Mr. Taylor to Mr. Olney.

[Telegram.]

Have you my No. 377? Mora demand made subject of a cabinet meeting, and special committee appointed to consider it and report what [Page 1168] should be done. Outlook for settlement hopeful. I may be summoned by minister of state any day for promised conference. Generally conceded that Government has power to act, trusting to subsequent legislative ratification. No Cortes probable until next February. The right to pay in Spanish currency without interest probably will be insisted upon. Will you instruct me upon that point and as to how far I may go in pressing the matter in next conference should dilatory tactics be resorted to. For the first time the fact accepted here that something must be done.

Taylor.