Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 6, 1897

Mr. Baker to Mr. Sherman.

Legation of the United States,
Managua, Nicaragua, October 1, 1897. (Received Nov. 2.)

No. 849.]

Sir: Referring to my No. 802, of June 14 last, concerning the concession granted by the Government of Nicaragua to the Atlas Steamship Company, a British corporation, for the navigation of the San Juan River and Lake Nicaragua, I have to report that the Congress of Nicaragua approved on September 29 the concession with two additions, viz, articles 21 and 22. I inclose a copy of the same with a translation. The idea conveyed in article 21 is that for all money expended by the Atlas Company in making improvements in the San Juan River it shall be reimbursed by the canal company. The Government of Nicaragua will not be obliged to indemnify the Atlas Company on any account.

I have, etc.,

Lewis Baker.

[Inclosure in No. 849. Translation.]

Article 21.

In case of expropriation on account of the opening of the Interoceanic Canal and in consideration of the expenses which the company shall have defrayed, the company shall be indemnified for the material value of the undertaking by said (canal) company, which company shall have to pay the indemnity, it being understood that the Government of Nicaragua will in no case be obliged to pay (the Atlas Company) any indemnity.

Article 22.

In no case nor on any account will the company or its representative have the right to ask diplomatic interference. The home of the company shall remain in Nicaragua.