File No. 812.00/1048, 1049.

[Telegram—Paraphrase.]

The revolutionary situation is worse than ever. My colleagues and I are all hoping, however, for a definite arrangement between Limantour and President Diaz which might open the way to united, energetic action, but negotiations for this understanding give no promise of fruition.

Mexico City government organs assert Madero with 3,000 men is marching on Chihuahua City. Discouraging reports from the five States of Durango, Sinaloa, Jalisco, Vera Cruz, and Yucatan. This city is outwardly calm, but there is much talk about the relations between President Diaz and Mr. Limantour. It becomes daily more apparent that if the situation is to be saved at all it will be by the military precautions of President Taft almost exclusively. These precautions, besides exerting a sobering effect upon public opinion in the Republic, have, strange to say, modified anti-American feeling in and around the City of Mexico.