Mr. McKenzie to Mr. Olney.

No. 283.]

Sir: Referring to Department’s No. 146, of December 31, 1895, in relation to “the hydrographic claim,” I have the honor to inform you that I, on February 1, addressed a note to the Peruvian foreign office asking the payment of this long-standing and admittedly just claim.

In reply to this note, the minister of foreign affairs asked that I would call at foreign office on Saturday to discuss the claim. Being quite unwell, I sent my secretary, Mr. Neill, and Mr. Zevallos told him, in view of the great poverty of Peru and the condition of the public treasury, he could only offer in satisfaction of this claim 20,000 silver soles, 10,000 to be paid this year and 10,000 next year. I make haste to inform the Department and ask instructions.

In view of all the conditions here, I believe this offer is about the best solution of this matter that may be hoped for at an early date.

I have, etc.,

J. A. McKenzie.