AGO.

"To-night my lines completely surrounded the town from beyond the north of
the city to point of San Juan River on the south. The enemy holds from
west bend San Juan River at its mouth up the railroad to the city. General
Pando, I find to-night, is some distance away, and will not get into
Santiago.

(Signed) "SHAFTER."

July 4th Secretary Alger received the communication given below:

"HEADQUARTERS FIFTH ARMY CORPS, July 3.

"The following is my demand for the surrender of the city of Santiago:

"'HEADQUARTERS U. S. FORCES, NEAR SAN JUAN RIVER, CUBA, July 3, 1898, 8.30
A. M.

"'TO THE COMMANDING GENERAL OF THE SPANISH FORCES, Santiago de Cuba.

"'_Sir_:--I shall be obliged, unless you surrender, to shell Santiago de
Cuba. Please inform the citizens of foreign countries and all women and
children that they should leave the city before ten o'clock to-morrow
morning. Very respectfully,

"'Your obedient servant,
"'W. R. SHAFTER,
"'_Major-General, U. S. A._'

"Following is the Spanish reply which Colonel Dorst has returned at 6.30
P. M.:

"'SANTIAGO DE CUBA, 2 P. M., July 3, 1898.

"'HIS EXCELLENCY, THE GENERAL COMMANDING FORCES OF UNITED STATES, San Juan
River.

"'_Sir_:--I have the honour to reply to your communication of to-day,
written at 8.30 A. M. and received at 1 P. M., demanding the surrender of
this city; on the contrary case announcing to me that you will bombard
this city, and that I advise the foreigners, women, and children that they
must leave the city before ten o'clock to-morrow morning. It is my duty to
say to you that this city will not surrender, and that I will inform the
foreign consuls and inhabitants of the contents of your message.

"'Very respectfully,
"'JOSE TORAL,
"'_Commander-in-chief, Fourth Corps._'

"The British, Portuguese, Chinese, and Norwegian consuls have come to my
line with Colonel Dorst. They ask if non-combatants can occupy the town of
Caney and railroad points, and ask