Velasco proceeds to consider the Free Zone as a vital necessity for the frontier, and to show that it should be extended to the states of Coahuila and Chihuahua, as was the intention when the plan was first broached by the executive in 1852. He quotes at length from a message of the executive of that time to show that the Zone was considered to be but a just recompense to the people of the frontier for the privations and dangers which they constantly incur in behalf of the whole nation. He also shows the decadence of Paso del Norte and other northern towns through lack of this privilege.

In conclusion Mr. Velasco says that free consumption is an accomplished fact upon the frontier, for the reason that nature and the necessities of the people have so required, and any attempt to revoke this liberty might occasion the dismemberment of the republic.

No. 33.]

NICARAGUA.

No. 295.

Mr. C. N. Riotté to Mr. Fish.

LEON, March 2, 1870. (Received April 11, 1870.) SIR: I have the honor of laying before you inclosed copies, respectively translation of the following documents, viz:

1st. Inclosure A, letter from her Britannic Majesty's chargé d'affaires in Central America, Mr. E. Corbet, of January 25th last, in answer to my communication, of December 28th ultimo, on the case of Mr. and Mrs. M. Glenton.

2d. Inclosure B, note to the Nicaraguan government, of January 29th ultimo, on the action of the directors of the Panama Railroad Company against Captain T. A. Douglass.

3d. Inclosure C, reply thereto by the government, of February 5th, with translation.

4th. Inclosure D, letter of General A. T. A. Torbert, United States minister in San Salvador, of February 21st last, on the importance of establishing a naval station of the United States on Tigre Island, Bay of Fomeca.

5th. Inclosure E, my reply thereto, of February 26th last.

I will permit myself to submit a few remarks on the subject of these two last notes. As you perceive from my answer to General Torbert, I do fully agree with his view. I will not attempt to argue the strategical and topographical side of the question. To do full justice to that, my colleague is more competent authority than I; and besides, a mere glance at the map, showing that in the long-stretched and every day in importance growing western coast of America south of San Francisco, our country is destitute of even a good harbor of her own, let alone a naval establishment or place of refuge, if only for cases of accidents or disasters, will at once powerfully advocate General Torbert's plan. There is another consideration in its favor, namely, the fact that not one of these Spanish North American republics, little Costa Rica excepted, until now has been able to erect on their dangerous coasts a single light-house. The pecuniary considerations entering into the question, I must deem it out of my sphere. But there is an international and political consideration eminently sustaining the plan. It cannot be denied that these republics, however slowly, and impeded by their political convulsions, are growing in commercial importance at a par with the increasing commercial facilities between them and the marts of the

world and the demand of the civilized world for their valuable productions. This tends to give a more and solid growth to their productive energies and to their attractive power upon foreigners and particularly Americans; but it not less contributes toward imparting them with an idea of their importance among nations.

C. N. KIOTTÉ.

SIR:

A.

Mr. Edwin Corbet to Mr. C. N. Riotté.

GUATEMALA, January 25, 1870.

I have the honor to acknowledge the receipt of your letter, dated 28th ultimo, which reached me by last mail, informing me of the steps you had taken to procure redress from the government of Nicaragua for Mr. M. Glenton, who had been compelled to contribute to a forced loan decreed by that government, and I beg to thank you for the trouble you have taken in his behalf.

As he has furnished me with no proofs of his nationality I cannot at once address the government of Nicaragua in support of his claim. If I receive satisfactory proof that he is entitled to the protection of her Majesty's government, I shall at once demand the redress to which he will be entitled.

This is a true copy.

B.

EDWIN CORBET.

C. N. RIOTTE.

SIR:

Mr. C. N. Riotté to Hon. Tomás Ayon.

LEGATION OF THE U. S. A., NICARAGUA,

Leon, January 29, 1870. Toward end of the month of August last I re

ceived information that Captain Douglass, of the Panama Railroad Company's steamer Guatemala, had compromised the neutrality of his company and of the flag under which its steamers sail, by carrying for and delivering to the agents of the so-called provisional government at Leon powder, lead, and caps. The information was of such trustworthy character that I did not hesitate, in vindication of my country's flag and of the to me well-known perfectly neutral intentions of said company, to report the transaction to it. The company thereupon at once suspended Captain Douglass from office. The instruction of the case, ordered by the company, consumed some time, in part owing to the distances and in part to the fact that it was difficult to procure witnesses. On November 10th an inhabitant of this city made affidavit before me on what he, August 15th and next days, witnessed in the Bay of La Union and at Tempisque, which was communicated to the company. On the strength of that affidavit and some additional proof the company, as I have been advised by a letter received the 25th instant, has dismissed from its service not alone Captain Douglass, but the purser of the steamer, Mr. E. Hansen, too. That letter states that although the case of Captain Douglass was not an entirely clear one, the company thought it well to make an example of him. Inasmuch as on different occasions during revolutionary movements within the Central American States, the good faith and strict neutrality of the Panama Railroad Company has been doubted, and even incriminations of the reverse have been advanced, I consider it proper to advise your government of this its recent action. C. N. RIOTTE. Hon. TOMÁS AYON, &c., &c.

SIR:

I received the note with which you addressed me under date of 29th ultimo, communicating to me that toward end of last August, (here fol

lows a literal repetition of the contents of my note.) I laid your dispatch before the President of the republic, and was ordered to thank you for your good offices in the matter. The conduct of Captain Douglas, who, from the fact that he entered into independent contracts on new steamer lines, was considered to have left the company's service, had indeed caused surprise, not alone in Nicaragua, but also in the neighboring republics, for his open participation, by carrying elements of war to the rebels, who were devastating the country. The government was engaged in collecting all proofs in the case, with a view to remonstrate against the conduct of the employés of the company, but the measure it has taken in order to prove its neutrality dispenses the government from taking further steps.

If, during the revolutionary movements in other republics, the good faith and strict neutrality of the Panama Railroad Company has been doubted, the government is ignorant of the causes. So far as regards Nicaragua, the conduct of Captain Douglas furnishes cause for just incriminations, which the company, by dismissing him from service, has dispensed.

The foregoing are true copies and translation.

TOMAS AYON.

D.

Mr. A. T. A. Torbert to Mr. C. N. Riotte.

C. N. RIOTTE.

UNITED STATES LEGATION,

SIR:

San Salvador, February 21, 1870.

Will you unite with the rest of the ministers in Central America to press upon the home Government the importance of having a naval station in the Bay of Fonseca, on Tigre Island? We have no station between San Francisco and Panama, and the place I name is the best harbor between the two places, and convenient to all the republics; and for various natural reasons the presence of one of our ships of war is constantly needed in Central American waters. I think the best thing would be for the United States to get possession or control of Tigre Island.

I have written to Baxter by this mail. I was in Gautemala last week and had a talk with Mr. Hudson, and he will urge this point on the Government. Let me hear from you.

A. T. A. TORBERT.

SIR:

E.

Mr. C. N. Riotte to Mr. A. T. A. Torbert.

UNITED STATES LEGATION, NICARAGUA,
Leon, February 26, 1870.

I have received your note of the 21st instant, and will not omit to call the attention of the Department of State to the important subject therein mentioned. During the last trying six months I seriously felt the absence of a national vessel, which I was unable to have sent here in spite of repeated requests on my part. C. N. RIOTTE.

These are correct copies.

C. N. RIOTTE.

No. 230.]

PERU.

No. 296.

Mr. Alvin P. Hovey to Mr. Fish.

LEGATION OF THE UNITED STATES,

Lima, Peru, August 22, 1870. (Received October 14.) SIR: As by this time you will have received my resignation as envoy extraordinary and minister plenipotentiary of the United States of America near the government of the republic of Peru, I deem it to be my duty to lay before the Department of State a short outline of my

services since the 10th of October, 1865, and views in regard to the present political and social condition of this republic, believing this to be necessary to aid my successor, and to place within easy reach of the Department such facts as may be of future service to our country.

Arriving in Lima, the capital of Peru, on the 20th of November, 1865, I found the city in the midst of a revolution between the forces of VicePresident Canseco and those of President Pezet. The dead were yet lying in the plaza. Much gallantry was displayed by the assailing party under Colonel Prado; Pezet's forces were compelled to retire with defeat, and Vice-President Canseco assumed the reins of government, with wild demonstrations of passion against Spain.

On the 26th of the same month, about sixty officers met, and resolved to appoint a dictator, and concentrating about two thousand persons in the plaza, or public square, proclaimed Colonel Mariano Ignacio Prado Dictator of Peru.

Under my instructions I awaited to "only recognize the constitutional government" until the 22d of May, 1866, when I was presented with all the courtesies due to a minister from the United States. This policy on the part of our Government was wise, although, for the time being, it retired me to the shades, and gave every other minister here a temporary triumph over me.

Going behind the date above named, I must not omit an important historical event, both for Peru and the cause of history, the 2d of May, 1866, "El Dos de Mayo," when the great battle of Callao was fought. On the 1st of May, after Mendez Nunez, the admiral of the Spanish fleet, had announced his intention to bombard Callao, as he had done Valparaiso, I was sent for by President Prado to meet him. He was surrounded by his cabinet, Galvez, Pacheco, Prado, Quimper, Tejeda, and by several of his staff, whose names I do not now remember. On entering the room, the President approached me and said, "I have sent for you to advise with you, not as a diplomat, but as one of the best friends of America in our great emergency. What do you think of to-morrow?" I replied that as an officer of my Government, that held friendly relations with both Spain and Peru, I had no right to advise him. "But," said he, "tell me privately, as a friend, what are your opinions?" I replied to him, and in this I may have done wrong, "If the fleet fight you with vigor and in the proper manner, they ought to whip you in fifteen minutes." The President and the entire cabinet seemed surprised, and desired to know my reasons. I replied, "The Spanish fleet can fire ten guns to your one, and if they close upon you so as to effectually use shell, grape, and canister, I believe they will silence all your batteries, and destroy your town; your only hope is to make them fight you at long range."

Galvez, the secretary of war, took issue with me, and did not believe that my views were correct. I said to him, "Very well, Mr. Secretary of War, Peruvians may be able to meet ten guns with one, but my people, though I have seen some little service, are not so firm and brave." The President then inquired what should be done. I repeated to him: "Make them, if possible, fight you at long range, and then you are sure of victory." "But by what means?" "It is not for me to dictate or say, but torpedoes are dangerous, and ships and sailors have a holy horror of such infamous and profane implements of war." That night, by some means, forty barrels of powder, connecting by wires with an electrical battery on shore, were sunk in the bay. The French informed the Spanish fleet of this fact, and before morning nearly every wire was cut. But the battle came on, on the glorious "Dos de Mayo,"

for so both Spain and Peru call it, and the fleet bore bravely up toward the forts, reaching within three-quarters of a mile. Then, as they were gallantly exchanging shots, two torpedoes exploded and threw columns of water at least 150 feet in the air. The whole Spanish fleet retired and fought at long range for the remainder of the day. Such was the cause of the success or defeat that followed this action, so glorious both to Peru and Spain. On the part of Peru it will be a feast day forever, and on the part of Spain the Duke of Callao claimed his title for this victory!

After the "Dos de Mayo," Prado came into Lima as a conqueror, the streets being strewn with flowers, and the populace actually kissing the hem of his garments.

In October, 1866, Prado was duly elected President, with an overwhelming majority of Congress in his favor. Several reforms were inaugurated by him before his election, among which may be named the abolition of pensions. This was a severe blow to the aristocracy of the country. The families of the "old hidalgos" actually monopolized the revenues and offices of the nation, and there was nothing left with which to support the government. Nearly every white family, in some way or other, were pensioned. Ex-officers, as well as those in service, drained the revenues, so that the machinery of government was nearly paralyzed. At these evils Prado struck, abolishing all hereditary pensions. He next attempted to introduce a system of capitation taxation, which proved a complete failure. Then one of his ministers, Quimper, sought to interfere with the rights of the church, and the women and priests rose en masse against the decree. I have always believed that Prado favored the greatest liberty, both civil and religious, and have no doubt that this belief in the minds of others hastened his downfall. The priests opposed him for this reason, and the women followed the counsel of their father confessors.

The grand marshal, Don Ramon Castella, after having been wisely banished from Lima by President Pezet, and sent on a trip to circumnavigate the globe, returned from his long voyage in May 1866, and found Prado, his protegé, in power. Still the "old man ambitious" could not rest where others held higher positions, and, without the shadow of a cause, left Lima for the south, raised the banner of rebellion, and died on the wayside, with his saddle for a pillow-a singular character, full of many virtues and some vices. Strange to say, Congress, then in session, voted him all the honors of a grand marshal, a mausoleum, and granted to his widow the same pension as if he had died in the defense of the established institutions of his country. Who would not dare to be a traitor with such liberal friends for enemies?

The republic, on my arrival, being disturbed by revolutionary movements in every direction, the legations and consulates were crowded with political offenders and disaffected persons seeking asylum. In December 1865, I addressed the Department, in my dispatch No. 4, on this subject, and deprecated the practice, as being fraught with evil consequences to the progress of order and to the future prosperity of this country. I was opposed by every other diplomatic representative here in my opinions, but at length triumphed over them all, and the government of Peru, on the 20th of January, 1867, announced that asylum, as heretofore practiced in Peru, should be forever abolished, thus placing herself upon the broad basis of other civilized nations.

Subsequently, on the 27th of December, 1867, after Prado's overthrow at Arequipa, he came to this legation, claiming protection. I immediately informed him that he should be safe from all illegal violence;