I am informed that the revisionary custom-house at Bluefields is likely
to be abandoned as impracticable and that the Weinberger contract for
the exclusive navigation of the Escondido River will be modified. Both
were in restraint of commerce, and providing it is not required that the
government shall repay any part of the money received for the
concessions I do not think it will be difficult to establish a status
that will better permit the protection of all parties in interest.
The assurance that it is intended to conciliate the interests involved
and the fact that changes are already being made in that direction
warrant the expectation that in this connection there will be less
friction hereafter.
[Inclosure.—Translation.]
The Minister for Foreign
Affairs to Minister Merry.
National
Palace,
Managua, March 28, 1905.
Mr. Minister: I have had the honor of
receiving the very courteous and important note of your excellency,
dated January 30 last past, referring to the various subjects of
fiscal administration and navigation on the Atlantic coast of
Nicaragua.
The President of the Republic has fully informed himself with much
affability of the subjects of your excellency’s note, and with his
instructions I have the pleasure to reply in the following
terms:
I state to your excellency in the first place that by virtue of the
executive decrees of November 12, 1902, 4th of October, 1903, and
14th of May, 1904, the customs and other duties also collected by
this government shall be paid in gold or its equivalent value in
public treasury notes at 500 per cent in all the Republic, and that
while in the interior these duties are collected in paper money,
silver is demanded on the Atlantic coast, although the note has a
value less than half that of silver. On this point permit me to
express to your excellency that, in conformity with article 6 of the
decree of May 14, cited, its terms do not include the customs of the
Atlantic coast. The treasury note not circulating in this region and
the government having to pay all its expenses of administrative
service in silver, the customs duties are collected in the same
money, as is just and natural, in conformity with the decree of
October 4, also cited to your excellency, and thus also for this
motive the mentioned decree does not apply to the customs of the
coast the mentioned decree of November 12, which established the
duty in gold owing to the depreciation of the notes.
For said reason the customs duties, as is seen, are paid on the
Atlantic coast simply in silver without regard to any equivalent in
relation to gold and this is perfectly just and regular.
In regard to the custom-houses of revision at Bluefields, Leon, and
Granada, the establishment of these had the object of an exact and
effective control in the introduction of merchandise and payment of
customs duties. Notwithstanding, before having received your
excellency’s note, and having in mind the inconveniences which the
two entry practices presented, one at the Bluff and the other at
Bluefields, and to the solicitation of some merchants, my government
decided that while it accords with convenience in the matter, the
formalities of two custom-houses shall be complied with in one only.
And if it be true that at present there is alone installed the
revision custom-house at Bluefields this is because it is not now
considered necessary in Leon and Granada; but they will be installed
by virtue of the said law if found necessary. Although in the
contract of Mr. Solomon is included the merchandise destined to
Pearl Lagoon for the revision and payment of duties and wharfage,
subsequently, by the decree of January 29 last, it is fixed that the
concession should be understood as applicable to the merchandise in
the extension of the river Escondido, excluding consequently the
merchandise destined to that district which has been introduced by
free
[Page 701]
sea, consequently
only the articles that arrive at Pearl Lagoon by the way of river
Escondido are subject to such regulations.
With regard to the contract celebrated with Mr. Weinberger, by which
is conceded the navigation of the river Escondido and its affluents,
I should show your excellency that this does not prejudice acquired
rights, and thus it is clearly provided in article 6 of said
contract. If any person considers himself damaged in his rights
prior to that, he can make the reclamation to which he has right in
due form before the competent tribunals, which until now has not
been done.
Although, supposing that in 1892 this ministry, by medium of
correspondence, directed to the United States minister, has
manifested that the privileges of the port of San Juan del Norte are
applicable to the remainder of the Atlantic coast, that circumstance
has no present force, because the incorporation of the old Mosquito
Reserve to this Republic in 1894 and the absolute renouncement of
the economic autonomy in 1898 have left without value the treaty of
1860 between England and Nicaragua. And it is to be noted that this
has been foreseen in the same treaty.
Until now I have not had the satisfaction of replying to the
estimable note of your excellency, because this ministry awaited the
report of the commissioners that the government sent to the Atlantic
coast, who have just arrived at this capital, to proceed with more
certainty in these matters.
Your excellency can entertain the assurance that my government finds
itself in the best disposition to agree to all the facilities
necessary to reciprocal commerce on our eastern coast between the
United States and Nicaragua in such manner that will conciliate the
interests of the citizens of that and this Republic, mutually
respecting the rights which belong to each.
I approve of this occasion to reiterate to your excellency, etc.,
