The Red Cloud chief., 1898-11-04
MAY BLOCK THE CANAL WORE,

The Latest Nicaragua Concession Only
Speculation.
WAsmyGToN. Nov. 9 There appears
to have been good reason for the
prompt action Of the Nicaraguap con.
gress In ratifylng the new agreement
entered into between the president,
zelaya, with Eyre & Cragin for the
Nicaraguan canal concession. Nicar.
aqua will cease to exist as o republis
to-day. and any future action respect
ing foreign concession In connection
with the canal will have to be taken
BY tho United States of Central
America" comprising what. will here
after be known as the states of Hon.
huras. Salvador and Nicaragua.
As understood here, these gentle
men have not actually obtained the
concession for building the canal--this
Is not admissible under the present
terms Of the contract with the Mar.
ftime Canal company-but an option,
which gives them the right to con.
struct the canal when the contrace
now held by the Maritime Canal com.
pany shall lapse. Whatever may be
the technical name for the agreement
which has been recently entered into
there seems little doubt that Eyre d
Cragin have obtained from the Nicar-
aguan government an important and
valuable privilege which will have to
be considered when the time comes for
the United States government to take
hold Of tho project.
After to-day tho national and inter-
national affairs Of Nicaragua. Hondu-
ras and Salvador will be conducted bv
a provisional government. This row
crnment will be inaugurated to-day
and will be located at Amapalps. Hon
duras. In accordance with the new con-
stitution recently agreed upon by ths
three countries, a provisional govern.
ment, comprising a delegate from each
OF the three states, to sit at the point
named, Is to have control Of all ma
tional, international and internal af-
fairs until March is. when president
Of "Estados Unidos dc Centric Amer.
ics" Is to be elected.
The presidents respectively of Hon..
duras. Salvador and Nicaragua will
hereafter be known rs governors, and
all the congresses will become legis-
latures, as with our own states.
In granting to another company tho
right to- build the Nicaragua canal,
provided the contract now held BY the
Maritime Canal company lapses as o
result OF failure TO carry out its terms,
Nicaragua has greatly embarrassed
the American administration. The
embarrassment Of the administration
lies in the fact that ID has indorsed the
project OF the Maritime Canal company
and that bills arc now pending In Con.
gress providing government aid in tho
construction OF the canal. one of which,
II is expected will pass during the
coming session.
From tho way the authorities talk
IL Is evident to their minds that tho
new company interested in tho canal
has simply como in to complicate the
situation. One OF the officials said
that no believed that they could b.
bought out andit was to obtain such
. result that it negotiated the agree-
ment It had made with the Nicaraguan
government. Article 4s Of the conces-
sions given to- the Nicaragua Canal
company provides that II at the explr-
alton of ten years 1.-The work should
not be completed SO as to
have tho maritime communication
between, tho two oceans opened, in
consideration,of the great capital tho
company may have invested in tho on.
terprise and OF the good will and
ability IL may have shown and the
difficulties. encountered, tho republic
binds itself to- concede q new exten-
sion."
Furthermore, the contract provides.
that "the state binds itself not to make
any subsequent concession for the,
opening OF the canal between the two
oceans during tho term Of the present
concession"