Mr. Seward to Mr. Nelson.

No. 65.]

Sir: I thank you for the information you have given me in your No. 127 concerning what has occurred in Chili in relation to the seizure of the Chincha islands by the admiral of the Spanish fleet in Peruvian waters.

Very full accounts of that controversy have been received here from Mr. Robinson, our representative at Lima. At an early day Mr. Koerner, our minister at Madrid, was instructed to use his good offices to arrest a serious conflict, and effect a reconciliation between Spain and Peru. Thus far we have no advices from Mr. Koerner upon the subject, but we are now daily expecting his reply. Some incidents have occurred at Madrid which enable us to hope that Spain will not proceed further in the direction of hostilities. On the other hand we learn from Peru that the admiral and the late commissioner of Spain have disavowed any design or purpose to assail the sovereignty of Peru, and have defined the seizure of the Chincha islands as an act of mere reprisal, and the commissioner at the same time announced that he had resigned his special trust. Your own proceedings in regard to the matter are fully approved.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Thomas H. Nelson, Esq., &c., &c., &c.