No. 659.
Mr. Fairchild to Mr. Blaine.

No. 223.]

Sir: In the course of a social conversation had this morning with Señor Peralta, the minister of Costa Rica at this court, I incidentally asked him if his government had perfected the proposed arrangements for the arbitration mentioned in your instruction No. 148. He replied, substantially, that his government had not moved further in the matter since becoming aware of the position of the United States as set forth in its communication to the Spanish Government; that such position was undoubtedly a cloud upon the project, and that he thought upon a fair and friendly presentation of the whole question to the Department of State at Washington it could and would be satisfied that no possible interest of the United States would in the least suffer if the arbitration should be carried to a conclusion.

I infer from the general tone of Mr. Peralta’s remarks that it is not at present very likely that the King of Spain will be pressed to act as arbitrator, and that the matter will be brought to the attention of the Department of State with a view to satisfying the United States as above indicated.

The President of Costa Rica is still here, but I am told by Señor Peralta that he will sail for home from Cadiz in a few days.

I have, &c.,