Doc. No. 75. 



119 



liavB Tecommended the Mosquito government to confine its claim in a 

 southerly direction to the southern branch of the river St. John; and one 

 main reason with her Majesty's government for giving that recommenda- 

 tion was, that thereby all dispute between Mosquito and New Grenada 

 would, as they trusted^ be avoided." 



It has been represented to this department that certain citizens of the 

 United States are desirous of entering into a contract with the government 

 of Nicaragua, for the purpose of constructing a canal between the Atlantic 

 and Pacific by the way of the river San Juan and lake Nicaragua, ter- 

 minating at Realejo, on the Pacific. They think that their object would 

 be forwarded and facilitated if it were in some way to be countenanced 

 by this government. There is a strong disposition to bestow this coun- 

 tenance to any extent which may be compatible with prudence. Pro- 

 ceedings, both of the Executive and of Congress, for many years anterior 

 to the present, have evinced the interest with which this government has 

 regarded the possibility of shortening the transit by sea between our ter- 

 ritories on the Adantic and those on the Pacific. For obvious reasons 

 this interest has of late been materially increased; for a passage across the 

 isthmus may be indispensable to maintain the relations between the Uni- 

 ted States and their new territories on the Pacific; and a canal from ocean 

 to ocean might, and probably would, empty much of the treasures of the 

 Pacific into the lap of this country. If, therefore, by your personal good 

 offices with the government of Nicaragua, you can aid in securing for the 

 persons above referred to the contract for the construction of a canal, you 

 are at liberty to take that course. A letter introducing you to the Minis- 

 ter for Foreign Affairs of that State is accordingly herewith delivered to 

 you. It is to be distinctly understood, however, that this government is 

 not in any way to be made a party to the transaction, except in conform- 

 ity to the instructions hereinafter given; and as it would not be expedient 

 even to lend its countenance to an assignable contract, you wiU take care 

 that no clause providing for an assignment is admitted into that which 

 may be concluded with the government of Nicaragua. It is most desira- 

 ble that the parties to the contract shall be deprived of the opportunity of 

 making it a mere subject of speculation, and thus retarding or preventing 

 the completion of the canal. Accordingly, as soon after your reception 

 by the government of Guatemala as, in your judgment, your absence from 

 that city will permit, without interfering with the other duties of your 

 mission, or even before your reception, if the state of aflfairs at Guatemala 

 should warrant it, you may visit Leon for the object above referred to. 

 You will also bear with you a letter from this department to the Minister 

 for Foreign AtFairs of Nicaragua, acknowledging the receipt of two com- 

 munications from him to this department upon the subject of the British 

 encroachments on the Mosquito coast. You may assure him that we en- 

 tertain the liveliest sympathy for his government, and will employ in its 

 behalf any moral means in our power. # # # # 



By the enclosed extract from a despatch of my predecessor to Mr. Ban- 

 croft, our minister to England, under date the 25th October last, it ap- 

 pears that he was informed by Mr. Osma, the minister plenipotentiary of 

 Peru to Great Britain, that Senor Castro, the governor of Costa Rica, had 

 oftered to place that State under British protection. Mr. Bancroft has 

 recently informed the department, that the minister from Costa Rica in 

 London had assured him it was not his intention to place Costa Rica 



