Every one is
satisfied with the settlement of the Venezuelan difficulties, and now
Spain and Peru have entered upon a new treaty based upon similar
grounds.

In this last treaty all differences are to be laid before a
disinterested country for settlement, and the decision of that country
is to be final.

There is a curious clause in this treaty which relates to the frequent
revolutions which occur in the South American republics.

This clause states that the claims of Spanish residents for damage done
their property during these disturbances shall be placed on the same
footing as those of the Peruvians. Formerly there were diplomatic
squabbles and troubles like the Ruiz affair, after every revolution, but
under the new treaty all this will be avoided.

There are still rumors of a new arbitration treaty between England and
the United States. It is probable that the question may be raised again
at the next session of Congress.

* * * * *

Affairs are progressing peacefully in Turkey.

The ambassadors have presented the Sultan with a rough draft of the
treaty. It provides that Europe shall arbitrate any difficulties that
may arise between Turkey and Greece over the details of the arrangement.

So far the ambassadors and Turkish officials are on the best of terms,
and meet with the utmost friendliness.

But despite this fact, the peace is not yet concluded.

Germany has made a fresh difficulty by insisting that the Powers shall
control the money matters of Greece until the war indemnity has been
paid.

The Sultan has persisted in his refusal to give up Thessaly until this
money has been paid, and to meet this objection the German Kaiser
proposes to take charge of Greece's pocketbook and see that she settles
her debts.

Greece has something to say on this subject, however. Her ministers will
not hear of any such arrangement, and it was rumored that King George
would abdicate if Germany's plan was carried out.

In addition to this, there is a likelihood of fresh trouble in Crete.

Turkey has been trying to send fresh troops to the island to re-enforce
her present army. The admirals of the allied fleets have sternly
objected to any such proceeding, and, learning that the Turkish troops
are on their way, have refused to allow them to land, threatening to use
force to prevent them, if necessary.

* * * * *

It is now openly stated in Havana that G