Mr. Baker to Mr. Gresham.

No. 503.]

Sir: Herewith I have the honor of inclosing copies and translations of correspondence with the Government of Nicaragua in regard to the demand of Great Britain for the payment of £15,500 by that Republic for the expulsion of various English subjects from Nicaragua charged with complicity in the disturbances at Bluefields in July, 1894.

I have, etc.,

Lewis Baker.
[Inclosure in No. 503—Telegram—Translation.]

Mr. Matus to Mr. Baker.

Notwithstanding the explanations given to Great Britain for the expulsion of the English subjects compromised in the Bluefields revolution, [Page 1030] that country, reserving from all discussion and making itself judge, has sent an ultimatum which expires the 15th instant, although it did not come to the knowledge of my Government until yesterday.

The ultimatum requires the payment of £15,000 as indemnity for the expulsion of the English subjects, the unconditional raising of the decree, and the naming of a mixed commission, which, with the intervention of a lawyer, who shall not be an American, shall decide the indemnities of the injured citizens, which shall be paid three months afterwards. England required an answer by cable, which was sent today, saying that amnesty had been granted to all engaged in the Mosquito rebellion, and asking that the right of indemnity be submitted to arbitration.

This reply has been communicated to Minister Guzman, at Washington, for the knowledge of the American Government, but nevertheless I have received instructions from the President to beg your excellency to use your valuable influence before it, in order to secure a friendly arrangement of this incident, as it is the natural protector of the weak Republics of America. * * *

With all consideration, etc.,

M. C. Matus.