Mr. Seward to Lord Lyons.
My Lord: Referring to your notes of the 19th of December, 1863, and 2d March, 1864, in regard to the case of the Labuan, I have the honor to inform your lordship that, upon the receipt of those notes, a copy of each was sent to the attorney of the United States for the southern district of New York, with a view to expediting his proceedings under the instructions of that department. Your lordship is already aware that those proceedings have been awaiting evidence, which the United States consul at Matamoras was instructed to procure and forward to the district attorney. Notwithstanding repeated renewals of the instruction to the consul, owing to the distance of that port, and to other obvious causes, he has hitherto failed to procure the testimony; and as such testimony is essential to a proper determination of the question of damages, the adjustment of the claim has, to the great regret of this department, been unavoidably delayed.
I have the honor to be, with high consideration, my lord, your obedient servant,
Right Hon. Lord Lyons, &c., &c., &c.