Mr. Gresham to Mr. Baker.

No. 27.]

Sir: I have to thank you for the full and interesting statement, presented in your dispatches Eos. 8 and 10, of the respective dates of May 23 and 31, showing the course of the revolution in Nicaragua and the adjustment of the controversy by means of the peace commission which you were happily instrumental in bringing about.

Your course in this relation merits my cordial approval. You appear to have rightly understood the policy of this Government, which is at all times disposed to lend its impartial good offices, or those of its diplomatic agents, to the honorable adjustment of issues of peace or war in neighboring communities, whenever acceptable to both parties and it would seem that the tender of your mediation was not made without previous knowledge that it would be equally welcomed by the titular Government and the revolutionists. In the commission itself you appear to have acted merely in the neutral capacity of a presiding officer, concerned only in reaching a harmonious result, and regarding the facts of the situation without advocating the claims of either side. It is pleasant to know that your friendly course has deserved the commendations alike of the retiring Executive and of the party which has succeeded to power.

It is earnestly hoped that the Nicaraguan Republic will enjoy stable peace and increased prosperity under the Government thus auspiciously instituted.

I am etc.,

W. Q. Gresham.