Mr. Baker to Mr. Gresham.

No. 277.]

Sir: I am pleased to be able to report that the war between Nicaragua and Honduras is over. It resulted in the overthrow of Vasquez, the late President of the latter country, and the establishment of the authority of Dr. Policarpo Bonilla over all Honduranean territory. The Nicaraguan troops have returned to this country, and were greeted with great demonstrations of applause at all towns through which they passed. These demonstrations culminated in a mammoth parade and a feast to the returning heroes at Leon, which lasted three days, and which has just now been brought to a close.

President Zelaya and his advisers now express the greatest confidence that a long era of peace for these two countries is now before us.

Mr. Vasquez made his escape into Salvador, and, having attempted to escape from that country to Amapala for the purpose of continuing the turmoil, he was arrested by order of President Ezeta, and taken to the capital of that country. I understand that he will be permitted to proceed to the United States.

General Ortiz, who commanded the Nicaraguan troops, proved himself a level-headed, self-contained, and humane commander.

I have, etc.,

Lewis Baker.