Minister Pearson to the Secretary of State.

No. 138.]

Sir: I have the honor to report that on the 6th instant Hussein Kuli Khan, Navab, under secretary in the ministry of foreign affairs, came out to see me at my place in the country and stated that he came under instruction from the grand vizier, who is also acting minister for foreign affairs, to propose that the Persian Government would pay to me, for the benefit of the widow and children of the late Benjamin W. Labaree, the further sum of $20,000 in gold, in full and final settlement of the controversy. He added that, owing to the disturbed and disorderly condition prevailing along the Turkish frontier, his Government had found it exceedingly difficult to recapture the Kurds implicated in the murder.

I replied that I had anticipated this proposition, as shown in my note to the minister for foreign affairs, dated October 4, 1905 (published in Foreign Relations, 1905, pp. 733734), and that I had unequivocally declined to entertain it, and that my Government had approved my attitude in the premises.

He then said that he would have to instruct the Persian minister at Washington to make the offer directly to the Secretary of State, with a full explanation of the difficulties attending the alternative course to which the Persian Government stands pledged.

I replied that, of course, I could take no exception to such a procedure; in fact, I should rather welcome it as tending to divide my responsibility if not to relieve me of further responsibility in the matter.

I am, etc.,

Richmond Pearson.