Lord Lyons to Mr. Seward.

Sir: With reference to your note of the 24th ultimo, and to my answer dated the following day, I have the honor to inform you that the governor general of Canada has lost no time in giving directions that inquiry shall be instituted relative to the arrests stated to have been made at Port Huron by Canadian constables, and that, if the case shall prove to be as represented, his excellency will take measures to redress the grievance in the present instance, and to prevent a recurrence of it in future.

I have the honor to be, with the highest consideration, sir, your most obedient servant,

LYONS.

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

Memorandum submitted to the Secretary of State by Lord Lyons.

There is an impression in England in regard to the recent cases of wrong on the part of American authorities which is still more serious than the wrongs themselves. It is an impression, widely spread and deeply felt, that it is the intention by the American government, by captures without cause, by delays of adjudication, by wanton imprisonment of the masters and part of the crew of captured vessels, to put a stop to the British trade to Matamoras altogether.

The trade to Matamoras is, however, a perfectly legitimate trade. It is carried on from New York as it is from London and Liverpool. To pretend that some goods carried to Matamoras may be afterwards transported across the frontier to Texas does not vitiate the legitimate character of that trade. How is it possible to say beforehand that certain goods will be consumed in Mexico, and certain other goods will be carried into the so-called Confederate States? It might so happen that all the goods earned from London might be used in Mexico, and all the goods sent from New York might be transported by land to Texas. This is a matter beyond the scope and destination of the sea voyage. If, therefore, it should appear that from jealousy of trade, or unjust suspicion of contraband, or any other motive, the British trade were deliberately and systematically made subject to vexatious capture, and arbitrary interference, it is obvious that Great Britain must interfere to protect her flag. While submitting to the most severe interpretation of the law of nations, she cannot allow that, under presence of that law, hostilities should be carried on against a lawful branch of her commerce.