Doc. No. 75. 



185 



tice, which you yourself admit would entitle her Majesty's government 

 to exercise an authoritative interference in the dissensions between the 

 British bondholders and the Nicaraguan government. In saying this, 

 however, 1 beg not to be misunderstood as admitting that such an 

 authoritative interference would be proper and legitimate only in such an 

 extreme case — a case which my respect for the Nicaraguan government 

 forbids me from considering to be possible, as between the British bond- 

 holders and that government. But as in a matter of this kind it is desira- 

 ble that no mistake should be allowed to exist, I beg to say that it is 

 quite certain and indispensable that, according to international law, the 

 government of every country is at full liberty to take up, according to its 

 own discretion, in such manner and at such time as it may think fit, any 

 just claim which any of its subjects may have against the government of 

 any other country. 



I have the honor to be, (fcc, 



PALMERSTON. 



C. 



[Extract] 



There is still another route to which public attention has never been 

 generally directed, but which, if feasible, offers greater advantages than 

 either of the others just named, viz: from the northern point of Lake 

 Managua, via the Estero Real, to the Gulf of Fonseca, or Conchagua. 

 The upper part of the lake of Managua is divided into two large bays by 

 a vast promontory or peninsula, at the extreme point of which rises the 

 giant volcano of Momotombo. Between this volcano and that of the 

 Viego, a little to the northeast of Realejo, running nearly east and west, 

 is an uninterrupted volcanic chain, presenting in a short distance a greater 

 number of extinct craters, and more evidences of volcanic action, than 

 any other equal extent of the continent. This chain is isolated, and at 

 right-angles to the general course of the great mountain range. Upon 

 the south is the magnificent plain of Leon, bounded only by the sea; and 

 upon the north is also another but narrower plain , bounded by the aurif- 

 erous hills of Segovia. This plain extends from the north bay of Lake 

 Managua to the Gulf of Conchagua. This gulf, or bay, is equalled only 

 by that of San Francisco, and may be described as a grand harbor, in 

 which all the vessels of the world might ride in entire security. It much 

 resembles that of San Francisco in position and in form; the entrance from 

 the sea is, however, broader; its entire length within the land is not far from 

 one hundred miles, and its breadth sixty or eighty. The three States of 

 San Salvador, Honduras, and x^[icaragua have ports upon it. The princi- 

 pal port is that of La Union, in San Salvador. All the adjacent coasts 

 are of unbounded fertility, and possess an unlimited supply of timber. 

 The sides of the mountains, particularly of the volcano of San Miguel, 

 are covered with white oak and pine suitable for building or re pa nng 

 ships. Coal, it is said, occurs in abundance twenty- five or thirty miles 

 from the port of La Union, the roads to the beds leading through a level 

 country. The bay embraces several islands of considerable size and 



