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Peace Now Seems Sure

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Madrid, Aug. 2.-The cabinet council sat yesterday morning -and again for four hours yesterday afternoon discussing the peace terms. A dispatch was then sent to Washington for further explanation oí some difflcult points. Señor Sagasta, the premier, conflrms the report that'some "modiflcations of thesoriginal terms have been obtained." Washington, Aug. 1.- Peace with Spain now seems assured, and the termination of hostilities may be but a matter of a few days. Progress in the negotiationa has been much more rapid than wasanticipated by the administration, for the reason that when Ambassador Cambon appeared at the White House Saturday afternoon ,he presented credentials entitling him to act as the direct diplomatic representative of Spain, with all the powers usually bestowed upon a minister plenipotentiary and envoy extraordinary, and with complete instructions covering every possible phase of the peace negotiations. Points of the Cabinet Agreement. The terms flnaliy agreed to by the cabinet Saturday were these: Cuba to be freed; Porto Rico to be ceded to the United States; one of the Ladrone islands (probably Guarn) to be ceded to the United States as a station, and as an immediate step all Spanish military forces in the West Indiesto be withdrawn with the formal relinquishment by Spain of her sovereignty over any iiossessions among those islands. As to the Philippines the cabinet agreed upon the following points: That Manila bay, with the city and surrounding territory, should be retained in the possession of the United States at least for such a length of time as is necessary te devise and put in operation some plan for the future government of the entire group, and that this governmem should be decided upon by a joint commission of the two nations - the United States and Spain. Cambon Sends the Terms to Madrid. With his credentials authorizing him to speak as plenipotentiary for the goverriment of Spain, and with full instructions on every point at issue, Ambassador Cambon, in behalf of Spain not only rectived the peace conditions, but thercupon entered upon their full discussion with a view to reaching a final complete agreement. After strong argument the president and Secretary Day consented to a modification of the American terms in one particular. What that modification relates to is not disclosed. The modification brought about practical unanimity between the president and Ambassador Cambon, as plenipotentiary for Spain, and the Iatter has now transmitted the results of the cor.ference to Madrid for approval. After the terms had been read to M. Cambon the discussion began point by point. The president and the ambassador addressed each other directly with the greatest freedom and, each stoutly maintaining the justice of his position on the several points involved. The ambassador addressed himself to the presicent not so much as the advocate of Spain, but personally, having with the president, man for man, a like interest in humanity. The president spoke with equal frankntss, and in the lengthy discussion there was scarcely a point in the whole range of the war which was not met and freely considered. Spafn May Reply Tomorrow. The persons best informed as to the probabilities declare that ihe answer of the Spanish government to the terms of peace outlined by the government of the United States is not expected before tomorrow. This opinión is based upon a knowledge of the time when the United States communication was received In Madrid, which was not until an early hour yesterday morning; the time required to decipher it, the necessity for an extended consideration of the matter by the Spanish cabinet, and also the necessity for carefully framing the rejoinder.


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