Mr. Gresham to Mr. Romero.

Sir: In your note of February 17, ultimo, the receipt of which I have the honor to acknowledge, you convey the gratifying information that the Mexican Government, in view of the efforts of the U. S. Government to induce the payment of an indemnity to Mrs. Baldwin, widow of an American citizen murdered at Durango, has decided, as an act of equity and without recognizing any obligation in the case or permitting the act to form a precedent, to offer the sum of $20,000, payable in installments as described.

This offer corresponds with the result reached in our several conferences on the subject.

Permit me, however, to say that it was my distinct understanding, upon which alone I consented to this friendly adjustment, that the offer of the Mexican Government was to pay $20,000 in gold. If the offer is so made, it will be accepted, the payments to be made to the U. S. minister in Mexico in the manner and at the times you indicate, to wit: $3,000 at the expiration of three months from the conclusion of the agreement, and the remainder thereafter in twelve monthly installments of $1,416.66 each, making a total of $19,999.92, payable within fifteen months.

Your reply confirming this understanding will complete the arrangement by exchange of notes, thus assigning the date from which the payments are to be computed.

Accept, etc.,

Walter Q. Gresham.