Mr. Seward to Mr. Perry

No. 107.]

Sir: I had the honor on the 10th instant to receive your despatch of the 23d of July, No. 214, which gives me an account of the proceedings by which the Spanish government disavows and rejects the adjustment which had been made by its representative at Santiago of the controversy between Spain and Chili.

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At a later day his excellency Mr. Tassara called at this department and read to me a despatch which had been. addressed to him by his government, which confirmed in all respects the information which you have conveyed.

The President learns with regret that the efforts heretofore made for a reconciliation between the two friendly states concerned have failed, and that, consequently, an occurrence of hostilities, in form more or less modified, may be apprehended. I have sought an opportunity to confer on the subject with Mr. Asta Buruaga before replying to you, but have failed. At present I can think of no other way of securing the peace between Spain and Chili but by asking them, in the President’s name, to consider whether, in the event of a failure of diplomatic effort to adjust the controversy, it may not properly be referred to the arbitrament of some friendly power. You are desired to make this suggestion to the Spanish government, and in doing so you are at liberty to say that, in the opinion of the United States, the interest of European states, as well as those of this continent, would be promoted by assuaging, and if possible removing, all existing controversies among the American States, and all controversies between them and those situated on the European continent. You are further at liberty to say that if the two nations immediately concerned should be able to come to an arrangement at once peaceful and mutually satisfactory, the United States would find in that arrangement fresh motives for cherishing the friendship which is cordially entertained by this country for each of the parties.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Horatio J. Perry, Esq., &c., &c., Madrid.