Mr. Seward to Mr. Adams.

No. 1743.]

Sir: At the instance of the government of Great Britain, Mr. Ellis, her Majesty’s chargé d’affaires at Paris, in a note of December 19th, to Mr. Bigelow states that her Majesty’s board of treasury will be prepared to receive the first instalment, amounting to five hundred thousand dollars, of the Simonoseki indemnity which has been paid by the Japanese government, and to hold it in deposit, subject to future arrangements as to its distribution, and that the board further propose that the money should be at once paid into the commissariay chest at Yokohama, in which case an equivalent amount in sterling will be available in England, distributed among the powers, and that he has been instructed to propose to Mr. Bigelow that the money should be remitted to Europe in the manner suggested by the board of treasury.

At the instance of the French government, Mr. Drouyn de Lhuys states, in a verbal note to Mr. Bigelow, that with reference to the Simonoseki affair, it is stated in a telegraphic despatch, dated Shanghai, December 8, from Sir Henry Park, that the Mikado had approved the treaties, and modification of the tariffs had been obtained; the opening of the port of Hiogo was again guaranteed, and the indemnity was to be punctually paid.

With reference to a division of the indemnity, a proposition of the Emperor’ government was withdrawn, it appearing that the British cabinet was more in favor of an equal division of the whole of the indemnity among the four powers. The government of the Emperor makes no difficulty in adopting this plan, and is ready, should this system of division be adopted also by the government of the United States, to apply it to the five hundred thousand dollars already paid in by the Japanese government, as the first instalment of their indemnity.

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On the 12th of February last Mr. Bigelow was informed by this department that the proposal was concurred in by the Executive, subject to the constitutional approval of the Senate of the United States, and at the same time he was instructed to regard that proposal as definitively accepted by this government.

At the instance of the British government, Lord Cowley, on the 13th ultimo, informed Mr. Bigelow that the second instalment should be remitted to Europe, in conformity with the arrangement suggested in the letter which Mr. Ellis addressed to Mr. Bigelow on the 19th of December last in regard to the first payment.

The treaty having never been ratified, you are instructed to inform Earl Russell of your authority to receive the share of the instalments already paid, which is due to this government, and upon its receipt by you, will place the amount with the Messrs. Baring Brothers & Company, at London, to the credit of the Secretary of State.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Charles Francis Adams, Esq., &c., &c., &c.