No. 561.

Mr. Foster to Mr. Bayard.

[Extract.]
No. 396.]

Sir: In execution of your instruction No. 385, of the 5th instant, I now report that I have sent to the Spanish minister of state a note, of which a copy is inclosed, notifying him of the acceptance of the award of the Italian minister in the case of the Masonic as a final disposition of the same.

I have further to report that under date of the 18th instant the minister of state has informed me that his colleague, the minister of ultramar, has given instructions to the governor-general of the Philippine Islands, which contemplate the payment of the award before the expiration of the six months from its date as fixed in the agreement of arbitration, thereby saving to the Spanish Government the item of interest for the unexpired term. A copy and translation of the minister’s note are inclosed.

In acknowledging the minister’s note I stated that I had no doubt the action contemplated would be acceptable to our Government.

* * * * * * *

I am, &c.,

JOHN W. FOSTER.
[Inclosure 1 in No. 396.]

Mr. Foster to Mr. Elduayen.

Excellency: In due time I transmitted to my Government a copy of your excellency’s note, in which you informed me that His Majesty’s Government accepted the award of his excellency Baron Blanc, the Italian minister at this court, in the case of the Masonic as final and conclusive.

I am happy to inform your excellency that I am now in receipt of instructions from the Secretary of State at Washington, directing me to declare to your excellency that my Government on its part also accepts said award as final and conclusive.

I embrace, &c.,

JOHN W. FOSTER.
[Inclosure 2 in No. 936.—Translation.]

Mr. Elduayen to Mr. Foster.

Excellency: I have the honor of acquainting your excellency with the fact as my colleague, the minister of ultramar, informs me under date of the 4th instant, that it is stated to the governor-general of the Philippine Islands that by a royal decree [Page 755] of judgment of the chamber of contentious suits of the council of state of the 16th of October, 1884, the decision was affirmed which the section of contentious suits of the council of administration of that island rendered on the 9th of June, 1883, condemning the administration of state to the return of the fine imposed by the central custom-house on the 6th of February, 1879, and affirmed by the decision of that in-tendency of the 26th of March following, upon Osman P. Nichols, captain of the North American bark Masonic, and likewise to the payment of the damages and injuries which he may duly prove to have sustained.

To decide as to the amount of this indemnification, the Governments of His Majesty and of the United States agreed to submit the question to the arbitral decision of the minister plenipotentiary of the King of Italy at this court, and by the decision of the 27th of June last, said minister has declared that the sum which ought to be paid by the Spanish treasury as indemnification to the owner of the Masonic, including both principal and interest to the date of this decision, is $51,674.07. In consequence of this, and seeing that the said amount admitted bears interest at 6 per cent, per annum from the date of the arbitral decision until the day on which the cash payment is made, and that this obligation is provided for by a credit of $53,500 in article 1, chapter 4, of section 2, “state,” of the existing budget of the Philippines, he may arrange that the immediate possession by that treasury may be had by means of a draft on a commercial center of the United States to the order of the minister plenipotentiary of Spain in Washington for an amount including the $51,674.07 plus the interest on the latter at 6 per cent. per annum from the 27th of June last to the day fixed in the draft for its expiration and final payment at the point of its destination; his attention being called to the fact that payment is obligatory within the space of six months from the date of the arbitral decision, and that it is advantageous for the Treasury to shorten the period of interest. The draft should be transmitted to the Spanish minister in Washington in order that he may indorse it to the Federal minister of state, according as he will be opportunely advised.

I gladly avail, &c.,

J. ELDUAYEN.
[Inclosure 3 in No. 396.]

Mr. Foster to Mr. Elduayen.

Excellency: I have the honor to acknowledge the receipt of your excellency’s note of the 18th instant, in which you communicate to me the resolution taken by your worthy colleague, the minister of ultramar, for the payment of the amount awarded to the owner of the Masonic by his excellency the minister of Italy, by which it is contemplated to shorten the period of six months, within which it was agreed the payment should be made in Washington.

I will lose no time in making known to my Government the measures proposed to be taken for this purpose, which I have no doubt will be found acceptable to it.

I improve, &c.,

JOHN W. FOSTER.