No. 226.
General Schenck to Mr. Fish.

No. 737.]

Sir: Yesterday, in accordance with the instruction contained in your No. 699, in an interview with Lord Derby, I informed him that the United States had some reason to apprehend, or at least to infer, a possible [Page 632] disposition on the part of Her Majesty’s government not to observe strictly the clause in their treaty made with Nicaragua, in 1860, by which it was stipulated that the British protectorate over the Mosquito territory should be relinquished; and I inquired if there was any purpose to resume or re-assert, in any way, a claim to interfere with the affairs of that territory. I expressed the desire of my Government to be assured that no such intention was entertained by Great Britain; and I referred, in a general way, to the condition of the Mosquito chief and his surroundings, the British influence supposed to be brought to bear on him, the visit of Her Majesty’s sloop of war Eclipse last November, and an investigation of matters and probable report to be made by Captain Erskine, as affording grounds for my inquiry. Mr. Freer’s communication to Mr. Williamson, a copy of which accompanied your dispatch, furnished me the information which enabled me to present the subject fully. Lord Derby answered me freely and without reserve. He disclaimed entirely any intention or desire on the part of Great Britain in any way, or to any extent, to revive the protectorate, or to interfere with the affairs of the Mosquito coast. He stated quite emphatically that they were “glad to have their hands washed of anything like a protectorate there; that it was a trouble only and no good; that they would be glad when Nicaragua should have paid all the installments of the ten years annuity promised to the Mosquitos, for then Her Majesty’s government would no longer feel bound to good offices between them.” His lordship said, there had been no report, that he knew of, forwarded from Captain Erskine, nor did he know of any cause now for intervention. As to the United States, it was his understanding that there was perfect good accord between our official representatives on that coast and theirs. His Lordship, however, while thus giving the most earnest assurance that it was neither the wish nor intention of Her Majesty’s government to interfere, still held to the idea that they were so committed by the treaties which had been made with both Honduras and Nicaragua, that if those states should refuse to complete the payments stipulated to be made to the Mosquitos, it might become necessary for Great Britain to see that they were held to the execution of their engagements.

After our conversation closed, Lord Derby, at my request, reduced to writing and sent me a note of the substance of what he said; and of that memorandum I send you, herewith, a copy.

I have, &c.,

ROBT. C. SCHENCK.
[Inclosure in No. 737.]

Memorandum of statement made by Lord Derby to General Schenck in interview at the foreign office, 16th April, 1875.

By the treaty of Comayagua between Great Britain and Honduras of November 28, 1859, the former gave up the protectorate of the Mosquito territory, situated within the boundary claimed by Honduras, and the latter agreed to pay the Mosquitos $5,000 a year for ten years, in half-yearly payments of $2,500, secured on a mortgage of the woods, &c., of the Bay Islands.

(Article II.) By the treaty of Manequa between Great Britain and Nicaragua of January 28, 1860, (Articles II, III, IV, V,) a district was assigned to the Mosquitos, within which they were to be at liberty to exercise the right of self-government in a manner “not inconsistent with the sovereign rights of the republic of Nicaragua,” (Art. III,) and with a provision that they were free to incorporate themselves with Nicaragua, but not to alienate the territory to any foreign state; and Nicaragua [Page 633] further agreed to pay an annual sum for ten years of $5,000, to be secured by a duty on imports into the republic.

By Article VI, Great Britain engaged to use her good offices with the Chief of the Mosquitos, “so that he shall accept the stipulations” of the treaty. Honduras has only paid one installment of the subsidy. Nicaragua has also failed to keep up the payment.

In 1872, Mr. Corbett, the British representative in Central America, was instructed to press the two governments to fulfill their treaty engagements, and the Nicaragua government promised to submit the matter to Congress, after having previously demurred to making the payments on the pretext of the youth of the Chief, and the irregularity of his election. Nothing came of this, and the closing papers of the correspondence on the subject in the archives of the foreign office was a note of remonstrance from Mr. Corbett to the Nicaragua government in April, 1873. Since that time, no action has been taken by the British government, and Mr. Locock (our present representative) has been told that we do not intend to take any at present.

There is no intention, and never has been, of reviving the protectorate; and no desire, on our part, to interfere in the affairs of the Mosquito coast.

But the two governments of Nicaragua and Honduras are bound by treaty to make certain payments to the Mosquitos, which have not as yet been made in full; and we retain, and should be prepared to exercise, if necessary, the right of holding them to the execution of their engagements.