Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your note of the 20th instant, relative to the case of the British schooner Will-of-the-wisp. The previous note of Mr. Stuart and the accompanying papers to which you refer were also duly received, but as the latter are quite voluminous, it has hitherto been impracticable to give the subject such an examination as would warrant the expression of a definitive opinion in regard to the claim for costs and damages. I will at this time, therefore, limit myself to the expression of surprise that if the claimants were dissatisfied with the decree of the court at Key West they should have neglected to appeal to a higher judicial tribunal of the United States for redress. Technically, this government might consider that neglect as conclusive in regard to the claim; but as negotiations for a general convention on the subject of claims are pending between the two governments, if, as is hoped, they should result favorably, the claimants will have an opportunity to present their claim to the board of commissioners, for which it is presumed the convention will provide.

I avail myself of the occasion to offer to your lordship a renewed assurance of my very high consideration.

WILLIAM H. SEWARD.

Right Hon. Lord Lyons, &c., &c., &c.