[Extract.]

Mr. Heap to Mr. Seward.

No. 20.]

Sir: I have the honor to inform you that the vexatious question of finance, of which communication was given in my dispatch No. 19, of the 29th April, and which threatened to lead to French occupation, has come to a settlement.

The English consul has received a telegram from Lord Stanley, dated 26th instant, informing him that, as the Marquis de Moustier had given full and satisfactory assurances, there was no longer any need for his, Mr. Wood’s, opposition.

Nothing, therefore, will be done in the matter of the commission without the common consent of the governments of England, Italy, Prussia, and France. This is what was originally demanded. * * *

There remains the reparation for the breach of promise, which, it is understood, will be made by the minister, who will call on the French consul and present him the project, which was the origin of the quarrel, duly ratified and signed by the Bey, but which is to remain in abeyance and be superseded by the one hereafter to be agreed upon by the friendly governments in Paris. During the minister’s visit a salute of twenty-one guns will be fired from the forts, when the flag will be displayed from the consulate.

I am, very respectfully, your most obedient servant,

G. H. HEAP.

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