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ARTICLE XVIII.

For the application in Mexico of the internal tariffs of British Honduras, as well as for the application in British Honduras of the internal tariffs of Mexico, the Mexican “peso ” will be considered equal to fifty cents United States currency, during the first year of the operation of this convention.

For the purpose of the application of the special tariff rates in force for the International Service of Mexico, which are referred to in Rule II of the 15th Article, as well as in the 2d paragraph of the 17th Article, the telegraph offices of Mexico as well as those of British Honduras, will proceed as laid down by the law of the former country while such law is in force, and thereafter as may be agreed upon between the two high contracting parties. The balance shown by the account in respect to the said International Service shall be paid in accordance with the above mentioned law, quarterly, as stipulated in the 23d Article of the present convention.

ARTICLE XIX.

The rate of exchange for the liquidation of the accounts between the two high contracting parties after the expiration of the first year of the operation of this convention, for messages sent exclusively from and addressed exclusively to, places within the territories of the aforesaid ligh contracting parties, shall be fixed annually by mutual agreement between the said high contracting parties.

ARTICLE XX.

The press of the two eountries shall, for the purposes of the service between the two countries, be subject to the regulations which may be made by each administration and which these administrations should in due course make known to each other.

As regards the tariff applicable to the aforesaid press service the charge shall be fifty per cent. of those in force for the general public, but the rules governing special messages mentioned in Article 13 shall not apply to these messages.

ARTICLE XXI.

The sender who desires to indicate the route his message should follow must do so in his own handwriting.

When the sender indicates the route the message is to take, the respective telegraph offices shall be bound to comply with his instructions unless the route indicated should be interrupted or known to be overcrowded with work; in such cases the sender shall have no claim against the telegraph department for the use of another route. If on the other hand the sender does not indicate the route, the offices at the point where the routes diverge may determine which route the message shall follow.

When the sender requests to have his telegram transmitted by telegraph to an office which he specifies, and thence to its destination by post, the offices shall comply with his request.

Messages to be forwarded to other countries through the Federal offices connected with the lines of the Western Union Telegraph Company must be addressed “Viâ the Frontier;” those to be transmitted by the Mexican Telegraph Company,“ Viâ Galveston."

ARTICLE XXII.

The offices of each line shall collect the full cost of the messages transmitted by them to the other line and shall keep account of the same in the manner decided upon by each administration.

Nevertheless, for the liquidation of accounts between the General Federal Telegraph Department of Mexico and the Postal and Telegraph Department of British Honduras these departments shall settle between themselves the manner in which the accounts are to be rendered.

ARTICLE XXIII.

There shall be a quarterly settlement of accounts in the City of Mexico between the Government of Mexico and that of British Honduras, and the balance shown shall be paid without any delay to the party to whom it is due. To this end the quarterly period shall be so arranged to cover the months of the year as follows:

1st Quarter January, February and March.
2nd Quarter. April, May and June.
3rd Quarter. July, August and September, and
4th Quarter. October, November and December.

ARTICLE XXIV.

The high contracting parties limit their responsibility for the telegraphic service to the refund of the cost of messages which are lost or fail to serve their object, through the fault of the employees of either of the two administrations; but this responsibility only applies to the telegraphic service and not to the telephonic messages forwarded over their lines; neither will they be responsible in any way for messages destined to places beyond their own wires, once such messages have left their lines.

ARTICLE XXV.

In the event of international conflict or grave internal disturbance of the peace, both high contracting parties reserve to themselves the right to suspend totally or partially the telegraphic service which is the object of this convention.

ARTICLE XXVI. If any doubts or difficulties should arise concerning the meaning or the execution of this convention between the Government of Mexico and that of British Honduras the same shall be decided by mutual agreement between the two high contracting parties, or should this fail, the case must be settled by arbitration, both parties referring the disputed point to the Tribunal of the Hague; except in regard to questions which may arise out of a state of war in which either of the two high contracting parties is concerned.

ARTICLE XXVII.

This convention shall come into force as soon as it shall be ratified by both governments and the ratifications exchanged in this City of Mexico, and shall then remain in force indefinitely until one year after denunciation by one of the high contracting parties.

In witness whereof, the respective plenipotentiaries have signed the present convention, in two originals, and have affixed their seals, in the City of Mexico, the twenty-seventh day of the month of May of the year one thousand nine hundred and ten.

(L. S.) REGINALD TOWER. (L. S.) ENRIQ. CREEL.

CONVENTION BETWEEN THE UNITED STATES AND NICARAGUA CONCERNING

A NICARAGUAN LOAN.1

Signed at Washington, June 6, 1911.

[Unratified at the date of publication in the JOURNAL.] The Republic of Nicaragua, being now established on a firm political and constitutional basis, after eleven months of civil war and after seventeen years of administrative abuses resulting in the illegal diversion of public property and revenue, the accumulation of debts and claims in the hands of both natives and foreigners, and the existence of ruinous and disputed concessions in many of which foreigners are beneficiaries, finds the financial and economic situation of the country in urgent need of radical reconstruction; and believing that this needed reconstruction on account of the circumstances above set forth will be difficult and complicated, especially as it involves the necessity of obtaining a loan adequate in amount yet on terms commensurate with the national resources, the Republic of Nicaragua has indicated its desire for cooperation on the part of the United States for the refunding of its debt and the placing of its finances and administration upon a sound and stable basis with a 'view to meeting its foreign obligations, and to securing the tranquillity, prosperity, and progress of the country; and the Government of the United States, animated by a desire to promote the peace and prosperous development of all the Central American countries, and appreciating the wish of Nicaragua to contribute to such development by establishing on a firm footing its own material strength; and it being recognized as necessary, in view of the present conditions of Nicaraguan finances and resources, that, to afford efficient and legitimate security and to obtain the special benefits sought, the governments concerned should assume a special relation thereto; and the two governments being convinced that some contract should be negotiated and concluded between the Government of Nicaragua and some competent and reliable American banking group, said contract to afford a beneficial, just, and equitable accomplishment of the purposes in question, have, with these objects in view, named as their plenipotentiaries :

The President of the United States of America, Philander C. Knox, Secretary of State of the United States; and

i Confidential Executive B, 62d Cong., 1st Session.

The President of Nicaragua, Dr. Salvador Castrillo, junior, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Nicaragua near the Government of the United States;

Who, having communicated to each other their respective full powers, found in good and due form, have agreed upon the following:

ARTICLE I.

The Government of Nicaragua undertakes to make and negotiate a contract providing for the refunding of its present internal and external debt and the adjustment and settlement of claims, liquidated and unliquidated; for the placing of its finances upon a sound and stable basis; and for the future development of the natural and economic resources of that country. The Government of the United States and Nicaragua will take due note of all the provisions of the said contract when made, and will consult, in case of any difficulties, with a view to the faithful execution of the provisions of said contract, in order that all the benefits to Nicaragua and the security of the loan may at the same time be assured.

ARTICLE II. The loan which shall be made by the Government of Nicaragua pursuant to the above undertaking shall be secured upon the customs of Nicaragua, and the Government of Nicaragua agrees not to alter the import or export customs duties, or other charges affecting the entry, exit, or transit of goods, during the existence of the loan under the said contract, without consultation and agreement with the Government of the United States.

ARTICLE III. A full and detailed statement of the operations under this contract shall be submitted by the Fiscal Agent of the loan to the Department of State of the United States and to the Minister of Finance of Nicaragua at the expiration of each twelve months, and at such other times as may be requested by either of the two governments.

ARTICLE IV.

The Government of Nicaragua, so long as the loan exists, will appoint from a list of names to be presented to it by the Fiscal Agent of the loan and approved by the President of the United States of America a collector general of customs, who need not be a Nicaraguan and who shall

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