In 1896, the last attempt to restore the early Federal union was made by the Presidents of Honduras, Nicaragua and Salvador, who (in accord with a treaty of 1895) formed, for the exercise of their external sovereignty, a sin gle loose political organization with the title °Greater Republic of Central American which was promptly recognized by the American government by the reception of a minister, but with the distinct understanding that the re sponsibilty of each of the separate republics toward the United States remained wholly un affected. Again the hope of the fOrmation of a permanent federation was disappointed. In 1898, as a result of revolutionary movements —and especially a separatist movement in Sal vador — the provisional executive council of the Greater Republic announced the dissolution of the union by mutual consent.
In 1906 President Roosevelt with the co operation of President Diaz, in order to ter minate a war acted as mediator in a dispute of Guatemala with Salvador and Honduras. This was in accord with the treaty of peace which received the assent of all the five repub lics except that of President Zelaya of Nica ragua, and directly recognized the obligation of the United States to mediate and intervene in Central American affairs. In February 1907 the American government failed in a friendly mediation to prevent Zelaya from making war against Honduras, but was able to prevent the spread of the conflict to Salvador and Guate mala. In August 1907, by strenuous diplomatic representations, it averted war between Nica ragua and Salvador.
At Washington, in 1907, through negotia tions encouraged and stimulated by the United States on the initiative of President Roosevelt, the diplomatic representatives of the five sep arate republics held a Central American Peace Conference to find a basis of agreement on political, commercial and financial relations. The chief results were a series of palliative measures: the establishment of a Central Amer ican International Bureau as a bureau of in formation (a miniature of the Pan-American Union) ; the foundation of a Central American Court of Justice (five members) in Costa Rica, for the arbitration of questions of an inter national character affecting the relations of the five republics; and a provision for later Central American annual conferences to discuss political and economic questions of community interest.
The American government, after the de rision which greeted the first decision of the new Central American court, concluded that a court without means of enforcing its decisions was of no value — and reluctantly, but logically, concluded that American intervention was nec essary to prevent depredations by the Zelaya government in Central America. In 1909, after
the execution of two Americans in Nicaragua, it intervened directly, compelled Zelaya to flee and entered into a treaty agreement (negotiated Secretary Knox) to act as a receiver for Nicaragua and to aid the new government in the rehabilitation of its finances. In the wm mer of 1912 it landed troops at the request of the Nicaraguan government to protect Ameri can lives and property and preserve free com munication with the legation, and operated the national railv:ray under the protection of Ameri can soldiers. It also negotiated a treaty, later approved by the Wilson administration, secur Ing for its services in rehabilitating the finances sole rights to the construction of a canal across Nicaragua and to a coaling station in the Gulf of Fonseca. In August 1914 the Nicaraguan government was kept in power only by the presence of American troops landed at Blue field.
The treaty, finally ratified by the American Senate in February 1916, providing substantial aid for the support of legally constituted good government in Nicaragua, was opposed by Costa Rica, who complained that it violated her rights. It was also opposed elsewhere in Central Amer ica on the ground that it would prove an obstacle to Central American union. The gov ernments of Salvador and Honduras joined in the protest. Costa Rica brought suit against Nicaragua in the Central American Court of Justice at Cartago (Costa Rica). The court (in 1916) decided that Nicaragua acted illegally in selling canal rights without consulting Costa Rica, and in thieatening the neutrality of Hon duras by permitting a United States naval base to be established on the Gulf of Fonseca; but Nicaragua refused to be bound by the decision.
Bancroft, H. H., 'Central America' (Vol. III, 1886) Blakeslee (ed.), 'Latin America' (1914) • Callahan, J. M., 'Mon roe Doctrine, 1845-1870' (Proceedings) Am. Soc. Int. Law 1914) ; Foster, J. W., 'Century of American Diplomacy' (1900) ; Latane, J. H., 'Diplomatic Relations of the United States with Latin America' (1900); Jones, C. L, 'Caribbean Interests of the United States' (1916) ; Moore, J. B., 'International Law Digest' (1906); Squier, E. G., 'Notes on Cen tral America' (1855); Scroggs, William 0., 'Filibusters and Financiers' (1916).