Mr. Baker to Mr. Sherman.

No. 870.]

Sir: I beg to call your attention to the inclosed clipping from the New York Herald of October 11 last, and particularly to the statement in the second paragraph, which reads:

Fearing injury to the rights of the American corporation, the State Department recently cabled to Minister Baker, at Managua, directing him to examine the concession, and in case it conflicted with that of the canal company to enter a strong protest. The result of Mr. Baker’s examination is not known to the Department, which is awaiting with some eagerness the receipt of a copy of the concession.

I have received no instructions, up to date, from the State Department, either by cable or mail, upon this subject.

[Page 425]

You will observe from my No. 802 of June 14 last, that I called your attention to the leading features of the concession, and concluded with the following words: “I await any observations upon the subject you may desire to make.” With this dispatch, I inclosed a copy of the concession signed by President Zelaya and the minister of public works. In my No. 849 of October 1, I reported that this same concession, with two additional sections, which I then inclosed, had been approved by the Congress of Nicaragua.

Awaiting your instructions, I am, etc.,

Lewis Baker