United States relations with Nicaragua concerning an interoceanic canal, 1850-1903 Authors Rasp, Harold Andrew, 1942- Publisher The University of Arizona. Rights Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author. Download date 04/10/2021 06:34:39 Link to Item http://hdl.handle.net/10150/318075 UNITED STATES RELATIONS WITH NICARAGUA CONCERNING ■ AN INTEROCEANIC CANAL, 1850-1903 by Harold Andrew Rasp A Thesis Submitted to the Faculty of the DEPARTMENT OF HISTORY \ . In-.Partial Fulfillment of the Requirements For the Degree of ■ MASTER OF ARTS In the Graduate College THE UNIVERSITY OF ARIZONA 1 9 6 9 STATEMENT BY AUTHOR This thesis has been submitted in partial fulfill­ ment of requirements for an advanced degree at The University of Arizona and is deposited in the University Library to be made available to borrowers under rules of the Library. - . Brief quotations from this thesis are allowable without special permission, provided that accurate acknowl­ edgment of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by the head of the major department or the Dean of the Graduate College when in his judgment the proposed use of the material is in the inter­ ests of scholarship. In all other instances, however, permission must be obtained from the author. .SIGNEDs APPROVAL BY THESIS DIRECTOR This thesis has been approved on the date shown below: X C.HOTN] ate Professor of HEstory PREFACE As an undergraduate at The University of Arizona, I became interested in Latin American history while taking Dr. Mario Rodriguez's course in that subject. His lectures and example compelled me to study the field in other courses and through individual research. I found Central American history to be a field worth exploring and was particularly interested in United States relations with the area. I decided to write a thesis on United States- Nicaragua relatipns because of America's special interest in the latter's canal route. Most of the research was done in The University of Arizona Library. The thesis is based primarily on diplomatic correspondence and seeks to describe and analyze the United States policy towards Nicaragua's canal during the latter half of the nineteenth century. While researching and writing the thesis I received help from numerous people, but I alone bear full responsi­ bility for the work. I wish to thank The University of Arizona History Department for purchasing the microfilms entitled Despatches from United States Consuls in Managua, 1884-1906, and Notes from the Nicaraguan Legation in the United States to the Department of State, 1862-1906, which provided invaluable information. The University of Arizona iii iv Library and especially, staff member Joseph Park also helped me gather information. Dr. Russell C. Ewing guided my efforts through the whole project. His advice and criticism were of great assistance especially during the writing phase of the work. Dr. George Brubaker helped improve the style of the thesis with his critique of the first draft. They as well as other faculty members and fellow graduate students provided the support and encouragement which enabled me to complete the project. TABLE OF CONTENTS Page ABSTRACT ........... ....................... .. vi CHAPTER 1. INTRODUCTION . ... ... 1 2. UNITED STATES AND THE.NICARAGUA CANAL, 1850-1860 ......... ............ 10 3. PERIOD OF TRANSITION, 1860-1877 . ...... 67 4. AN AMERICAN CANAL . 87 . Conclusion ............... 147 SELECTED BIBLIOGRAPHY ............... 151 v ABSTRACT In 1825, Secretary of State Henry Clay formed the policy of a neutral canal open to all nations on equal terms and dominated by no one country. This was the policy America followed in regard to the Nicaragua canal until 1880. Under the neutral canal policy the United States •removed British influence from Nicaragua's canal route •through the 1850 Clayton-Bulwer treaty and guaranteed American rights in the canal with the Dickinson-Ayon treaty of 1867. During President Grant's administration the neutral canal idea was challenged, but was not completely reversed until 1880 under President Hayes. All succeeding administrations, except Cleveland's, followed the policy of an American controlled canal. _ Washington had consistently encouraged American private enterprise to construct the Nicaragua canal but none of the efforts succeeded. In the late 1890's the United States knew it had to build the canal itself. However, Nicaragua refused to grant America complete control of the canal and treaty negotiations failed in 1902. Congress, meanwhile, decided to build the canal in Panama thereby ending American efforts to construct the Nicaragua canal. CHAPTER 1 INTRODUCTION ' . This thesis is a study of United States relations with Nicaragua concerning a transisthmian canal. The study starts at 1850 because by that year the United States had decided to take an active part in Central American affairs. America wanted to curtail Great Britain's influence over the Nicaraguan transit route as well as make the route a neutral highway open to all. In the decades following 1850, the United States encouraged its citizens to build the Nicaragua canal. When private enterprise failed to complete the work, Washington resolved to construct the canal itself. In 1880, America decided to control the canal uni laterally, but did not attain its goal until 1903. The 1903 acquisition of the Panama route ended America's interest in constructing the Nicaragua canal. At this point the thesis ends. The Nicaraguan canal project first came to the attention of the United States in the 1820's. In 1823 the provinces of Central America separated from Mexico and formed the. Republic of Central America. The new government sent Antonio Jose Canas to the United States as its repre­ sentative. In 1825, Minister Canas informed Secretary of 1 2 State John Quincy Adams that his government wanted a transisthmian canal constructed through Nicaragua. He asked Washington to encourage Americans to undertake the enterprise because Central America lacked the means to build the canal. Secretary Adams left office without acting upon the suggestion.^ Henry Clay, Adams' successor, was very interested in the Nicaragua canal. However, he refused to commit the United States to the project without adequate information. The Secretary of State instructed the American representa­ tive in Central America to determine the feasibility and cost of the canal, but warned him not to encourage Central American hopes for American aid. America's representatives to the 1826 Panama Congress were also directed to gather information about the canal. Clay instructed these dele­ gates to tell the assembly that the United States wanted the canal to benefit all the nations of the globe. The message was not delivered, but indicated America's attitude toward the canal. The United States desired an inter­ national waterway open to all and dominated by. no one ■^William R. Manning, collector, Diplomatic Corre­ spondence of the United States concerning the Independence of the Latin-American Nations Vol. II (New Yorks Oxford ” University Press, 1925), pp. 881-882, Note of Antonio Canas, Central American Minister to the United States, to John Quincy Adams, United States Secretary of State, February 8 , 1825, hereafter cited as Independence« nation. This idea was a cardinal principle of American 2 canal diplomacy during most of the nineteenth century. Henry Clay's information gathering activities did. • not result in an American commitment to Nicaragua's canal project. However, an American firm, Aaron Palmer and Associates of New York, became interested in the enterprise and negotiated a canal construction contract with the Central American government in 1826. The company could not raise enough.capital in New York or London and the project 3 collapsed. After this failure no American government or company expressed great interest in the Nicaragua canal until the late 1840's. • The only noteworthy exception to the trend occurred in 1830. Qeneral Verveer, a plenipotentiary from the King of the Netherlands, arrived in Guatemala City and began negotiations for a canal concession. In 1830, Verveer, on 2 Manning, "Independence, Vol. I, pp. 239-241, Note of Henry Clay, United States Secretary of State, to William Miller, United 'States Charge d 'Affaires to Central America, April 22, 1825; Miles P. Du Val, Cadiz to Cathay (Stanford^ California: Stanford University Press, 1940), pp. 5-6. 3 ‘ ° Hubert Howe Bancroft, History of Central America Vol. Ill (San Franciscos The History Company, Publishers, 1887), pp. 741-742; William R. Manning, collector, Diplo­ matic Correspondence of the United States Inter-American Affairs 1831-1860 VoTI III (Washington: Carnegie Endowment for'International Peace, 1933), pp. 94-98, Note of Juan Galindo, Special Agent of Central America to the United States, to John Forsyth, United States Secretary of State, June 26, 1835, see enclosures, this source hereafter cited as Inter-American Affairs.. behalf of a Dutch company, received a canal concession from the Republic of Central America.^ Washington learned of the grant from its consul in Guatemala and took immediate countermeasures. Secretary of State Edward Livingston instructed the United States charge d'affaires to Central America to obtain a copy of the concession and to protect American rights in the canal. The United States wanted the same canal privileges as any other nation. American objec­ tions to the Dutch canal were not presented because the enterprise quickly folded when the King of the Netherlands did not provide financial support. This incident illus­ trated' America's desire for a canal in which all nations 5 had equal rights. In the 1840's Great Britain threatened the American concept of an international canal. Ever since the seven­ teenth century British influence in Central America had grown.