Clayton–Bulwer Treaty

The Clayton–Bulwer Treaty was a treaty signed in 1850 between the United States and the United Kingdom. The treaty was negotiated by John M. Clayton and Sir Henry Bulwer, amidst growing tensions between the two nations over Central America, a region where the British had traditionally held strong influence but also saw increasing American expansion into the area. The treaty proved instrumental in preventing the outbreak of war between the two nations by resolving tensions over American plans to construct a Nicaraguan Canal that would connect the Pacific and the Atlantic. There were three main provisions in the treaty: neither nation would build such a canal without the consent and cooperation of the other; neither would fortify nor found new colonies in the region; when a canal was built, both powers would guarantee that it would be available on a neutral basis for all shipping. Construction on the proposed canal never came to fruition, although the treaty remained in effect until 1901.

Britain had indefinite territorial claims in three regions: British Honduras (modern-day Belize), the Mosquito Coast (part of modern-day Nicaragua and Honduras) and the Bay Islands (now part of modern-day Honduras). The United States, while not making any territorial claims, held in reserve, ready for ratification, treaties with Nicaragua and Honduras which gave the United States a certain diplomatic advantage with which to balance the pre-eminent British influence in the region. With it soon becoming apparent to American negotiators that agreement on these points would be impossible and agreement on the canal question was possible, the latter was put into the foreground during the negotiations. By 1857, however, the British had ended their diplomatic opposition to American western expansion, while steadfastly maintaining their rights to a potential Nicaraguan canal.