This work investigates the downlink of a cloud radio access network (C-RAN) in which a central processor communicates with two mobile users through two base stations (BSs). The BSs act as relay nodes and cooperate with each other through error-free rate-limited links. We develop and analyze two coding schemes for this scenario. The first coding scheme is based on Liu-Kang scheme for C-RANs without BS cooperation; and extends it to scenarios allowing conferencing between the BSs. Among few other features, our new coding scheme enables arbitrary correlation among the auxiliary codewords that are recovered by the BSs. It also introduces common codewords to be described to both BSs. For the analysis of this coding scheme, we extend the multivariate covering lemma to non-Cartesian product sets, thereby correcting an erroneous application of this lemma in Liu-Kang's related work. We highlight key aspects of this scheme by studying three important instances of it. The second coding scheme extends the so-called compression scheme that was originally developed for memoryless Gaussian C-RANs without BS cooperation to general discrete memoryless C-RANs with BS cooperation. We show that this scheme subsumes the original compression scheme when applied to memoryless Gaussian C-RAN models. In the analysis of this scheme, we also highlight important connections with the so-called distributed decode--forward scheme, and refine the approximate capacity of a general $N$-BS $L$-user C-RAN model in the memoryless Gaussian case.