Mr. Hay to Mr. Frye.

[Telegram.]

Your message marked “special” received yesterday. The President directs me to say that no one would more deeply regret than himself a failure to make a treaty of peace, and is surprised to hear from you that that result is not improbable. He hopes and believes that your negotiations can be so conducted as to prevent so undesirable a happening. He desires the Commissioners to be generous in all matters which do not require a disregard of principle or duty, and whatever [Page 940] the Commissioners may deem wise and best in the matter of the debts for internal improvements and public works of a pacific character in the Philippines will receive his favorable consideration; nor does he desire the Commission to disregard well-established precedents or make any conditions which will not be worthy of ourselves and merit the approval of the best judgment of mankind. If it should be the opinion of the Commissioners that there should be paid a reasonable sum of money to cover peace improvements which are fairly chargeable to us under established precedents, he will give cheerful concurrence. The money payment, if any is determined upon, should rest solely upon the considerations suggested in your message of Sunday night. He desires that you may read this to the Commission with your message to him.

Hay.