Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your note of the 20th instant, in which, in reference to the claim for compensation in the case of the British vessel Magicienne, you make known your intention to inform her Majesty’s government that the government of the United States proposes to settle the case of that vessel on the terms specified in an extract which you give from my note to you of the 7th of last month in relation to the Mont Blanc, and to state, in reply, that such is the true interpretation of my offer.

I have the honor to be, with high consideration, your lordship’s obedient servant,

WILLIAM H. SEWARD.