Treaty negotiations are initiated between Spanish and American representatives in Paris in late September 1898.

The Treaty of Paris is signed on December 10.

Among its conditions is the cession of the Philippines, Guam, and Puerto Rico to the United States (Cuba is granted its independence); in return, the United States will pay Spain the sum of US$20 million.

The nature of this payment is rather difficult to define; it is paid neither to purchase Spanish territories nor as a war indemnity.

In the words of historian Leon Wolff , "It was . . . a gift. Spain accepted it. Quite irrelevantly she handed us the Philippines. No question of honor or conquest was involved. The Filipino people had nothing to say about it, although their rebellion was thrown in (so to speak) free of charge."

The Treaty of Paris arouses anger among Filipinos.

Reacting to the US$20 million sum paid to Spain, La Independencia (Independence), a newspaper published in Manila by a revolutionary, General Antonio Luna, states that "people are not to be bought and sold like horses and houses. If the aim has been to abolish the traffic in Negroes because it meant the sale of persons, why is there still maintained the sale of countries with inhabitants?"

Tension and ill feelings are growing between the American troops in Manila and the insurgents surrounding the capital.

In addition to Manila, Iloilo, the main port on the island of Panay, also is a pressure point.

The Revolutionary Government of the Visayas is proclaimed there on November 17, 1898, and an American force stands poised to capture the city.

Upon the announcement of the treaty, the radicals, Mabini and Luna, prepare or war, and provisional articles are added to the constitution giving President Aguinaldo dictatorial powers in times of emergency.

President William McKinley issues a proclamation on December 21, 1898, declaring United States policy to be one of "benevolent assimilation" in which "the mild sway of justice and right" will be substituted for "arbitrary rule."

When this proclamation is published in the islands on January 4, 1899, references to "American sovereignty" having been prudently deleted, Aguinaldo issues his own proclamation that condemns "violent and aggressive seizure" by the United States and threatened war.