CENTRAL AMERICA.
The hostilities between Guatemala on the one hand and the States of Honduras and San Salvador on the other, have been temporarily suspended, since the defeat of the latter States. The armies met at a little village called La Arada. The battle lasted four hours, when the allied army, commanded by Vasconcelos, President of San Salvador, was completely routed, with a loss of 500 men. His arrival at the capital was the occasion of a riot among the lower classes, and he did not immediately resume his executive functions. Carrera in the mean time advanced to Santa Anna, thirty miles from the frontier, where he made propositions for peace. The provisional President of San Salvador replied that no negotiations could take place until the troops were withdrawn from the territory. This was done, but at the last accounts no treaty had been made. The President of the National Diet of Central America has issued a proclamation demanding the cessation of hostilities. The blockade of the port of Amapala, in Honduras, has been abandoned by the British fleet. Three iron steamers, intended for the navigation of the San Juan River and Lake Nicaragua, are now building in Wilmington, Delaware, and will be placed upon the route on the 1st of July, at which time the line will be complete, and steamships will leave New-York and San Francisco direct for Central America. The journey from sea to sea will be made in about twenty-four hours.