The dispute with Nicaragua has reached an acute stage. Lord
Kimberley insists on an apology for the outrage on the British Consul, and the payment of £15,000; and has informed the State Government that unless it yields he will occupy Corinth, and collect the money from the Customs-duties. The local Government, relying upon aid from the United States, is still obstinate, though a British squadron has reached the port; but the Government of Washington, aware that Great Britain seeks nothing but a just reparation, is indisposed to interfere. That is both friendly and fair, unless Washington assumes a responsible Protectorate over Nicaragua ; but the position of these little States requires much further definition. With their incessant revolutions they can hardly be said to have Governments at all, yet the party in power is always ready to defy foreigners in the hope that the Union may take up their quarrel. Nevertheless, they do not obey the Union, and are by no means always friendly to it, Nicaragua, for
instance, feeling towards Washington very much as a clergy- man does towards the man who has bought the next pre- sentation. It is quite aware that if the Canal is ever cut, its independence will be only nominal, if indeed even a nominal independence can be retained.