time in these discussions, Her Majesty's Government would gladly refer the decision of all controverted points to the decision of any one of the European Powers.

The General remarked, in reply, that he did not repudiate the principle of arbitration on all occasions; he had invoked it, and would do so again where it seemed justly applicable, but that, in this matter, it was declined by the American Government for the following reasons: The language of the Treaty was so clear, that, in his opinion, there ought not to be two opinions about it. "We say that black is black, but we think that you say that black is white." Then it was a mere question of the interpretation of the English language, and he held that a foreign Government was not so competent to decide in such a question as The United States and England, who possessed that language in common; and, finally, the Senate of The United States had accepted the Treaty in the sense which he contended for, viz., that it stipulated for the present and absolute withdrawal of all British protectorate or possession in Central America; that he had separated from some of his party, and voted in favour of the measure on that understanding, and that on no other would the Treaty have had a voice in the Senate or the country.

The Earl of Clarendon.

NAPIER.

No. 29.-Lord Napier to the Earl of Clarendon. - (Rec. Nov. 9.) (Extract.) Washington, October 27, 1857. IN the reports of my conversations with the President, which are submitted to your Lordship in my despatches of the 22nd and 24th instant, it will not escape your Lordship that the assurances of the President do not correspond to my overtures to his Excellency.

I ventured to state my belief that the intention of Her Majesty's Government is to sanction the execution of the Clayton-Bulwer Treaty, "according to the general tenor of the interpretation placed upon it by The United States."

The President makes his engagement contingent on an official declaration from Her Majesty's Government, that an Agent is sent to Central America instructed to settle all the questions which have been controverted between the two Governments, "according to the American construction of the Treaty."

It remains of course for Her Majesty's Government to decide how far they can accede to such a proposal.

If Her Majesty's Government be unable to sanction the declaration demanded by the President, or even the mitigated assurance suggested by myself, some conciliatory communication as to the object of Sir William Ouseley's mission may still have a good effect.

Her Majesty's Government will also be able to judge whether it might not be advisable to instruct me to renew the official proposal, to refer all the controverted points in the Clayton-Bulwer Treaty to arbitration.

Such a proposal, connected with the mission of Sir William Ouseley, would place the policy of Her Majesty's Government in a very favourable light.

The Earl of Clarendon.

No. 30.-The Earl of Clarendon to Lord Napier.

NAPIER.

MY LORD, Foreign Office, November 13, 1857. I HAVE to state to your Lordship that Her Majesty's Government entirely approve of the language which you used to General Cass, as reported in your despatch of the 27th ultimo, with respect to the proposal of Her Majesty's Government to refer the disputed questions arising out of the interpretation of the Clayton-Bulwer Treaty of 1850 to the arbitration of a friendly Power.

If ever there was a case in which the principle of arbitration would be advantageously adopted, it is the one in question. All differences as to the interpretation of Treaties arise out of the different meanings attached to words, and General Cass's arguments in this case would be equally valid against arbitration in any case; but as The United States' Government affirm that no doubt can possibly exist as to their interpretation of the clause in question, it is difficult to understand their repugnance to having their opinion confirmed by a disinterested third party.

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Her Majesty's Government, on the other hand, feel equally confident that their interpretation of the clause in question is correct and as a reference to a third party is not only the course usually adopted between two friendly Powers who differ in opinion, but is the one which is most likely to secure an honourable and satisfactory solution of the difference, your Lordship is authorized formally to renew to The United States' Government, in writing, the offer to refer the controverted points to the decision of any European Power whom The United States' Government may like to select. I am, &c.

Lord Napier.

CLARENDON.

No. 31.-The Earl of Clarendon to Sir W. G. Ouseley. SIR, Foreign Office, November 19, 1857. THE reports which, since your departure from this country, I have received from Lord Napier in respect to the language of the President of The United States on the Central American questions, make it but too probable that the tenor of the Presidential Mes

sage to Congress on the 4th of next month may induce that body to set aside altogether the Convention with this country of April 19, 1850.

Without entering now into the question how such a state of things would be viewed or dealt with by Her Majesty's Government, one result is at least evident, namely, that Her Majesty's Government would no longer have any object, as far as The United States are concerned, in endeavouring to shape their policy in regard to Central America, and more particularly in regard to the Bay Islands, with reference to the views entertained by the Government of The United States as to the true interpretation of the Treaty of 1850; and, consequently, in their future dealings with those questions, Her Majesty's Government would only have to look to what might be most advantageous to the country.

It therefore behoves Her Majesty's Government to proceed with great caution, and to enter into no engagements, and to hold out no expectations to the Republic of Honduras, which should involve the obligation of making over to that Republic the Bay Islands, whether the Treaty with The United States of 1850 remained in force or was set aside by the Act of the American Congress. You will, accordingly, be very careful not to commit Her Majesty's Government to any course whatever in respect to the Bay Islands, till the intentions of the Congress of The United States in regard to the Treaty of 1850 are clearly ascertained; and, from the known opinions of the President of The United States and of the Senate, it is more than probable that all doubt on that subject will shortly be removed.

And as regards the Republic of Honduras, that Government would have no cause to complain if the circumstances to which I have alluded should induce the British Government to depart from the course in regard to the Bay Islands which they were last year prepared to adopt. The Government of Honduras declined to ratify the Convention by which the sovereignty of the Bay Islands would have been transferred to them; and when, upon the exchange of the ratifications of the General Treaty of Amity and Commerce, Mr. Herran expressed a hope that time might be given to the Honduras Government for their decision, I informed him that I would make no engagement whatever to that effect, and that I considered that the Convention had been put an end to by the Act of the Honduras Government in not ratifying it.

Sir W. G. Ouseley.

I am, &c.

CLARENDON.

No. 32.-The Earl of Clarendon to Lord Napier. MY LORD, Foreign Office, November 20, 1857. I HAVE received your Lordship's despatches of the 22nd, 24th, [1856-57. XLVII.]

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and 27th of October, reporting your recent communications with the Secretary of State of The United States, but more particularly with the President respecting Central America, and the construction placed by The United States on the Treaty of 1850, commonly called the Clayton-Bulwer Treaty.

I will not conceal from your Lordship, nor will you disguise from the President and General Cass, that Her Majesty's Government have learned with great concern and disappointment that the intimation which you conveyed to the President of the course which Her Majesty's Government were about to pursue for the practical settlement, by direct negotiation with the States of Central America, of all questions which have been in discussion between Great Britain and The United States should have been viewed with little apparent cordiality by the Government of The United States; and that the Government of The United States, so far from desiring to facilitate the adjustment of those questions are inclined to require admissions on the part of this country, which, if made, would render all negotiation superfluous. It cannot be expected that the British Government, which entertains no doubt as to the true intent and meaning of the Clayton-Bulwer Treaty, should abandon their opinion in order to adopt the adverse interpretation put upon that Treaty by the Government of The United States; but Her Majesty's Government are ready, and your Lordship has been instructed, by my despatch of the 13th instant, to make a formal offer to the Government of The United States to submit to the arbitration of a third Power the question as to the true interpretation of the ClaytonBulwer Treaty.

But if this course is not acceptable to The United States, it is surely unreasonable to view with feelings of dissatisfaction the attempt making by Her Majesty's Government to effect, by direct negotiation with the States of Central America, a solution of the questions involved in the conflicting interpretations of the ClaytonBulwer Treaty, and to do so in conformity with the principles which the late and present Government of The United States, together with the Senate, have admitted to be generally acceptable.

For it must always be borne in mind that the difference which led to the non-ratification of the Treaty which I signed with Mr. Dallas on the 17th of October, 1856, turned upon one point alone, which point had its origin not in any question between Great Britain and The United States, but in the hesitation of the Govern ment of Honduras to ratify the Convention concluded by its Plenipotentiary in regard to the Bay Islands. If that Convention had been ratified, Her Majesty's Government could have agreed to the alteration on that point desired by the Senate of The United States, for they could not have hesitated to admit in a Treaty with The

United States the concession which they would have already made to Honduras in a Treaty with that State, to the effect that the Bay Islands should thenceforward form an integral portion of the Republic of Honduras; and it was merely because Her Majesty's Government could not assert in a Treaty with The United States the existence of a fact which could have no existence till an arrangement had been made upon the subject, that the Treaty which I signed with Mr. Dallas fell to the ground.

The Government of The United States have been informed by your Lordship that Her Majesty's Government have resolved to make a fresh attempt to settle by negotiation with the States of Central America the several questions which, as far as The United States and the Republic of Honduras are concerned, would have been settled if the Convention which I signed with the Plenipotentiary of Honduras on the 27th August, 1856, and the Treaty which I signed with the Plenipotentiary of The United States on the 17th October, 1856, had been carried into effect; and, therefore, so far from anticipating that your Lordship's communication would have met with such a reception from the President as it appears to have done, Her Majesty's Government might reasonably have expected that the course about to be pursued would have received the cordial approbation of the President, and would have elicited from him the assurance that nothing would be done or said by the Government of The United States which should throw any impediment in the way of the British negotiator, or might revive angry discussion on matters which there was just reason to suppose were in a fair way of being amicably settled.

Sir William Ouseley, during his visit to Washington, will, in pursuance of his instructions, have explained with the utmost frankness to the Government of The United States the nature of the instructions with which he is furnished; and your Lordship, as the duly accredited organ of Her Majesty to The United States, will have given similar explanations. The President will thus have the fullest assurance that Her Majesty's Government are still prepared to adhere to the course which they adopted in the negotiations of last year with The United States and with the Republic of Honduras; that they are prepared to put an end to the British Protectorate of Mosquito, and to make arrangements with the Republic of Nicaragua for the future localization of the Mosquito Indians; to transfer the Bay Islands to the Republic of Honduras; and to define, in concert with the conterminous States, the boundaries of the British Settlement of Honduras, according to the limits laid down in the unratified Treaty of last year.

What more can The United States desire? The President has alluded with dissatisfaction to the extent of the securities which Her