Mr. Butler to Mr. Gresham.

[Telegram.]

Herewith is the reply of the Mexican Government to your cipher telegram of the 6th instant:

Herewith I advise you, as I have already advised you verbally, that it is not true that the Guatemalan Government, as reported by its minister in Washington, submitted to the Government of Mexico the proposition at hand, nor any other in answer to our demands. The proposition which in the form indicated comes now from Washington is substantially identical to another submitted without instruction therefor by Mr. Romero through the medium of Mr. Gresham, and which this Government did not approve, as it was under another form a proposition for arbitration upon the question which we consider of national honor, and inadequate, therefore, for a solution of that kind. This does not imply a refusal to consider any proposition which Guatemala may present here to the end of reaching a pacific settlement. On the contrary, Mexico keenly desires to reach such a result, and will be gratified if the hope expressed by the President of the United States can thus be realized. We already know, though not by communication from the Government of Guatemala, that Rock had left its service.

Butler.