No. 112.
Mr. Hosmer to Mr. Bayard.

No. 817.]

Sir: I have the honor to acknowledge the receipt of your instructions numbered 575, of May 1, 1888, and in reply to the same to inclose to you a translated copy of the note of the minister for foreign affairs of the Republic of Costa Rica, in which he refers to an accompanying copy of the official Periodical of that Republic containing the President’s decree notifying the withdrawal of, and concession made to the Marquis de Campo’s line of steamers, and declaring the right of Costa Rica to make reclamation for non-fulfillment of contract; a translated copy of which decree also I now have the honor to inclose to you herein.

I have, etc.,

James R. Hosmer,
Chargé d’Affaires ad interim.
[Inclosure 1 in No. 817.—Translation.]

Señor Esquivel to Mr. Hosmer.

Sir: I have the honor to acknowledge the receipt of the note of February 14 last, from your legation. It seems to have been written under the impression that the [Page 155] interests of the merchant marine of the United States would he injured by the rebate of 5 per cent, granted by my Government on the duties on all merchandise brought into this country by the Marquis de-Campo’s line of steamers.

I regret that I am compelled to differ in opinion on this subject from the chief of your legation and that the arguments adduced in my note of January 10 have failed to bring him over to the view held by my Government. At the same time I beg leave to inform you that the cause of our disagreement no longer exists, my Government having revoked the concession made to the Marquis de Campo’s line of steamers for the reasons given in the decree published in the official newspaper, a copy of which decree I inclose.

This decree obviates the necessity for any further discussion of the concession made to the Marquis de Campo’s line of steamers, but the note of February 14 refers also to concessions made in favor of several lines of British and German steamers running to the port of Limon. I am happy to say in reply that my Government has every disposition to make equal concessions to all lines of Atlantic steamers taking upon themselves the same obligations as the lines referred to.

With regard to the contract made with Mr. Pedro Terrés relative to the establishment of a line of sailing vessels between Limon and the ports of Europe, I do not hesitate to assert that my Government is ready to treat on the same terms with the representatives of any other line of sailing vessels willing to undertake the same obligations as Mr. Terrés.

My Government expects by this policy to promote the maritime commerce of the country, and thereby to increase its financial resources and to develop the few attractions presented by this Republic to maritime enterprise. This impartial policy can not fail to be of great benefit to every effort to increase maritime communication between our Atlantic port and other countries.

I am, etc.,

Ascension Esquivel.
[Inclosure 2 in No. 817.—Translation from La Gaceta, the official newspaper.]

Bernardo Soto, General-in-Chief of the Executive and Constitutional President of the Republic of Costa Rica: Considering that the concession granted to the Marquis de Campo to aid him in establishing the Spanish-American steam-ship line should be considered null and void, because the marquis has already withdrawn the steamers, after only a few months service, and because he has given notice of his intention to abandon the undertaking;

In virtue of these reasons, and in conformity with that clause of Article I marked “h,” of the contract of July 1, 1887, approved by Congress on the 16th of the said month,

decrees.

Only Article.—The concessions made to the Marquis de Campo is hereby revoked, and the Republic of Costa Rica retains the right to demand of the marquis whatever damages shall appear to be due for his non-fulfillment of contract.


  • Bernardo Soto.
    The Subsecretary of Marine in charge of the Bureau.
  • Ronulfo Soto.