Mr. Prevost to Mr. Seward.

No. 3.]

Sir: In my despatch No. 2, under date of 27th of January last, I had the honor of informing your excellency of the existing difficulty between Ecuador and Spain, and her relative position vis-a-vis her two sister republics, Peru and Chili.

The minister of the republic of Peru, at Quito, has been urging the Ecuadorian government to declare war against Spain, and though the cabinet of Quito has not yet done so publicly, it is, notwithstanding, currently reported that war was declared on the 28th of January, and that the Peruvian government has already the decision of Ecuador.

The Spanish chargé d’affaires to Ecuador has already left Quito, and is now in Guayaquil, expecting to receive his passport to take his departure for Spain by the next steamer.

There is much excitement prevailing here against Spain and the Spanish residents. Some nights since a party of young men, headed by a band of music, promenaded the streets of this city, singing patriotic songs; stopped before the door of the Spanish consul, and sang some insulting and offensive songs.

Most of the Spanish resident merchants, long established in the country, are now arranging their affairs preparatory to leaving the country for Europe. From Peru several have arrived here, en route for Europe, believing that they will be molested should they stay either in Ecuador or Peru.

Among the shipping in port there are several Spanish vessels, now loaded with the produce of Ecuador and bound for Spain. Their departure is, however, prevented by the appearance of a Peruvian privateer, now cruising in the lower part of the river, evidently awaiting prizes.

I have the honor, sir, to remain, with great respect, your obedient servant,

L. V. PREVOST, Consul of the United States in charge of the Legation to Ecuador.

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