Lord Lyons to Mr. Seward.
Sir: You were so good as to repeat to me verbally, on the 2d of January last, the assurance that you would do your best to obtain a fair compensation for the owners of the Labuan before Congress separated.
Her Majesty’s government fully rely upon this assurance, and they are confident that Congress will grant to parties interested full compensation for the losses sustained by them.
Her Majesty’s government cannot, however, refrain from making some observations on the general circumstances of the case. There can be no question but that an injury has been inflicted on some of her Majesty’s subjects by the unlawful act of a ship commissioned by the government of the United States, and that redress in the form of damages is due for such injury.
Her Majesty’s government are, strictly speaking, in no way concerned as to the manner in which the money required to pay the amount of damages is to be provided, although they have been prepared to wait a reasonable time to admit of its being appropriated by Congress according to the forms usual in the United States.
But her Majesty’s government deem it right to repeat what, from the commencement of the discussion, they constantly sought to impress upon the government of the United States—that, having regard to all the circumstances in the case of the Labuan, the question of damages is one which ought to have been settled immediately between the two governments, without any reference to the prize courts in the United States.
Her Majesty’s government ask reparation, and they rely upon the justice of the government of the United States to grant it without further delay.
I have the honor to be, with the highest consideration, sir, your most obedient, humble,servant,
Hon. William H. Seward, &c., &c., &c.