Mr. Merry to Mr. Hay.

No. 215.]

Sir: I have the honor to inclose herewith the copies of two telegrams received from Consul Donaldson at Managua, and my reply to the last, dated 14th instant. The suggestion that I shall countenance intervention by the United States naval force in the domestic disturbances of Nicaragua (except as necessary for the protection of the lives or property of our citizens) is inconsistent with the repeated instructions he has received in regard to our neutrality obligations. Precisely the same question arose during the prospect of hostilities between Nicaragua and Costa Rica early in 1898. The Government of Salvador, under General Gutierrez (now sojourning an exile in this city), fitted out its steamer Cuscatlan with men and war munitions to aid Costa Rica, although Salvador was then a member of the “Greater Republic of Central America,” jointly with Nicaragua and Honduras. The Cuscatlan flew the flag of that “political corporation,” now the flag of Nicaragua, adopted for the proposed federation because it was the ensign of the “Republic of Central America,” first organized and dissolved in 1837. President Zelaya requested Commander Leutze of the U. S. S. Alert to seize the Cuscatlan for the same alleged reasons [Page 553] and met with a refusal. The steamer San Jacinto belongs to the Nicaraguan Government, was stationed at Bluefields when seized by General Reyes’s insurgents, and is now at San Juan del Norte, which port, I am informed, is in their possession. Even had I authority to order such seizure I should have declined to act upon it, confident that my course would meet with your approval.

With assurances, etc.,

William Lawrence Merry.
[Inclosure 1.]

Mr. Donaldson to Mr. Merry.

[Telegrams.]

Dispatched Managua, February 12, 1899.

Received San José, February 13, 1899.

An American vessel has arrived at Grey town. I suppose her to be the Machias. I beg you to give me instructions to communicate. There is nothing new. Rest of the country obeys the Government. Captain leaves to-morrow (for) Bluefields.

[Inclosure 2.]

Mr. Donaldson to Mr. Merry.

[Telegram.]

Dispatched Managua February 14, 1899, 12 m.

Received San José, February 14, 1899, 7.40 p.m.

The steamer San Jacinto, armed for war against the Government of Nicaragua, carries the flag of this Republic without authority, and in consequence I have received an earnest intimation from the Government of Nicaragua that the American vessels of war should detain and disarm it as a vessel without a flag and a filibuster. I send this in order that, if it seems well to you, you may order by telegraph to San Juan what you think advisable, suggesting that this part go in Spanish in order that the telegraph operators make no mistakes.

[Inclosure 3.]

Mr. Merry to Mr. Donaldson.

[Telegram.]

Entirely beyond my control. Naval officer under control Secretary of the Navy for orders. Telegraph about rebellion becoming serious.

Merry.