Mr. Baker to Mr. Gresham.

No. 38.]

Sir: I see now that I erred in not promptly reporting to you the “Krupp gun episode” at Corinto, which occurred on the day previous to my arrival at the place and repeated on the morning of my arrival.

After I landed that morning and got the facts I remarked to Mr. Henry Palazio, the U. S. consular agent at Corinto, that, as I had not yet been received by this Government as a diplomatic representative, I supposed that I could not well at that time make an official report of the affair. I asked him to prepare the report, which he did,” and I gave it to Capt. Johnson, of the steamship City of New York, with the request that he forward it from his first available place of mailing it.

The consular agent’s report is an exact statement of the facts. A day or two later I verbally called the attention of President Sacasa to the incident, and he promptly ordered that it should not be repeated. And it was not.

I will now thank you for instructions in the premises.

I am, etc.,

Lewis Baker.