314 



Doc. No. 75. 



and 8, dated October 25th and November 2d, from which you will see 

 the extent of Mr. Chatfield's operations. I^ord Palmerston's declaration 

 in his note to you of the 13th ultimo, disavowing any intention to colo- 

 nize, settle, or fortify any portion of Central America, is utterly incon- 

 sistent with Mr. Chatfield's official acts and declarations; and I assume 

 it, until otherwise informed, that Mr. Chatfield has acted without instruc- 

 tions from his own government, and that his proceedings will be promptly 

 disavowed. I shall not distrust the honor of the British government on 

 account of the conduct of an inferior functionary, which merits, and 

 ought to receive, the condemnation of his own government; but I must 

 say that it is now due, not only to the cause of justice but to the honor of 

 the American government, that immediate explanations should be required 

 by you of the British governmetjt in regard to the late proceedings of Mr. 

 Chatfield. It appears that the pretext he has employed for extending the 

 British jurisdiction over a part of Honduras is the indebtedness of that 

 State to British subjects. We are very much surprised at this, especially 

 as the claims referred to are based, not upon torts, but upon contracts 

 between British subjects and the late government of Central America. 



Under date the 8th of June last Mr. Crampton, her Britannic Majesty's 

 charge d'aff'aires residing here, addressed a note to the department, 

 stating that he had been informed by Mr. Chatfield, her Majesty's 

 charge d'affaires at Guatemala, that the revenues of Nicaragua, especially 

 that arising from custom house duties, had been mortgaged for the pay- 

 ment of the foreign debt of that State; that a company of citizens of the 

 United States had entered into a contract with the government of Nicara- 

 gua for the navigation of the river San Juan, and for making a road 

 across the isthmus, from lake Nicaragua to Realejo, with the privilege of 

 maintaining four custom-houses; and suggesting that the company should 

 pay off the bond-holders' claims, the principal of which was o^27,2l6 135. 

 id. , with arrears of interest thereon at six per cent, from the 1st of February, 

 1828, and a sum amounting to about S5,000, due to the house of Reid, 

 Irving, and company, of London, for the payment of dividends upon the 

 debt in 1826 and 1827. 



In a note to Mr. Crampton, under date the 12th of June, the department 

 stated that it was not aware of the existence of the contract between citi- 

 zens of the United States and the Nicaraguan government referred to by 

 him; that it could not be expected that such a contract would supersede 

 or impair any vested rights of British subjects; and that Mr. Squier would 

 be instructed to recommend, to any of our citizens who might be a party 

 to it, the extinction of the claims of those subjects in the manner sug- 

 gested. In a despatch to Mr. Squier, under date the 19th June, he was 

 instructed accordingly. 



Mr. Squier acknowledged the receipt of this instruction in a despatch 

 under date the 8th of November last, and stated that as the contract re- 

 ferred to in Mr. Crampton's note was never perfected, Mr. Chatfield's 

 complaints fall to the ground. The ratified contract with the ^^American 

 Atlantic and Pacific Canal Company " is free from all objections of this 

 kind. 



The share of Nicaragua or Honduras of any debt due from the late 

 government of Central America to the subjects of Great Britain was, at 

 the period of the correspondence adverted to between the department and 

 Mr. Crampton, evidently considered to be a small matter; and other cir- 



