No. 66.
Mr. Hall to Mr. Bayard.

No. 709.]

Sir: With reference to my dispatch, No. 698, of the 22d ultimo, from Managua, and to my telegram of the 17th, from La Libertad, relating to the claim of Italy against Salvador, I have to acknowledge the receipt of your reply to the latter, dated the 26th of the same month, to the effect that without more precise knowledge of the grounds of the Italian claim the Government of the United States hesitates to tender mediation.

The foregoing was transmitted to me at Managua and its purport communicated by me to the minister for foreign affairs of Salvador, who, in reply, said that he would furnish me with the particulars by next mail; up to the present, however, I have not received them.

I have the honor now to inclose a copy of your telegram of the 16th instant, suggesting that the Salvadorian Government should sustain its minister in naming a sum to settle the claim, and if a reasonable proposal should be rejected by the Italian Government then the good offices of the United States might be offered.

Having communicated the purport of the foregoing to the minister of foreign affairs of Salvador, he replied that his government could not authorize its minister to offer a specific sum because the account upon which the claim is based has never been adjusted, and that in this sense the minister at Paris has been instructed by his government.

The Italian chargé d’affaires ad interim here informs me that his government broke off, some time ago, ail negotiations with the Salvadorian minister at Paris. He also informed me that Signor Sagrini, the claimant, left here for Italy early last month and is no doubt there now, and further, that a new minister of Italy to Central America would soon arrive, and that he probably brings instructions respecting the claim, which in the meantime remains in abeyance.

I have, etc.,

Henry C. Hall .
[Page 79]
[Inclosure 1 in No. 709.—Telegram.—Translation.]

Mr. Hall to Señor Delgado.

With reference to the affairs of Sagrini, the United States minister at Paris says to the honorable Secretary of State, who concurs with him, that in his opinion the Government of Salvador should authorize its minister there to offer a reasonable sum to settle the claim, and in case of its non-acceptance by the Italian Government then the good offices of the Government of the United States might be offered.

Henry C. Hall.
[Inclosure 2 in No. 709.—Telegram.—Translation.]

Señor Delgado to Mr. Hall.

I received your telegram last night, and after thanking you I have to say that my Government could not authorize its minister at Paris to offer Sagrini (the claimant) a specific sum, because the account has not been adjusted.

My Government thinks that what ought first to be done is to proceed with the adjustment of the account by mutual agreement or through the medium of arbitrators. In this sense it has given instructions to its representative at Paris.

With assurances, etc.,

Manuel Delgado.