No. 217.
Mr. Foster to Mr. Fish.

No. 490.]

Sir: Your dispatch No. 357 of the 20th ultimo, transmitting a copy of the protocol and account of expenses of the joint commission agreed upon between you and Mr. Mariscal, was received yesterday. The government of General Diaz had already sent to Vera Cruz, for embarkation to New Orleans, $300,000, with which to make the first payment on the 31st instant, in accordance with the claims treaty $ but being satisfied that it would be glad to take advantage of the construction which your dispatch allows to be placed upon the fourth and sixth sections of the treaty, and deduct from the $300,000 the balance on account of expenses of the commission found to be in favor of Mexico, I called upon Mr. Vallarta on yesterday, left with him a copy of the protocol and account, and stated to him the substance of your dispatch. He at once submitted the matter to the consideration of the acting president, and within two hours he called at the legation to inform me that it had been determined to deduct the total amount of the balance of expenses, to wit, $57,499.01, from the first payment, in view of the pressing financial necessities of the government. He, at the same time, expressed his profound appreciation of the liberality of construction which you had permitted to be placed upon the treaty. He said that as the coin had already been sent to Vera Cruz, and was now ready for embarkation, it had been thought best to carry out the original intention, and have Mr. Mata make the payment in Washington, which he hopes to do on or before the 31st instant.

I am, &c.,

JOHN W. FOSTER.