Mr. Conger to Mr. Hay.

No. 493.]

Sir: I have the honor to confirm, on the overleaf, my telegram of the 1st instant, and your reply of the 3d, and to say that the impracticability [Page 63] of satisfactorily negotiating here upon the question of indemnities, and the consequent financial measures necessary to be taken, which will require various treaty amendments, becomes each day more apparent.

The principle by which war expenses are to be assessed or estimated ought to be uniform, and can only be made so by an agreement between the powers incurring such expenses. * * *

Financial measures to be adopted, and how much, if any, foreign supervision shall be given, can best be discussed where the powers interested can be more quickly and intelligently consulted and conferred with than is possible here.

The same is true of the treaty revisions. It is, however, very doubtful if the revisions can be made by the powers together. * * *

I have, etc.,

E. H. Conger.