Mr. Merry to Mr. Hay.

No. 747.]

Sir: I have the honor to forward herewith copy and translation of a telegram from President Zelaya, of Nicaragua, received to-day; also my reply thereto, and my telegram to the consul-general at Panama.

You will note that, providing President Zelaya is correct, the Government of Colombia is preventing the free transit and shipment of the property of the Nicaraguan Government across the Panama Isthmus. [Page 885] It appears to me that Colombia and Nicaragua being nominally at peace with each other, the former Government is violating her treaty obligations with us in preventing the free passage and reshipment of any class of merchandise belonging to Nicaragua, even though it be arms or munitions of war. If I am correct in this opinion I beg to respectfully suggest that notice may be given to the Colombian authorities at the Panama Isthmus that our guaranty of free transit by which the Isthmus has been kept open to commerce during the revolution which has existed for nearly three years, and which has prevented its revolutionary occupation, must be respected. The action of the Colombian Government herein appears to be a question of some importance as establishing a dangerous precedent applicable to either the Panama Railroad or Canal, for which reason the details thereof are respectfully presented for your information.

With assurances, etc.,

William Lawrence Merry.
[Inclosure 1.]

President Zelaya to Mr. Merry.

[Telegram.—Translation.]

My Government has ordered from abroad 16 boxes of revolver cartridges, .38 caliber, for public sale, since this article is a Government monopoly, and it is known that these boxes have been detained in Panama by order of the authorities there.

As the American Government guarantees the neutrality of that route, I beg that you will address the proper quarter in order that the authorities of the Isthmus of Panama do not impede the free transit of said cartridges belonging to my Government.

Anticipating to you thanks, etc.,

J. S. Zelaya.
[Inclosure 2.]

Mr. Merry to President Zelaya.

[Telegram.]

I have telegraphed the United States consul-general at Panama not to permit detention on the Isthmus of any article that may be the property of your Government, and I have also written to my Government about the matter.

William Lawrence Merry.
[Inclosure 3.]

Mr. Merry to Mr. Gudger, consul-general at Panama.

[Telegram.]

I am advised that the shipment of articles belonging to the Government of Nicaragua is prohibited on the Isthmus of Panama for Corinto.

In accordance with the stipulation of our treaty guaranteeing free transit, please effect the prompt dispatch of all such articles.

Merry, Minister.