consequently never were a government de facto or de jure. The recognition of that tribe as a government in terms, by the United States, would be incompatible with our fixed policy in respect to this particular case, as well as that of the Indians generally of America. You will perceive that the phraseology suggested is that employed in the projet of treaty, signed in 1852, by Mr. Crampton and Mr. Webster. It is presumed that the British government will not object now, any more than then to employing in this connexion a word of neutral meaning, in the place of one objectionable to the United States.

The United States are only concerned indirectly in this and the other questions involved, which chiefly regard the States which constituted the republic of Central America.

In this relation, the proposed treaty is to be tendered by the present contracting parties to the republics of Costa Rica and Nicaragua as being what these republics ought to adopt, and is to be urged upon them for acceptance by the parties. It must, of course, contain no conditions which the President cannot cordially recommend to each of those republics. In other words, the stipulations must be such, in the President's view of them, as would be just and fair towards those republics. Their interest is quite as much to be respected as those of Great Britain or of the United States. He cannot, as a friend, request or advise them to do anything which he would not himself do in their place.

Regarding the subject from this point of view, the President asks your attention to the limits of the country set apart for the Mosquitos. On a rough calculation, the reservation proposed is found to consist of about fourteen thousand square miles, or more than five and a half millions of acres; which seems to the President much more than is requisite for two, or at most three thousand Indians, whose numbers have been for years constantly decreasing.

No objection is made to the western line; but the extension north is deemed very exceptionable, and may seriously embarrass the acceptance of the arrangement by Nicaragua. It carries the Mosquito reservation up to the south bank of the large river Segovia, and to the line of Honduras. No sufficient reason exists for according so extensive a territory to this handful of Indians. But the more serious objection is, that Nicaragua would be thus deprived of the safe use of the largest river of the republic, and of the control of her frontier on the side of Honduras.

It is proposed to substitute either the line of the Brakma, or that of the Priuzapulca as the northern boundary, instead of the Waux or Segovia. The Mosquitos will then have possession of a country enormous relatively to their numbers, actual or possible.

The introductory substance of art. IV seems objectionable in form, if not in effect.

It requires an examination of the map to understand the true relation of the expressions "south of the river Waux or Segovia,” and "south of the said parallel and of the river Rama." It would be more clear and definite to say: "All the territory, &c., not included within the limits of the reservation set apart for the Mosquito Indians, as described in article II, shall be recognized and declared to be within the limits and sovereignty of the republic of Nicaragua," &c.

In the items of this article are several things which the President desires to have modified.

He observes that the proposed treaty does not contain any definition of the limits of San Juan de Nicaragua or Greytown. Considering

the nature of the provisions in favor of that port, he deems it indispensable to supply this omission.

It can be done by amending No. 2 of this article, so that it shall read thus:

"2. The republics of Nicaragua and Costa Rica shall allow the territorial disputes between them, and the limits or extension to be given to the town of San Juan de Nicaragua, (if the same cannot be amicably adjusted between Nicaragua and that town,) to be settled," &c.

The commerce of Costa Rica, it would seem, should be free at the port of San Juan as well as on the river. To secure this object, subjoin at the close of No. 2 the following: "And without being subject to any duties of import or export, tonnage duty or other tax, or public charge whatever, except for light-money and other necessary port charges."

The President has much doubt in regard to No. 3 of article IV, confirming grants made by the so-called "government of Mosquitia."

The corresponding article of the projet of 1852 subjected the confirmation of these grants to many qualifications, the most important of which the President wishes to have inserted in the present treaty.

To these it is not apprehended that the British government can have any objection. The need of them at this time is not less cogent than it was then.

You are instructed, therefore, to propose to the British government, in place of art. 4, No. 3, either of the following alternatives, viz:

(A.) Omit No. 3 entirely, leaving the whole question to the republic of Nicaragua.

(B.) Or insert, instead of it, this: "3. All bona fide grants for due consideration, which may have been made in the name and by the authority of the Mosquito Indians, and lying within the limits of SanJuan de Nicaragua, or Greytown, as they may be established, shall be confirmed: Provided, That no grant shall be allowed to an extent exceeding one hundred yards square: And also provided, That the same shall not interfere with other legal grants made previously by Spain, by the republic of Centro America, or either of the present States of Central America: And provided further, That no such grant shall include land required for forts, arsenals, or other public buildings"

(C.) Or insert instead of it this:

3. All bona fide grants of land, for due consideration, made in the name and by the authority of the Mosquito Indian, since the 1st of January, 1848, and lying beyond the limits of the territory reserved for said Indians, shall be confirmed, provided the same shall not exceed, in any case, the extent of one hundred yards square, if within the limits of Greytown or San Juan de Nicaragua, or one league square, if without the same; and provided, that such grant shall not interfere with other legal grants made previously to that date by Spain, the republic of Central America, or either of the present States of Central America; and provided further, that no such grant within either of said States shall include territory desired by its government for forts, arsenals, or other pubic buildings."

The president considers the contents of letter (D) No. 3, art. IV, objectionable, or at least, defective, in this, that while it enables, it does not restrict, the municipality of Greytown. In the articles of 1852, that point is carefully guarded, and he prefers to substitute, in

substance, and with some slight changes in the same sense, the draught of that projet.

In the place of letter (D) of your projet, the following is proposed: "D. The municipal government shall lay no duties on goods exported, nor any duties on goods imported, intended for transit across the Isthmus, or for consumption without the city; nor any duties of tonnage on vessels, except such as may be necessary for the police of the port, and the maintenance of the necessary light-houses and beacons: provided, that the present condition shall not interfere with or prevent the levy of a temporary duty on imports for the purpose of the payment to the Mosquito Indians, as stipulated in art. V.”

These restrictions are called for by the interests of Nicaragua and of Costa Rica; but not less by those of the United States and of Great Britain.

These governments cannot suffer their transit trade to be subject to the discretion of the inhabitants of Greytown. The controversy in which the United States are engaged with the republic of New Granada, concerning the transit trade of the isthmus of Panama and tonnage duties in the ports of the isthmus, furnishes topics of admonition in this respect.

The President is of opinion that the inhabitants of Greytown ought not to be wholly relieved of the burden of the common defence of the country.

In the place of letter (E) of your draught, the following is proposed: "E. Exemption from military service, except for the defence of the city within the same, or for the common defence of the country in case of invasion."

The President observes that, as permitted by your instructions, you have, in the "separate articles," proposes to sanction, so far as the United States are concerned, the present limits, and, impliedly, the new organization of the British settlement of the Balize. Of course he does not disapprove of this, but he thinks it should serve to satisfy Great Britain of the amicable purposes of this government. He therefore does not permit himself to doubt your ability to persuade her Britannic Majesty's government of the propriety of the proposed modifications of your draught; and he confidently anticipates that the treaty thus modified will be speedily completed by you, and transmitted here in season to be laid before the Senate at the opening of the next session of Congress.

I am, sir, your obedient servant,

GEORGE M. DALLAS, Esq., &c., &c.

W. L. MARCY.

Mr. Marcy to Mr. Dallas.

[Confidential.]

DEPARTMENT OF STATE, Washington, September 26, 1856. SIR: With this will be sent to you a despatch suggesting modifica tions in the projet of the treaty which accompanied your despatch of the 29th ultimo, and a power to you to conclude the treaty.

Most of the modifications are of an unimportant character, though it is fit they should be made. Two of them are of a different character. One of these proposes to contract the reservation for the Mosquitos.

The tribe is not a large one, and is constantly becoming less. The district of country indicated in the amendment seems to be abundantly sufficient for them. If there were any hope to be indulged of their ever assuming the phase of civilized life, the objection to the extent of the reservation would have less force, but considering their character and habits, that proposed is probably as good for them as a much larger region. With the restricted quantity of land, they will have less temptation to keep up their roving habits, and be more likely to have permanent homes and cultivate their lands.

The less their reservation, the larger will probably be the annuity provided for them. If left to their own choice, they would probably prefer a large annuity with less land to a large reservation with a small annuity. Besides, Nicaragua might be extremely reluctant to acquiesce in so large a reservation as that proposed in the projet.

But the modifications and addition relative to San Juan de Nicaragua, or Greytown, are far more desirable than the proposed restriction of the reservation. Unless the suggested changes in that respect can be made, or others equivalent to them, the President would not have you agree to the treaty. The dwellers at that place have heretofore claimed a vast extent of country around the port, much more than Nicaragua ought to yield up, or could yield up, without seriously dismembering the State. Restricting that town to the narrowest limits, it is asking a good deal of Nicaragua to give up almost entirely, as it is proposed to do by the amendments, her only port on the Atlantic, and by far the most important one in the State. The President could not, in conscience, ask her to surrender so much as would be claimed under the stipulations of the projet.

I cannot think Great Britain will be unyielding on this point, or will hesitate to accept the modifications proposed in the accompanying despatch. The adoption of them will not, as the President conceives, interfere in any respect with the objects of making San Juan a free port. Should there be difficulty on this point, you will communicate with your government in relation to it before concluding the negotiation.

In the despatch herewith sent to you, frequent reference is made to the arrangement of the 30th April, 1852, proposed by Mr. Webster, Secretary of State of the United States, and Mr. Crampton, her Britannic Majesty's minister to this government. Though that document is undoubtedly on the files of the legation at London, yet I enclose a spare copy of it with this communication.

Yours, truly,

A large printed folio copy of "the correspondence with the United States respecting Central America, presented to both houses of parliament by command of her Majesty," has been furnished to me by, I

presume, the direction of Lord Clarendon. I propose carefully to examine it hereafter, but at present have only to remark that it appears to embrace all that has heretofore been made public by you, and a little more. That little more consists of one letter addressed by Lord Clarendon, under date of 26th March, 1856, to Mr. Crampton, consoling him somewhat for having omitted so long to acquaint you with his lordship's despatch of 10th November; and also of an extract of a letter from Mr. Crampton to the Earl of Clarendon dated 31st March, 1856, and received the 12th of April. I beg leave respectfully to claim your particular attention to this brief extract with which the folio closes; it is in these few words: "It will be within your lordship's recollection that Mr. Clayton was informed by Sir Henry Bulwer, before the treaty of 1850 was signed, that Ruatan was de jure and de facto a British possession; and Mr. Clayton has on various occasions since, in conversations with me, stated that he considered Ruatan as much a British possession as Jamaica, or any other British West Indian island."

There must be some great mistake here; and I would suggest the urgent expediency of communicating to Mr. Clayton this statement of Mr. Crampton, so that he may, to the extent of its inaccuracy, correct it at the earliest day, in the most public manner.

It may be important that I should be in possession of the exact truth in regard to it without the least delay.

Mr. Dallas to Mr. Marcy.

[Extract.]

[No. 9.]

LEGATION OF THE UNITED STATES,

London, May 9, 1856.

You will have observed from the newspapers, that Sir Edward Bulwer Lytton, in the House of Commons, two days ago, assented to the request of Lord Palmerston, and postponed his motion on the subject of Central America until after the holidays, which commence tonight, and will last in effect to Monday, the 19th instant. The remark of the premier was, that the government of the United States had received the formal offer of arbitration, but had not yet replied to that offer, and it was expected that an answer might arrive, and so the negotiation be closed before the expiration of the suggested delay.

[No. 10.]

Mr. Dallas to Mr. Marcy.

[Extract.]

LEGATION OF THE UNITED STATES,
London, May 23, 1856.

SIR: The condition of things in Central America attracts great attention. The prospects of General Walker in Nicaragua are, rather hastily, pronounced desperate. The intercepted letters, showing the "com. plicity" of the British government in the war waged by Costa Rica