(Aug. 5, 1914), treaty between the United States and Nicaragua, by which the United States gained the right to construct a canal across Nicaragua, an option to build a naval base on the Gulf of Fonseca, and a long-term lease on the Corn Islands in the Caribbean.
Nicaragua's neighbours protested, claiming the treaty imperilled their security, and the Central American Court of Justice upheld the validity of their claim. The United States and Nicaragua ignored the ruling; the treaty remained in effect, but the United States used it only to build a lighthouse on the Corn Islands. The refusal of the United States to honour the ruling of the court destroyed the influence of that body, and in March 1918 the court formally ceased to exist.
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