Lord Lyons to Mr. Seward.

Sir: In a note which I had the honor to address to you on the 22d of May last I begged you to allow me to communicate with the owners of the British schooner Mont Blanc before I responded to your invitation to name a person to confer with Rear-Admiral Theodore Bailey, for the purpose of ascertaining and agreeing upon the damages to be paid for the seizure of that vessel.

I have now the honor to transmit to you a copy of a letter addressed by the owners to Mr. E. B. A. Taylor, acting registrar general and treasurer at Nassau, in which they declare they shall be perfectly satisfied with the appointment of Mr. Butterfield, British vice-consul at Key West, to act with Rear-Admiral Bailey, and assess the damages in question.

I am, therefore, ready to designate Mr. Vice-Consul Butterfield as the person chosen by me, and to cause him to be instructed to confer with Rear-Admiral Bailey, and to endeavor, in concert with that officer, to ascertain and fix the damages, according to the terms of the note which you did me the honor to write to me on the 7th of May last.

On being informed by you that the necessary directions will be given to Rear-Admiral Bailey, I will, on my part, take care that proper orders shall be sent without delay to Mr. Butterfield.

I have the honor, &c., &c.,

LYONS.

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

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Sir: We have to acknowledge receipt of your letter of the 25th instant, enclosing a letter from Mr. Archibald, her Britannic Majesty’s consul at New York, in reference to the appointment of Mr. Butterfield, her Britannic Majesty’s vice consul at Key West, to act as an assessor, on our behalf, in the settlement of compensation for damages for the illegal capture by a United States cruiser of the schooner Mont Blanc.

We shall be perfectly satisfied with the appointment of Mr. Butterfield to sit with Admiral Bailey, and assess the amount of damages to be paid by the United States government.

We have, &c., &c.,

SAWYER & MENENDES.

E. B. A. Taylor, Esq., Acting Registrar General and Treasurer, Nassau.