[Extract.]

Mr. Kilpatrick to Mr. Seward.

No. 7.]

Sir: Nothing of importance has transpired here since my last despatch.

The whereabouts of the Spanish squadron and of that part of our fleet which followed them from Valparaiso is still unknown. Admiral Pearson arrived on the Suwanee, at Valparaiso, a day or two after Commodore Rodgers left, and the following day set sail for Callao with the remainder of the fleet, taking with him the Mahongo, which had been in the port of Valparaiso for several months, and leaving the Suwanee in her place.

News has been received here of the arrival at Rio Janiero, on the 1st of April, of the two Peruvian iron-clads, the Huascar and the Independencia. They had put in there for some slight repairs, and expected to sail for this coast in a few days.

There is a very general belief here that our government is more friendly to the Spanish government than to that of Chili. Although this belief is an entirely erroneous one, and without the slightest foundation, it nevertheless exists, and feeling as I do the importance of preserving the very friendly feeling that so long has subsisted between the two countries, especially as at this time the friendship of Chili implies that of all the republics now allied with her, I would most respectfully suggest that such assurances of friendship be sent me from the State Department as will enable me to disabuse this government, and through them the people, of such ideas.

* * * * * * * * *

With the addition of the Huascar and Independencia, which are daily expected, the allied fleet will be more on an equality with that of the Spaniards, and the intention is, immediately on their arrival, to sail in search of the Spanish squadron, and offer them battle whenever and wherever they may find them.

There is considerable excitement manifested here in view of the coming presidential election in June next, but the probabilities are that the present administration will remain in power.

I have the honor to remain, very respectfully, your obedient servant,

J. KILPATRICK.

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