No. 91.
Mr. Hall to Mr. Bayard.

No. 769.]

Sir: In continuation of my dispatch No. 763, of the 6th instant, I have the honor to inclose a copy of my note of the same date to the minister for foreign affairs of Salvador, tendering my good offices for the settlement of the question then pending between the Salvadorian and Italian Governments, and translations of his telegrams of the 9th and 12th instant in reply.

I arrived at the capital of Salvador on the 19th instant. Señor Magliano, the Italian chargé d’affaires, had already been there several days; the claim which had given rise to the difficulty had been discussed, but no progress had been made toward a settlement. The amount demanded by the claimant Sagrini through the Italian Government was upward of $530,000, a good part of which arose from interest at 18 per cent, per annum, compounded every six months, as stipulated in the contract; the claim without interest being about the half of that sum.

The day following my arrival the minister for foreign affairs informed [Page 121] me that he had little hope of coming to an understanding with Señor Magliano, as their views were very wide apart. He asked me to suggest some way of bringing it about. Up to that time no sum had been mentioned by either party. I suggested that he should offer a specific sum of money, payable by installments. This was accepted by President Menendez, and on the following day a protocol was signed by which the Government of Salvador agreed to pay the sum of $270,000 in long installments, subject to the approval of the Salvadorian Congress and the Italian Government. I communicated the result to you by telegram.

Both parties expressed to me much satisfaction over this prompt and friendly settlement. The Government of Salvador expected to pay a much larger sum; the Italian chargé is satisfied that it is in every respect equitable and just, and is confident his Government will so consider it, whatever may be the ideas of the claimant.

I have, etc.,

Henry C. Hall.
[Inclosure 1 in No. 769.]

Mr. Hall to Señor Delgado.

Mr. Minister: Señor Magliano, chargé d’affaires of Italy to Central America, will leave here in a few days for the capital of that Republic. He proposes to go overland via Santa Ana. I mention the fact in order that your excellency may, if deemed proper, notify the authorities at Santa Ana and the other places he will be likely to pass through.

His ostensible object in visiting Salvador is to present his credentials. He will also discuss with you the matter of the Sagrini claim. He has expressed a wish that I should accompany him, and my Government has so authorized me, provided it should also be the wish of your excellency’s Government. I will therefore thank your excellency upon receipt of this note to telegraph me, so that, if desired, I may make my arrangements to leave by steamer on the 17th instant.

I have, etc.,

Henry C. Hall.
[Inclosure 2 in No. 769.—Translation.]

Señor Delgado to Mr. Hall.

Sir: I have just received your esteemed communication of the 6th instant, y Government returns to you its most sincere thanks for your generous offer and accepts it with the greatest pleasure. I earnestly request you to be pleased to inform me the day on which you leave for this Republic.

With consideration, etc.,

Manuel Delgado.