No. 63.
Mr. Fish to Senhor Torreâo de Barros.

Sir: You may be aware that the repayment to Brazil of the amount paid to the minister of the United States at Rio de Janeiro, on the 30th of September, 1867, by three drafts on London maturing January 1, 1868, as indemnity in the matter of the brig Caroline, has been often made the subject of conversation between the representative of the Emperor at Washington and the Secretary of State.

I have now the honor to inform you that the President, after a careful examination of the case, has come to the conclusion that the government of Brazil is not justly responsible for the damages in this case.

It is understood that the government of His Majesty the Emperor of Brazil is of the same opinion respecting it. Under these circumstances the President regards it as the duty of the United States to repay to Brazil the amount thus received by their minister at Rio, with interest thereon at six per cent, per annum, the rate established in the proceedings between the two governments respecting the “Canada.”

I have therefore the honor to inform you that I shall be prepared on the 1st of July next, at eleven o’clock in the forenoon, at this Department, on receiving from you an official receipt in full, to pay to you, on behalf of your government, the sum of ninety-six thousand four hundred and six dollars and seventy-three cents, being the amount of the payment above referred to, with interest at the rate of six per cent, per annum.

The amount of the original payments was fourteen thousand two hundred and fifty-two pounds sterling.

The three drafts in which the payment was made matured on the 1st January, 1868.

The time, therefore, for which interest is calculated is six years and six months.

The value of the pound sterling in the coin of the United States is fixed by law at four 8665/10000 dollars.

I take, &c.,

HAMILTON FISH.