The congress of Central America declares absolute independence from Spain, Mexico, and any other foreign nation, and a Republican system of government is established.

The Central American nation thus formed from Costa Rica, Nicaragua, Honduras, El Salvador and Guatemala on July 1, 1823, is intended to be a federal republic modeled after the United States of America.

It is provisionally known as "The United Provinces of Central America".

Honduran soldier and statesman Francisco Morazon is the architect and guiding force of the loose federation.

Guatemala City becomes the capital, and each state is to be locally autonomous.

Central American liberals have high hopes for the federal republic, which they believe will evolve into a modern, democratic nation, enriched by trade crossing through it between the Atlantic and the Pacific oceans.

These aspirations are reflected in the emblems of the federal republic: The flag shows a white band between two blue stripes, representing the land between two oceans.

The coat of arms shows five mountains (one for each state) between two oceans, surmounted by a Phrygian cap, the emblem of the French Revolution.

Mexico, on becoming a republic later in 1823, will acknowledge Central America's right to determine its own destiny.