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auditing of the loan, but also against the relinquishment of the control of the country's incomes, as to render its acceptance impossible.

The six Power groups have agreed to share equally any business coming to any one of the six, but are a unit in refusing to finance a series of small loans coming one after another, as each succeeding loan would affect the value of those preceeding, and act to the detriment of all. An attempt to finance China by this method would, in the opinion of the representatives, end in failure.

Two million dollars has already been advanced by the six Power group during the negotiations, in addition to the six million loaned by the Belgian syndicate.

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PROGRESS OF THE REVOLUTIONS

THE MEXICAN SITUATION

General Felipe Angeles left Mexico City, August 5, to take command of the federal forces in the State of Morelos, superseding General Robles. The citizens of the State of Morelos are anti-Madero in sentiment, and are supporting the rebels, rather than the government troops.

After his defeat at Bachimba, the Mexican rebel leader, Pascual Orozco, broke up the remains of his army into guerrilla bands, with orders to make their way westward through the State of Sonora to the Pacific coast, with the seaport town of Guaymas as a rendez

vous.

A letter from an American citizen in Mexico to a Senator at Washington, states that the rebels believe that move will result in securing aid from Japanese sources. Other reports from Mexico also indicate that Orozco certainly expects aid in that direction. Japanese citizens, acting on their own responsibility, could supply Orozco with munitions of war if he could obtain control of a seaport on the coast. This probably is Orozco's object in hurrying one of his bands to Guaymas, with the intention of concentrating the remainder of his army around Magdalena Bay, where a so-called fishing concession has been granted by Mexico to Japanese residents.

Advices from Tuscon, Arizona, dated August 6, report the defeat of the federal forces under Generals Sanjines. and Velasco at Sahuaripa. Orozco has notified the residents of Juarez to cross the border to El Paso, or else to accompany the rebel army; as he is not responsible for the safety of the city.

The Mexican congressional commission has ordered. the suspension of the constitution in the revolted States, but the decree is not to take effect till August 25, by which date, it is hoped, the necessity for enforcing it may have passed.

The suspension amounts practically to a declaration of martial law, which carries with it the death penalty for every act against the government.

The State Department has received dispatches stating that most of the rebel troops at Juarez are being sent by train to Casas Grandes, to follow the advance guard into Sonora.

On July 7, Gen. Huerta, commander-in-chief of the government forces in Northern Mexico, took possession of Chihuahua. He despatched Generals Fellez and Ra

bago with two brigades of cavalry, toward Casas Grandes, in an attempt to head off the fleeing rebel army. The city of Chihuahua joyfully received the federal commander, and his entrance was marked by a demonstration.

The occupation of Chihuahua by the federal forces insures the restoration of communication with Torreon, but Juarez, which is still in the hands of the rebels, will be cut off.

In the event of Orozco's entrenching himself in the mountains of Sonora, General Huerta will probably try to obtain permission from the United States to transport troops through Texas and Arizona into Sonora. There are two or three short railroads from the mountains of Sonora to Douglas, Ariz., and El Paso, Tex., which were built for the transportation of ore from American owned mines in Sonora. These roads, used by the Mexican leader, would facilitate the despatch of troops against the rebels.

The anticipation of a speedy restoration of peace which were indulged in immediately after the rebel defeat at Bachimba, have failed of realization.

Orozco, in desperation, confiscated the arms of Americans in Sonora, threatening death in case of refusal. In this instance, at least, he has circumvented the order of the American government which prohibits the exportation of firearms for the use of the rebels.

Twelve hundred refugees, mostly Mormons, have arrived at El Paso, Texas, who are being cared for by the National Government.

An energetic protest has been sent to the Madero government in which it is forcibly set forth that full reparation will be demanded and that Mexico will be held responsible for any future outrages. Unofficially, Orozco has been informed that he will personally be held to answer for any injuries inflicted upon Americans in territory in possession of the rebels. His answer was a practical defiance of the Washington officials.

The shadow of the cloud of intervention waxes and wanes. Any immediate step in that direction at present is not anticipated, but at any time some overt act may render action by this government imperative.

Following an attack upon the American administration by Senator Fall, of New Mexico, for failing in its duty to its own citizens who have claims against Mexico, the Senate passed a resolution calling upon the Secretary of War to press all claims of Americans for an immediate settlement.

At the State Department it is said that all American claims are in a fair way of final settlement. The commission appointed by the Mexican Congress, after the Madero government came into power, to adjust the demands of foreigners for war damages, appears to be acting in an unprejudiced manner. Many of the American claims have already been passed upon, and the awards submitted to the claimants for their approval.

CUBAN AFFAIRS

Following the deaths of Generals Estenoz and Ivonet, the negro uprising in Cuba has about collapsed.

This result has been due not so much to the activity of the Gomez government, as to the lack of enthusiasm for the revolt among the negroes themselves, whose ardor has been dampened by the force of American marines in the island and the American warships in the neighboring waters.

Since the suppression of the revolt, the Cuban press, which previously accused President Gomez with inciting the rebellion for personal ends, are now charging that in the coming elections the right of suffrage will be refused to his political opponents.

THE NICARAGUAN REVOLUTION

A revolution broke out in Nicaragua when President Diaz demanded the resignation of General Luis Mena, Minister of War. After his forcible deposition, the latter officer with his followers marched from Managua to Masaya, twelve miles to the south. The first engagement occurred at Tititape, on Lake Managua, and resulted in a government victory.

Commander W. J. Terhune landed one hundred American bluejackets from the U.S.S. Annapolis at Managua, and this display of force seems to be holding the revolution in check. In addition to this force on the Pacific side, the protected cruiser Tacoma is stationed at Bluefields, on the Atlantic Coast, to protect American interests there. President Diaz has requested the American government to transfer three hundred and fifty marines from Panama to Managua. The Department immediately ordered the Justin to proceed to Panama and transfer the marines. The failure to obtain a loan of $15,000,000 from the United States produced financial difficulties in Nicaragua, followed by a state of political unrest, which the State Department has been doing its utmost to allay.

RESULTS OF GUNNERY COMPETITION

The high percentage scored in the naval gunnery com-
petition for the past year is a subject of congratulation
by all friends of the navy.

The winning ships were congratulated in letters from
the Department; the one to the Colorado, being quoted
below. A similar one was sent to the Monaghan, and
also letters of commendation to Capt. W. A. Gill and Lt.
Comdr. F. T. Evans, the commanding officers, respect-
ively, of the Colorado and Monaghan, which letters have
been placed on file with their official records.

In order that the training of the personnel be main-
tained at the highest efficiency in these competitive tests.
it is the aim of the Department to make the conditions
governing each year's practice at least as exacting as
those that obtained for the preceding year.

The following tables show the results of the competi-
tion for the year ending June 30, 1912. The order of
standing of the submarines has not been tabulated, as the
reports are not yet all received.

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1 No practice.

Letter from the Secretary of the Navy to the Com-
manding Officer of the U.S.S. Colorado:

July 23, 1912.

I. The Department takes pleasure in informing you that the
U.S.S. Colorado, in competition with twenty-two vessels of her
class, attained the highest final merit in gunnery for the fiscal
year which has just ended, and is awarded the gunnery trophy
in recognition of the high state of efficiency of her personnel.
2. The Department congratulates the officers and men of the
U.S.S. Colorado, and commends the intelligence and zealous
training that produced such efficiency.

3. Submit the names of three officers of the U.S.S. Colorado
who by their continued, efficient work have done most to bring
about the excellent results obtained. A copy of this letter will
be placed on file with their record.

4. Publish this letter at general muster.

H. I. CONE,

Acting Secretary of the Navy.

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BATTLESHIP CLASS TROPHY FOR EXCELLENCE IN GUNNERY, WON BY THE U.S.S. COLORADO

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TORPEDO CLASS TROPHY FOR EXCELLENCE IN GUNNERY, WON BY THE U.S.S. MONAGHAN

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