ns with the plan that Costa Rica proposed

ns of the Cañas-Jerez Treaty (Hill p. 207) This meant that
Article 8 would have to be looked at one more time for both countries to have a
clear understanding of the article.  Nicaragua
went along with the plan that Costa Rica proposed because it wanted to seek
sovereignty over the river once and for all. If they were able to do this, the
canal would finally put Nicaragua on a progressive path to success. In 1888,
the President of the United States, President Cleveland considered the treaty
and decided to settle it himself. Arbitration was announced, and the Cleveland
award was given to the treaty. He validated the treaty signed in 1858. He ruled
that the Republic of Nicaragua remain bound not to make any grants for canal
purposes across its territory without first asking the opinion of the Republic
of Costa Rica as said in Article 8. (Costa Rica vs. Nicaragua) The reason for
this was because, and he states,

“the rights which she possesses in
so much of the river San Juan…and perhaps other rights not here particularly
specified…are to be deemed injured in any case where the territory belonging to
the Republic of Costa Rica is occupied or flooded; where there is an
encroachment upon either of the said harbors injurious to Costa Rica; or where
there is such an obstruction or deviation of the River San Juan as to destroy
or seriously impair the navigation of the said river or any of its branches at
any point where Costa Rica is entitled to navigate the same…It would seem in
such cases that her consent is necessary, and that she may thereupon demand
compensation for the concession she is asked to make; but she is not entitled
as a right to share in the profits that the Republic of Nicaragua may reserve
for herself as a compensation for such favors and privileges as she, in her
turn, may concede.” (Costa Rica vs. Nicaragua, 194)

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Nicaragua’s plan of a water way canal was put on hold until further notice.

            The border dispute had been revised
and looked over so that the countries would be at peace once and for all but it
was still up in the air and continued to bother both countries. Nicaragua
having dominion of the river but Costa Rica having perpetual rights, had both
countries discontent because that was still confusing. The actual political
geography context had little to do with the actual conflict between both
countries. The real problem was more about space politics, national interest,
and political relations between both nations (Sadner, Ratter, 209). The matter
was more about political pride than the actual geography. The fact that Costa
Rica actually had a say in Nicaragua’s canal project made Nicaragua very upset.
Both countries started going at it with each other by doing political
statements to demean the other one’s “power”. In 1998, Nicaragua’s President
Arnoldo Almena, took it into his own presidential hands. He made the Nicaraguan
military seize one dozen Costa Rican boats and arrested nearly two dozen
fishermen. Costa Rica rebutted with a tactful protest, demanding the return of
their boats and release of the fishermen (Orozco, 104). The countries tried
compromising an agreement but backed out of the agreement the following day.
Both governments knew what they were doing was wrong but they both wanted to
prove what each was capable of. Nicaragua knew it had the power of troops over
Costa Rica and would confiscate any Costa Rican ship on the San Juan river waters.
Costa Rica played the card of debt on Nicaragua since Nicaragua owed Costa Rica
$475 million for an overdue electricity loan (Orozco, 146)