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The Minister in Honduras (Morales) to the Secretary of State

56. Doctors Bonilla and Arias conferred on Saturday but no agreement reached. The former desired to be the candidate of the Liberal Party with Arias as Vice President, but this plan was not agreeable to the latter.

The new Minister and the Under Secretary of Finance are Bonilla adherents and four other followers of the latter were appointed to office today. It is rumored that the Minister of Public Instruction will resign this week and that Bonilla’s campaign manager will be appointed to succeed him. If this takes place, civil war is imminent.

It is very evident that the Government and Bonilla have arrived at some agreement.