rights of the Mosquito Indians, who held a territory, also with
elastic boundaries, inconveniently near the San Juan River, the
Caribbean entrance to the Nicaraguan thoroughfare. From Great
Britain, moreover, must come a large portion of the capital to be
employed in constructing the canal which was expected soon to cut
the isthmus.

The local situation soon became acute. Costa Rica, Nicaragua, and
the Mosquitoes all claimed the mouth of the San Juan; Honduras
and Nicaragua, the control of the Pacific outlet. British
diplomatic and naval officers clashed with those of the United
States until, in their search for complete control, both exceeded
the instructions which they had received from home. The British
occupied Greytown on the San Juan and supported the Mosquitoes
and Costa Rica. The Americans won favor in Nicaragua and
Honduras, framed treaties allowing transit and canal
construction, and proposed the annexation of Tigre Island, which,
commanded the proposed Pacific outlet.

To untie these knots, Sir Henry Bulwer was sent to Washington to
negotiate with John M. Clayton, President Taylor's Secretary of
State. Neither of these negotiators was of the caliber of Webster
and Ashburton, and the treaty which they drew up proved rather a
Pandora's box of future difficulties than a satisfactory
settlement. In the first place it was agreed that any canal to be
constructed over any of the isthmuses was to be absolutely
neutral, in time of war as well as of peace. Both nations were to
guarantee this neutrality, and other nations were invited to join
with them. No other nations did join, however, and the project
became a dual affair which, owing to the superiority of the