Hall to Frelinghuysen, July 6, 1883

No. 26. Mr. Hall to Mr. Frelinghuysen.

Sir: With reference to my dispatch No. 110, of the 19th of May ultimo, reporting the steps taken by the Government of Salvador to obtain some concerted action of the Central American states in favor of the projected interoceanic canal of Nicaragua, I now accompany, for convenient reference, a duplicate of the inclosure transmitted therewith, and the following translations, which, I am persuaded, will be found of interest in connection with that subject: The circular of the Government of Salvador to the several Governments of the Central American states; the answers of Honduras, Costa Rica, and Nicaragua. These communications are published in the Diario Oficial of Salvador, of the 14th and 21st of May ultimo, also inclosed.

I respectfully invite your attention to the communications from Costa Rica and Nicaragua. The former declines, for the present at least, to participate in any action respecting the canal, but her objections relate to questions with Nicaragua which are connected with a long-pending dispute concerning the boundary lines between the two countries. An attempt has been made recently to settle them by a treaty, proposed by Costa Rica, whose Government has since rejected the negotiations of its own representative.

Nicaragua also declines to take any action in the matter. The reasons therefor are set forth in the note of her minister, Mr. Castellon, to Mr. Gallegos. The Government is evidently disheartened and under the impression that the Congress of the United States will take no action favoring the enterprise.

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I have, &c.,