He says the declaration of President Monroe anterior to the treaty show that he and his Cabinet had a clear prevision of the great future of that region. The development of the interests of the British possessions also continued, though possibly less rapidly. The Government are of the opinion that the canal, as a water way between the two great oceans and Europe and Eastern Asia, is a work which concerns not only the American Continent, but the whole civilized world. With all deference to the considerations which prompted Mr. Blaine he cannot believe that his proposals will be even beneficial in themselves. He can conceive a no more melancholy spectacle than competition between nations in the construction of fortifications to command the canal. He cannot believe that any South American States would like to admit a foreign power to erect fortifications on its territory, when the claim to do so is accompanied by the declaration that the canal is to be regarded as a part of the American coast line. It is difficult to believe, he says, that the territory between it and the United States could retain its present independence. Lord Granville believes that an invitation to all the maritime states to participate in an agreement based on the stipulations of the Convention of 1850, would make the Convention adequate for the purposes for which it was designed. Her Majesty’s Government would gladly see the United States take the initiative towards such a convention, and will be prepared to endorse and support such action in any way, provided it does not conflict with the Clayton-Bulwer treaty.
Lord Granville, in a subsequent despatch, draws attention to the fact that Mr. Blaine, in using the argument that the treaty has been a source of continual difficulties, omits to state that the questions in dispute which related to points occupied by the British in Central America were removed in 1860 by the voluntary action of Great Britain in certain treaties concluded with Honduras and Nicaragua, the settlement being recognized as perfectly satisfactory by President Buchanan. Lord Granville says, further, that during this controversy America disclaimed any desire to have the exclusive control of the canal.
The Earl contends that in cases where the details of an international agreement have given rise to difficulties and discussions to such an extent as to cause the contracting parties at one time to contemplate its abrogation or modification as one of several possible alternatives, and where it has yet been found preferable to arrive at a solution as to those details rather than to sacrifice the general bases of the engagement, it must surely be allowed that such a fact, far from being an argument against that engagement, is an argument distinctly in its favor. It is equally plain that either of the contracting parties which had abandoned its own contention for the purpose of preserving the agreement in its entirety would have reason to complain if the differences which had been settled by its concessions were afterwards urged as a reason for essentially modifying those other provisions which it had made this sacrifice to maintain. In order to strengthen these arguments, the Earl reviews the correspondence, quotes the historical points made by Mr. Blaine and in many instances introduces additional data as contradicting the inferences drawn by Mr. Blaine and supporting his own position.
The point on which Mr. Blaine laid particular stress in his despatch to Earl Granville, is the objection made by the government of the United States to any concerted action of the European powers for the purpose of guarantying the neutrality of the Isthmus canal or determining the conditions of its use.
CHILI AND PERU.
The entire question is complicated by the war between Chili and Peru, the latter owning immense guano deposits in which American citizens have become financially interested. These sought the friendly intervention of our government to prevent Chili, the conquering Republic, from appropriating these deposits as part of her war indemnity. The Landreau, an original French claim, is said to represent $125,000,000, and the holders were prior to and during the war pressing it upon Calderon, the Peruvian President, for settlement; the Cochet claim, another of the same class, represented $1,000,000,000. Doubtless these claims are speculative and largely fraudulent, and shrewd agents are interested in their collection and preservation. A still more preposterous and speculative movement was fathered by one Shipherd, who opened a correspondence with Minister Hurlburt, and with other parties for the establishment of the Credit Industriel, which was to pay the $20,000,000 money indemnity demanded of Peru by Chili, and to be reimbursed by the Peruvian nitrates and guano deposits.
THE SCANDAL.
All of these things surround the question with scandals which probably fail to truthfully reach any prominent officer of our government, but which have nevertheless attracted the attention of Congress to such an extent that the following action has been already taken:
On February 24th Mr. Bayard offered in the Senate a resolution reciting that whereas publication has been widely made by the public press of certain alleged public commercial contracts between certain companies and copartnerships of individuals relative to the exports of guano and nitrates from Peru, in which the mediation by the Government of the United States between the Governments of Peru, Bolivia and Chili is declared to be a condition for the effectuation and continuance of the said contracts; therefore be it resolved, that the Committee on Foreign Relations be instructed to inquire whether any promise or stipulation by which the intervention by the United States in the controversies existing between Chili and Peru or Chili and Bolivia has been expressly or impliedly given by any person or persons officially connected with the Government of the United States, or whether the influence of the Government of the United States has been in any way exerted, promised or intimated in connection with, or in relation to the said contracts by any one officially connected with the Government of the United States, and whether any one officially connected with the Government of the United States is interested, directly or indirectly, with any such alleged contracts in which the mediation as aforesaid of the United States is recited to be a condition, and that the said committee have power to send for persons and paper and make report of their proceedings in the premises to the Senate at the earliest possible day.
Mr. Edmunds said he had drafted a resolution covering all the branches of “that most unfortunate affair” to which reference was now made, and in view of the ill policy of any action which would commit the Senate to inquiries about declaring foreign matters in advance of a careful investigation by a committee, he now made the suggestion that he would have made as to his own resolution, if he had offered it, namely, that the subject be referred to the Committee on Foreign Relations. He intimated that the proposition prepared by himself would be considered by the committee as a suggestion bearing upon the pending resolution.