Mr. Merry to Mr. Hay.

No. 694.]

Sir: I have the honor to advise the return to San Salvador on February 16 of President Begalado after a brief visit to Guatemala City. * * * I am also informed from Managua that the President of Guatemala has joined in the arbitration treaty signed at the Corinto conference on January 20, 1902, by the Presidents of Nicaragua, Costa Rica, Salvador, and Honduras, in accordance with his promise to President Iglesias. * * * The peace of Central America now appears assured in the near future. * * *

With assurances, etc.,

William Lawrence Merry.