Sir Julian Pauncefote to Mr. Gresham.

Sir: With reference to my telegram of to day and to your note of the 9th instant, I have the honor to inform you that I have received a telegram from my Government in which it is stated that the German Government is ready to take charge of Mataafa and eleven other chiefs and keep them in the Marshall Islands. They propose at the same time that the three powers divide the cost of their keep. Her Majesty’s Government hope that the United States Government will approve of this proposal in which they concur.

I have, etc.,

Julian Pauncefote.