refused to accept
less than P6,000,000. This demand stupefied the Spaniards, who said
they would return to consult General Jaramillo; but they were reluctant
to leave the matter unsettled, and a last conference was held the next
day, when the Spaniards raised their offer to P2,000,000. The Filipinos
then reduced their demand to P3,000,000, which the Spaniards objected
to; but they were successful in obtaining the liberty of the Baler
garrison and 22 invalids, with all of whom they returned to Manila
(_vide_ Baler garrison, p. 494).

On July 5 a decree was issued from Tarlac, signed by Emilio Aguinaldo
and countersigned by his minister, Pedro A. Paterno, to the effect that
all invalid prisoners would be at liberty to embark at certain ports
designated, if vessels were sent for them flying only the Spanish
flag and a white one bearing the Red Cross. Difficulties, however,
arose with the American authorities which impeded the execution of
this plan. General Jaramillo was preparing to send his commissioners
again to Tarlac when he received a cablegram from Madrid telling him
to suspend further overtures to the insurgents because international
complications were threatened. It appears that America objected to
the proposal to pay to the insurgents a large sum of money.

On August 9 General Jaramillo wished to send the Spanish warship
_General Alava_, or a Spanish merchant vessel with the Red Cross
flag, to San Fernando de la Union with provisions for the prisoners,
but General E. S. Otis objected to the proposed proceeding on the
ground that it would compromise the dignity of America. But General
Jaramillo still persisted in his project, and after a lapse of three
days he again addressed a note on the subject to General E. S. Otis,
from whom he received another negative reply. On September 5 General
Jaramillo informed General Otis that the prisoners were concentrated in
the ports named in the insurgents' decree, and solicited permission to
send a vessel flying the Red Cross flag to receive them. Three days
afterwards General Otis replied that a recognition of Aguinaldo's
pretension to designate certain ports for the Spaniards' embarkation
would be not only humiliating but ridiculous. Furthermore, he was
expecting reinforcements shortly, with which peace would be assured
and all the ports re-opened, and then America would co-operate for
the liberty of the prisoners. General Jaramillo replied to this
communication by addressi