The Terms of Peace.--Spain and America were now negotiating terms of peace. These negotiations were conducted at Paris, and dragged on during many critical weeks. The Filipinos were naturally very much concerned over the outcome. Finally, the American government demanded of Spain that she cede the Islands to the United States and accept the sum of $20,000,000 gold, for public works and improvements which she had made. Suspicions of the Filipino Leaders.--These terms became known in December, 1898. They served to awaken the worst suspicions of the Filipino leaders. Many believed that they were about to exchange the oppressive domination of Spain for the selfish and equally oppressive domination of America. There is reason to believe that some leaders counseled patience, and during the succeeding months made a constant effort to maintain the peace, but the radical party among the Filipinos was led by a man of real gifts and fiery disposition, Antonio Luna. He had received an education in Europe, had had some instruction in military affairs, and when in September the Filipino government was transferred to Malolos, Luna became the general in chief of the military forces. He was also editor of the most radical Filipino newspaper, "La Independencia." New Filipino Government.--On January 4, 1899, President McKinley issued a special message to General Otis, commanding the armies of the United States in the Philippines, declaring that American sovereignty must be recognized without conditions. It was thought in the United States that a firm declaration of this kind would be accepted by the Filipinos and that they would not dare to make resistance. The intentions of the American president and nation, as subsequent events have proven, were to deal with the Filipinos with great liberality; but the president's professions were not trusted by the Filipinos, and the result of Mr. McKinley's message was to move them at once to frame an independent government and to decide on war. This new government was framed at Malolos, Bulacan, by a congress with representatives from most of the provinces of central Luzon. The "Malolos Constitution" was proclaimed January 23, 1899, and Don Emilio Aguinaldo was elected president. The cabinet, or ministry, included Don Apolinario Mabini, secretary of state; Don Teodoro Sandico, secretary of interior; General Baldomero Aguinaldo, secretary of war; General Mariano Trias, secretary of treasury; Don Engracio Gonzaga, secretary of public instruction and agriculture.