Mr. Lewis Baker to Mr. Sherman.

No. 852.]

Sir: Great satisfaction has been expressed here over the decision of General Alexander, the referee as to the true meaning of the Cleveland award, as to the starting point on the Atlantic side of the boundary line between Nicaragua and Costa Rica.

I assume that the final settlement of this question will be favorably received in the United States, and especially by the friends and promoters of the Inter-Oceanic Canal. As long as the exact location of the line was questioned, it afforded opportunities for embarrassments to the company having this work in charge. It is now settled that the line of the canal will be entirely within the territory of one government, viz, Nicaragua.

I have, etc.,

Lewis Baker.