Mr. Baker to Mr. Uhl.

No. 531.]

Sir: As soon as I learned of the ultimatum issued by England against Nicaragua in the matter of the expulsion of Mr. Hatch I promptly sent my clerk to Managua for the purpose of keeping me well informed of all that might occur there. I al so arranged with the minister for foreign affairs of Nicaragua to keep me posted in an official way of all passing events. In this way I was kept informed daily of what transpired.

The first impulse of the Nicaraguan Government was to resist the landing of the British marines, on advices from their own sources of information that the United States would uphold them in this attitude. As the prospect for interference on the part of the United States faded away, the idea of having the other four Central American Governments join in a solemn protest against the action of England took form. The Government of Honduras invited her sister Republics to join her in such a protest. Salvador consented. Costa Rica replied that as the protest could not be made effective by the powers signing she thought a good substitute for that plan would be to make up a purse and promptly pay the indemnity before the time set by England for landing at Corinto should expire. Being fully alive to the humiliation of the landing of British troops upon Central American soil under the circumstances, Costa Rica was willing to bear the one-fifth portion of the burden in money if the remaining Governments would join. This proposition was not accepted.

Honduras sent a minister to Nicaragua, who acted as a friend between that Government and Great Britain in bringing about an understanding by which the former agreed to pay the indemnity in London within fifteen days after the marines were withdrawn from land and the departure of the British ships from Nicaraguan ports.

Both Guatemala and Salvador sent ministers to Nicaragua with instructions to offer their friendly offices, but they arrived after a settlement had been concluded.

I have, etc.,

Lewis Baker.