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both forces involuntarily thought and suggested a compromise of local differences, in presence of the great national danger, and through the mediation of Maj. Fairfax Gray; C. S. A., acting under instructions from Lt. View was arranged between the contending chiefs. however, after sundry notes back and forth, the conference came to a dead halt under the following ultimatums, which were respectively submitted: By Caravajal; 1. that a general amnesty should be proclaimed by Gov. Serna to all but the chiefs of the opposite party, who were to be subject to such a prosecution as the law officers might wage. 2. that the city of Matamoras was to be unconditionally surrendered. by Garcia; 1. That Caravajal should withdraw his forces to Reynosa, and that a truce should be concluded until the dispute could be referred to the Government at the city of Mexico, both parties agreeing to abide by the decision of the National Government. 2. Or, that Garcia would surr