cellency, I have the honor to state, on the part of my Government, that,
considering the nature of the objections which the Government of Nica-
ragua has opposed, and its not having complied even with the agree-
ment which it had made to submit the matter to arbitration, the Ame-
rican Government judges the conduct of Nicaragua according to appea-
rances in this matter, that is, as bordering almost upon bad faith.
In view of the character of the negotiations on the part of the Go-
vernment of Nicaragua for submitting to arbitration the Emery claim,
my Government considers that it is perhaps not worth while to continue
negotiations for a General Commercial Treat} 7 , etc., between the United
States and Nicaragua.
I avail myself of this opportunity to renew to Your Excellenc/y the
expression of my high consideration. J. IT. Gregory, Jr. To His Ex-
cellency Federico Sacasa, Minister of Foreign Relations, etc., etc., etc.
National Palace.
Reply.
* Managua, February 6, 1909. Sir: I have the honor to refer to Your
Excellency's communication of the 2nd inst., relative to the matter of
the MM. Emery & C.
Profound amazement has been caused my Government by the terms
in which it has been conceived, they being unmerited in every respect,
and it could suffer nothing less than a painful impression, since they
proceed from a Government for which Nicaragua has always entertai-
ned the most friendly sentiments.
- 130 -
My Government laments that its attitude in discussing te basis of
the protocol, wich has been no other than the very natural one of wis-
hing to exclude the additional extent which it was attempted to give to
its true compromise, is not duly appreciated, and that an unjustifiable
imputation is made against it which tends to depreciate the good faith
with which it acts in all state negotiations.
My Government might be considered with equal right to complain
of delays on the part of Your Excellency, since the allegations, projects
and counterprojects of the protocol have crossed each other here and
there without any point's being made convincing; and, as a criterion
which Your Excellency might judge impartially, my Government could
put forward the fact of having condescended to submit to international
arbitration a question which was already legally resolved in its favor.
If this deference, if having accepted Washington as the place for
the tribunal-, if agreeing that the principal arbiter should know the En-
glish language, without making a point of Spanish; if these and other
circumstances likewise disadvantageous for ourselves constitute a rea-
son for its being judged useless to continue negotiations for a General
Commercial Treaty, etc., my Government deplores it sincerely, and li-
mits itself to calling attention to the fact that the interruption of these
negotiations is due solety to the inexplicable determination of the. Go-
vernment of the United States.
I renew to Your Excellency the expression of my distinguished con-
sideration. Federico Snc,asa. Hon. J. H. Gregory, Jr.. Charge d'Af-
t'aires oF the United States. Present.
Explanation.
Managua, March 17, 1909. Mr. Minister: I have the honor of
acknowledging the receipt of Your Excellen y's courteous communica-
tion of vesterda}- in which Your Excellency informs me that the Charge
d' Affaires of the United States of America in this capital, under date of
the 12th inst., sent to Your Excellency a copy of a note directed by the
Department of State to the Minister of Nicaragua in Washington, on
the 3 1st, of last December, relative to the Emery affair, in which note
reference is made to the note which I myself, in my capacity of minis-
ter, sent on the 7th of the same month to the above department.
In addition, Your Excellency manifests the surprise felt upon re-
- 131 -
ceiving this copy, in view of the affirmation of Minister Espinosa that
the note does not exist in the archives of the Legation, and Your Excel-
lency inquires what information I may possess concerning the matter.
In reply I beg to inform Your Excellency that, upon learning of
the above note, I went to the Department of State and had a conferen-
ce with Secretary Root, who, in accordance with the reasons which I
presented, consented to withdraw it and immediately issued orders to
that effect. The Charge d'Affaires himself confirms this assertion, la-
menting his not having received until late instructions from his Govern-
ment concerning the matter. He assures me to day, at the time of his
departure, that he expressed this regret verbally to Your Excellency,
and ordered Consul Olivares to inform the Nicaraguan Foreign Office
in writing.
It is on this account that the note in reference was not received at
the Legation and does not appear in the archives. This also explains
why I did not report concerning it, and why it should not be considered
as a part of the Emery matter.
I thank your Excellency for the kind words used in referring to the
care and painstaking which I have always tried to exercise in the per-
formance of the duties of my post, and, with repeated protests of my hig-
hest consideration, I am, etc., Luis F. Corea. To His Excellency
Dr. Federico Sacasa, Minister of Foreign Relations. Present.
Correction.
Consular Service of the United States of America. Managua, Nica-
ragua, March 22, 1909. To His Excellency Dr. Federico Sacasa, Mi-
nister of Foreign Relations. Sir: I have the honor to inform Your Ex-
cellency that I have had instructions from Mr. Gregory to say that, ha-
ving formally taken leave of you, he does not consider further corres-
pondence exactly proper, in view of the state of relations between the
two Governments.
He instructed me to acknowledge the receipt of your note of the
12th inst., in which you ask for proof of the charge relative to the vio-
lation of the Legation's correspondence, and to say that in its due time
and place this proof would be presented, should the American Govern-
.ment deem it advisable.
Mr. Gregory also instructed me to inform Your Excellency that the
132
note of December 31st to the Minister of Nicaragua in Washington was
withdrawn.
This will correct what he said in a former communication in refe-
rence to that note.
With the assurance of my consideration, I have the honor to he,
Sir, your obedient servant, Jose de Olivares, American Consul.
Inexplicable language.
American Legation. Managua, Nicaragua, February 20, 1900.
Excellency: I received this morning a communication from the Chief of
the Office of Telegraphs excusing the conduct of an employee respecting
a fine registered against the Legation by the Office for not having regis-
tered there, the absurdity of which is evident. I have the honor to say
that I cannot accept what is said by Mr. Ramirez, and, after what has
passed. I must regard it as a despicable piece of shamelessness, for I had
sent in connection with this incident Mr. Caldera, Viceconsul and clerk
of the Legation, to learn from him what the fine against the Legation sig-
nified. My representative was made to wait a half-hour or more while
Mr. Ramirez discussed various and indifferent matters with a person of
small importance, and when finally he turned to the Viceconsul his man-
ners and words were discourteous. He said to Mr. Caldera that the di-
plomatic representative of the United States in Nicaragua should go to
the Treasury and have his name registered like any other person, just
as was clone in the United States. This insulting conduct on the part
of an employee of the Government I wished to attribute to ignorance and
an unfortunate eiucation; nevertheless, it is a well known fact that no
employee would venture to conduct himself in this manner toward the
American Legation without his behavior's being inspired b}' superior au-
thority. We know that this kind of (-rudeness should be treated, for
obvious considerations, with the magnanimity and tolerance which the
great feel for tha weak and small, and thus has been done with respect
to many irregularities of Nicaraguan employees towards this Legation,
such as the delay and mutilation of telegrams, the violation of the mail
of the Legation, executed in a most brutal manner, lack of response to
courtesies, etc., etc.
It is, indeed, painful to be obliged to address Your Excellency, for
whom I have a sincere regard, in these terms which are very different
133
from the cordial expressions of my first note of some months past. My
immediate predecessor resigned his post rather than see himself obliged
to continue in relations with the Government of Nicaragua, considering
his dignity as a gentleman affected. I sincerely hope that I shall not
see myself driven to a like extreme (1).
I avail myself of this opportunity of renewing to Your Excellency
the assurance of my high esteem. J. //. Gregory, Jr., American Charge
d' Affaires. To His Excellency Federico Sacasa, Minister of Foreign
Relations, etc., etc.*
Reply.
^Managua, February 25, 1909. Sir: I refer to Your Excellency's
communication of the 20th hist., which I received on the 22nd.
First, I must manifest the amazement with which I have seen the
opinions expressed by Your Excellency. These, I consider, could only
have been written in a moment of inexplicable excitement, for their
harshness does not correspond with the restraint and elevation usual in
diplomatic communications of whatever nature.
My amazement has been the greater because of Your Excellency's
having renewed to me, only a few days since, the intention of maintain-
ing most cordial relations in the fulfilment of Your Excellency's mis-
sion, and that, guided by that amicable desire, Your Excellency would
give no importance to the irregularities which were believed to have
been noted, and which now call forth such unusual language. I recall
perfectly Your Excellency's expressions; that the circumstances were
the result of ignorance, and not of ill intentions on the part of the em-
ployees.
At the beginning of the incident of the fine for non-registry of ca-
blegraphic direction Your Excellency did not apply to this Department,
acquainting it with what passed. In Your Excellency's note of the 8th
inst. nothing more was done than to solicit this registry, the matter being
given immediate attention, and, in view of Your Excellency's recent
verbal declarations to which reference has already been made, [ inqui-
red concerning the matter, which, perhaps, occasioned the better of
excuse from the Director General of Telegraphs. This letter, in whate-
(1) As a climax to this scandal, it may .be noted that he who employed such language in diplo-
matic affairs at present holds the chair of International Law in an American University...!!
- 134 -
ver manner it may be regarded, conveys consideration for Your Excel-
lency and a courteous explanation, and in view of this fact Your Excel-
lency's present attitude is surprising, conforming, as it does, in no res-
pect with any past criterion; for it appears to have been varied preci-
sely by what should have brought satisfaction, namely the above apology.
As for the violation of correspondence, I have been awaiting the
proof which Your Excellency offered to send, that I might initiate the
corresponding proceedings. Now that Y r our Excellency repeats in wri-
ting this grave charge, adding those of mutilation and delay of tele-
grams, I have communicated with the Minister of Fomento, acquainting
him with the matter in order that he may have it investigated, and I
hope that Your Excellency will submit the data upon which the affirma-
tion is founded, in order that this may serve as a base for the proceed-
ings.
I put aside as gratuitous the assertion which Your Excellency ma-
kes that it is a well known fact that no employee would venture to
conduct himself in this manner towards the American Legation without
his behavior's being inspired by superior authority . The Legation of
the United States in Nicaragua is treated with the consideration and
respect merited by the repiesentation of a friendly country, in accor-
dance with international practices, and only by fault of mature reflec-
tion could Your Excellency make such a charge against my government.
I note with pain the participation of Viceconsul Caldera in this dis-
agreeable affair, and his efforts to aggravate the feeling of Your Ex-
cellency. Mr. Caldera, who is a Nicaragua!!, obtained his exequatur by
a condescension, which, it seems, has served to make him forget his ol-
der ties and his duties toward his country.
For the rest, it is sufficiently obvious that when Your Excellency
speaks to me of the magnanimity of the 'great for the small it is preci-
sely in such a communication as would perhaps not be directed to a
powerful Government such as that which Your Excellency represents.
This Government deplores the retirement of him who preceded Your
Excellency, Mr. Coolidge, who never in the exercise of his post betra-
yed the least sign of prejudice or any exasperation felt during his inter-
course with my Government, which ever had for him the highest and
most sincere regard. Mr. Coolidge, upon informing this Department in
his note of November 21st that his Government had accepted his resig-
nation from the diplomatic service of the United States, expressed sin-
cere thanks for the constant courtesy with which he was treated from
135
the time of his arrival in this country: I avail myself of this occasion
to offer sincere thanks to Your Excellency, and to Your Excellency's
Government, for the unfailing courtesy with which I have been treated
since my arrival in this country...* This does not coincide with the
affirmation of Your Excellency in that connection.
I conclude by expressing the pain which I feel for having to ad-
dress Your Excellency in the foregoing terms, since I have a sincere
personal regard for Your Excellency, and I renew the assurance of my
distinguished consideration. Federico Sacasa. Hon. J. H. Gregory,
Jr., Charge d'Affaires of the United States. Present.
CONCERNING THE CANAL (1).
Legation of the United States of America. Managua, Decem-
ber 4, 1901. To his Excellency Dr. Fernando Sanchez, Minister of
Foreign Relations. Managua. Sir: I have the honor to inform Your
Excellency that, under date of November 30, I have received cablegra-
phic instructions to make definitely to the Government of Your Excellen-
cy a last and decisive offer of six million dollars (jj 6.000.000) in gold
coin of the United States, as sole indemnification, payable ninety days
after the ratification of the Canal Convention in Washington for the
right of -way for the Nicaragua Canal, three miles on either side depart-
ing from the middle, in accordance with the rulings of the Plan of the
Canal Convention which accompanied the protocol dated Washington,
December 1, 1900, it being especially understood that article 11 of said
protocol, which refers to the annual payment of jj 100.000, annual in-
come,' shall remain for the present annulled and eliminated from said
document upon the payment of six million cash, as offered above, this
amount being partially instead of that, and as sum total of everything as-
ked by the Government of Nicaragua for the right of wa}^ for said Canal.
Since my Government awaits your decision, that the matter may be
submitted shortly to the 57th Congress convened in Washington, I res-
pectfully beg that Your Excellency will favor me with as early a reply
as possible.
With protests of my consideration, I am, etc., William Lawrence
Merry, E. E. and M. P. U. S. A.
(1) This letter is a re-translation, being taken from a Spanish version of the original English-
136 -
Reply.
Managua, December 6, 1901. N. 925. Sir: This Department lias
received Your Excellency's courteous communication of the 4tli inst.
In reply, and according to instructions from the President, I have
the honor to communicate to Your Excellency the acceptance of the of-
fer of six million dollars, American gold, as sole indemnification for the
lease of the Canal Zone across the isthmus of Nicaragua, without this
implying the total acceptance of the bases of the protocol dated Wash-
ington, December 1, 1900.
I am, with all consideration, Your Excellency's obedient servant,
Fernando Sdnchez. To his Excellency William Lawrence Merry, En-
voy Extraordinary and Minister Plenipotentiary of the United States of
America in Nicaragua. Present.
GuOD WILL OF THE GOVERNMENT OF NICARAGUA.
FOR PEACE AND FOR UNION.
Special instructions communicated by the Department of Foreign
Relations to Dr. Rodolfo Espinosa R., Envoy Extraordinary and Minis-
ter Plenipotentiary of Nicaragua near the Government of the United
States of America.
I.
He will try to impress upon the American Government the convic-
tion i hat Central American Union. or the Constitution of the Repu-
blic of Central America, is the best means of bringing about stable peace
in these five countries.
Respecting the person who shall bogin to govern the destinies of the
new State, Minister Espinosa will confirm what has been manifested be-
fore by President Zelaya, and is already known in the Department of
State; namely, that he would resign the power if it should be necessary
for the success of that work of Central American patriotism.
137
II.
In general, and whenever the occasion is presented, Minister Espi-
nosa will make manifest the desire of the Nicaraguan Government to
cultivate the best relations of friendship with the Government of the
United States, and its firm determination that the absolute sovereignty
and positive independence of this Republic shall suffer no deterioration
in consequence of the manifestations which the American Government
has definitely made.
Department of Foreign Relations. Managua, December 3, 1908.
T. Matamoros J. Seen and approved. J. S. Zelaya.
***
Special instructions communicated by the Department of Foreign
Relations to Mr. Isidore Hazera, Envoy Extraordinary and Minister
Plenipotentiary of Nicaragua near the Government of the United States
of America.
First. He will try with all earnestness to convince the American
Government that the present Government of Nicaragua abounds in sin-
cere sentiments of friendship and sympathy for the people and Govern-
ment of the United States. There is no foundation for the self-interes-
ted assertion of the enemies of this Republic that we do not duly appre-
ciate the maintenance of cordial relations with that country. A proof
of this is. the harmonious settlement of the Emery affair, which has just
been concluded, and which demonstrates the solicitude with which the
Government of General Zelaya has exerted itself that the friendly in-
tercourse between both Republics should not in the least be cooled. We
have faithfully abided by the Washington Conventions, perhaps with
greater respect than other Central American States, who do not main-
tain, as Nicaragua does, diplomatic representatives in the capitals of
these countries in order to look to the attainment of a state of true tran-
quility and fraternity between their Governments. In the creation and
maintenance of the Guatemala International Bureau (Oficina Interna-
cional de Guatemala), we have been the most forward, and stood for the
definite union and concord of Central America, Distance, arid the ma-
138
chinations of President Estrada Cabrera, have made it appear in the
United States that Nicaragua, up to a certain point, was jealous of the
good offices of the Government of Washington in respect to Central
American affairs, when really it was only meant to follow a policy of
defence against the trickery of the Governments of Guatemala and Sal-
vador.
Given forth in Managua, October 25, 1909. J. Irias Seen and ap-
proved. J. 8. Zelaya.
Copy of the trial brought against Leonard Groce, Lee
Roy Cannon and Edmund Couture for the crime of re-
bellion.
The undersigned, Minister General for War, certifies that the cause
instructed against Leonard Groce, Lee Roy Cannon and Edmund Cou-
ture for the crime of rebellion before us, is literally as follows:
Rafael Cesar Medina, Brigadier general of the Army of the consti-
tuted Government and second commanding officer of the Rio divison.
Present, the individual Edmund Couture, French subject, aged 48, ba-
chelor and civil engineer stated: that in Prinzapolca Sr. Enrique Espi-
nosa engaged him in the service of the revolution and then he took him
as far as Cabo Gracias a Dios, where he was exclusively occupied in
curing the wounded and that they took him to Bluefields for the same
purpose and that he continued with the revolutionists of Chamorro be-
cause he desired to reach Managua of Costa Rica to discontine serving.
Of the attack on Cabo he states, that the garrison fought heroically and
after two hours firing, the insurgents seized the garrison, taking the
governor Miguel Irias and sergeant major, Indalecio Manzanares priso-
ners. That it is said in Bluefields that Miguel Irias and Midence Irias
are under arrest but that respect is shown to them, without depriving
them of their revolvers, and that Manzanares is free. Which is all he
knows and he appends his signature to this declaration in Boca San Car-
los Nov. 2, 1909. Rafael C6sar Medina. Edmund Couture. In my
presence, Constantino G. Sdenz, special secretary.*
Before General Rafael C. Medina, Brigadier general of the Nicara-
guan Army and second in command of the division operating in Rio San
Juan, the revolutionist colonel Leonard Groce who stated he was 37
years old and an American citizen of the state of Texas appeared in Boca
San Carlos at 8,10 p. m. Nov. 2, 1909. Asked what object brought him
to the plains of Rio San Juan between Machuca and Boca San Carlos,
he replies: that after the revolutionary party had occupied the positions
of Boca San Carlos, they repaired to Machuca with the object of attac-
140
ing the reserve corps of the established Government and as they met with
resistence, they returned in the Government steamers Norma and Ma-
nagua, the leader of the revolutionists referred to being, first Emiliano
Chamorro and then Colonel Canuto Ugarte; that Chamorro ordered the
deponent to land on Nicaraguan shore, accompained by Ignacio Gonza-
lez, native of Matagalpa and residing in Kukra, and by Francisco Es-
pinosa and six other individuals whose names he ignores. Asked what
instructions he received from Emiliano Chamorro on remaining at the
place indicated and which he states is called La Conchuda he replies:
that Chamorro handed him three cases of dynamite a small case of ex-
plosives, a hundred and eight yards of electric wire, a roll of telegraph
wire and an jelectric machine with instructions to lay in the middle of
the river a mine which was laid by the deponent with seventy five pounds
of dynamite and which he fired at the moment when the Government
steamer Diamante was within ten yards from the side of the mine and
which was arriving with vanguard reinforcements; that Emiliano Cha-
morro, on his return from Machuca stopped at Boca de San Carlos, and
came twice to see him in motor, frequently sending commissions with
the same object; that after the blowing up of the mine, the deponent and
his companions, fled, the former in the direction of Machuca and the
others to Boca de San Carlos. Asked if he knew where other mines
were laid, he replies that he will stake his life that the revolution has
no other mines laid than the one he was encharged with; but that it may
be that they have ordered material to be brought to Bluefields, for so it
was stated by Fernando Elizondo who is in the ranks of the revolutio-
nists. Asked what reasons he had for taking up arms against the cons-
tituted Government of Nicaragua, he replies: that on the llth of Oct. of
the current year, he was called by the ex-intendant of the department
of Zelaya, and questioned as to whether he was prepared to accompany
him in the revolutionary movement which the said leader had caused to
be started the previous night. Asked if he knows what were the first
operations that the chief rebel, General D. Juan J. Estrada had perfor-
med, he replies: that on the llth of Oct. of the current year there left
Bluefields for Chontales, on their way to Chile a body of cavalry and
a de f achinent of infantry to the number of two hundred men under the
command of the Mexican Demetrio Vergara and Augusto Matute respec-
tively; that on the following day, that is the twelfth General Juan
J. Estrada left Bluefields on board the Ometepe, the commander and
crew of which ship, favoured the movement, leaving in the direction of