Doc. No. 75. 285 



the organization of a general government for the maintenance of the 

 foreign relations, conferring upon it the faculty of Hquidating the foreign 

 debt and making arrangements for its payment. Guatemala did not adhere 

 to this treaty, but offered, however, to maintain good intelligence with the 

 confederation; and Costa Rica, which continued separate, arranged the 

 payment of its part in the general debt with the consul Chatfield, who 

 still insisted on the claim, and profited by the confusion to lay down the 

 law to the States. Before proceeding any further, I must relate some in- 

 cidents that occurred about that time. The State of Nicaragua, wishing 

 to give a proof of its 103ml ty and good faith with respect to the foreign 

 debt, published a declaration on the 30th of April, 1838, recognising the 

 part allotted to it, of the obligations and compromises of the government 

 of the republic, and to inspire the creditors with more confidence, not 

 only acknowledged by a decree of the 17th of September, 1839, six for- 

 tieths of the debt, taking as a basis the representation it had held ni the 

 federal Congress, but also destined for their payment the tobacco duty, 

 and the income arising from the sale of lands and woods. This decree 

 was sent to the consul in answer to one of his communications in which 

 he demanded an arrangement, but it was not enough to satisfy him; and 

 carrying his pretentions further, he apportioned to every State the part it 

 had to pay individually. To Nicaragua one-sixth part was assigned in- 

 stead of six fortiethsj^which had been acknowledged; for that reason it has 

 refused to pay the part assigned by the said consul, protesting against an 

 act attempting against the independence and sovereignty of the State, which 

 alone possessed the right to arrange this aftair either by itself or with 

 reference to the others of the extinguished confederation. 



The treaty of 1842 could not be put in force until 1844, on accouit 

 of some difterences existing between Honduras and San Salvador, respect- 

 ing the reception this latter State had given to the partisans of Morazan 

 after the revolution of Costa Rica, where he perished ; this served the 

 consul, Chatfield; as a pretext to give to his demands a character of jus- 

 tice. Costa Rica had already arranged, as I said belbrt^, the part assigned 

 to her, without objecting to the distribution ; and the others^ considering 

 themselves weak, showed themselves willing to make an arrangement. 

 Nicaragua alone, guided by a sentiment of honor and dignity, has openly 

 sustained the question, answering the consul in language full of modera- 

 tion and respect, that this affair was not comprised in the functions of a 

 consul, as they are laid down in the laws of nations ; that Nicaragua 

 wished to make the arrangement with an agent of the creditors, duly au- 

 thorized for this purpose ; that if he micrited the confidence of the credit- 

 ors, he would show his powers, as is requisite in such cases ; th?,t Nica- 

 ragua would not refuse to pay the ^%ths she has acknowledged, because 

 she believes herself not bound to pay any more, and that to ascertain 

 the amount of the -^^ihs it was necessary to make a liquidation of the 

 debt, becaupe, according to the account kept in the ministry of finance, 

 the States of Central America were not responsible for the whole sum de- 

 manded, which was never received in the treasury of the confederation, 

 as was proved to Mr. Bailey, agent for the house of Barclay, against vv^hich 

 the republic had the claim for the prejudice and damage suffered for the 

 non fulfilment of the original contract. The consul has answered that 

 he holds the powers from the bondholders; but, setting aside the rest, he 

 has carried his demands to the degree of threatening Nicaragua with force 



