Minister Merry to Acting Secretary of State Adee.
San José, Costa Rica , August 21, 1905 .
Sir: Referring to your No. 613 of January 13, 1905, and to my reply No. 1009, dated January 28, I have the honor to state that the commercial conditions complained of by Mr. Seldon Bacon, attorney for American citizens at Bluefields, Nicaragua, have materially changed since the date of his complaint, through the effect of later decrees by the Managua Government before alluded to. The aduana de revision [revisonary custom-house] at Bluefields has been abolished, and instead thereof 5 per cent has been added to the customs duties at that port, the reason alleged therefor being the expense incurred by the contractor in construction of the custom-house and wharf for which he claims reimbursement.
The exclusive contract for the navigation of the Escondido River by the Bluefields Steamship Company, against which strong protests were made, has been modified in such manner that the planters can load an independent steamer with bananas at the Bluefields Bluff every ten days. The Bluefields Steamship Company agrees to transport to this steamer and to load the bananas at 10 cents gold per bunch. Whether these concessions to the planters and merchants will be entirely satisfactory remains to be seen, but so far there has been no united protest against the new regulations above stated.
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With assurances, etc.,