Mr. Plumb to Mr. Seward.
Sir: As a matter of information, I transmit to the department herewith a copy and translation of a recent correspondence that has taken place between this government and the agent here of the bondholders, under what has been known as the English convention debt.
It will be observed that two positions are taken by the Mexican government in this correspondence. First, that the convention regarding this debt, being at an end, under the general principle that all treaties with the powers who have recognized the so-called government of Maximilian are terminated, the Mexican government is free to make new arrangements regarding the manner of liquidating the debt and paying the interest thereon, which new arrangements it prescribes; and secondly, such new arrangements being prescribed, the payment back into the national treasury of a sum now lying in the bondholders’ agent’s hands on account of dividends, is required, in order that the same may be applied by the Mexican government under such new arrangement.
I have the honor to be, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.