Mr. Eddy to Mr. Hay.

No. 107.]

Sir: I have the honor to inform you that on the 8th of this month a French squadron arrived at Mytilene, and after landing a body of marines the French admiral took possession of the custom-house, over which he flew the French flag. As soon as information of this was received here the Turkish Government gave orders that telegraphic communication with Mytilene should be cut off, and through this action the chargé d’affaires of France at Constantinople was unable to communicate with the French admiral at Mytilene.

[Page 530]

Mr. Bapst, who is in charge of French interests, had a long interview with the minister for foreign affairs directly this took place, and succeeded in obliging the Imperial Government to yield to the demands which had originally caused the difficulty between Turkey and France.

This difficulty has been settled in the following manner:

The Lorando claim, reduced to £340,000, will be paid from the returns of the customs at the rate of £12,000 a month.
Permission has been granted for the rebuilding of all French schools and institutions destroyed during 1895–96.
The official recognition of all French schools and institutions now existing in the Ottoman Empire.
The recognition of the Chaldean patriarch.

* * * * * * *

I have, etc.,

Spencer Eddy.