Mr. Merry to Mr. Hay.

No. 248.]

Sir: On arrival at Port Limon yesterday I cabled you as follows: “Entered into an arrangement Mosquito Territory customs duties by payment to British consul, subject to decision of the Government of the United States and the Nicaraguan Government, as to de facto government, of which you will have unquestionable proof. Request leave of absence one month, consul of the United States, San Juan del Norte, to make a report to the Department of State. Reply by telegraph to San José. Mosquito Territory quiet at present. British war ship probably remain until ours has returned.” To which, twenty-four hours subsequently, I received the following answer: “Mosquito Territory arrangement approved, subject to determination of law and equity. Leave of absence granted.” The last sentence I have cabled Commander Dayton, at Colon, to avoid the necessity for his calling at Limon en route northward, as I am anxious to have him relieve the Proserpine at Bluefields, soon as possible. I had said to Mr. Sanson that while Colonel Torres remains the port will have the protection of a war ship. He then assured me that Torres will leave for Managua on 14th, as his “court-martial” has nearly concluded its “evidence.”

I beg to inclose herewith (inclosures Nos. 1 and 2) copies of my letter requesting the British consul, Mr. Bingham, to accept the trust, and his acceptance thereof. The clause No. 5 relating to request that the matter be settled within four months’ time was put in the agreement at the request of the merchants, although I was not favorable thereto. I inclose herewith copy of letter (inclosure No. 3) handed me by the merchants of Bluefields, just prior to my departure. Before leaving a number of affidavits had been prepared, proving the de facto Government of Reyes between February 3 and 25. I urged them to carefully prepare these affidavits, to go forward by United States Consul Sorsby direct, or through this legation. Although insistent upon aggressive military action upon my arrival, they were apparently satisfied when I left, but, whether satisfied or not, I did not go to Bluefields to increase the friction or to settle the interminable Mosquito question with military power, although if American interests are to be regarded worthy of support, I respectfully suggest that it should be finally disposed of.

With assurances, etc.,

William Lawrence Merry,
United States Minister.
[Page 581]
[Inclosure 1.]

Mr. Merry to Mr. Bingham, Her Britannic Majesty’s consul at Bluefields.

Sir: Permit me, on behalf of the United States Government, to request you to receive in trust the amount of $19,673.33, Nicaraguan currency, claimed from five American establishments here due to the customs authorities of Bluefields. The inclosed copy of agreement made between Hon. Joaquin Sanson and myself is selfexplanatory. If we shall be able to prove, as I have no doubt we can, that the government of General Reyes, between the 3d and 25th of February, 1899, was the only effective and thede facto government in Bluefields, the amount will be, under this agreement, repaid to the merchants, who have already paid these duties once. We hold that to have refused payment to Reyes’s government would have resulted in the seizure of their goods, with material injury to their business. That was sufficient duress then, as it is now, to force payment of duties. But it is not my province at this time to argue the case. I make this request on behalf of my Government and our citizens, that it may go on record as one more proof of the mutual good will now happily existing between our respective Governments, and with entire confidence in your acceptance.

With assurances, etc.,

William Lawrence Merry,
United States Minister.
[Inclosure 2.]

Mr. Bingham to Mr. Merry.

Sir: I have the honor to acknowledge receipt of your communication, dated the 3d instant, in which you request me, on behalf of the United States Government, to receive on trust, in accordance with the terms of an agreement made between yourself and the minister of foreign affairs of Nicaragua, copy of which you inclosed me, the amount of $19,673.33, Nicaraguan currency, claimed from certain American establishments in this city as due to the customs authorities of Bluefields.

I shall have much pleasure in accepting the trust with which you honor me.

I am, etc.,

H. F. Bingham,
Her Britannic Majesty’s Consul.
[Inclosure 3.]

American merchants of Bluefields to Mr. Merry.

Hon. William Lawrence Merry,
United States Minister to Central America.

Sir: Your friends, the American business men of Bluefields, can not permit you to leave this port without an expression of their esteem and regard for the admirable manner and zeal you have shown in withstanding, under very trying circumstances, the tyranny of Nicaraguan officials.

We fully appreciate the situation, and the praiseworthy manner in which you have discharged the onerous and responsible duties appertaining to your position have won from us our full confidence and belief in the integrity of the entire proceedings.

We thank you for all the assistance rendered, and only those concerned can fully appreciate the relief sustained.

With best wishes,

J. W. Petersen.

The New Orleans and Central American Trading Co.,
Per Jos. W. Beer.

Allen & Caldwell.

Samuel Weill.

Sam D. Spellman.