No. 89.
Mr. Hall to Mr. Bayard.

No. 658.]

Sir: I have the honor to inclose a copy of the annual message of the President of Costa Rica, and a translation of an extract from the same relating to the settlement by arbitration of the pending question with Nicaragua concerning the validity of their boundary treaty of 1858.

In referring to the projected canal, the President calls it the “Canal of Costa Rica and Nicaragua,” giving the precedence to his own state. Trifling as this incident may seem, it is nevertheless significant, as it is well understood that one of the alleged grievances of Costa Rica is the fact that the proposed enterprise has heretofore been known only as the “Nicaraguan Canal,” while Costa Rica has been altogether ignored.

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I have, etc.,

Henry C. Hall.
[Inclosure in No. 658.—Translation.]

Extract from the annual message of the President of Costa Rica.

The question pending with the sister Republic of Nicaragua, for causes which the respective secretary will inform you, had assumed a tone which was far from being harmonious, such as should always be maintained between the two countries; at this juncture the Guatemalan Government found a favorable opportunity to conduct us, through the medium of its good offices, to the enlightened solution of arbitrament, which will put an end to that annoying question, as it has also removed the danger of any alteration in the mutual and good friendship which both countries have so long maintained.

The legation accredited to Guatemala for that important object terminated its labors with a discretion worthy of the highest praise; of this, the merited applause it has received within and outside of the country is sufficient proof.

The opening of the Canal of Costa Rica and Nicaragua is agitated, day by day, with growing interest. Notwithstanding, I do not believe that the undertaking of such a great work is so near at hand as some suppose; in any event, however, my Government is constantly occupied with the subject, and has followed the movements closely and with the carefulness that its importance demands, assured also that the rights of Costa Rica will be respected.

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