Mr. Phelps to Mr. Gresham.

No. 551.]

Sir: I have the honor to acknowledge the receipt of your instruction No. 545, of the 8th instant, covering a very interesting correspondence connected with the proposed change of officials in Samoa.

I wish to express my appreciation of the thoughtfulness which furnishes me with this information and so enables me in the informal discussions which are likely to occur whenever I meet with Baron von Marschall or Sir Edward Malet, to take intelligently such a part as may tend to promote the wishes of the Department. I conceive that the President would be glad if, without any active interference on our side, the English Government should reconsider its refusal to accept the nomination of Mr. Hennings, and so end this matter by accepting both the candidates proposed by the German Government and accepted by us.

I have, etc.,

Wm. Walter Phelps.