Sir:--I have the honor to acknowledge the receipt of your Excellency's letter of this date, notifying me that the Government at Madrid approves your action, and requesting that I designate officers to arrange for and receive the surrender of the forces of your Excellency. This I do, nominating Major-General Wheeler, Major-General Lawton, and my aide, Lieutenant Miley. I have to request that your Excellency at once withdraw your troops from along the railway to Aguadores, and from the bluff in rear of my left; also that you at once direct the removal of the obstructions at the entrance to the harbor or assist the navy in doing so, as it is of the utmost importance that I at once get vessels loaded with food into the harbor. The repair of the railroad will, I am told, require a week's time. I shall, as I have said to your Excellency, urge my Government that the gallant men your Excellency has so ably commanded have returned to Spain with them the arms they have wielded. With great respect, I remain, Your obedient servant and friend, WILLIAM R. SHAFTER, General, Commanding. Terms of the Military Convention for the capitulation of the Spanish forces occupying the territory which constitutes the Division of Santiago de Cuba and described as follows: All that portion of the Island of Cuba east of a line passing through Aserradero, Dos Palmas, Cauto Abajo, Escondida, Tanamo and Aguilara, said troops being in command of General Jose Toral; agreed upon by the undersigned Commissioners: Brigadier-General Don Federico Escario, Lieutenant-Colonel of Staff Don Ventura Fontan, and as Interpreter, Mr. Robert Mason, of the city of Santiago de Cuba, appointed by General Toral, commanding the Spanish forces, on behalf of the Kingdom of Spain, and Major-General Joseph Wheeler, U.S.V., Major-General H.W. Lawton, U.S.V., and First Lieutenant J.D. Miley, Second Artillery, A.D.C., appointed by General Shafter, commanding the American forces on behalf of the United States: 1. That all hostilities between the American and Spanish forces in this district absolutely and unequivocally cease. 2. That this capitulation includes all the forces and war material in said territory. 3. That the United States agrees, with as little delay as possible, to transport all the Spanish troops in said district to the Kingdom of Spain, the troops being embarked, as far as possible at the port nearest the garrison they now occupy. 4. That the officers of the Spanish Army be permitted to retain their side arms, and both officers and private soldiers their personal property.