Mr. Gresham to Mr. Gray.


The Guatemalan minister here informs me that his Government has submitted the following proposition to the Government of Mexico:

While it is true that under the boundary line as indicated by the treaty of 1882 the disputed territory is undoubtedly in Mexico, Guatemala is confident that the correct line is the old recognized boundary line as it now exists, and until the whole line is marked out under the treaty the disputed territory belongs to Guatemala, and she, therefore, had the right to send to it a military force and expel the persons who were cutting timber there under the grant of a foreign Government. Guatemala agrees, however, that if the controversy is determined by arbitration or some other peaceful settlement, and it appears that the disputed territory belongs to Mexico, she (Guatemala) will express her regret to Mexico for having invaded it under misapprehension.

Guatemala has dispensed with the services of Bock, and you will inform Mr. Mariscal that the President sincerely hopes that Mexico will not now decline a peaceful settlement of her other demands.