Mr. Egan to Mr. Blaine.

No. 161.]

Sir: At the request of the Chilean Government I had the honor to forward to you to-day, in cipher, a telegram which stated in substance that the negotiations for peace had failed and reported the presence in a southern port of California of a Chilean steamer, recognized to be a transport belonging to the revolutionary squadron, and which had munitions of war on board.

The above refers to the revolutionary transport Itata, now at San Diego, Cal., with arms and munitions of war for the revolutionists.

In a few days I will report fully upon the subject of the peace negotiations.

I have, etc.,

Patrick Egan.