Minister Collier to the Secretary of State.

No. 162.]

Sir: I have the honor to inform you that the Madrid papers of yesterday, upon the authority of the minister of the treasury, announce the signing of a commercial treaty between Spain and Switzerland on Saturday, September 1, subject to approval by the Cortes. Until submitted to the Cortes the terms of the treaty will be kept secret. It is, however, reliably reported that reductions below the second tariff have been made.

It is also announced that, beginning on September 5, a modus vivendi between the two nations will go into effect, pending consideration of the treaty. As soon as the Gaceta containing the exchange of notes by which the modus vivendi was established reach here copies will be sent you.

I have, etc.

Wm. Miller Collier.