extract from the Department's instructions to Mr. Borland, under date of the 17th of June last:

"Admitting these Indians to be what the United States and Nicaragua regard them-a savage tribe, having only possessory rights to the country they occupy, and not the sovereignty of it-they cannot fairly be required to yield up their actual possessions without some compensation. Might not this most troublesome element in this Central American question be removed by Nicaragua, in a way just in itself, and entirely compatible with her national honor? Let her arrange this matter as we arrange those of the same character with the Indian tribes inhabiting portions of our own territory. I think it would be proper for you to urge upon Nicaragua this view of the subject. An inconsiderable annuity secured to the Mosquitos for their right of occupancy to the country in their possession given up to Nicaragua, would, I believe, cause the British government to abandon their protectorate over them; assurance of this is given to the United States. Such a course would not, in my opinion, be an acknowledgment directly or by implication of the rightful interference by the government of Great Britain in the Mosquito question."

The sequel of the agreement between Messrs. Webster and Crampton, about which inquiry is made by you, was an instruction to Mr. Kerr, the chargé d'affaires of the United States to Nicaragua, directing him to present the agreement to the Nicaraguan government for its assent thereto. He complied with the instruction, but the application was rejected. Mr. Walsh was also sent to the republic of Costa Rica, as a special agent of this government, with instructions to present the agreement to the consideration of the government of that republic. This he did, and it was accepted by the Costa Rican govern

ment.

The Department has no spare copy of the document containing the letter of Lord Palmerston to Mr. Castellon, asked for by you; but if you will turn to the tenth volume of Executive Documents, 1st session 31st Congress, page 304, the letter referred to may there be found.

As it regards your inquiry about the number of the Mosquito Indians, I am unable to ascertain, with any degree of certainty, what that number is.

I am, sir, respectfully, your obedient servant,

JAMES BUCHANAN, Esq., &c., &c., &c.

W. L. MARCY.

[No. 19.]

Mr. Buchanan to Mr. Marcy.

[Extracts.]

LEGATION OF THE UNITED STATES,

London, January 5, 1854.

SIR: I have the honor to acknowledge the receipt of your despatches Nos. 20, 21, 22, and 23, of 19th November, and 1st, 3d, and 16th December, respectively.

*

*

I have not deemed it advisable to press the Central American negotiation since my last interview with Lord Clarendon in November. The causes for this delay have been the unsettled condition of the British cabinet in consequence of the resignation of Lord Palmerston, and his subsequent withdrawal of that resignation, the state of the RussoTurkish question, to which the ministry have been devoting themselves fruitlessly, as it is now believed, to the task of preventing a war between Great Britain and Russia, and the desire which I felt to receive your instructions in regard to the suggestion which I had made to Lord Clarendon, that the Mosquito Indians might be placed in the same relation to Nicaragua that our own Indians sustain to the United States. Your satisfactory despatch (No. 21) has removed all doubts on this latter subject.

I have reason to believe that my omission to press the Central American questions at the present most important crisis between Great Britain and Russia has been properly appreciated by Lord Clarendon. On Monday last, however, I addressed his lordship a note, requesting an interview, to which I have received his answer, appointing tomorrow (Friday,) at half-past three o'clock, for our meeting-too late for the next steamer. Indeed, I had reason to expect that ere this he would himself have taken the initiative, and have invited me to an interview.

*

*

*

I am, sir, &c.,

*

*

*

*

JAMES BUCHANAN.

Hon. W. L. MARCY, &c., &c., &c., Washington.

[No. 20.]

Mr. Buchanan to Mr. Marcy.

[Extracts.]

LEGATION OF THE UNITED STATES,
London, January 10, 1854.

SIR: I had a long interview on Friday last with Lord Clarendon at the Foreign Office. We had much desultory and pleasant conversation on various topics; but in my report I shall confine myself to the substance of what passed between us in relation to the pending questions between the two governments.

*

*

*

*

*

After our conversation had ended on the fishery and reciprocity questions, he informed me that he had presented my suggestion to the cabinet, that Nicaragua should treat the Mosquitos within her limits as Great Britain and the United States treated their own Indians, under similar circumstances; and they thought, as he had done, that it was highly reasonable. I told him I was glad to learn this, and was happy to inform him I could now state, from advices received by the last steamer, that you were of the same opinion.

He then asked, in what manner shall we carry this into effect? and intimated that the appointment of commissioners by the two govern

ments for this purpose might be the best mode of proceeding. I told him I was not then prepared to express an opinion on the subject, but would take it into consideration. The proportion of territory to be occupied by the Mosquitos until their title was extinguished by Nicaragua, ought to depend very much upon their number. Lord John Russell had stated this to be thirty or forty thousand, whilst from my information, which was, however, vague, it did not exceed as many hundreds. He replied, that Mr. Green, the British consul and agent at Bluefields, was now in London, and had mentioned to him that my estimate of their number was probably correct in regard to the Mosquitos north of the San Juan, though there might be a thousand more; but that the Mosquitos south of the San Juan were so numerous as to render Lord John's estimate of the whole not excessive. I told him I had never heard that any portion of this tribe resided in Costa Rica, and I thought there must be some mistake in the statement of Mr. Green. He then asked what we should do with the grants of land which had been made to individuals by the king of the Mosquitos; and I answered that under the law of all European nations since the discovery of America, as well as by the uniform practice both of Great Britain and the United States, such grants made by Indians were absolutely void. I also stated to him, somewhat in detail, the decision on this point made by the Supreme Court of the United States in the case of Johnson vs. McIntosh, (8 Wheaton, 543,) to which he appeared

to listen with marked attention.

After this we had a discursive and rambling conversation, embracing the Ruatan and Belize questions, the Clayton and Bulwer treaty, and several other matters which I do not propose to detail. In the course of it he stated distinctly that this treaty was, in their opinion, entirely prospective in its operation, and did not require them to abandon any of their possessions in Central America. At this I expressed my astonishment, and we discussed the point in an earnest but goodnatured manner.

In regard to Ruatan, he said he had the papers in a box before him to prove their title to that island; but it would consume too much time to read them, and therefore he had thought of submitting his views to me respecting it in writing. This suggestion pleased me much, as I desired to present to his lordship a memorandum which I had prepared, embracing our whole case in Central America. I told him, therefore, I should be much gratified to receive his views in writing; and at the same time informed him, that without changing our mode of personal conference, I desired also to deliver him a writ'ten memorandum to which he might at all times refer, containing a statement of the case on the part of my government. With this he expressed himself to be much pleased. I am sorry that I shall not be able to furnish you a copy of this memorandum by the present steamer. One incident may be worth particular mention. În the course of the conversation, he said the Bay Islands were but of little value; but if British honor required their retention they could never be surrendered. I made some playful remark in reference to the idea of British honor being involved in so small an affair. He then became quite earnest on the point of honor, which might, he observed, be as much

involved in subjects of little as of great value. To this I assented, but said, that when the construction of a treaty was really doubtful, which I did not admit upon the present occasion, and when the friendly relations between two great countries were at stake, there could in such a case be no point of honor involved in the one yielding to the other what was admitted to be of but little value. He replied that in this view of the case I might be correct.

In regard to Belize, there was not the least appearance of yielding on the part of his lordship. He repudiated the idea with some warmth that any person should suppose they had surrendered this settlement under the Clayton and Bulwer treaty.

The time has therefore arrived when it becomes indispensable that I should receive the President's instructions on this point. In forming his opinion, it may be worthy of consideration, that the British. have been in the actual possession of Belize, under treaty, for more than seventy years; that no period was fixed when they should withdraw from this possession; that Spain declared war against Great Britain on the 11th October, 1796; that an attack was made from Yucatan on Belize in 1798, which was repelled by the British settlers; and that for nearly a quarter of a century it has been under a regular colonial government, without attracting the notice of the United States.

In any event, I shall do my whole duty in first urging their withdrawal from the whole colony; and if that should not prove successful, then from the portion of it south of the Sibun. But what am I to do in case I shall be unsuccessful in both or either of these particulars? I shall await your answer with considerable anxiety.

When I pointed out to Lord Clarendon on Bailey's map, which lay before him, the extent of the encroachments which British settlers had made beyond the treaty limits, his only answer was, in a tone of pleasantry, that we ought not to complain of encroachments, and instanced our acquisition of Texas. I then took occasion to give him information on this subject, for which he thanked me, and said that he had never understood it before.

Returning again to the Mosquitos, am I to consent that they shall continue in the occupation of the territory assigned to them by the agreement between Messrs. Webster and Crampton, of April 30, 1852, until their title shall be extinguished by Nicaragua? Whether this assignment be unreasonable or not would depend much upon their number. You can doubtless ascertain at Washington whether any considerable number of the tribe inhabit the country south of the San Juan, as stated by Mr. Green.

In regard to the Mosquitos, the question of the greatest difficulty would seem to be, in what manner can Great Britain and the United States interfere, as suggested by Lord Clarendon, to prevent Nicaragua from depriving these Indians of their right of occupancy without a fair equivalent. It would seem that this could be best accomplished by a treaty with Nicaragua. The whole detail presents embarrassments

which will be annoying without the consent of Nicaragua, and yet I am persuaded the British government care little or nothing for this consent. They have evidently formed a very unfavorable opinion of that State, and greatly prefer Costa Rica. It would appear, from what his lordship informed me, Mr. Marcoleta had told Mr. Crampton that Costa Rica is jealous of the influence of Nicaragua with the United States.

You would naturally desire to know something of his majesty the present king of the Mosquitos. I had, on a former occasion, stated to Lord Clarendon that he was drunken and worthless. At this interview his lordship informed me I was mistaken; that the present king was a decent and well-behaved youth of between twenty-two and twenty-three, who resided in Mr. Green's family, though he believed his late majesty, to whom I had doubtless referred, was a bad fellow. Yours, very respectfully,

Hon. Wм. L. MARCY,

Secretary of State.

JAMES BUCHANAN.

Statement for the Earl of Clarendon.

When the negotiations commenced, which resulted in the conclusion of the Clayton and Bulwer convention of April 19, 1850, the British government were in possession of the whole extensive coast of Central America, sweeping round from the Rio Hondo to the port and harbor of San Juan de Nicaragua, except that portion [of] it between the Sarstoon and Cape Honduras, together with the adjacent Honduras island of Ruatan.

The government of the United States seriously contested the claim of Great Britain to any of these possessions, with the single exception of that part of the Belize settlement lying between the Rio Hondo and the Sebun, the usufruct of which, for a special purpose, and with a careful reservation of his sovereign rights over it, had been granted by the king of Spain to the British under the convention of 1786.

The progress of events had rendered Central America an object of special interest to all the commercial nations of the world, on account of the railroads and canals then proposed to be constructed through the isthmus, for the purpose of uniting the Atlantic and Pacific

oceans.

Great Britain and the United States, both having large and valuable possessions on the shores of the Pacific and an extensive trade with the countries beyond, it was natural that the one should desire to prevent the other from being placed in a position to exercise exclusive control, in peace or in war, over any of the grand thoroughfares between the two oceans. This was a main feature of a policy which dictated the Clayton and Bulwer convention. To place the two nations on an exact equality, and thus to remove all causes of mutual jealousy, each of them agreed by this convention never to occupy, fortify, or exercise dominion over any portion of Central America.