In conformity with my orders issued on the 1st of September, all Philippine vessels hoisted the national flag, the Marines of the Filipino flotilla being the first to execute that order. Our little flotilla consisted of some eight Spanish steam launches (which had been captured) and five vessels of greater dimensions, namely, the Taaleño, Baldyan, Taal, Bulucan, and Purisima Concepcion. These vessels were presented to the Philippine Government by their native owners and were converted by us, at our Arsenal, into gunboats, 8 and 9 centimetre guns, taken from the sunken Spanish warships, being mounted on board.

Don Pedro Alejandro Paterno (who was appointed by the Spanish Governor-General sole mediator in the discussion of the terms of peace) visited Biak-na-bató several times to negotiate terms of the Treaty, which, after negotiations extending over five months, and careful consideration had been given to each clause, was finally completed and signed on the 14th December, 1897, the following being the principal conditions:—