The local situation soon became acute. Costa Rica, Nicaragua, and
the Mosquitoes all claimed the mouth of the San Juan; Honduras and
Nicaragua, the control of the Pacific outlet. British diplomatic and
naval officers clashed with those of the United States until, in their
search for complete control, both exceeded the instructions which they
had received from home. The British occupied Greytown on the San Juan
and supported the Mosquitoes and Costa Rica. The Americans won favor
in Nicaragua and Honduras, framed treaties allowing transit and canal
construction, and proposed the annexation of Tigre Island, which,
commanded the proposed Pacific outlet.

To untie these knots, Sir Henry Bulwer was sent to Washington to
negotiate with John M. Clayton, President Taylor's Secretary of
State. Neither of these negotiators was of the caliber of Webster and
Ashburton, and the treaty which they drew up proved rather a Pandora's
box of future difficulties than a satisfactory settlement. In the first
place it was agreed that any canal to be constructed over any of the
isthmuses was to be absolutely neutral, in time of war as well as of
peace. Both nations were to guarantee this neutrality, and other nations
were invited to join with them. No other nations did join, however, and
the project became a dual affair which, owing to the superiority of the
British Navy, gave Britain the advantage, or would eventually have
done so if a canal had been constructed. Subsequently the majority of
Americans decided that such a canal must be under the sole control of
the United States, and the treaty then stood as a stumbling block in the
way of the realization of this idea.

More immediately important, however, and a great wrench to American
policies, was the provision that neither power "will ever erect or
maintain any fortifications commanding" the canal "or occupy, or
fortify, or colonize, or assume or exercise any dominion over... any part
of Central America." This condition violated Adams's principle that the
United States was not on the same footing with any European power in
American affairs and should not be bound by any self-denying ordinance,
and actually it reversed the principle against the United States. An
explanatory note accompanying the treaty recognized that this provision
did not apply to Belize and her dependencies, and Great Britain promptly
denied that it applied to any rights she already possessed in Central
America, incl