Doe. No. 75. 



171 



the United States; that no duties shall be levied on vessels or merchan- 

 dise passing in transit by such commimications, and that all merchandise 

 introduced for sale or barter, which may within three years be exported^ 

 shall be entitle'! to drawback. These provisions respecting our commerce, 

 etc.; are more favorable to the United States, I believe, than those of any 

 existing treaty. 



The second section extends the protection of the United States over the 

 proposed canal, and recognises the right of sovereignty of the republic of 

 Nicaragua over the line of the same, and guaranties its neutrality so long 

 as it remains under the control of citizens of the United States, and so 

 long as the United States enjoys the privileges conceded to it by the pre- 

 ceding sections. The third section provides for the contingency of the ex- 

 isting company failing in executing its contract, and reserves the power, 

 under certain circumstances, to the President and Secretary of State of the 

 United States, to transfer its privileges to another company if they think 

 proper. And section four provides that none of the privileges conceded 

 to the United States and its citizens shall accrue to any other nation, or its 

 citizens, unless it first enters into the same guarantees. 



It may, perhaps, be objected that the recognition of the sovereignty and 

 property of JNicaragua in and over the line of the proposed canal, and the 

 guarantees of the neutrality of the same, were unnecessary; but these 

 provisions practically amount to nothing more than is contained in the 

 guarantee extended to the canal company; they are in fact involved in 

 them. The government was at first extremely anxious that this guarantee 

 should be extended over the entire territory of the State; but to this I re- 

 plied, that such a step was in contravention of the settled policy of the 

 United States, and unprecedented in the history of her foreign relations; 

 that the guarantee extended to the canal company was a departure from this 

 policy, only warranted by the admitted fact, that without such interven- 

 tion a work of immense importance, not only to our own interests, but to 

 those of the world, could not be constructed; and that, although we 

 sympathized deeply with this republic, and were wiUingto exert ourselves 

 in all proper ways, and exercise our influence to preserve her integrity 

 and promote her interests, yet we could not take a step which, if adopted 

 as a prcedent, would be sure to involve us in inextricable difficulties; 

 that the exclusion of foreign influence from the aflairs of this continent 

 could be better eflected by the promotion of trade and commerce, the cul- 

 tivation of friendly relations, and the growth of confidence between the 

 several nations grouped upon it, than by a resort to the system which 

 had made Europe the theatre of dark intrigues and bloody revolutions. 

 Whether convinced by my arguments, or otherwise, the more discerning 

 among them came early into my views with a good grace, and the terms 

 of the treaty were arranged accordingly. The principal source of embar- 

 rassment was Mr. Hise's ^^special convention," which had raised extrava- 

 gant hopes of a relation between the United States amounting to some- 

 thing closer than exists between the States of our confederacy. However, 

 as matters have been finally arranged, they are ail the better for this repub- 

 lic, and quite as favorable to the United States. 



The publication of the contract and the treaty will, without doubt, 

 cause some commotion among the English officials here, and attract the 

 attention of the home government; but I cannot believe that Britain will 

 insist upon the pretensions of its august ally the ''King of Mosquito," or 



