DIFFERENCE WITH THE UNITED STATES.
The “Clayton-Bulwer treaty” of 1850 was still the fruitful source of contention. It was hoped that the “Dallas Clarendon treaty” of 1856 would settle all disputes, but this hope was unsustained by events. The President of the United States recommended the abrogation of these treaties altogether, and the commencement de novo by the diplomatists of the two nations of negotiations for a new settlement. The gist of the dispute lay within a small compass. Both governments had agreed to acquire no territory in Central America. England affirmed that such a stipulation fairly assumed that she was to retain possession of the territory and protectorate she already held and exercised. America denied the correctness of this interpretation; alleging that the idea entertained by the statesmen of the republic was, that neither power should hold any territory in Central America. The Americans declared that if England acquired or retained territory in Central America they also would acquire territory there, and the result must be a struggle between the two nations for dominion in Central America. Whereas if England renounced all territorial possession, the United States would concur in a mutual arrangement for the neutrality of the great transit way across the American continent between the Atlantic and Pacific. The proposal of the United States appeared to be the only practicable one to secure peace. The discussion, however, was maintained with much courtesy and resolution on both sides, and the dispute remained open.