[Extract.]

Mr. Dayton to Mr. Seward

No. 430.]

Sir: * * * * * * * * * * * *

M. Drouyn de l’Huys informs me that there is nothing in agitation here calculated to disturb the good relations between the United States and France. He says that the archduke has not asked the Emperor to acknowledge the south, nor does he believe he has had anything of the kind in his mind. Certain English papers have been industriously propagating this idea, but there is, he says, nothing in it. He informs me that he believes certain English and French [Page 51] capitalists, already interested in Mexican loans, will, in the hope of saving a part, at least, of their existing investments, make a moderate advance in addition, and that the archduke will, from these sources, be able to raise a small loan to meet his existing wants; but it seems to me this cannot carry him far unless France shall stand security, or give other material aid.

I am, sir, your obedient servant,

WM. L. DAYTON.

Hon. William H. Seward Secretary of State, &c., &c., &c.