Lord Lyons to Mr. Seward.

Sir: I have the honor to acknowledge the receipt of your notes of the 7th and 21st instant, relative to the case of the Mont Blanc.

In the one you are so good as to inform me that the President admits that compensation ought to be made to the owners of that vessel, and you add that the Secretary of the Navy will, therefore, designate some person at or near Key West to confer with such person as her Majesty’s authorities may appoint, to ascertain and agree upon the damages to be thus paid; and that the President will, upon their report, ask an appropriation of Congress for the discharge of the claim.

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In the other note you do me the honor to acquaint me that the Secretary of the Navy proposes to name Rear-Admiral Theodorus Bailey, and invites me to name some person to confer with the rear-admiral for the purpose of Ascertaining and agreeing upon the damages.

I venture to ask you to allow me to postpone for a short time responding to this invitation. It will, I think, be desirable that I shall communicate with the owners of the Mont Blanc before the matter is proceeded with. It may be well to guard against the possibility of their raising hereafter objections to the arrangement, on the ground that it was made by me without consulting them.

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

LYONS.

Hon. William H. Seward, Secretary of State, &c., &c.