediately, as between themselves, jointly adopt such measures as they shall deem advisable to carry into full execution the convention between those governments of April 19, 1850; and to ac

complish the design therein contemplated, of an interoceanic communication by canal from the Atlantic to the Pacific Ocean by the way of the river San Juan and the Lake Nicaragua.

JOHN F. CRAMPTON.
DANL. WEBSTER.

32.-Mr. Webster to Mr. Lawrence.

[Extract.]

No. 77.]

DEPARTMENT OF STATE,
Washington, May 14, 1852.

SIR: Your dispatches, to No. 176, inclusive, have been received. On the 30th ultimo, as you may have been informed through another channel, Mr. Crampton and myself agreed upon and signed a proposition to Costa Rica and Nicaragua for the adjustment of their disputes upon the subject of boundary, and also for the adjustment of the controversy between Great Britain and Nicaragua in regard to the territory claimed by the Mosquito Indians. If this proposition should be accepted by those republics, a quadripartite treaty will probably be entered into by them, Great Britain, and the United States. A principal impediment to the commencement or successful progress of the shipcanal through Nicaragua will then have been romoved.

Considering that the United States and Great Britain have jointly agreed to protect such a canal, and in consequence of their possessions on the coast of the Pacific, and other obvious causes, have a similar interest in its success, it seems desirable that the capital required for its construction should be advanced by the citizens and subjects of both countries. If, however, English capitalists should not be disposed to invest their funds in the enterprise, the means for its construction can easily be obtained in this country whenever our citizens shall be satisfied of its practicability, and that it would yield a regular and fair profit. Convinced of the great importance of the work, the Government of the United States would always be disposed to aid in the prosecution thereof to the full extent of its constitutional power. It is not likely, however, that the canal company will need any such assistance from this government.

The practicability of the canal may now be considered as certain. The survey under Colonel Childs, whose high professional and personal character are probably known to you, was some time since completed. He recently visited this city, bringing with him maps, plans, and estimates for the work. By direction of the President these were laid before Colonels Abert and Turnbull, of the United States Topographical Engineers, for examination and report. The report of these officers has confirmed the accuracy of the estimates of Colonel Childs. No doubt is entertained that they will receive a similar confirmation from any military or civil engineers in England to whom they may be submitted.

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I am, &c.,

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DAN'L WEBSTER.