Mr. Lidgerwood to Mr. Seward.

No. 11.]

Sir: I have the honor to acknowledge the receipt of your despatch No. 169, conveying to me the decision of the government with reference to the special salute to the Brazilian flag in the harbor of Bahia, in reply to my note of the 3d of March, (the number of which should have been 7.)

On the 1st instant I visited the Foreign Office, and in the absence of the minister of foreign affairs communicated to the under-secretary of state, Conselheiro do Amaral, the information conveyed to me, that the Secretary of the Navy some months since issued the proper instructions to Admiral Godon, with reference to the special salute to the Brazilian flag in the harbor of Bahia; and I at the same time informed the Conselheiro do Amaral that upon the arrival of the United States steamer Shamokin at Montevideo, which vessel should reach that port on or about the 10th instant, and that Admiral Godon would leave via Saint Helena for Bahia, Pemambuco, and Rio de Janeiro. Senhor do Amaral expressed much solicitude that the admiral should arrive at Bahia before the Chambers should call for information upon the subject, and that to avoid drawing attention to it in their annual report, they felt it necessary to make no reference whatever to the United States.

The party opposed to the ministry, however, have confined their attacks hitherto chiefly to financial measures, and the conduct of the war. I assured him that, although the duties of the squadron required it to touch at St. Helena, I believed that by the 1st of July, or thereabouts, Admiral Godon would arrive at Bahia.

At an interview with Consello Paulo Souza, minister of commerce, agriculture, and public works, I informed him of the decision of Messrs. W. E. Dodge & Co., and others, who at present do not deem it advisable to make proposals for the continuation of that part of the coast telegraphic line of Brazil which has not yet been commenced, upon the terms desired by the Brazilian government.

He informed me that a proposition of Messrs. Collins & Co. has been referred to the proper department, but has not yet been acted upon. I assured him that my government would regard with favor any steps taken toward the accomplishment of international telegraphic communication, and with special favor that connecting Brazil with the United States.

He replied that the commerce between the two countries would thereby be largely increased, and that the products of Brazil could then be placed in the United States markets in a few weeks after the receipt of a telegraphic order, and the industrial fabrics of the United States returned in the same time.

I then begged him to compare the whole trade between Brazil and the United States with the trade between the island of Cuba and the United States, which was largely in favor of Cuba, the area of which was insignificant in comparison to that of Brazil, and its population not one-fourth; and added, that the United States is self-sustaining with reference to the most important requirements of [Page 306] life, and only requires from foreign countries such tropical products as they consume, the greater portion of which would be imported from Brazil, were there telegraphic communication between the two countries to facilitate business. He remarked that his great desire for immigration from the United States was to develop the resources of his country, when I observed that there were cases where individuals had represented themselves as having been officers high in rank in the so-called confederate service, and as the representatives of thousands of discontented families from the southern part of our country; and who also, being at the time guests of the state, and naturalized by an act of the Chambers, had promised to return and bring thousands of families, whom they represented, to settle upon the lands chosen by them, and had not only failed to return, but also renounced their quondam Brazilian citizenship; but, notwithstanding, I ventured to hope that such conduct might not militate against the really worthy Americans, both from the northern and southern sections of the United States, who were still remaining in and might come to Brazil.

Upon my reading an extract from an American newspaper, containing a statement of facts analogous to the foregoing allusion, he smiled, and replied that hospitality in Brazil was the custom of the country, and that the expenses incurred amounted to but a few centos of reis, and that he, however, had not been deceived in the character of the individual alluded to, but trusted that the person mentioned there would state facts as he had seen them, which would be of much benefit to the country, and that he would not allow the acts of that man to prejudice him against others.

War in Paraguay.—On the 2d of May last, the division of the allied forces under General Flores, while meditating a surprise on the Paraguayan troops encamped a short distance from them, beyond a thick forest, were surprised themselves by the troops they intended to attack, and were obliged to fall back on the main body, in much confusion, and with very considerable loss. They then rallied again, and re-enforced by General Osorio, the Brazilian commander-in-chief, they succeeded in driving back the Paraguayans, killing and wounding over a thousand men, but losing four field pieces, which the Paraguayans had captured at the first charge.

Nothing of moment has since transpired, except the concentration of the allied forces, both naval and army, with a view to a decisive attack ere passing up the river to Humaita.

The time consumed by the steamers between Rio de Janeiro and New York is so great that letters forwarded by them are not received in New York until after the departure of the outward bound steamer, thereby defeating one of the very objects of the establishment of the line—as answers to letters sent from Brazil to New York can be received just as soon via Europe.

I have the honor to be, sir, your most obedient servant,

WILLIAM VAN VLECK LIDGERWOOD. Chargé d’Affaires.

Hon. William H. Seward, Secretary of State, Washington, D. C.