Lord Lyons to Mr. Seward.

Sir: Her Majesty’s government have had under their consideration the notes which you did me the honor to address to me on the 18th and 26th of January last, concerning the case of Mr. James McHugh, a prisoner at Fort Lafayette.

Her Majesty’s government have deemed it right to wait for further information before sending me instructions respecting the imprisonment of Mr. McHugh; but with regard to the statement made in the note of the 18th January, that “since the Bermuda was despatched with her unlawful cargo by Fraser, Trenholm & Co., this government presumes, in her case, until those who shall be found in her service shall prove to the contrary, that she is not a neutral merchantman, but a war transport,” her Majesty’s government have directed me to state distinctly to you that they cannot admit that the fact that a ship belonging to Messrs. Fraser, Trenholm & Co. should be held to warrant an assumption, until the contrary is shown, that such ship is a war transport.

Her Majesty’s government insist that in every such case, unless it can be proved by proper testimony that the vessel captured is a war transport of the so-called confederates, those persons of the crew who may be British subjects, and whose evidence may not be required for proceeding against the vessel, should be liberated immediately, and that those whose evidence may be wanted should not be treated as prisoners of war, but as necessary witnesses, and should not be detained beyond the time which may be resonably required for their examination.

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

LYONS.

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