Mr. Loomis to Mr. Hay.

[Confidential.]
No. 352.]

Sir: As I cabled you this afternoon, I have to-day entered into official relations with the de facto government of General Castro, he [Page 810] having assured me many times, that he possessed the machinery of government throughout the Republic, and all of the ports, cities, and towns, and that he had the support of the State governments.

I have refrained from entering into relations earlier for the reason that I wanted to see whether the Hernandez movement was likely to develop serious proportions soon. * * *

General Castro has now been in the possession of the Government for a month, and Hernandez has not once offered battle or shown any disposition to fight, so I assume he is not likely to overturn the Castro government very soon.

I have, etc.,

Francis B. Loomis.