ao Chou, which they have seized.

The Chinese Government, on hearing these demands, said that the Bay of
Kiao Chou must be given up before they could even be discussed.

The German minister replied that Germany would not give up Kiao Chou,
and there the matter rests.

The representatives of the other foreign powers think these terms are
unreasonable, and that China shall not think of accepting them.

China has expressed her willingness to rebuild the mission-houses and
punish the criminals. She hopes to be able to settle the difficulty by
diplomacy, as she is not in a position to go to war.

The cowardly governor who gave up the forts without firing a shot has
been condemned to death.

* * * * *

The Queen Regent has signed the decree giving home rule to Cuba.

The plan, in brief, is that the island shall be governed by the
Captain-General (who is to represent the mother country) and two
chambers of Congress, the Council Chamber and the House of
Representatives.

There will be thirty-five members in the Council Chamber, eighteen of
whom will be appointed by the crown, and the other seventeen elected by
the people. All of the members of the House of Representatives will be
elected by the people.

This Congress is to settle all the affairs of the island, with the
exception of the foreign policy, the question of relations with other
countries, which will be arranged by Spain.

The supreme authority will be vested in the Captain-General, who will
have to give his consent to all the acts of the Congress before they can
become laws.

The army and navy will be under his sole control and direction.

Congress will have the right, subject to certain restrictions imposed by
the home Government, to fix the tariff duties.

The mayor and all the city officials will be elected by the people, and
while the Spanish Government keeps to itself the right to the final
voice in all decisions, the prospect offered the Cubans seems fair home
rule.

Porto Rico, another Spanish possession in the West Indies, is to enjoy
the same privileges as Cuba.

The insurgents, however, will have none of this.

Both Gomez and Garcia have published proclamations, so severe in tone,
that there can be no doubt that the insurgent leaders are sincere in
their declaration that they will have nothing from Spain but
independence.

Here is Gomez's proclamation:

"HEADQUARTERS OF THE GENERAL-IN-CHIEF OF THE