No. 70.

Mr. Blair to Mr. Fish

No. 91.]

Sir: I have the honor to acknowledge the receipt of your No. 54, of the 15th ultimo.

I have communicated with the secretary of foreign relations on the subject therein referred to. A copy of my note and a copy and translation of his reply thereto, I inclose herewith, the former marked inclosure No. 1, the latter No. 2.

You will observe, on reading the note of Mr. Montufar to me, that he copies a note written by him, on the 25th ultimo, to the consul general for Costa Rica in New York and Philadelphia, in which they are directed to make an arrangement with the claimants to pay off at once their entire claim, if they will make a discount for the amount advanced. It is probable that some such arrangement as this has by this time been made. As to that, however, the Department is of course fully advised.

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I desire to add a word in reference to the conference spoken of by Mr. Montufar, with me on this subject. Some four months ago, during a conference I had with Mr. Montufar on some other matters, he casually remarked that his government was considering the propriety of paying off those claims, if a proper discount was made for the advanced payments.

I said to him that if his government concluded to do so he had better write me a note to that effect, and state the terms upon which the advanced payments would be made, that I might lay the proposition before my Government. This he promised to do in a day or so. Since then I have not heard from him on the subject; I had supposed the idea had been abandoned.

I make this explanation in justice to myself, lest the Department might infer from his note that a definite proposition had been made to me by him, to settle these claims, and that I had failed to advise my Government of the fact.

I have, &c.,

JACOB B. BLAIR.

No. 1.

Sir: I am directed by my Government to call your excellency’s government’s attention to the fact that the installment due in March last, under the convention of Costa Rica of the 2d of July, 1880, remains unpaid, and that greater punctuality in the payments is desirable, from the fact that most of the claimants are in indigent circumstances.

Accept the assurances of the high consideration with which I have the honor to be, sir, your obedient servant,

JACOB B. BLAIR.

Hon. Lorenzo Montufar, Secretary of Foreign delations, &c.

[Translation.]

Sir: In reply to your highness’s esteemed note of this day’s date, I have the pleasure of transcribing a note addressed, under date of 25th May last, to our consul general at New York, and Philadelphia, as follows:

“I have learnt, with concern, that delay is attributed to this republic in the payment of the American debt. This debt has gone on being religiously paid.” “On 10th October, four hundred pounds were sent to Mr. G. Theisen.” “Little was then wanting to the total payment, and in a conference which I had in this bureau with the Hon. Mr. Blair, minister resident of the United States, in Costa Rica, I represented that it would be convenient to pay the whole sum at once, the corresponding discount on prepayment being allowed.”

“No result whatever followed in consequence of this point in that conference.”

“The treasury of Costa Rica has always a cash surplus, and there is no creditor, who, on presenting his document, is not paid immediately.”

“If you are pleased to make with the creditors referred to, the arrangement which I proposed to Mr. Blair, and to pay them off under corresponding discount, such operation will be very satisfactory to the government, and you will be reimbursed on your draft at sight.”

This opportunity affords me the honor, &c.,

LORENZO MONTUFAR.

Hon. Jacob B. Blair, &c., &c.