THE CAROLINE ISLANDS AFFAIR. [REUTER'S TELEGRAMS.] Madrid, September 7,

Waikato Times, Volume XXV, Issue 2056, 10 September 1885, Page 2

THE CAROLINE ISLANDS AFFAIR. [REUTERS TELEGRAMS.] Madrid, September 7,

A commuxk'vtiox has been recei\ od by Scnor Canovas del Castillo, President of the council, fiom tlio Germ,in Government relating to the occupation of Yap, in which Count Yon Hatzfeklt, the German Secretary of State for Foreign Att'aits, informs him that tne commandei of the gunboat has disobeyed orders in taking possession ot Yap, his instructions being not to occupy the island if on his arm al he found the Spaniards in possession. Count A T on Hatzfeklt, in conclusion, expressed a hope that the Spanish Government will continue negotiations with Germany with a view to a, peaceful settlement of the question,

[sI'KCI VL TO I'M Sx ASSOCIATION.] London, September 6. Spain h:is refused to allow the Caroline Islands difficulty to be settled by arbitration. Fifty arrests of rioters have been made in Madrid. Three men-of-war have been despatched to Yap, and have been ordered to act with energy. London, September 7. At present public feeling in Germany over the difficulty with Spain is quiet. Berlin, September 7. Senor C.inovas d<4 Castillo, the Spanish Premier, lias forwarded a formal apology to the German Government for the outrage on the German flag w hich recently took place at Madrid. London', September 8. Negotiations between the German and Sp mish Governments on the question of the Caroline Islands are being conducted in an amicable spirit, Germany having ottered to relinquish possession of the island of Yap if it can be proved that the Spaniards prc\ iousl y occupied the island. It is generally expected that a peaceful settlement will be arrived .it