162 AMERICAN DIPLOMATIC QUESTIONS 



of Nicaragua. By the terms of this instrument, Nicaragua 

 had guaranteed to pay a certain indemnity to the Mosquito 

 Indians. Probably inspired by the hope that the United 

 States would support her against any British quarrel she 

 might stumble into, Nicaragua persistently refused to pay 

 the promised yearly stipend to the Indians ; the latter 

 clamored for their pay, and called upon Great Britain to 

 enforce her treaty rights. Accordingly, in 1880, a demand 

 to this end was made upon Nicaragua; but in consequence 

 of the latter's continued refusal to abide by the terms of her 

 contract, the matter in dispute between the two nations was 

 submitted to the Emperor of Austria for arbitration. At 

 first the administration felt that the United States had been 

 slighted, and that the Monroe Doctrine had been violated as 

 well. It appeared to be a clear case of "foreign interference" 

 on the Western continent; but for several reasons the Presi- 

 dent believed an American protest would be ill advised. 

 Great Britain was clearly acting within her own rights as a 

 party to a treaty, and the United States had fully approved 

 of the convention when first concluded (Buchanan Message, 

 1860). Although a foreign tribunal of arbitration threatened 

 the renewal of British claims in Mosquitia, there was simply 

 no help for it, except in the use of force. As apprehended, 

 the arbitration proceedings (July, 1881) resulted in the rees- 

 tablishment of the English protectorate over the Mosquito 

 reservation ; but consolation was sought by the Senate in 

 reaffirming the principles of the Monroe Doctrine. The 

 episode called forth no direct protest from either Mr. Blaine 

 or Mr. Frelinghuysen. 



/ The commercial and^nral pffpH^^Jj^_^ g fnr Q finn O f 

 1 /(British influence carrying enlightened Anglo-Saxon rule along 

 ||the Mosquito shore, was almost magical. Immigration set in, 

 ('business revived, and the dilapidated village of Bluefields 

 ' became a commercial centre where British and American 

 capital sought investment. A large fruit trade was opened 

 with New Orleans, and American capital began the exploita- 

 tion of Mosquito resources upon a comparatively large scale. 

 This rapid development of Mosquitia operated adversely to 



