Mr. Montalvo to Mr. Tillman.

[Translation.]

Your Excellency Señor Minister:

In answer to your official visit of the 18th of this present month, it is pleasing to me to communicate to you that the Government of Ecuador accepts with pleasure Mr. St. John as arbiter to adjudge the claim of Mr. Santos in accord with the Mahany-Vazquez convention.

Permit me to add further to your excellency that the Supreme Chief of the Republic, desirous of terminating as soon as possible this affair, has commissioned Dr. J. C. Roca, cashier of the Agricola Bank of Guayaquil, to fix the terms in account with Señor Santos for the settlement of the claim, and both Roca and Santos have manifested good will toward a direct settlement, which undoubtedly will facilitate in a great measure the action of the arbitrator arriving at the case.

Francisco J. Montalvo.