Minister Dawson to the Secretary of State.

No. 132.]

Sir: Referring to the subject of the installing in his functions of Col. George R. Colton, general receiver and collector under the modus Vivendi, of April 1, I have the honor to report that President Morales returned to this capital on the.25th and I arranged for Colonel Colton’s immediate presentation to him. The same day Colonel Colton was also presented to the minister of finance and at once entered on a discussion of the practical measures to be taken in assuming his duties.

On several occasions Colonel Colton consulted me and requested me to accompany him in his interviews with the President and minister, and I gave him all the assistance and information in my power.

I am gratified to be able to report that Colonel Colton quickly came to an exact and satisfactory understanding with the Dominican authorities, although numerous difficult questions, as to which there was room for disagreements, came up.

Yesterday afternoon the matter was finished and the President and minister gave their categorical approval to a written memorandum whose terms have been communicated by Colonel Colton to the Secretary of War in Washington. The arrangement as agreed upon seems to me to be well calculated to secure not only the efficient collection of all the customs revenues, but also the prevention of political embarrassments to this government both now and when the convention comes up for ratification, which embarrassments might have arisen from popular misunderstanding and the discontent of members of the government if Colonel Colton had insisted upon other terms.

I have, etc.,

T. C. Dawson.