Lord Lyons to Mr. Seward.
Sir: Her Majesty’s government have had under their consideration the note dated the 14th October last, in which you did Mr. Stuart the honor to inform him that the proofs which he had laid before you in support of the claim of the owners of the Labuan would be transmitted to the court of admiralty at New York.
Her Majesty’s government are of opinion that, having regard to all the circumstances of the case, and to the flagrant violation of law committed by the original seizure, of the Labuan—a violation never from first to last denied by the government of the United States—the sending back this vessel to the prize court for further adjudication, as to costs and damages, is, even if technically correct, a practical evasion of the plain duty cast upon the government of the United States, to make without delay all the reparation in its power for an act of hostility towards a neutral and friendly State, condemned alike by the government and the legal tribunals of the United States.
The delay which has already been occasioned by the sending the case back to the prize court, is in the opinion of her Majesty’s government, a serious addition to the injuries already sustained by the owners of the Labuan.
Her Majesty’s government consider that, as the case now stands, the matter can only be settled between the two governments; for her Majesty’s government could not admit that the decision of the prize court, if unfavorable to the claim, would release the government of the United States from the obligation of making ample reparation for so great an outrage upon neutral rights.
The question of the amount of compensation is, however, regarded by her Majesty’s government as one that may properly be submitted to experienced and skilful mercantile persons.
Her Majesty’s government also feel bound to observe that it is no small aggravation of the injury done to the owners,. that, by reason of the delay occasioned by referring the case again to the prize court, the payment of the compensation to be awarded to them must, in all probability, be deferred until the reassembling of Congress in December next.
Having, in obedience to the commands of her Majesty’s government, made the foregoing representation to you, I beg you to accept the assurance of the high consideration with which I have the honor to be, sir, your most obedient humble servant,
Hon. William H. Seward, &c., &c., &c.