Lord Lyons to Mr. Seward.

Sir: I have received from Vice-Admiral Sir Alexander Milne a despatch, in which he has made me acquainted with the view he takes of the verbal communication made by Commander Malcolm, of her Majesty’s ship Barracouta, to Mr. Whiting, who was at the time United States consul at Nassau.

Commander Malcolm reported to vice-admiral that he was at the governor’s house, at Nassau, when the chairman of the board of pilotage called, bringing with him a pilot of the name of Lloyd; that Lloyd stated that Rear-Admiral Wilkes had asked him to land a Bahama pilot, who was on board, and that he had answered that he would do this, but that he could not anchor the rear-admiral’s ship without the permission of the governor; upon which the rear-admiral replied, “that he would anchor, whether the governor liked it or no, if he chose.”

Commander Malcolm further reported to the Vice-Admiral Sir Alexander Milne, that, considering that Rear-Admiral Wilkes’s flag-ship had steamed slowly along within British waters, and within half a mile of Hog island, and had passed close to the boat of the Barracouta without taking notice of her, he had thought it his duty to express his opinion on the subject to the United States consul; that he accordingly waited on the consul, and after saying that he considered the manner in which the boat had been treated as most uncourteous, mentioned the report made by the pilot, and observed that he did not attach any weight to that report, coming in the way it did; but that, nevertheless, to prevent all doubts or misapprehension on either side, he would request the consul to inform Rear-Admiral Wilkes that to anchor without the permission of the governor would be a violation of her Majesty’s regulations. And Commander Malcolm further informed Sir Alexander Milne that he had added, that if Rear-Admiral Wilkes should anchor without permission, and, when officially and distinctly informed of her Majesty’s regulations, should refuse to move, he would fire into him.

On receiving the report, Vice-Admiral Sir Alexander Milne stated to Commander Malcolm that he considered it to have been injudicious to make any communication on such a subject to the United States consul; and the vice-admiral, in informing the lords commissioners of the admiralty of the occurrence, observed, that although Commander Malcolm’s proceedings in this instance could not, in his opinion, be approved, he was bound to express his belief that in making the communication that officer was unconsciously influenced, to a certain degree, by those feelings of irritation which Rear-Admiral Wilkes’s marked discourtesy in not communicating with the boat of the Barracouta was calculated to excite, as his conduct had generally been discreet and deserving of approbation.

I have the honor, &c., &c.,

LYONS.

Hon. William H. Seward, &c., &c., &c.