Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your lordship’s note of the 24th of June, together with the letter of Anderson, Saxon & Co., in regard to coals taken by the United States ship Vanderbilt from Angra Pe-quena.

I regret that the parties interested in the claim for payment for this coal have not thought it proper to furnish information of the purpose for which the coal was sent to a place convenient for the resort of pirates, and outside of the jurisdiction of maritime nations. I have also to regret that her Majesty’s government, as you inform me, are unable to assent to the position that if the coal was sent to supply the Alabama, the owners would be disentitled to compensation.

This government, under the circumstances, considers information upon this fact to be material before it can deem it proper to admit the claim.

I have the honor to be, with high consideration, my lord, your obedient servant,

WILLIAM H. SEWARD.

Right Hon. Lord Lyons, &c., &c., &c.