File No. 2540/16.

Minister Fox to the Secretary of State.

[Telegram.—Paraphrase.]

(Mr. Fox states that at an interview to-day, had at the request of the minister for foreign affairs, he was informed that Aguirre had declined to serve as arbiter, and that Cesar Borja had been appointed and had accepted. Mr. Fox also states that the minister expressed a wish that the President of the United States name arbiter. Mr. Fox adds that the situation has been improved by the position assumed by the department, and that, in his judgment, prompt action should be taken.)