No. 457.
Mr. Foster to Mr. Fish.

No. 87.]

Sir: The troubles in the State of Coahuila, between the governor and the legislature, continue, there having occurred during the past month further conflicts between the armed forces of the opposing factions, resulting in the defeat of the governor, who has sought the protection of the federal troops in occupation of Saltillo, the capital. The Congress of the Union has authorized the President to appoint a person, subject to its confirmation, to be intrusted with the administration of affairs in the State, and who will be supported by the federal array until elections have been held for members of the State legislature in the districts where vacancies exist, and until a full legislature may be assembled and settle the existing political disorders. The armed conflict in the State government of Yucatan also still continues, and federal troops have been sent to that State to restore peace.

The most exciting topic which has occupied the attention of Congress during the present session has been the contract which the government entered into with the Mexican Railroad Company, operating the road from this city to Vera Cruz. The submission of this contract by the President to Congress for its approval elicited a strong opposition both to the terms of that instrument and to the present administration. After a bitter and protracted debate the contract was approved by a majority of five votes. It provides for a change in the tariff of freights, the extension of the Jalapa branch, appropriates $560,000 annually for twenty years from the receipts of custom-houses, to be paid the company, and other important modifications of existing legislation relating to that railroad.

Hon. Leon Guzman, attorney-general of the republic, has tendered his resignation to Congress, on account of his opposition to the present attitude of the administration.

The official journal of the government has announced that the Mexican minister at Washington has been instructed to make complaint to the Government of the United States in regard to the incursions into the State of Sonora, Mexico, of Indians from Arizona Territory.

Sefior Granados, chargé d’affaires of Guatemala, in this capital, has resigned his position, under instructions from his government; and he informs me that there is no probability that the vacancy will be filled until Mexico shall send a diplomatic representative to Guatemala.

There are now in this capital permanent representatives of the German Empire, Spain, and Italy, without the corresponding representatives from Mexico in those countries.

I am, &c.,