Lord Lyons to Mr. Seward.

Sir: I Had, on the 16th instant, the honor to receive your note of the 6th instant, informing me, in answer to my application for compensation for the capture of the British ship Magicienne, that the Secretary of the Navy suggests that the same course be pursued in this case as that proposed to be pursued in the case of the Mont Blanc.

The course proposed to be taken in the case of the Mont. Blanc is described in the note which you did me the honor to address to me on the 7th of last month in the following terms:

“I have submitted this claim to the President, and am authorized to say that he admits that, in view of all the circumstances of the case, such compensation ought to be made. 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 the President, upon their report, will ask an appropriation of Congress, for the discharge of the claim, at their next session.”

I purpose, therefore, to inform her Majesty’s government that the government of the United States proposes to settle the case of the Magicienne on the terms specified in the foregoing extract from your note of the 7th of last month. I will, however, before doing so, await an acknowledgment from you of my present communication, in order that I may be quite sure of representing the intentions of the United States government with perfect correctness.

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

LYONS.

Hon. Wm. H. Seward, Secretary of State.