[Extract.]

Mr. Lawrence to Mr, Seward

No. 7.]

Sir: Since my arrival, three months ago, I have been studying the people here and their political status. I shall try to give you the conclusions that I have come to, after weighing well all the facts that have come to my knowledge and from which my premises are drawn. When I first came here, most of the prominent people called upon me, for which I was indebted not only to my official position, but to the fact that Mr. Molina, minister from Nicaragua, had courteously written to them, requesting them so to do. To these gentlemen I am indebted, as well as to the officials and to other sources, for my impressions.

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The President, Dr. Castro, LL. D., has been in power one year, and his term expires in two years from now. The secretary of state has held his office about three years, and the commander of the troops since 1859.

The patriotism of these gentlemen has been so great that each and all have induced their sons and relatives to hold subordinate offices under government. They all have been fortunate enough to have many kindred, so that the ramifications of the three parent trees extend through every department—clerical, civil, and military. The office of chief engineer is the most lucrative office under government. He has charge of all disbursements for building roads through the country, and at present for bringing water into the capital. * * * He is the son-in-law of the President. There is a loan of £200,000 being negotiated in London; the disposition of this sum will be in the hands of the Executive. The government organ contains editorials indirectly advising a longer term of office for the administration. Its extracts from foreign journals are all in favor of centralizing power in the Executive. It is spoken of as a certainty that the government will cause to be passed through congress a bill for an increase of the duration of the presidential term from three to five years.

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There is another party, most of the leaders of which have travelled in foreign parts; many have been to the United States. They are conservatives. All they wish for is peace, a stable government, and the development of the resources of the country, through foreign capital and the introduction of foreign labor. I have been approached by them all in conversation by their saying what a country it would be if it belonged to the United States; how wrong the government was in not encouraging emigration, and how hurtful revolution and personal aggrandizement had proved to the credit and prospects of the state. Their hope and creed is that the railroad, if built, will bring a great emigration of Anglo-Saxons into the country, in which the Spanish or native element will be swallowed up, and that Costa Rica will become a new California. These ideas do not seem patriotic; but the country is not old, there have been many revolutions, and the United States is looked upon with admiration and awe since her recent vindication of principle.

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I am, with great respect, your obedient servant,

A. G. LAWRENCE.

Hon. William H. Seward, Secretary of State, Washington, D. C.