a dispute between the two great
American powers--England and the United States--for influence in Central
America. It was supposed that the convention completed between the two
ministers (Bulwer and Clayton) had put an end to the hostile feeling
which had arisen. The Americans were not, however, satisfied with the
arrangement, and put an interpretation upon the treaty opposed to that
which England acknowledged. The British government, by going to the
verge of pusillanimity, averted war, but the adjustment made was only
temporary; the Americans virtually ignored the treaty, and England,
while virtually submitting, still preserved an ostensible recognition
of her rights. These events gave rise to fierce debates in the American
congress and the British parliament, but an open rupture between the two
countries, which appeared imminent, did not take place. The subject of
Central America became a generic question, including various specific
grounds of quarrel. A question arose as to the British protectorate of
Mosquito. The English government issued a proclamation, declaring the
Bay Islands a British colony. This offended the United States, and an
angry, though courteous, correspondence ensued between Mr. Buchanan and
the Earl of Clarendon. The English were anxious to refer the question to
the decision of a third power, to which the Americans would not consent.
A convention was formed with the republic of Honduras on the 27th of
August, which vested in the latter power certain disputed territory
which had given rise to much heat and dispute between England and the
United States.

INTERNATIONAL MARITIME LAW.

At the congress of Paris, where peace with Russia was negotiated, a new
principle was recognised in international maritime law, that "A neutral
flag covers an enemy's goods." This was not a popular measure in
England. It was believed to be a blow struck by France at the maritime
power of Britain. The English navy regarded the principle with much
hostility, and it was hotly debated in parliament, a large party
opposing the government for consenting to such a principle.

INDIA.

The general condition of the British colonies continued prosperous;
but in India certain potent elements of disturbance were at work.
The annexation of Oude began to produce its fruits, the people of all
ranks--high and low, military and civil--were preparing for revolt;
and a scheme was set on foot for corrupting the native army of