APPENDIX. 
441 
open a communication between the two lakes, by means of 
a canal at Tipitapa, it is expressly stipulated that the rail¬ 
road, on crossing the same place, shall not be an obstacle 
for the realization of said canal or to its navigation. 
Article YII. During the term of these concessions all 
locomotives, carriages, trains, machinery, and materials of 
any description whatever, destined for the construction and 
use of the railroad and of its accessory works, as also all the 
fuel which may be destined for objects of the enterprise, 
shall be free from any ordinary or extraordinary imposts, 
to which effect the administrator of the port having pre¬ 
viously examined said^ objects, shall issue the corresponding 
attestation of their franchise; also the persons employed 
and engaged in the service of the transit shall equally be 
exempt from any military, civil, and municipal service; but, 
that the Nicaraguans may enjoy these exceptions, it is ne¬ 
cessary they should obtain the acquiescence ( pase) of the 
authorities of the Republic in the way and form which the 
Government shall determine; it being understood that the 
premises and possessions depending upon the transit enter¬ 
prise shall not afford an asylum and protection to criminals, 
respecting whom the action of the authorities shall be 
prompt and speedy; and, moreover, the use of a foreign 
flag shall not be permitted in such establishments, except 
by persons representing foreign governments. 
Article VIII. The persons, goods, and mails in transit 
from ocean to ocean shall be free from any interference and 
impost, also the ships which may arrive at or start from the 
ports of the line shall be free from any anchorage, tonnage, 
or any other dues, and the transit enterprise shall have en¬ 
tire liberty of action to establish the regulations which they 
may deem necessary in their diverse operations, so that they 
in every case shall be responsible for any abuse or damage 
to persons or property. Bub the rights of the Republic are 
reserved to make regulations with regard to persons who 
may come to reside in the country ; to determine what troops 
and munitions of war belonging to nations not authorized 
