I have the honor to submit the following report:

In October, 1897, the minister of Spain at this capital verbally advised

the undersigned that so soon as the new government in Spain had leisure

to take up the question he would probably be authorized to enter into

negotiations with the undersigned for reciprocal trade arrangements with

Spain, and that a representative of Cuba would probably be associated

for the interests of that island.

Under date of December 9, 1897, the minister of the United States at

Madrid was instructed to ascertain the disposition of the Spanish

Government in respect to these negotiations.

Under date of January 24, 1898, a dispatch from Mr. Woodford (referred

to this office) advised the Secretary of State that arrangements were

made for the negotiation of a commercial treaty between Spain and the

United States; that separate provisions would be made for Cuba, and that

the Cuban insular government would appoint a delegate to represent that

island in the negotiations. This was accompanied by a memorandum from

the Spanish minister of colonies, stating that the same rules as for

Cuba might be applied to Puerto Rico, and suggesting a basis for the

negotiations. This communication was referred to this office on the 4th

of February.

On the 6th of February the Spanish minister, Mr. Dupuy de Lôme, called

on the undersigned and announced that he was authorized to represent

Spain in the pending negotiations and that a special representative

would arrive from Cuba, under appointment of the insular government, to

act as far as the interests of that island were involved. He mentioned

the name of Señor Angulo as the gentleman who had been suggested in Cuba

for that appointment; but the delegate was not officially notified to

this office.

On March 17 a note from the Spanish minister, Señor Polo y Bernabé,

addressed, under date of the 16th instant, to the Secretary of State,

was referred to this office. In that note his excellency advised this

Government of his appointment by Her Majesty the Queen Regent of Spain

to conduct these negotiations, assisted by Señor Manuel Rafael Angulo as

special delegate of the insular government of Cuba, who would be aided

by two technical assistants, also appointed by the Cuban government;

and, further, that an officer from the treasury department would be

added in the same character.

His excellency announced his readiness to commence the labors of the

commission so soon as the Government of the United States should

formulate the general plan for carrying on the work.

Respectfully submitted, March 17, 1898.

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