No. 65.
Mr. Hall to Mr. Bayard.

No. 698.]

Sir: I have the honor to inclose a translation of a telegram, received at La Libertad, from the minister for foreign affairs of Salvador, and a copy of one which I addressed to you at his request from the same place. These telegrams relate to a claim of the Government of Italy against that of Salvador, arising from a sale of the Government printing establishment made by the late president Zaldivar to an Italian subject.

The transaction took place over two years ago, and soon after Zaldivar had left the country the courts declared the sale illegal and void, and the property was restored to the Government; the matter has ever since been the subject of diplomatic correspondence.

About three months ago the chargé d’affaires of Italy informed me that he had instructions from his Government to consult with me in regard to this claim; he did not, however, and I did not, consider it necessary to report the incident to the Department. About the same time the Government of Salvador instructed its representative in Paris to settle the claim, if possible, through the medium of the Italian minister at the same place, and negotiations with that object have been going on for several days, but thus far with no prospect of a satisfactory result.

Under the circumstances above mentioned the Government of Salvador appeals to that of the United States, and asks that its mediation be offered to Italy for a settlement of the claim. The minister for foreign affairs and the president of Salvador expressed to me an earnest desire for such mediation and their willingness to abide by the decision of the United States, whatever it might be.

Should the negotiations pending in Paris fail, as it is believed they will, the mediation of the United States would be very grateful to Salvador. I understand that the claim for the property and damages amounts to two million francs.

I have, etc.,

Henry C. Hall.
[Inclosure 1 in No. 698.—Translation.—Telegram.]

Señor Delgado to Mr. Hall.


Circumstances independent of my will prevented my seeing you yesterday.

I hope you will send your Government a cable message to the tenor of what was [Page 78] suggested last night by Dr. Melendez in his conversation with you. My government trusts also that you will please interpose your good offices with the view of inducing the Government of the United States to offer its mediation to Italy.

With high, etc.,

Manuel Delgado.
[Inclosure 2 in No. 698.]

Mr. Hall to Mr. Bayard.


The Government of Italy is now pressing a heavy claim against the Government of Salvador, arising out of Zaldivar’s transactions. The Salvadorian Government would be extremely grateful if you should offer your mediation to Italy. Negotiations pending in Paris are likely to fail.