No. 85.
Mr. Hall to Mr. Bayard .

No. 648.]

Sir: I had the honor to transmit to you to-day the following telegram, to the effect that the arbitration convention with Costa Rica, and a canal concession to Mr. Menocal had been ratified by the Nicaraguan Congress.

The foregoing was announced to me by two telegrams from the president of Nicaragua, received on the 25th instant and to-day; translations thereof are inclosed herewith. The former reports the ratification of the convention between Nicaragua and Costa Rica, signed in this city on the 24th of December, 1886, to submit their boundary difficulties to the arbitration of the President of the United States.

The telegram received to-day announces the ratification of a canal concession to Mr. Menocal and associates) this concession, I learn, is similar in terms to a former concession to the same parties granted in 1880, and which lapsed in 1884.

I have, etc.,

Henry C. Hall.
[Inclosure 1, in No. 648.—Translation.]

President Carazo to Mr. Hall .

Minister Hall, Guatemala:

I have the pleasure to inform you that Congress has this day ratified the arbitration convention agreed to in that city (Guatemala) between the ministers of Nicaragua and Costa Rica.

* * * * * * *

Evaristo Carazo.
[Inclosure 2, in No. 648.—Translation.]

President Carazo to Mr. Hall .

Minister Hall, Guatemala:

The Menocal Canal contract has been ratified.

The President:

Evaristo Carazo.