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First, that the Filipino leaders should leave the country for the time being.

Second, that liberal and sweeping reforms would be introduced without delay.

Third, that the sum of $800,000 would be paid the Filipinos in two instalments, as evidence of good faith.

The Filipinos complied with their part of the agreement; Aguinaldo and his followers went to Hongkong. But the Spaniards did not comply with theirs; only $400,000 was paid to the revolutionists and no reforms were introduced.

The Republic Accordingly, Aguinaldo and his companions returned to the Islands and renewed the struggle. On June 12, 1898 at Kawit, Cavite, they proclaimed the Independence of the Philippines from Spain. Soon afterwards a Philippine Republic was ratified, with General Aguinaldo as President. The capital was established at Malolos about 30 miles from Manila. There an elective Congress sat regularly, passed laws, levied taxes, administered revenues, kept in motion the machinery of justice, directed a military organization, carried on efficient war and constantly appealed to the patriotism of the people.