Col. Fry, with a mounted escort of Americans, was immediately ordered to the neighborhood of Masaya, to meet the Legitimist general, and accompany him to Granada. A little after nine o’clock on the morning of the 23d, it was announced that Corral, with the escort, had reached the powder-house, just outside of the city, on the Masaya road; and Walker, with a number of the democratic officers, rode out to meet him. The commanders of the two forces, after saluting each other, rode side by side through the main street leading to the Plaza. As they passed, the doors and windows of the houses were filled with women and children, dressed in the bright colors affected by the people of the country, and smiling through tears at the prospect of peace. On the Plaza the whole democratic force was drawn up to receive the commanding-general of the Legitimists; and arms were put into the hands of many of the California passengers, and they were drawn up in as good array as possible, to impress Corral with an idea of the American strength of the democratic army. Then the two commanders retired to the government house, in order to open negotiations. Corral produced his authority from Estrada, empowering him _omnimodamente_—in all respects—to treat for the Legitimist government without the necessity for ratification, thus beforehand making his acts the acts of the government. Walker had no powers from the government whose commission he held; and Corral treated with him simply as colonel commanding the forces occupying Granada—it being understood that, in case a treaty was agreed on, it should be sent to Leon for ratification. The Legitimist general seemed disposed to take the lead in the negotiation, and Walker permitted him to develop freely the terms he desired, saying little by way either of objection or amendment. After some consultation, the outlines of a treaty were agreed on, and Corral undertook to draw it up for signature.