Mr. Leishman to Mr. Hay.

[Telegram.—Paraphrase.]

(Mr. Leishman reports that an informal memorandum containing the Sultan’s reply has been submitted to him by one of the Sultan’s private secretaries, which says, concerning the school question, that there is to be no discrimination between American schools and those of other nationalities, and that resort must be had to legal proceedings in order to secure recognition of such schools, and if the foregoing statement should prove unsatisfactory to the Government of the United States the Imperial Ottoman Government is ready to submit the question to arbitration. Concerning the question of raising the Turkish legation in the United States to an embassy it is stated that the financial conditions of the Government do not permit this action at the present time, and that His Majesty reserves to himself the taking up of this question when the financial situation will permit it.

The demand of Mrs. Lane for £5,000 (Turkish) as a price of the whole property in question will be satisfied by the payment of the amount stated as soon as the transfer is effected. Mr. Leishman states that he has requested a formal note relating to the above through the minister for foreign affairs, and if matters are not definitely settled upon arrival of the fleet he will request the admiral to send one of the ships to take him off, requesting at the same time permission from the Sublime Porte for its passage through the Dardanelles; should this be refused he will file a protest and embark at the Dardanelles.)