Mr. Neill to Mr. Hay.

No. 995.]

Sir:

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It is now thought that the Government of Ecuador is disposed to act in a liberal spirit, and that a comprehensive adjustment of the difficulty will be secured.

I took occasion to present, unofficially, the earnest desire of the President of the United States for the preservation of friendly relations between the two countries, as instructed, which seemed to be received with equal pleasure and satisfaction by the Peruvian Government, and at the same time I was informed that, in view of the sanction given by the Congress of Ecuador to the Cornejo-Valverde protocol, dated February 19 of the present year, for the continuance of the Madrid arbitration regarding the limits with Peru, the Ecuadoran Government has remitted to its minister in Spain the thousand pounds sterling which it has to contribute as its share of the expenses connected with the coming out of the Spanish commissioner, who, in accordance with the aforesaid protocol, is to examine the archives of Lima and Quito, as well as all the documents pertaining to the question in discussion, and that under the above circumstances the Peruvian Government has likewise complied with the same obligation, and that the thousand pounds sterling for Peru’s share in the expenses were remitted by cable to Señor Osma, this Government’s representative in Madrid, on the 6th instant. The substance of this communication has been made public.

I have, etc.,

Richard R. Neill.