No. 76.
Mr. Partridge to Mr. Fish.

No. 255.]

Sir: The negotiations here between this government and the Argentine minister are progressing even more satisfactorily and rapidly than had been hoped for.

According to accounts we get (confirmed by reports from Buenos Ayres) the following are among the conditions:

The Missiones, the island of Cerrito, and the Chaco, up to Pilcomayo, will be recognized as Argentine territory.

Between the Pilcomayo and the Rio Negro the ownership of the Chaco as between Argentines and Paraguay, will be decided by an arbitration.

The Brazilian occupation of Paraguay will cease and their forces be withdrawn.

The Argentines will also withdraw from Villa Occidental, opposite and above Asuncion.

The Argentine minister hopes to leave here during the first week in June.

I am, &c.,

JAMES R. PARTRIDGE.