28 DECEMBER 1889, Page 1

Nothing further has been done in the quarrel between Portugal

and Great Britain ; but it is said that a long answer to the latest despatch has been received by telegraph from the Portuguese Foreign Minister, and is couched in conciliatory language. The Press of Lisbon, moreover, has become more moderate, though it is still abusive, and two plans are under serious consideration. One is arbitration; but as that is merely a device for depriving Great Britain of her property under judicial forms, it will be rejected. The other and more reasonable one is to call a European Conference such as that which created the Congo State, and allow that to settle all matters in dispute within limits previously arranged by the diplomatists. The division to be made between Portugal and England would, in fact, be settled beforehand, and both parties can accept with- out discredit an award ratified by the supreme tribunal. It will be necessary to be very careful as to the limits of the reference ; but with that reserve, this would probably be the best way out of the difficulty, especially for Portugal, which necessarily wishes to appear to yield to some general authority, and not to her opponent.