Mr. Finch to Mr. Hay.

No. 799.]

Sir: Peace in Paraguay. The revolutionists have triumphed. The agreement entered into at Formosa, Argentina, has finally been signed by the revolutionary leaders and the Government’s representatives, General Ferreyra, the military leader of the revolution, being the last one to sign, and on account of his unexplained hesitation it was feared, for a few days, that the agreement would fail.

I inclose translation of the agreement or treaty of peace. * * *

Respectfully,

William R. Finch.
[Page 861]
[Inclosure.—Translation.]

Formosa, December 13, 1904.—The peace signed between the Paraguayan belligerents is a complete triumph for the revolution.

The bases are:

Resignation of the President of the Republic, Colonel, Ezcurra, and election of Señor Juan Gauna as successor.

Appointment of the following ministers:

Interior: Señor Emilio Perez.

Justice: Señor Cayetano Carreras.

Both belong to the present Government.

The other ministers will be filled with partisans of the revolution.

Complete dissolution of the army and reorganization of the new army with instructed officers.

The revolutionary army will not be dissolved until the new government and army are constituted.

Señor Elias Garcia is appointed chief of police, with ample powers.

General amnesty is accorded for all political offenses.