No. 281.
Mr. Nelson to Mr. Fish.

No. 502.]

Sir: Since the occupation of Oaxaca by the forces of General Alatorre, the situation of affairs in Mexico has not essentially changed. The brothers Diaz, instead of having fled together, as was at first announced, separated at the approach of the federal troops, Felix taking the road for the Pacific, and Porfirio, with his principal officers, proceeding northward, through the Sierra of Ixtlan, toward the State of Vera Cruz. He has been closely pursued by the forces of Alatorre and Rocha, but the government, doubtless for good reasons, keeps silence as to his present whereabouts. It is believed that he is already in the southern part of Vera Cruz.

Several engagements with small parties of the insurgents have taken place within a few days, and all of them resulted in favor of the government, but no new battle has been fought. The nation seems to have become satisfied that the government will speedily triumph, and already looks forward to an era of peace.

It is thought that General Rocha, who has arrived at Tehuacan, is on his way to Vera Cruz, to embark for Matamoras, and attack the northern rebels in the rear, while Generals Corolla and Neri press them in front.

Mr. Miquel Castro was yesterday appointed by the President as provisional governor of Oaxaca.

I am, &c.,

THOMAS H. NELSON.