Fonseca Bay was discovered by Europeans in 1522 by
Gil González de Ávila, and named by him after his patron,
Archbishop Juan Fonseca, the implacable enemy of Columbus. In 1849,
E. G. Squier negotiated a treaty for the
United States to build a canal across Honduras from the
Caribbean Sea to the Gulf.
Frederick Chatfield, the
British commander in Central America, was afraid the American presence in Honduras would destabilize the British
Mosquito Coast, and sent his fleet to occupy
El Tigre Island at the entrance to the Gulf. Shortly thereafter, however, Squier demanded the British leave, since he had anticipated the occupation and negotiated the island's temporary cession to the United States. Chatfield could only comply. All three countries—Honduras, El Salvador, and Nicaragua—with coastline along the Gulf have been involved in a lengthy dispute over the rights to the Gulf and the islands located within. In 1917, the
Central American Court of Justice ruled in a trial which became known as the
Fonseca case. It arose out of a controversy between El Salvador and Nicaragua. The latter had entered the
Bryan–Chamorro Treaty which granted a portion of the bay to the United States for the establishment of a naval base. El Salvador argued that this violated its right to common ownership in the bay. The court sided with El Salvador, but the US decided to ignore the decision. International tensions over the Gulf were addressed by the United Nations
ONUCA mission, starting in 1989 which included specific reference to the Gulf. For example, because the nature of the terrain in the region would have limited the efficacy of static observation posts, it was judged that the best results would be achieved by establishing mobile teams of observers, who would carry out regular patrols by road, by helicopter and, in the Gulf of Fonseca and nearby waters, by patrol boats and speedboats. In 1992, a chamber of the
International Court of Justice (ICJ) decided the Land, Island and Maritime Frontier Dispute, of which the Gulf dispute was a part. The ICJ determined that El Salvador, Honduras, and Nicaragua were to share control of the Gulf of Fonseca. El Salvador was awarded the islands of
Meanguera and Meanguerita, while Honduras was awarded
El Tigre Island. ==Physical geography==