Mr. Neill to Mr. Hay.

No. 1004.]

Sir: With reference to previous correspondence upon the subject of the State of Peru’s relations with the neighboring States, I have the honor to report Congress approved, in a secret session held on the 28th instant, a treaty entered into with Brazil for the settlement, by means of arbitration, of the Peruvian and Brazilian claims arising out of the different encounters between one and the other on the eastern frontier of the Republic since the year 1902.

I have, etc.,

Richard R. Neill.