New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-16
Trouble Feared Over Pay
ment by U. S. of $780,
600 to Nicaragua.
THREE REPUBLICS
ALSO SEEK CASH
Costa RIGA, Honduras and
Salvador Say Rights
Are Menaced.

Washington. Sept. l5.-Dsnger o.
general Central American war between
Nicaragua on one hand and Costa Rics.
Honduras and Salvador on the other. IS
seen unless the United States pays
heavy indemnities 70 the latter three
republics, as it has guaranteed to pay
Nicaragua.
The State Department was advised
to-day that the Central American Court
Of Justice had decided that Salvador's
rights had been infringed By the treaty
between Nicaragua and the United
States, by which this government
agrees TO pay Nicaragua $3.0Oo,OOo for
perpetual rights 70 the Nicsraguan
Canal route and n.nety-nineyesr
right TO a naval base on Fonseca Bay.
Salvador fronts on tits bay. and con
tends that an American naval station
there would menace her liberty Of IN
gress and egress.
Costa Ricas rights 20 indemnity were
recognized IN a previous decision OF the
ne NtssAoA VI NlAf NaAAoA
20 the United States was held 10 have
violated Costa Rica's interests, a. par;
Of the route Is the San Juan River, the
boundary between Costa Rica and Mica
ragua. Il was asserted that Nicaragua
alone could not grant the use OF tins
river 20 the United States.
IL seems inevitable % diplomats here
hat unless the United States indemni-
tes these other countries a general
Central American war will follow, with
the purpose Of forcing Nicaragua 10
share the 100000 indemnity.
The State Department indicated to
Gay that no attention would be paid %
the courts decisions. The United
states. 10 was declared, was not party
% the convention establishing the
court, in which only the FIVE Central
American republics are represented.
Although this government encouraged
the formation of the court IN 1907 and
vas represented in the conference
held IN Washington which established
L.. the department takes the view that
a. the United States IS mot committed
IT, writing the validity Of the decision
reed not be recognized.
This attitude is taken in spite Of the
.act that IN ratifying the treaty last
February the Senate tackled on the
rroviso that the rights OF Salvador,
Costa Rica and Honduras were not %
be affected by IT, In addition 20 filing
suits in the Central American Court
the republics had protested 70 the
American government against ratiics-
tion Of the treaty.
Congress has appropriated the So
100000. and IL IS now at the disposal
OF the State Department. According 70
the treaty, the United States may sp-
ply the money on Nicaragus's debt or
for other public purposes IN Nicaragua
The department has not indicated what
action 10 will take. Under the treaty
the money must be paid ION the date
Of the exchange % rstiications," and
this is 20 take place las soon as pos
slble."
Senator Borah and other Republican
Senators opposed ratification Of the
treaty and appropriation % the money,
predicting that the present situation
would develop. Il is apparent. u is
declared. that the United States has
only begun paying for tse Canal route
and FOnseca Bay privileges. Before
the damages claimed BY the three other
countries are acquitted this govern
ment probably viii have 90 pay the
original price several times over.