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[Inclosure.-Translation.]

Declaration of Don Ramon Mayorga Rivas.

In the city of Granada, at 3.30 p. m., on the 26th September, 1894, Don Ramon Mayorga Rivas, being present in my office, stated that his name is as above written; that he is of age, a resident of Granada, and a planter. I swore him in due form, notifying him of the penalties for perjury in criminal matters, and asked him if it was true that, at the time when preparations were being made for the last expedition to Bluefields, the witness said to the American minister, Mr. Lewis Baker, or to any other person, in his official capacity as under secretary of the ministry of foreign relations, or in private as an individual, that the Government of this Republic intended to send a thousand troops and four guns to Mosquitia, and to kill all the Americans in that territory, if it was necessary in order to establish and maintain the supremacy of Nicaragua there; to all which he replied:

That it was not true that, either in his official or private capacity, he had said anything whatever to Minister Baker with regard to the expedition to Bluefields, and that he appealed to the testimony of Mr. Baker himself, with whom the witness has never discussed the subject of the last events at Bluefields, which compelled the Government to send the expedition, because at that time the witness was not in charge of the portfolio of foreign relations, but Dr. Madriz.

That the only person with whom he conversed about the expedition was Mr. Chamberlain, and that only when the expedition was a matter of public notoriety, the proclamation of General President Zelaya having been promulgated. The witness told Mr. Chamberlain, in his private capacity-for he had no occasion to talk to him on the subject in any other that the Government intended to punish the rebels and their instigators. These views were the same as those of the said proclamation and of the official journal.

Furthermore, the witness declares that he has not replied to a note addressed to him by the secretariat of foreign relations on this subject, because he is awaiting a reply to a letter which he had addressed to Mr. Baker, asking him for a categoric answer which would bring out the truth, to wit, that the witness has never, either in his official character, nor as a private individual, said the least thing to Mr. Baker having reference to the Bluefields expedition. It was read to him; he affirms and signs with me and the secretary, who attests: "Juan J. Bodan. R. Mayorga Rivas. Before me, José Ma. Bodan, secretary." [L. S.]

A true copy. Managua, September 27, 1894.

Mr. Gresham to Mr. Baker.

F. BACA.

DEPARTMENT OF STATE,
Washington, October 30, 1894.

SIR: I have received your No. 383, of the 3d ultimo, inclosing a copy of the reply made by the Nicaraguan Government to your protest against the expulsion of Messrs. Lampton and Wiltbank without trial, in which that Government asserts that, as it exercises under the laws recently enacted the right to expel its own citizens without trial, American citizens residing in the Republic can not claim more favorable treatment under the treaty of 1867.

If Messrs. Lampton and Wiltbank accepted office after the overthrow of Nicaraguan authority at Bluefields on July 5, without having taken part in the insurrection which led to that result, and if their acceptance of office was merely to contribute to the protection of the community under the de facto government, the Department considers that their expulsion was unjustifiable.

I have, therefore, to instruct you that the two gentlemen near Ausburn (whose case has been brought to the attention of the Department by the commanding officer of the U. S. S. Marblehead), Md., other Americans are entitled under the treaty of 1867 to reside and do business in Nicaragua; that they can not be deprived of that right unless it has been forfeited, and that they are entitled to know the grounds of forfeiture.

If forfeiture is claimed for causes other than political, they are entitled to an open and fair trial. If for alleged participation in an insurrectionary movement against Nicaragua, they should be informed of the charge against them and the evidence in support of it.

This position will be maintained by the United States hereafter in all cases. I am, etc.,

W. Q. GRESHAM.

Mr. Guzman to Mr. Gresham.

[Translation.]

LEGATION OF NICARAGUA,
Washington, November 2, 1894.

SIR: Under date of the 13th ultimo the minister of foreign relations of Nicaragua tells me the following:

In conformity with the promises made to your excellency, as soon as the Government received the petition of Messrs. Lampton and Wiltbank, asking that they might be permitted to return to the country for the time required for the settlement of their business, it was granted. The courtesy of my Government has gone still further; it ordered the superior authorities of Bluefields to revoke absolutely the banishment of those gentlemen if their conduct during the term granted them was peaceable and entirely submissive to the laws of Nicaragua.

It gives me the greatest pleasure to communicate this statement to your excellency, as it proves clearly that the Nicaraguan Government is always animated by the most friendly feelings toward the Government and people of the United States.

I beg your excellency to have the goodness to communicate the foregoing resolution of my Government to His Excellency the President, and to accept, etc.,

H. GUZMAN.

Mr. De Soto to Mr. Uhl.

CONSULATE OF THE UNITED STATES,

San Juan del Norte, November 9, 1894. (Received December 1.) SIR: I have the honor to report, according to letter received from Mr. B. B. Seat, United States consular agent at Bluefields, Nicaragua, and from Capt. C. O'Neil, commander of the U. S. S. Marblehead, that, in accordance with permission solicited and received from the Nicaraguan Government, the United States citizens Messrs. Lampton and Wiltbank were landed in Bluefields on the 26th of October last,

Matters in Bluefields are reported very quiet and orderly, and no further troubles are anticipated. The U. S. S. Marblehead was to have left Bluefields for Cartagena on the 5th instant.

The municipal government was to be inaugurated at Bluefields on the 29th of October last. As soon as necessary information has been received I will write to the Department.

I understand that the Nicaraguan officials at Bluefields have adopted a conciliatory and friendly policy toward Americans and all other foreigners there.

I have had no communication from Minister L. Baker since the departure of Consul S. C. Braida.

I am informed that all is quiet and orderly in the interior also.

I have, etc.,

HENRY DE SOTO, United States Vice-Consul.

Mr. Gresham to Mr. Baker.

DEPARTMENT OF STATE,

Washington, November 15, 1894.

SIR: The Department has received yours of October 26 last, with inclosures, relating to the Nicaraguan Government's forcible seizure and occupation of the valuable property near Bluefields, known as the "bluffs," owned in part by United States citizens. In reply to the American owners' protest against this action, which you submitted to that Government, the minister of foreign affairs has written you that under the constitution of Nicaragua and international law, "no foreigner can solicit the intervention of his Government in defense of his rights or pretensions until after he has exhausted all remedies which the laws of the country in which he lives allow him, and his complaints have been disregarded with notorious injustice."

What remedies the laws of the country give for such cases are not stated. You appear to think that the courts of Nicaragua should be appealed to for redress before this Government can interfere diplomatically. The note from Mr. Matus to you seems to intimate that the injured parties are required to apply directly to the Nicaraguan Government for relief, which, if granted, will be of grace rather than of right.

In reply to Mr. Matus's suggestion that the parties should seek relief by direct appeal to his Government, it may be remarked that international law requires complaints on behalf of foreigners to come through their own Government.' Unless it assumes the responsibility of presenting them, they need not be considered.

Your suggestion that recourse to the courts should be exhausted before diplomatic intervention is resorted to is, as a general proposition, sound, assuming of course that the courts have jurisdiction. But the treaty between the two countries entitles American citizens whose property has been taken by Nicaragua for public purposes, without full and just compensation paid in advance, to invoke in the first instance the diplomatic intervention of the United States in their behalf.

The very act of the Government of Nicaragua in taking the property without full and just compensation paid in advance was a violation of the treaty (sec. 3, Art. IX, treaty of 1867). No action of its courts (assuming them to have jurisdiction of such suits) can change the AP FR 94-23

character of the act, or make it any the less a plain violation of the treaty.

Should the courts decide in favor of the aggrieved parties and award them compensation, and that compensation be actually paid, the treaty would still remain violated, because the compensation was not paid in advance of the taking of the property. To claim that redress must be sought through the courts is to claim that payment of compensation may be postponed till the property has actually been taken, in face of the treaty which says that payment must be made in advance. One party to a treaty can not thus practically change its terms and evade its requirements.

The American citizens suffering by this arbitrary appropriation of their property are entitled to the aid of their Government in securing from Nicaragua adequate indemnity for any losses they may have sustained.

I am, etc.,

Mr. Guzman to Mr. Gresham.

W. Q. GRESHAM.

LEGATION OF THE REPUBLIC OF NICARAGUA,

Washington, November 22, 1894. (Received November 23.) SIR: I have the honor to inclose the English translation of a cable message I received last evening from the Government of Nicaragua. Accept, etc.,

H. GUZMAN.

[Inclosure.-Cablegram.-Translation.]

Mr. Madriz to Mr. Guzman.

MANAGUA, November 21, 1894.

SIR: British Minister Gosling declares that England does not accept Nicaraguan rule in Mosquito.

Mr. Guzman to Mr. Gresham.

MADRIZ.

[Cablegram.-Translation.-Handed to Mr. Gresham by Mr. Guzman November 24.]

MANAGUA, November 23, 1894.

British Minister Gosling has telegraphed to Limon orders for an English man-of-war to go to Bluefields. Request American Government to send also a cruiser to that port. Very urgent.

ВАСА.

Mr. Bayard to Mr. Gresham.

EMBASSY OF THE UNITED STATES,

London, November 24, 1894. (Received December 3.)

SIR: I have the honor to state that yesterday, by appointment, I called on Lord Kimberley at the foreign office, and the subject of the interview was the present condition of affairs between Great Britain

and Nicaragua, arising out of the rough treatment of Mr. Hatch, a representative of the former Government at Bluefields, at the hands of Nicaraguan authorities.

His lordship stated the occurrences complained of dated some three months ago, and, although explanation had at once been demanded, no response was made until two days ago, when a very voluminous reply in Spanish (necessitating translation) had been sent in, but which he had not yet had time to consider.

For the purpose of sending this dispatch by the mail to-day, it is enough to say that his lordship desires explicitly to have it understood that any action in the way of obtaining redress from Nicaragua which Her Majesty's Government may hereafter decide is necessary in the premises is wholly unconnected with any political or conventional question touching the Mosquito Reservation, but is simply a proceeding, on the grounds of international law, to obtain satisfaction for an affront. His lordship repeated to me, with much emphasis, his desire that this should be understood, and that he had no other wish than to act in accord and with the approval of the United States in matters concerning political control in Central America.

I reminded his lordship of the very imperfect civilization of the region where these difficulties had arisen, and of the incidental departures from the regulated proprieties of official life and legal methods which were naturally to be looked for in that quarter.

I told him in general substance the views I had expressed to Señor Barrios here in October last, and lately in Washington to Señor Guzman, in relation to the entire facility and finality with which the Government of Nicaragua could pacify the entire region and absorb the small remnant of Indian self-government in Mosquito by simply dealing with generosity and gentle pressure with the leading Indians, and procure that "formal incorporation" of the territory of the Mosquito Reservation and the rest of Nicaragua provided for in the treaty of Managua, and thus the entire question of jurisdiction and of British or other interference could be ended.

Lord Kimberley warmly seconded this view, and expressed a desire it should be carried out.

Thus it will be perceived that Nicaragua has the matter in her own hands, and, by the exercise of common intelligence and discretion, can relieve herself from all possible complications growing out of past treaties, and her ill-advised submission to Austrian arbitration.

Mr. Barrios, who called here yesterday, produced a telegram in Spanish, unsigned, but from his Government, stating that Mr. Gosling, the British minister, declined to accept decrees of the Nicaraguan commissioner in Mosquito.

This I assume to mean that until Nicaragua has given the explanation demanded by the British Government, as to the forcible arrest and deportation of their agent, they will suspend relations with them.

If Nicaragua has (as is quite probable) exceeded the bounds of international amity and courtesy, she can not too soon place herself right by promptly making just amends. I am satisfied Great Britain has no insidious or unstated purposes or designs in relation to Central America; and, together with the United States, is best served by a condition of absolute peace and order in that region, uninterfered with ab exteriori,

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