No. 71.

Mr. Hall to Mr. Bayard.

No. 336.]

Sir: I have time by this mail only to make a cursory report of the principal events which have transpired here during past fortnight.

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The advanced forces of Guatemala and Salvador met at a place called El Coco on the 31st ultimo. The Salvadorians, according to the Guatemalan reports, were routed, with the loss of one field-piece, one mitrailleuse, and a considerable quantity of ammunition. The Guatemalans followed up their success by invading Salvador, and on the 1st instant met the intrenched forces of the latter at Chalcuapa. An engagement commenced the same day, was suspended at night, and renewed on the 2d. At about 11 that morning General Barrios was killed, while leading a charge against the Salvadorian intrenchments. His death caused a panic among his troops, which at once commenced a retreat. The Salvadorians, however, were in no condition to improve the advantages they had gained by Barrios’ death. From that moment there appears to have been a complete cessation of hostilities, which have not been resumed.

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There is now a greater feeling of confidence among the people, and tranquillity seems in a fair way to be restored.

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Many families have left the country, among them the widow and family of General Barrios. * * *

Since writing the foregoing, a telegram from President Zaldivar announces that peace has been made between Honduras on the one part and Salvador, Nicaragua, and Costa Rica on the other. It only remains for Salvador and Guatemala to come to an arrangement, of which there is a probability.

I have, &c.,