Mr. Seward to Mr. Koerner.

No. 97.]

Sir:With reference to the instructions that have of late been addressed to you upon the subject of the controversy between Peru and Spain, which has resulted in the seizure of the Chincha islands by the latter, I enclose a translation of a note to this department of the 17th instant, from Mr. Barreda, the minister of Peru here, in which, as you will observe, he asks leave to purchase and arm vessels-of-war in the United States for the purpose of protecting the coasts and guano islands of that republic. This at least shows a disposition, on the part of Peru, not to acquiesce in the proceedings of Spain referred to, so long as those powers are at peace; and supposing that the ships desired were to be used for defensive purposes only, there might not be an infringement of the neutrality act of the 20th of April, 1810, in acceding to the request of Mr. Barreda, provided that the same liberality should be exercised towards Spain, and all other foreign powers, whose relations towards the United States are the same with those which Spain and Peru, respectively, maintain towards this government. If your discretion shall approve this suggestion, you may intimate to the Spanish minister for foreign affairs that such a request has been made, and make such use of the occasion as may lead to a diplomatic adjustment of the controversy before either party shall have recourse to arms. Of course, you will not be expected to execute this instruction if, when it shall reach you, war shall have been declared or have broken out between Spain and Peru, or if you shall find reasons to think its execution would embarrass rather than facilitate the restoration of amicable relations between the two powers.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Gustavus Koerner, Esq., &c., &c., &c., Madrid.