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He stated that the Spanish Government appreciated most deeply the magnanimity of our Government in permitting the passage of cipher telegrams to Aguinaldo through his agent, Agoncillo, at Paris. Permission thus to correspond on the subject of the Spanish prisoners and to treat for the terms of their release, he said, was asked by the Duke of Arcos of the United States only on the most pressing grounds, both of humanity and of political necessity, and it was a happy surprise when this permission was granted. I, in reply, called his attention to the often clearly expressed desire on the part of the President and yourself to do anything to be done which might further the release of these prisoners, and that the absolute sincerity of these wishes must now appear. The minister reiterated his expressions of the grateful feelings of the Government of Spain on this subject, and added that under the circumstances he was desirous in the most complete way, as in honor bound, to acquaint me with all the communications, so far as known to his Government. He said the first result was a demand on the part of Aguinaldo for the sum of 7,000,000 Spanish dollars as a ransom, which was afterwards changed to 6,000,000.

The ministry had thought it wise, before absolute refusal, to go so far as quietly to assure itself that the Spanish Congress would, at need, sanction a sum of $2,000,000, which might have been increased, possibly, to $3,000,000. But the Government had not deemed it wise or proper to admit the possibility of any payment at all, except enough to cover the shelter and food of these prisoners until they could be returned, without naming any fixed sum as the measure of these charges. To use his own language, "What would and what must have been our answer had Aguinaldo demanded as ransom so many field guns, so many thousand rifles, and so many million cartridges? And money in sums like this means the same thing." He then told me that on the positive refusal of his Government to entertain any such idea all negotiations had ceased, and he assured me he would keep me informed of resumption on either side.

He also told me he had been informed through the Spanish consul at Manila that, should Spain accede to a large money ransom, as demanded by Aguinaldo, the so-called provisional government of the Tagalos would refuse to permit the release of the Spanish prisoners until Spain had, in addition, given formal recognition of this provisional government as a belligerent power. He gave it, finally, as his own personal judgment that it would be useless to try to accomplish anything toward the release of these prisoners save by the loyal and generous cooperation of the United States, and that, so far as could be seen now, nothing remained but to await the crushing of the insurrection by force.

* * *

The adjournment of the Cortes the 30th of July has removed or at least postponed, some of the embarrassments of the Government on this subject. During the last three weeks of the session hardly a day went by without fierce attacks by the opposition on the ministry. Bands of women, calling themselves-perhaps being so the wives and relatives of prisoners, haunted the precincts of the Cortes, particularly the Senate, openly incited to disorder by recognized republican, socialistic, and even Carlist agents. The halls of the Congress had to be cleared of them, as the ordinary official doorkeepers were overcome by this feminine torrent. The scenes of disorder and the flagrant attempted use for political intrigue of what was in itself a deep and legitimate current of sorrow and sympathy for suffering, seems to have brought about rather a reaction in public opinion. This, coupled with the adjournment, may enable

the Government more patiently to await events. The action of the President in allowing the interchange of such negotiations in cipher has had a very happy effect. The bitter feelings which might have remained always against us had our Government done what, from a political and military point of view alone it might have done most legitimately, in refusing such permission, will now be turned directly toward the Tagalos.

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The Duke de Arcos to Mr. Hay.

LEGACIÓN DE ESPAÑA EN WASHINGTON,
Washington, September 11, 1899.

DEAR MR. SECRETARY: Again I appeal in this informal way to your kindness on behalf of the Spanish prisoners of Aguinaldo. Part of them have been, or are, on the point of being liberated, and I am instructed to ask the American Government to telegraph General Otis to give permission to the Spanish commissioner to go and fetch the prisoners, and to take them every available relief. The commissioner will, I believe, charter a ship, and whatever facilities can be afforded by General Otis will contribute to the liberation of the prisoners, so much desired by the Spanish Government as well as by the American. I hope, Mr. Secretary, that the American Government will do all that is necessary to help our commissioner, and thanking you beforehand in the name of the Spanish Government,

I remain, etc.,

Mr. Adee to the Duke de Arcos.

[Personal.]

ARCOS.

DEPARTMENT OF STATE, Washington, September 16, 1899.

MY DEAR MR. MINISTER: I beg to acknowledge the receipt of your note of the 11th instant, requesting the Government of the United States to instruct General Otis to facilitate the mission of the Spanish commissioner who has been directed to arrange for the liberation of the Spanish prisoners in the Philippine Islands and their return to their native country.

Your note has been communicated to the Secretary of War for his consideration and appropriate determination, of which you will be advised.

Very truly, yours,

ALVEY A. ADEE,
Acting Secretary.

Mr. Adee to the Duke de Arcos.

[Telegram.]

DEPARTMENT OF STATE, Washington, September 18, 1899.

Referring to your personal letter 11th relative Spanish prisoners, Secretary War has cabled General Otis to give every facility to Spanish commissioners for the care of released prisoners.

ALVEY A. ADEE,

Acting Secretary.

Mr. Adee to the Duke de Arcos.

DEPARTMENT OF STATE, Washington, September 18, 1899.

DEAR MR. MINISTER: Referring to your informal note of the 11th instant, in which, acting upon instructions from your Government, you request that General Otis be cabled to give permission to the Spanish commissioners to bring away the prisoners being released by Aguinaldo and to carry them all available relief, it gives me pleasure to confirm my telegram to you of this date advising you that the Secretary of War has to-day cabled instructions to General Otis to afford every facility to the commissioners in the direction asked.

I am, etc.,

ALVEY A. ADEE.

Mr. Adee to the Duke de Arcos.

DEPARTMENT OF STATE, Washington, September 18, 1899.

DEAR MR. MINISTER: It gives me pleasure to take this personal way of informing you that I am advised by the Secretary of War that General Otis reports that there were shipped to Spain on December 13, on the Cachemire, 30 Spanish officers and 1,067 enlisted men; May 6, on the Cataluna, 71 officers and 30 men; May 30, on the Leon XIII, 4 officers and 6 men; June 3, on the Satrustegui, 11 officers and 79 men; July 1, on the Isla de Luzon, 13 officers and 16 men.

I am, etc.,

ALVEY A. ADEE,
Acting Secretary.

The Duke de Arcos to Mr. Adee.

LEGACION DE ESPANA EN WASHINGTON,
Washington, September 22, 1899.

DEAR Mr. ADEE: I am in receipt of your telegram and note of the 18th instant, by which you inform me that General Otis has been cabled to give permission to the Spanish commissioners to bring away the prisoners being released by Aguinaldo and to carry them all available relief, and I beg you to have the kindness to convey to the Secretary of War the expression of the gratitude of the Spanish Government for the courteous attention which has been extended to its request.

I remain, etc.,

ARCOS.

No. 121.]

Mr. Storer to Mr. Hay.

LEGATION OF THE UNITED STATES,
Madrid, November 17, 1899.

SIR: I have the honor to report that at the request of the president of the council, Mr. Silvela, I had an interview with him this morning upon a matter which he deemed of the highest importance. He stated that the Filipinos had refused to allow any vessel carrying the

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American flag to land at or approach the place agreed upon for the liberation of the sick and wounded Spanish prisoners, while the military governor, General Otis, had refused to allow the vessel to fly any other than the American flag. The minister of state gave his assurance that the vessel appropriated for that purpose was totally unarmed and was a Spanish merchant craft. He had been interpellated in the Cortes on this subject and expected to be again, and considered it a matter of grave importance that no obstacle possible to avoid should be allowed to stand in the way of the release of these wounded pris

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I consented, in view of the urgency of Mr. Silvela, to cable you immediately, without waiting for his official letter on this subject, which he said I should receive to-morrow.

I have accordingly cabled you to-day a message the true reading of which is as follows:

The Spanish Government embarrassed by refusal permission on the part of military authorities of the United States in Philippine Islands for unarmed vessel receiving sick, wounded Spanish prisoners from the Philippines to fly Spanish flag. Filipinos refuse return to any ship flying the flag of the United States. Earnest request of Spanish Government made to get permission to fly either the Spanish flag or the Geneva Red Cross.

Awaiting your advices, I have, etc.,

BELLAMY STORER.

Mr. Hay to Mr. Storer.

[Telegram.]

DEPARTMENT OF STATE, Washington, November 21, 1899.

Your telegram of the 17th instant concerning delivery of Spanish prisoners by Filipinos had due consideration. Reports from general commanding show that real obstacle to surrender lies in the insistence of Filipinos that Spain recognize insurgent government as condition for return of prisoners. Surrender to vessel flying Spanish flag is inadmissible, being tacit recognition. Delivery of prisoners to vessel flying Geneva Red Cross flag would be entirely unobjectionable, and General Otis will be instructed to facilitate such delivery by every means in his power. It is, however, apprehended that the insurgents will refuse this.

Mr. Storer to Mr. Hay.

HAY.

No. 128.]

LEGATION OF THE UNITED STATES,
Madrid, November 22, 1899.

SIR: I have the honor to acknowledge receipt, this morning, of your cable instruction, the true reading of which I take to be as follows: Your telegram of the 17th instant, concerning delivery Spanish prisoners by Filipinos, had due consideration. Reports from general commanding show that real obstacle to surrender lies in the insistence of Filipinos that Spain recognize the insurgent government as condition for return of prisoners._ Surrender to vessel flying Spanish flag is inadmissible, being tacit recognition. Delivery of prisoners to vessel flying Geneva Red Cross flag would be entirely unobjectionable, and

General Otis will be instructed to facilitate such delivery by every means in his power. It is, however, apprehended that insurgents will refuse this.

I immediately communicated the substance of this instruction verbally to the minister of state, and received his personal acknowledgments of grateful recognition for this friendly action on the part of the Government of the United States.

I have, etc.,

Mr. Storer to Mr. Hay.

BELLAMY STORER.

No. 129.]

LEGATION OF THE UNITED STATES,
Madrid, November 25, 1899.

SIR: I have the honor to report that in response to my communication of the substance of your telegraphic instruction of the 21st instant, the receipt of which has already been acknowledged, I have received a letter from Mr. Francisco Silvela, minister of state, of which I beg to inclose a copy and translation.

As thus requested, I have cabled you to-day as follows:

Requested to transmit the thanks of the Spanish Government for most acceptable permission to use Geneva Red Cross.

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SIR: In reply to your letter of yesterday I have only to express the satisfaction with which the Government of His Catholic Majesty is inspired by the decision of the Government of the United States concerning the liberation of the Spanish prisoners in the Philippines.

The solution decided on seems in every way acceptable, and we shall comply with pleasure with the conditions that the vessel sent shall bear the flag of the Red Cross.

I beg you, my dear Mr. Minister, to inform your Government at Washington to this effect, and to add the expression of our grateful recognition of the humane orders transmitted to General Otis.

Accept, etc.,

Mr. Hay to the Duke de Arcos.

FRANCISCO SILVELA.

No. 68.]

DEPARTMENT OF STATE,

Washington, January 17, 1900. SIR: I have the honor to advise you that the War Department has received a telegram from General Otis, dated the 15th instant, reporting the troops of General Schwan as east and south of Santo Tomas, Batanzas, and that General Schwan had liberated about 200 Spanish prisoners, who, at the date of the telegram, were on the way to Manila.

Accept, etc.

JOHN HAY.

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