[Extract.]

Mr. Koerner to Mr. Seward.

No. 98.]

Sir: I had hardly finished my No. 97, giving an account of my action respecting the Peruvian troubles, when I received your despatches 86, 87, 88, and 89. Your No. 88, marked confidential, referring to the same subject, enjoins upon me “as earnest an exertion of my good offices in that matter as shall be consistent with the sincere respect and courtesy which are entertained by this country towards Spain.”

On the same evening the journals contained telegraphic despatches dated Panama, May 10, transmitted by the Spanish consul at Southampton to the government here, to the effect that the Spanish squadron had occupied fourteen islands of the Chincha archipelago, taking prisoners the governor and officers; that the squadron had then gone to Callao to surprise the Peruvian squadron, which, however, had escaped and taken shelter under the forts; that great agitation prevailed in Peru; a loan had been authorized; that land and sea forces were to be raised, &c., &c.; that the English, American, and Bolivian ministers had held a meeting at Lima, had declared themselves in favor of Peru, and had determined to petition their respective governments for an immediate intervention to regulate the difficulties.

Your despatch and this telegraphic news made me change the determination which I had formed after I had received Mr. Pacheco’s note, and which was, as I informed you in my last despatch, to take no further action in this matter, at least for the present. * * * *

I am, sir, your obedient servant

GUSTAVUS KOERNER.

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