Head Quarters, Army of Occupation ]

 Saltillo, Feb. %, 1S47.
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 Sir :-In reply to your note of this date summoning mo to surrender my forces at discretion,I l beg leave to say that l decline acceding to your request.

 Whh high respec,,l am sir. your obt servant. z. TAYLOR,

 Mai. Gen. U S A, commanding,

 Senor Gen. D. Antonio Lopez de Santa Anna, Commander in Chief, la Encan tanda. Head Quarters Army ot Occupation, }

 Saltillo, Feb, 27th.

 Sir ;-I have respectfully to report that the main Mexican force is yet a. Agua Nueya. Onr troops hold the positions which they have so well defended, and are prepared to receive the enemy if he should venture another attack.

 An arrangement has been made with Santa Anna for an exchange of prisoners by which we shall receive all or nearly all of those captured from us at different times. besides the few taken in the action of the 23i, Our wounded, as well as those of the Mexicans which have fallen . into our hands, have been removed tc ~~t this place and are rendered comfortable Our loss in the recent actions, so far as known is 264 killed-45O wounded. ane 26 missing. One company of the Ken lucky cavalry is not included in this stat ments. its casualties net being yet report ed. respectfully enclose list of com missioned officers killed and wounded embracing many names of the highea