Mr. Romero to Mr. Olney.

[Translation.]

Mr. Secretary: I have the honor to inform you that in view of the conversations which we have had respecting the claim of Charles Oberlander against Mexico, I submitted to the Government of Mexico the suggestion which I made to you that that claim should be decided by arbitration, and that I am authorized by my Government to propose that solution to you.

The Government of Mexico deems that, to the end of avoiding the expense incident to a mixed commission, which would be costly, as well as unnecessary, in view of the circumstance that a solitary case is in controversy, wherein the principal contention is as to the question of fact whether Oberlander was arrested in Mexico or in the United States, it would be expedient that both Governments should name a single arbitrator; that in order to preserve in this regard an absolute equality between the parties in interest this arbitrator should not be a citizen of Mexico or of the United States, and that he should decide the question by a simple proceeding; that is to say, that each Government submit to him the correspondence, documents, and proofs which justify the position it has assumed in the discussion of this matter, with a statement of its case, in which may be set forth its manner of looking at the question, so that the arbitrator may decide, in view of these respective presentations, without the necessity of hearing the lawyers of the parties in interest or of taking testimony, with the exception that, after examining the documents which are submitted to him, the arbitrator may deem it necessary, in order better to make his decision, to take evidence upon some particular point.

The arbitrator will decide whether Oberlander has or has not right to any indemnification on the part of the Government of Mexico; and, in case he may decide this point affirmatively, he will fix the amount of this indemnification, upon the indispensable condition that such indemnification may not exceed the sum which the Department of State has claimed of Mexico as indemnification for the injuries which it believes Oberlander suffered as a result of his imprisonment.

If these points should be acceptable to the Government of the United States, we can turn our attention at once to the designation of an arbitrator, or to the manner of selecting one.

Be pleased to accept, etc.,

M. Romero.