File No. 3691/14.

Chargé Bailey to the Secretary of State.

No. A–6.]

Sir: Referring to my Nos. A–4 and A–5 dated 9th and 15th instant, respectively, regarding revolutionary movements in Honduras, thought to have been aided by President Zelaya, of Nicaragua, and as a matter of further information to the Department of State relative thereto, I now have the honor to state that in a conference with Mr. Anderson, the minister of foreign affairs here, this morning he informed me that he had been officially advised by the Nicaraguan Government that the Government of Honduras violated certain territorial rights by permitting its troops to pass the boundary line of its own country, thus invading Nicaraguan territory.

From the best information obtainable the Government of Honduras admits this invasion, but as a justification for its action asserts that the revolutionists and disturbers of its public peace sought refuge on Nicaraguan soil, and in order to suppress them its troops were compelled necessarily to cross the boundary of Honduras.

The Nicaraguan Government claims indemnity for this infringement of its territorial rights, and the governments of the two disputing Republics have agreed to submit their grievances to a board of arbitrators, composed of one member from each of the Republics of Costa Rica, Honduras, Nicaragua, and Salvador, to convene at the city of San Salvador at as early a date as possible.

The minister of foreign affairs here further informed me that he suggested to the Nicaraguan Government February 15 next as a suitable time for the meeting of said board of arbitrators, and that the Nicaraguan Government replied, urging an earlier meeting if possible, as this is an armed peace, some of Nicaragua’s troops being now stationed near the boundary of Honduras, where they will remain pending the action and decision of the arbitrators.

The foreign minister here said that owing to the present strained relations between the two Republics, the meeting of the board of arbitrators should be brought about at as early a date as possible, and that his Government would appoint a delegate at once with the view of having them meet at San Salvador not later than fifteen days from date.

This meeting has been suggested and is to be held in conformity with the pact of Corinto, signed on January 20, 1902, in which there is a provision that disputes arising between any of the Republics signatories thereto shall be submitted to a board of arbitrators appointed from all of them.

This Government is very anxious to do anything reasonable to bring about an honorable and lasting peace between all the Republics of Central America.

Any other reliable information received on this matter will be forwarded promptly to the department. I have, etc.,

James G. Bailey.