Doc. No. '5. 



173 



that the continental relations of Prance would preclude that attention to 

 the subject which its merits demanded, but that it would constantly be kept 

 in mind ; that Prance reposed unbounded confidence in the United 

 States, and would hold herself prepared to second any course of action 

 which she might decide upon; and that the Prench consul-general in 

 Central America would be instructed to that effect. I feel pretty well 

 assured that any action which the Prench consul may be induced to take 

 will be sustained by his superiors, who, it is clear, have not yet decided, 

 nor are likely soon to decide, upon any line of conduct in the matter. 



Mr. Castellon seems to be much dispirited by the result of his mission, 

 and says that an arbitration is hopeless. 



I regret that I have been able to have but one short interview with him, 

 and that it is indispensable that Mr. K. G. White, whom I have made 

 special bearer of despatches, should leave at once, in order to be in time 

 for the steamer at San Juan. I shall take care to acquaint myself with 

 what information he has in his possession. 



I regret also that it is impossible to complete my observations upon the 

 canal route, etc., mentioned in despatch No. 3, in season to go by the 

 bearer of this. Mr. D. L. White, the agent of the canal company, will, 

 however, go to the United States by next steamer, and I will forward it 

 complete by him. I have only time to copy the paragraphs referred to in 

 my despatch, but these cannot be well understood without a map. (See 

 document C.) 



^ W ^ ^ ^ ^ 



Hon. John M. Clayton, 



Secretary of State of the United States. 



A. 



CONTRACT. 



The Supreme Director of the State of Nicaragua and the American 

 Atlantic and Pacific Ship Canal Company," composed of Cornelius Yan- 

 derbilt, Joseph L. White, Nathaniel H. Wolfe, and their associates, being 

 always citizens of the United States, desiring to settle the terms of a con- 

 tract for facilitating the transit across the isthmus of Nicaragua, from the 

 Atlantic to the Pacific oceans, by means of a ship canal or railroad, have 

 appointed as commissioners on the part of the Director of the State of 

 Nicaragua Messrs. Hermenegila Zepida and Gregorio Juares, and on the 

 part of the said company Mr. David L. White, with full powers to ar- 

 range and conclude a contract for the above-named purposes; which 

 commissioners, having exchanged their respective powers, have agreed 

 upon and concluded the following articles: 



Article 1. The State of Nicaragua grants to the said company the 

 exclusive right and privilege of constructing a ship canal across its terri- 

 tory, by a single route and at its own expense, from the port of St. John's 

 of Nicaragua, or any other more feasible point on the Atlantic, to the port 

 of Realejo, Gulf of Amapala, or Ponseca, Tamarinda, St. John's of the 

 South, or any other point on the Pacific ocean that the engineers of the 

 company may decide upon, by means of the St. John's river. Lake 



