[Extract.]

Mr. Lawrence to Mr. Seward

No. 2.]

Sir: I have the honor to enclose a copy of the contract made by John C. Frémont and others with the Costa Rican government, together with the amendments which have passed congress. The final signing was celebrated as a national holiday in all the neighboring towns as well as in the capital.

The government and the people are most desirous that the railroad should be built, and would do anything in their power to have the contract carried out. Mr. Edward F. Hickman, lately appointed consul general to London from Costa Rica, has left here to put a loan of this government for two hundred thousand pounds (£200,000) sterling on the London market. It is to be a 6 per cent, loan, and he is restricted to issuing bonds for £100 at 85 per cent. The ostensible purpose in making this loan is to pay for the continuation of the wagon road to the Atlantic.

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I have the honor, sir, to remain your obedient servant,

A. G. LAWRENCE.

Hon. William H. Seward, Secretary of State, Washington, D. C.