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but it has also to observe that the treaty of 1786 was put an end to by a subsequent state of war between Great Britain and Spain; that during that war the boundaries of the British settlement in question were enlarged; and that when peace was re-established between Great Britain and Spain no treaty of a political nature, or relating to territorial limits, revived those treaties between Great Britain and Spain which had previously existed.

Her Majesty's Government, in stating this fact, declares distinctly, at the same time, that it has no projects of political ambition or aggrandizement with respect to the settlement referred to; and that it will be its object to come to some prompt, fair, and amicable arrangement with the states in the vicinity of British Honduras for regulating the limits which should be given to it, and which shall not henceforth be extended beyond the boundaries now assigned to them.

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40.-Remarks by Mr. Buchanan in reply to Lord Clarendon's statement of

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In regard to Belize proper, confined within its legitimate boundaries, under the treaties of 1783 and 1786, and limited to the usufruct specified in these treaties, it is necessary to say but a few words. The Government of the United States will not, for the present, insist upon the withdrawal of Great Britain from this settlement, provided all the other questions between the two governments concerning Central America can be amicably adjusted. It has been influenced to pursue this course partly by the declaration of Mr. Clayton, of the 4th of July, 1850, but mainly in consequence of the extension of the license granted by Mexico to Great Britain under the treaty of 1826, which that republic has yet taken no steps to terminate.

It is, however, distinctly to be understood that the Government of the United States acknowledge no claim of Great Britain within Belize except the temporary "liberty of making use of the wood of the different kinds, the fruits, and other produce in their natural state," fully recognizing that the former "Spanish sovereignty over the country' belongs either to Guatemala or to Mexico.

In conclusion, the Government of the United States most cordially and earnestly unites in the desire expressed by "Her Majesty's Government, not only to maintain the convention of 1850 intact, but to consolidate and strengthen it by strengthening and consolidating the friendly relations which it was calculated to cement and perpetuate." Under these mutual feelings it is deeply to be regretted that the two governments entertain opinions so widely different in regard to its true effect and meaning.

JAMES BUCHANAN.

41.-Decree of the President of Nicaragua annulling the grant to the American Atlantic and Pacific Ship-Canal Company.

Whereas the Republic of Nicaragua, on the 22d day of September, 1849 (one thousand eight hundred and forty-nine), granted to the American Atlantic and Pacific Canal Company certain rights and privileges, were subsequently modified by decree of the 11 day of April, 1850 (one thousand eight hundred and fifty), and whereas, in consideration of said rights and privileges, said company agreed to construct a ship-canal across the territory of said republic from the port of San Juan de Nicaragua to the port of Realejo, Gulf of Fonseca, Tamarinda, San Juan del Sud, or any of the points on the Pacific Ocean which the engineers of the company might decide upon, or in case that the construction and completion of said canal or any point of it should become impossible, by any unforeseen event or insurmountable obstacle of nature, to construct a railroad or rail & carriage road and water communication between the two oceans; and

Whereas the said American Atlantic and Pacific Ship-Canal Company have not constructed the said canal or commenced the same, but, on the contrary, has abandoned the undertaking and declared it impracticable, and have also failed to construct a railroad or rail and carriage road, as they agreed to do; and

Whereas the said American Atlantic and Pacific Ship-Canal Company was bound by the terms of said charter to pay the Republic of Nicaragua ten thousand dollars annually, and ten per cent. on the net profits of any route the company might establish between the two oceans during the time allotted for the completion of the canal and in furtherance thereof; and

Whereas the said American Atlantic and Pacific Canal Company have failed to pay annually said ten thousand dollars, together with the said ten per cent. net profits, falsely and fraudulently alleging that no profits were made and commission due; and

Whereas, by the said charter, it was stipulated that, for the purpose of settling all matters in dispute between the state and the company, commissioners should be appointed by the state on the one part and the company on the other; and

Whereas, on the 12th day of September, 1855 (one thousand eight hundred and fifty-five), the Republic of Nicaragua notified the said company to appoint commissioners under the charter, and the said company expressly refused the same; and

Whereas, by decree of the 9th day of March, 1850 (one thousand eight hundred and fifty), the said company was made a body politic and corporate, with perpetual succession, by the name and description of "The American Atlantic and Pacific Ship Canal Company”; and

Whereas, on the 14th day of August, 1851 (one thousand eight hundred and fifty-one), the Republic of Nicaragua, with the sole object of facilitating the maritime canal, and in accordance with the desires expressed by the company of said canal to divide and separate from the contract of 22d September, 1849 (one thousand eight hundred and fortynine), the part therein relating to the navigation by steam of the waters of Nicaragua, did constitute a new company, designated by the name of "Accessory Transit Company," and consisting of the same persons comprising the American Atlantic and Pacific Ship-Canal Company, and subject to the same obligations: Now, therefore,

The supreme provisional Government of Nicaragua, in virtue of the faculties,

DECREES:

1. The grant to the American Atlantic and Pacific Canal Company, of date 22d September, 1849 (one thousand eight hundred and fortynine), and the modifications thereof, made 11th day of April, 1850 (one thousand eight hundred and fifty), and all the privileges therein contained, are revoked and annulled; the acts of incorporation of said company, of date 9th day of March, 1850 (one thousand eight hundred and fifty), and of the "Accessory Transit Company," of date 14 day of August, 1851 (one thousand eight hundred and fifty-one), are annulled, and the said American Atlantic and Pacific Ship-Canal Company and Accessory Transit Company are dissolved and abolished, except for the purposes hereinafter mentioned.

2. Señor Don Cleto Mayorga, Señor Don Eduardo I. C. Kewen, and Señor Don George F. Alden (any two of whom may act) are hereby appointed a board of commissioners, with full powers to examine, liqui date, and ascertain the amount due by the said American Atlantic and Pacific Canal Company and, Accessory Transit Company to the state, with full powers to send for persons and papers, and to enforce respect and obedience to all their orders and decrees.

3. The said board shall proceed at once to discharge these duties, and for this purpose shall notify the agent of the companies residing in Nicaragua to appear before them forthwith, to give all evidence that may be required of them, and with the privilege to defend the interest of their principals.

4. The said companies shall be considered still in existence for the purpose of conducting this examination, and for the purpose of being held collectively responsible for such sum as may be ascertained to be due to the state, but for no other.

5. For the purpose of securing the payment of such amount the said board find due, they are hereby.commanded to cause all the property of said companies to be seized forthwith and held by responsible persons, subject to the order of said board.

6. That the transit of passengers across this isthmus may suffer no interruption the board are authorized to deliver to such responsible persons as may make application all the said property so seized upon their executing a bond in a sum one-fourth greater than its appraised value, and with the conditions that the same shall be forthcoming when called for by the said board, and that the undertakers in the bond shall continue to transport the passengers who may arrive on the side of the Atlantic & Pacific Oceans, and the expenses of transporting said passengers shall be charged against the said companies.

7. Before allowing the said property to be bonded the board shall cause the same to be fairly approved by three competent persons appointed for the purpose.

8. The board shall proceed summarily and with dispatch, and on determining the amount due from the companies to the state shall report their proceedings immediately to the government.

9. The compensation of the board of commissioners, as well as of the board of appraisers, by them appointed, will be hereafter determined. 10. Let this be communicated to the proper authorities.

Given at Granada the 18th day of February, 1856.

PATRICIO RIVAS.

42.-Additional article to the treaty of friendship, commerce, and navigation between Great Britain and Honduras, signed at London, August 27,

1856.

Inasmuch as a contract was entered into by the Government of Honduras, and a company entitled "The Honduras Interoceanic Railway Company," for the construction of a railway from the Atlantic to the Pacific Oceans through the territories of Honduras, which contract was ratified by the constitutional powers of the state, and proclaimed as a law on the 28th day of April, 1854; and inasmuch as by the terms of Article V, section 6, of the said contract, "the Government of Honduras, with a view to secure the route herein contemplated from all interruption and disturbance, from any cause or under any circumstances, engages to open negotiations with the various governments with which it may have relations, for their separate recognition of the perpetual neutrality, and for the protection of the aforesaid route:" Therefore, in order to carry out the obligation thus incurred,

1. The Government of Honduras agrees that the right of way or transit over such route or road, or any other that may be constructed through its territories, from sea to sea, shall be at all times open and free to the Government and subjects of Great Britain, for all lawful purposes whatever. No tolls, duties, or charges of any kind shall be imposed by the Government of Honduras on the transit of property belonging to the Government of Great Britain, or on the public mails sent under the authority of the same, nor on the subjects of the British Crown. All lawful produce, manufuctures, merchandise, or other property belonging to subjects of Great Britain, passing from one ocean to the other, in either direction, shall be subject to no import or export duties whatever, nor to any discriminating tolls or charges for conveyance or transit on any such route or road as aforesaid, and shall be secure and protected from all interruption and detention on the part of the

state.

The Republic of Honduras further agrees that any other privilege or advantage, commercial or other, which is or may be granted to the subjects or citizens of any other country in regard to any such route or road as aforesaid, shall be also and at the same time extended to British subjects; and, finally, as an evidence of its disposition to accord to the travel and commerce of the world all the advantages resulting from its position in regard to the two great oceans, the Republic of Honduras, of her own good will, engages to establish the ports at the extremities of the contemplated road as free ports for all the purposes of commerce and trade.

2. In consideration of these concessions, and in order to secure the construction and permanence of the route or road herein contemplated, and also to secure for the benefit of mankind the uninterrupted advantages of such communication from sea to sea, Her Britannic Majesty recognizes the rights of sovereignty and property of Honduras in and over the line of the said road, and for the same reason guarantees, positively and efficaciously, the entire neutrality of the same so long as Great Britain shall enjoy the privileges conceded to it in the preceding section of this article. And when the proposed road shall have been completed Her Britannic Majesty equally engages, in conjunction with the Republic of Honduras, to protect the same from interruption, seizure, or unjust confiscation from whatsoever quarter the attempt may proceed. Nevertheless, Her Britannic Majesty, in according her protection to the said route or road, and guaranteeing its neutrality and security

when completed, always understands that this protection and guarantee are granted conditionally, and may be withdrawn by her if she should deem that the persons or company undertaking or managing the same adopt or establish such regulations concerning the traffic thereupon as are contrary to the spirit and intention of this article, either by making unfair discriminations in favor of the commerce of any nation or nations over the commerce of any other nation or nations, or by imposing oppressive exactions or unreasonable tolls upon passengers, vessels, goods, wares, merchandize, or other articles.

The aforesaid protection and guarantee shall not, however, be withdrawn by Her Britannic Majesty without first giving six months' notice to the Republic of Honduras.

The present additional article shall have the same force and validity as if it were inserted word for word in the treaty of friendship, commerce, and navigation signed this day. It shall be ratified, and the ratifications shall be exchanged at the same time; and its stipulations shall, subject to the same condition of notice on the part of Her Britannic Majesty, provided for, in the preceding paragraph of this article, be permanent between the contracting parties.

In witness whereof the respective plenipotentiaries have signed the same and have affixed thereto their respective seals.

Done at London the 27th day of August, in the year of our Lord 1856. [L. S.

[L. S.]

CLARENDON.
VR. HERRAN.

No. 5.]

43.-Lord Napier to Lord Clarendon.

WASHINGTON, March 12, 1857. (Received March 29.) MY LORD: I had this afternoon an interview with General Cass, when I requested that he would communicate to me the views taken in the Senate with reference to the Central American treaty, as far as was consistent with the secrecy of the pending deliberation.

The Secretary of State replied that the subject was at that very hour under discussion, and that opinions were divided in the following manner: Some held that the treaty should be sanctioned in its original form, others that it should be accepted with certain modifications, while a third party advocated its rejection, but proposed to temper this course by the adoption of certain resolutions embodying sentiments of a friendly disposition towards Great Britain, and approving a settlement of the Central American question in conformity with the spirit of the treaty agreed to by your lordship and Mr. Dallas. General Cass appeared to anticipate that the last alternative would prevail.

I remarked that I was not surprised by the result which he predicted, for impressions of a similar character had been imparted to me at New York; but I added that Her Majesty's Government would certainly learn with concern that all the efforts of Mr. Dallas, aided by your lordship's generous co-operation, had not succeeded in framing an arrangement acceptable to the Senate; such an issue had not been anticipated by the United States minister, and your lordship's expectations of the success of the treaty had been confirmed by the intelligence derived from Mr. Dallas that he (General Cass) had given the measure his support in the first instance.

The Secretary of State explained that at an early period a general outline of the projected arrangement had reached him, and had certainly

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