Mr. Merry to Mr. Hay.

No. 223.]

Sir: Being now fully informed as to occurrences on the Mosquito Coast. I can assert that no just cause of complaint can be made by the Nicaraguan Government in relation to the action of the United States and British naval commanders. Indeed, it appears to me a fortunate occurrence for the Zelaya Government that their influence induced a prompt surrender by General Reyes, who had no such following as he expected. I have been informed by one of the Zelaya officers, General Reuling, that the President is now satisfied with the military management of his subordinates, and no longer American and English war vessels present. I deemed his memorandum of 28th ultimo as of questionable validity, but sent my cable to you of that date to prove the desire of our Governmeut to be absolutely neutral. I respectfully suggest that the incident is unworthy of further notice.

With assurances, etc.,

William Lawrence Merry.