No. 103.
Mr. Blair to Mr. Fish.

No. 122.]

Sir: In an interview I had with President Guardia, on yesterday, he informed me of the object of his late visits to the republic of Nicaragua.

It appears that some English capitalists have made a proposition to the government of Nicaragua to construct an interoceanic canal across that country, and inasmuch as a part of the territory of Costa Rica will have to be used in the event of its construction, the President of Costa Rica was invited by the President of Nicaragua to a conference on the subject.

President Guardia informed me that both governments were fully convinced of the practicability of the enterprise, agreed as to its necessity, would co-operate to secure its accomplishment, and that immediate action would be taken to insure the inauguration of this work at the earliest possible period.

The President appeared very anxious that the Government of the United States should undertake the work, for, said he, it should be an American enterprise. After my interview with President Guardia, I had a short interview with Mr. Montufar, secretary of foreign relations. He also referred to the proposed canal, and informed me that his government would, by the first post, write to the Government of the United States, and invoke its serious and immediate attention to the matter. He also expressed a wish that I would, without delay, urge my Government to take immediate action to secure the right to construct said canal. I promised him to do so, and reminded him that my Government had always taken a deep interest in the project of connecting the Atlantic and Pacific Oceans by means of a canal, and that his government might rest assured that the Government of the United States would most gladly receive and seriously consider anything his government might feel disposed to suggest relative to such an undertaking.

That this great work, when commenced, should be an American enterprise, it seems to me is manifest. That the time is near at hand, if it is not already come, when to delay longer its inauguration would be unwise if not criminal, is equally clear. I would, therefore, most respectfully urge upon the Department to take such action in the premises as may be found necessary to secure the right to construct this work to the Government of the United States or its citizens.

I have. &c,

JACOB B. BLAIR.