No. 456.
Mr. Blaine to Mr. Morgan.

No. 143.]

Sir: You will observe in my instructions of the 16th instant and to-day, a guarded suggestion that there is a possibility of foreign complications growing out of the Soconusco dispute. For your confidential information on this point, I may observe that there is good reason to think that, if driven to extremities, Guatemala might cede her territorial rights in dispute to some European power. In view of the anxiety which several of these have shown of late to gain some footing, however ever slight, on the Pacific coast of the Isthmus, this is a contingency not to be overlooked in any dispassionate consideration of the question.

I am, &c.,