A.—3.

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Prohibitions. —No prohibition shall be imposed upon the importation of any article the growth, produce, or manufacture of the territories of either of the two Contracting Parties into the territories of the other which shall not equally extend to the importation of the same or the like article being the growth, produce, or manufacture of any other country; nor shall any prohibition be imposed on the exportation of any article from the territories of either of the two Contracting Parties to the territories of the other which shall not equally extend to the exportation of the same or the like article to the territories of all other nations. (Article V.) Diplomatic Agents and Consuls. —It shall bo free for each of the two Contracting Parties to appoint Consuls for the protection of trade, to reside in the dominions and territories of the other Party ; but before any Consul shall act as such, he shall, in the usual form, be approved and admitted by the Government to which he is sent; and either of the Contracting Parties may except from the residence of Consuls such particular places as either of them may judge fit to be excepted. The diplomatic Agents and Consuls of each of the two High Contracting Parties, in the dominions or territories of the other, shall enjoy whatever privileges, exemptions, and immunities are or shall be granted there to Agents of the same rank belonging to the most favoured nation. (Article XIX.) Transit between Atlantic and Pacific Oceans. —The Eepublic of Nicaragua hereby grants to Great Britain, and to British subjects and property, the right of transit between the Atlantic and Pacific Oceans through the territories of that Republic on any route of communication, natural or artificial, whether by land or water, which may now or hereafter exist or be constructed under the authority of Nicaragua, to be used and enjoyed in the same manner and upon equal terms by both Parties and their respective subjects and citizens, the Bepublic of Nicaragua, however, reserving its full and complete right of sovereignty over the same: and, generally, the Eepublic of Nicaragua engages to grant to Great Britain and to British subjects the same rights and privileges, in all respects, in regard to the transit and the rates of transit, and also as regards all other rights, privileges, or advantages whatsoever, whether relating to the passage and employment of troops or otherwise, which are now or may hereafter be granted to or allowed to be enjoyed by the most favoured nation. (Article XX.) Her Majesty the Queen of the United Kingdom of Great Britain and Ireland hereby agrees to extend her protection to all such routes of communication as aforesaid, and to guarantee the neutrality and innocent use of the same. Her Britannic Majesty also agrees to employ her influence with other nations to induce them to guarantee such neutrality and protection. And the Eepublie of Nicaragua, on its part, undertakes to establish two free ports, one at each of the extremities of the communication aforesaid, on the Atlantic and Pacific Oceans. At these ports no tonnage or other duties shall be imposed or levied by the Government of Nicaragua on the vessels of Great Britain, or on any effects or merchandise belonging to subjects of Great Britain, or of any other country, intended bond fule for transit across the said route of communication, and not for consumption within the Eepublic of Nicaragua. Her Britannic Majesty shall also be at liberty, on giving notice to the Government or authorities of Nicaragua, to carry troops, provided they are destined for a British possession, or places beyond sea, and are not intended to be employed against Central American nations friendly to Nicaragua, and munitions of war, and also to convey criminals, prisoners, and convicts, with their escorts, in her own vessels or otherwise, to either of the said free ports, and shall be entitled to their conveyance between them, without obstruction by the authorities of Nicaragua, and without any charges or tolls whatever for their transportation on any of the said routes of communication. And no higher or other charges or tolls shall be imposed on the conveyance or transit of the persons and property of subjects of Great Britain, or of the subjects and citizens of any other country, across the said routes of communication, than are or may be imposed on the persons or property of citizens of Nicaragua. (Article XXI.) It is understood, however, that Her Britannic Majesty, in according protection to such routes of communication, and guaranteeing their neutrality and security, always intends that the protection and guarantee are granted conditionally, and may be withdrawn if Her Britannic Majesty should deem that the persons or company undertaking or managing the same adopt or establish such regulations concerning the traffic thereupon as are contrary to the spirit and intention of this treaty, either by making unfair discriminations in favour of the commerce of any other nation or nations, or by imposing oppressive exactions or unreasonable tolls upon mails, passengers, vessels, goods, wares, merchandise, or other articles. The aforesaid protection and guarantee shall not, however, be withdrawn by Her Britannic Majesty without first giving six months' notice to the Eepublic of Nicaragua. (Article XXIII.) If applicable to British Colonies. Subjects : Commerce, Import Duties, fyc. —Applicable to the British " dominions." (Article V.) PEESlA.—Octobee 28, 1841. Commerce and Navigation. —No time fixed. Most-favoured-Nation Treatment. Subjects: Import and Export Duties, Goods and Manufactures. —The merchants of the two mighty States are reciprocally permitted and allowed to carry into each other's territories their goods and manufactures of every description, and to sell or exchange them in any part of their respective countries; and on the goods which they import or export, Custom duties shall be levied, that is to say, on entering the country the same amount of Custom duties shall be levied, once for all, that is levied on merchandise imported by the merchants of the most favoured European nations; and at the time of going out of the country the same amount of Custom duties which is levied on the merchandise of merchants of the most favoured European nations shall be levied from the merchants subjects of the High Contracting Parties, and, except this, no claim shall be made upon the merchants of the two States in each other's dominions on any pretext or under any denomination ; and the merchants or persons connected with or dependent upon the High Contracting Parties in each other's dominions mutually shall receive the same aid and support, and the same respect, which are received by the subjects of the most favoured nations. (Article I.)