McLane-Ocampo Treaty

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The McLane-Ocampo Treaty, formally the Treaty of Transit and Commerce, was an 1859 agreement between the United States and Mexico which would have sold the right of transit to the Isthmus of Tehuantepec to the U.S. for $4 million. Although President James Buchanan strongly favored the arrangement, it was never ratified by the Senate.

The U.S. hoped to build a railroad or canal across the isthmus to speed transport of mail and trade goods between the east and west coasts. Roads there and in Nicaragua and Panama already carried considerable traffic.

The treaty derives its name from Robert Milligan McLane, then ambassador to Mexico, and liberal politician Melchor Ocampo, in hopes the money would boost the faction's chances in the Mexican Reform War. [1] The treaty would also have placed Mexico under the military protection of the U.S. [2] and reduced or eliminated tariffs [3] [4]

[edit] Treaty provisions

Extending the Gadsden Treaty, Mexico agreed to grant the US a right "in perpetuity" to transit across the Isthmus of Tehuantepec
Both parties agreed to protect the region's trade routes
Mexico agreed to establish "ports of deposit" at both coasts

Goods in transit from port to port would be subject to no tariff or duty
Goods imported to Mexico at these ports would be subject to normal tariffs

Mexico agreed to grant the US the right to intervene at the request of Mexico, or in emergencies without, in the case of danger to the trade routes
Mexico agreed to grant the US the right of military transit, with due notice
Mexico agreed to grant US citizens the right of transit across Mexico by various routes
Both parties agreed to reciprocal and equal tariff policies
Mexico agreed not to grant other parties similar rights