he former Government expressly
recognized the sovereignty of the latter over the strip, and a limited
form of self-government was guaranteed to the Mosquito Indians, to be
exercised according to their customs, for themselves and other dwellers
within its limits. The so-called native government, which grew to be
largely made up of aliens, for many years disputed the sovereignty of
Nicaragua over the strip and claimed the right to maintain therein a
practically independent municipal government. Early in the past year
efforts of Nicaragua to maintain sovereignty over the Mosquito territory
led to serious disturbances, culminating in the suppression of the
native government and the attempted substitution of an impracticable
composite administration in which Nicaragua and alien residents were to
participate. Failure was followed by an insurrection, which for a time
subverted Nicaraguan rule, expelling her officers and restoring the old
organization. This in turn gave place to the existing local government
established and upheld by Nicaragua.

Although the alien interests arrayed against Nicaragua in these
transactions have been largely American and the commerce of that region
for some time has been and still is chiefly controlled by our citizens,
we can not for that reason challenge the rightful sovereignty of
Nicaragua over this important part of her domain.

For some months one, and during part of the time two, of our naval ships
have been stationed at Bluefields for the protection of all legitimate
interests of our citizens. In September last the Government at Managua
expelled from its territory twelve or more foreigners, including two
Americans, for alleged participation in the seditious or revolutionary
movements against the Republic at Bluefields already mentioned; but
through the earnest remonstrance of this Government the two Americans
have been permitted to return to the peaceful management of their
business. Our naval commanders at the scene of these disturbances by
their constant exhibition of firmness and good judgment contributed
largely to the prevention of more serious consequences and to the
restoration of quiet and order. I regret that in the midst of these
occurrences there happened a most grave and irritating failure of
Nicaraguan justice. An American citizen named Wilson, residing at Rama,
in the Mosquito territory, was murdered by one Argueello, the acting
governor of the town. After some delay the murd