The herald., 1898-02-02

| MANAGUA, Nicaragua, Feb 1.-Gen
Santos ]. Zelaya was today inaugurated
president of Nicaragua for SECOND
term of four years. There were no dis
turbances and the city was gaily deco
rated.
THE CANAL QUESTION
NEW YORK, Feb. 1.-The Herald to-
day prints an interview with President
Zelaya of Nicaragua, obtained by its
correspondent in Managua yesterday:
Nicaragua would prefer dealing di-
rectly with the United States" said Ze-
laya, '1n the matter of a canal across
our country. The canal company has
not lived up to its obligations-those in
| Guided in the concessions-and we con-
slider that 1t has deceived us, and we be-
lleve that further dealings with it would
only result in further deception. For
this reason we would prefer dealing di-
| rectly with your government, know
| ing that that Is stable, which the canal
| company is not
I'VE consider that the concessions
| which are now held by the canal COM
pany expired some time ago and that
| lHCy al e ClViS fNpib' dlthou6A thN
canal company thinks differently The
Tiptapa canalization is one of the most
striking illustrations of the failure of
the company to keep its agreements
and also of the failure Of the chief feat
ures of the arrangement with Mr.. Baker,
| the retired United States Minister.
Mr.. Baker was to have taken up the
| Tiptapa canalization with the canal
| h RI ha ar
, States, and failing to reach some sort
of an understanding with the company,
he was to have ehdeavored to have
the matter submitted to arbitration.
| But the arrangement has been cancel
| led by Congress and consider that the
action of Congress was brought about
through the influence of the canal COM
pany, which does not wish to be called to
account.
I'VE would have no objection to the
Congress of the United States passing
bill looking to the support of private
capital in building a canal, but when
it came to the United States actually
controlling the canal, this government
would have something to say about that
But in the event Of a possible transfer of
control the matter could be discussed
| ny lIllS SON liIlStlt anu lHc OllltCb
States. The protest that was made when
! the last Nicaragua canal bill was pend
ing in the Senate was made at the in
stance of the Diet of the Greater Republic
of Central America-one of the provi-
sions of the concessions preventing the
transfer Of the control of a canal to any
government without the consent of Nj
caragua.
mis- of ic to-
nored by this government l believe he
has been privately requested by the
United States government to make a
study of the proposed canal and canal
matters and to make a report along
these lines and on matters in general.
Mr. Morgan brought with him recon-
mendations directed to the American Le-
cation, for which special considerations
have been extended on the part of this
government.
Mr.. Bakers mission on the part of
this country in the United States which
has now been set aside. has been COM
monty misunderstood. l considered Mr.
Baker a man of influence and one who
could take up the matters proposed with
every prospect Of carrying them through
with success. Mr. Baker represented
that he would be able to form a syndi-
cate which would buy from us our rail-
road and our lake steamers We de-
sired to dispose of these to private par
ties in order to raise money sufficient to
enable us to pay our English debt. Our
total debt, by the way, is only Sc, 900, 900
in this money"
What of the political condition of the
country?"
"a canal or communication from the
interior to the Atlantic coast is what we
need to settle us politically, as we'll as
in other ways. Either would allay the
restlessness and would end desires for
revolution. All property would appre-
ciate. The Conservatives property and
the Liberals property would go up In
value together and the whole country
would take on new aspect. The canal
would unity all the people and all polit-
ical uneasiness would be lost in the i'm
proved conditions of business Let US
but get an opening for the passage of
our products and the whole country
would become prosperous.
I'VE are glad to have Americans come
! in They are able and energetic. They
will help US to build up the country
We consider our country to have as
great natural attractions as any in Cen
trail America 1t is larger than Costa
| Rica and more capable of development
in every way. Costa Rica has in San
Jose a very large city, but we have sew
eral. They are many miles apart, but
| commercial communication between
them would bind the country together
very strongly and soon give it a leading
place in this part of the world"
would the concession granted to the
Atlas company interfere with the opera
tion of canal?"
mot at all. The concession was grant
ed to the company for navigation right
| on the San Juan river and 1t is not such
as to retard the construction Of canal.
This government took good care, in
granting that concession, that it should
not be such as to lead to any interna-
tional complication"
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