Mr. Day to Mr. Adee.

[Telegram.]
Special (No. 17 A).]
(For the President.)

Our telegram No. 15 to Secretary of State Hay informs you of the question put by us to Spanish Commissioners Monday. Last night Spanish ambassador called upon Mr. Reid. Represented that Spanish Commissioners must break off treaty rather than answer it in such wise as to abandon their claims on Cuban debt unless they could get some concession elsewhere. Mr. Reid assured ambassador that we could not assume this debt. The American people and Commission absolutely united upon it without exception and without distinction of party. Ambassador then urged the question to be laid aside until it could be seen if some concessions elsewhere might not be found which would save Spanish Commission from utter repudiation at home; if not, rupture was inevitable. Montero Rios could not return to Madrid now if known to have accepted entire Cuban indebtedness. Mr. Reid said Commissioners insisting on settlement of Cuban business now. Ambassador again said that if forced to direct answer on the question now must answer no, and break off conference. Mr. Reid earnestly urged them not to take that course, declaring that it must be far worse for Spain. Ambassador then begged him to search for some possible concession somewhere, and inquired about Philippine Islands. Mr. Reid said at first the American people not very eager for them. Believe, however, had practically conquered them when conquered capital, sunk fleet, and captured arms; and had right to all of them. Preponderance of sentiment in favor of the taking all, but respectable and influential minority which did not go to that length. It was possible, he said, but not probable, that out of these conditions the Spanish Commissioners might be able to find something either in territory or debt which might seem to their people at home like a concession. To-day Spanish Commissioners presented document (now being translated) which, we understand, accepts articles proposed by us, subject to agreement in final treaty, and invite proposals as to Philippine Islands fom us. After meeting, Spanish secretary said to me that they accepted our articles in the hope of liberal treatment in Philippine Islands; said no government in Spain could sign treaty giving up everything and live, and that such surrender without some relief would mean national bankruptcy. He made further appeal, to which I made no answer, except to receive [Page 937] his communication. We shall now be in position to take up Philippine Islands matter. We deem it proper that you should know exact situation before sending conventional instructions on Philippine Islands. We are inclined now to believe that rupture to-day only averted because Spaniards grasped at hint thrown out in the conversation of Mr. Reid last night with ambassador.

Day.