Mr. Butler to Mr. Gresham.

[Telegram.]

The following is the reply of the Mexican minister for foreign affairs to your cablegram of the 21st instant:

The Mexican Government has taken cognizance with due consideration of the telegram addressed yesterday from Washington by the Secretary of State to the chargé d’affaires of the United States resident at this capital, respecting the question pending between Mexico and Guatemala. Mexico recognizes the friendly spirit evinced toward the two countries and the prudent character of the suggestions made. The question we to-day discuss is due to an attempt by Guatemala to evade compliance with the treaty of 1882, which was concluded, thanks to the impartial and judicious conduct of the Government of the United States, in finally refusing to interfere in the case, thus leading President Barrios to enter into negotiation for a boundary treaty. Now that Mexico has suffered injuries by the repeated use of force during the discussion over the right to certain lands, which even by confession of Guatemala the treaty [confers upon] Mexico, this Government considers it to be a point of national honor not subject to arbitration as to whether it is entitled to satisfaction for such injuries, but is disposed to accept a friendly arbitration to fix the indemnity due by Guatemala.

Butler.