[Extract.]

Mr. McMahon to Mr. Seward.

No. 10.]

Sir: I have the honor to inform you that I have received from Mr. Worthington, United States minister resident to the Argentine and Oriental Republics, the assurance that the allied governments engaged in the war against Paraguay will oppose no obstacle to my passage up the rivers Parana and Paraguay to my post of duty, and that they have issued appropriate orders to the generals commanding their respective forces.

The communication contaning this assurance, a copy of which I inclose, marked A, comes from the Argentine government, and was issued, it appears, upon consultation with the representatives of Brazil and the Oriental Republic.

* * * * * * *

I will leave for Paraguay this evening on the United States steamer Wasp accompanied by Admiral Davis. Three other vessels of the squadron passed this port to-day on their way to the Parana.

No change in the military position has taken place since my last dispatch. The allies have not yet attacked the position of President Lopez at Villeta.

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

M. T. McMAHON.

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

[Translation.]

SeƱor Varela to Mr. Worthington.

Mr. Minister: The Argentine government has solicited the assent of its allies to resolve upon the affair spoken of in the note your excellency did me the honor to address to me, dated the 10th of the current month, and I have the satisfaction to say in answer thereto, that the allied governments order the generals of their respective forces not to put any obstacles to the transit of General McMahon save that they find necessary to delay him in the interest of the war operations that may be at the point of being executed, as it was declared in the recent case of the steamer Wasp. The allied governments are persuaded that General McMahoh, understanding the importance of these operations and the interests depending on them, will contribute on his part so that they do not suffer any embarrassment.

I avail myself of this opportunity to reiterate to your excellency the assurances of my distinguished consideration.

MARIANO VARELA.

H. G. Worthington, United States Minister Resident to Argentine and Paraguay Republics.