Show guatemala will cease hostilities if other belligerents will do likewise salvador and honduras said to have entered into an alliance to die tate terms of peace to be pro posed by two countries to guatemala washington I 1 he latest developments in the las outbreak in south america Is an assurance to the state department from president cabrera that guatemala would refrain from further hostilities if salvador would undertake to do the same which news was promptly communicated to minister merr at san salvador in or der that he might transmit the proposition to the government at that place another point developed was that salvador and honduras had entered into an alliance the nature of which Is not certainly known but it is be cleved by the officials here that the purpose Is to agree upon the terms alj peace that shall be proposed by the two countries to guatemala this news came to the state department from charge brown at guatemala city still another cablegram this one from minister merry informed the state department that the govern ment of honduras insisted upon being considered along with salvador in the peace negotiations with guatemala altogether the prospect of the peace ful termination of the present biffl culty is believed to have brightened considerably |