made in Madrid. What better proof can be given by her Majesty's government of its desire to make such treaty and its freedom from exaction, than to renounce the advantage of negotiating here, and transferring it to Lima, for discussion, not with the Spaniah government, but with one of its agents; not with the Peruvian representative, but with the supreme government of that country?

I have always instructed the representatives of Spain that their first duty is to persuade and convince all parties that Spain is firmly resolved not to mix in domestic differences; that she wants a good understanding with the Peruvian government, whoever may be the men who compose it; that it does not aspire to any exclusive privilege or influence; and only claims for its commerce and subjects that protection the republic concedes to other

The ready reception given by the legations in America to some unjust claims of Spanish subjects, often of cases devoid of title to official protection, has produced inconvenience, and henceforth it is resolved that official aid shall only be given when the complaint is of acts of violence, spoiliation, or something contrary to the law of nations or to treaties in force.

Before concluding, I can do no less than to recommend to you to endeavor by all means to inspire full confidence in the intentions and purposes of the government in respect to the parties, endeavor to tranquilize operations, avoid everything wounding to self-respect in order to facilitate the settlement of pending questions, and setting aside the possibility of a fresh conflict which may impose on Spain the necessity of barren and costly sacrifices. The government of her Majesty does not wish in any manner that the dignity of the country be in the least degree derogated from; but would avoid useless contests, and the heavy charges they accumulate.

BERMUDEZ DE CASTRO.

OCTOBER 30, 1865.

"I regret that advices from this place have caused the belief there, although temporary, that the difficulties we have stumbled on grow out of fresh requisitions on my part." Thus I wrote to Valle Riestra, on the 30th October. Would I have disapproved a treaty which I invoked in every document which has been read? If I had asserted the revindication of the Chincha islands-if I had asked for the seventy millions of dollars which some Lima newspapers said were claimed by the Spanish government-could I have addressed this letter to the very agent of Peru, with the certainty that he would flatly contradict me? The text of our notes will dissipate the error.

I have also written to Lima that I regretted the delay the more, because having to present all the papers relating to Peru to the Cortes, I found myself obliged, because the treaty was not completed, to publish the notes which had passed between us, that there might be no room for recriminations.

*

#

*

"BIARRITZ, November 4, 1865.

"I have received yours of the 30th ultimo. The fresh instructions I awaited from my government to continue negotiating the treaty reached me yesterday (there having been a delay of the mail.) I will very soon address you that we may reopen the negotiations which I earnestly desire.

*

*

#

"I observe the necessity you are under to render to the new Cortes an account of this matter, but as they will not meet till December, I hope you will find no inconvenience from want of time."

*

"SAN ILDEFONSO, November 7, 1865.

"In a few conferences we will conclude the negotiation of the treaty, a consequence of the preliminary convention at Callao, on which you and I are already personally busied and I shall be in a situation to render an account of the result of our labor at the first sittings of the new parliament. I allow myself a slight suggestion of this, because official and private advices from Lima tell me many remarks are made there about our tardiness in completing the treaty, from which they infer, adversely to Pezet, new difficulties between the governments, which none better than you and myself can contradict. I am ready, as soon as possible, that we should bear public testimony to the union of the two countries, and of the good faith in which you and I have blotted out the traces of old differences.

"I avail, &c., &c.,

"BEMUDEZ DE CASTRO."

I have said Riestra sent me a note of articles prepared for the settlement of the debt. This comprehended:

First. That mentioned in article 1 of the laws of Peru, of August 25, 1834, bearing on the branches of the consular courts, central treasury, tobacco privileges, mint, and consolidated fund.

Second. All sums arising from sequestrations, confiscations, loans, deposits, &c., made or taken by the independent government or its authorities for carrying on the war of emancipation.

On these bases we opened fresh negotiations, and if I have anything to excuse myself for it would be for not having done all for the interests of Spanish subjects. But I attributed such importance to this arrangement with Peru that I made no difficulty about passing unnoticed the payments of debts of small amount.

Mr. Riestra differed from me as to my scheme of settlement, but such was my desire to con clude the treaty that I yielded by admitting that nothing that remained due on account of the armies of Ferdinand VII's reign should be funded, and that no more should be paid than what the independent government had taken from Spanish subjects.

There remained only one point of difference, and on that we agreed at our latest conference.

#

*

To facilitate the arrangement, I conceded that we would consider the republic as a foreign nation from the moment when an American or European State had recognized it as such republic.

After such concessions, to remind me that I had made requisitions, had created difficulties, had renewed claims for seventy millions, had abandoned the assured base of the treaty of January 21, of Callao, is completely absurd.

News came that Pezet was replaced by Canseco. Riestra told me he should go away. I asked him to address me officially on the subject. He replied he would not. I rejoined, if he would not I must write to him, because on such a grave occasion it was necessary that each should maintain the position proper to him. My note bore date of February, 1866.

Mr. Llorente wished to know something of the good offices offered by France and Eng. land. It is indeed true, that from the beginning of the contest with the republic of Chili, when news arrived that Admiral Pareja had established the blockade of Valparaiso, both the English and French governments hastened to offer their kind services, to try if it were possible to settle these disagreements. The Spanish government accepted those good services, declaring it could not accept mediation of any kind, because, in questions such as that pend ing between the republic of Chili and the Spanish nation, it could not accept of it, nor have any other judge than its own honor. It then accepted their kind offices, which was commu. nicated by the respective governments to their ministers at Santiago, and I have no hesi tation in mentioning the compromise offered by Spain, because it is a proof of the moderation of its requirements, as it is also a proof of the moderation of the administration which imme diately preceded us.

The satisfaction asked by Mr. Benavidez was a salute of twenty-one guns, and explanatory notes which should contain full satisfaction to Spain of the affronts she had received. Nothing was said of indemnity, except in case hostilities should have broken out.

Well, then, the requirements being so moderate, the conduct of Chili appears consequently so strange and so anomalous, that the two nations I speak of and the United States of America, which had before employed all the means suggested by friendship-the United States, whose kindly sentiments, impartial and friendly conduct toward this nation in these circumstances, the Spanish government can never too highly appreciate-found not only that these propositions were not exaggerated, but that from themselves came the proposal that their good offices should be exercised to obtain from Chili, to advise Chili, to cause Chili to see that it was its obligation to give satisfaction to Spain, and the same as that which the Spanish government asked from it.

The Spanish government had not asked indemnity of any kind, and had said it would ask it if hostilities should break out. As for the salute, the Spanish government accepted at once, as a modification, that in place of the twenty-one guns fired in succession, they should alternate, Chili taking the initiative. This, however, is a delicate subject, and Mr. Llorente will understand why I cannot enter upon it. These good offices may, perhaps, have to be modified, because the circumstances and situation have changed by the unfortunate loss of the Covadonga.

No. 30.]

Mr. Seward to Mr. Hale.

DEPARTMENT OF STATE,
Washington, May 23, 1866.

SIR: The President thinks that a time has come when he can with propriety ask the attention of her Catholic Majesty's government to the very interesting subject of slavery in the Spanish islands near the United States, viz: Cuba and Porto Rico. You are, therefore, expected to mention it in a confidential mauner to Mr. De Castro. You will assure him, in the first place, that this government does not in any case indulge any thought in the nature or spirit of intervention, and that the suggestions now made are inspired by feelings of entire respect and good will towards Spain and those provinces.

Although this government has in no manner published the fact, yet it has nevertheless observed that the policy of emancipation seems to be profoundly agitating the people of all classes, white, black, and colored in those islands. This condition of things is, perhaps, due in a large degree to a ripening of the consciences and judgments of mankind everywhere in regard to the institution of slavery. The desire for emancipation in the islands mentioned has undoubtedly been intensified by the success with which it has been recently crowned in the United States. It seems unreasonable to suppose that slavery could be perpetuated in any part of the West Indies, after its extinguishment throughout the American continent, except Brazil.

I make these observations with greater freedom, because I am aware that the subject is already in the thoughts of the government, as well as of the people of Spain. The United States think that Spain herself could within a reasonable time be able to conform the social and political institutions of those islands to the principle of universal freedom, without hazarding the calamities of civil war, if her freedom of action should not be affected injuriously by external agencies and influences. It is the desire of this government that she may exercise this independence and enjoy its beneficial results.

It is hardly necessary to acknowledge that at a period not long past, many persons in this and other countries conceived and attempted a dangerous design of disturbing the peace and security of Cuba. That design, so far as it was embraced by any portion of the American people, received its impulse, as it is believed, from a desire among slaveholders here, that the island with its slaveholding population might be annexed to the United States, and thus increase the slaveholding political interest, which then was a great power in our country. It would be a strange thing if now a propagandism of emancipation should prompt a portion of the people in several of the American republics to similar aggressions. It is to be expected that such a proceeding would be far more effective when seeming to have the sanction of benevolence, than was the aggressive movement to which I have referred, which former movement had for its encouragement here the contrary spirit of slaveholding aggrandizement I hope it will not be thought either unfriendly or unbecoming on my part when I say that the controversies with which Spain has been involved during the last four years with several of the republican states of South America, have produced a feeling of exasperation in most, if not all, of the Spanish-American states; that those states, justly calculating upon the sympathies of the people of the United States, are not likely to be slow in directing public attention everywhere to the now anomalous toleration of slavery in the Spanish dependencies, so ultimately connected in commercial and social intercourse with the people of the United States. When you have made these observations to Mr. De Castro, you will have said all that it seems necessary to have said at the present time upon this important subject. The President has no apprehension that the motives of these suggestions will be misinterpreted.

I am, sir, your obedient servant,

JOHN P. HALE, Esq., &c., Sr., Sr.

WILLIAM H. SEWARD.

Mr. Hale to Mr. Seward.

LEGATION OF THE UNITED STATES OF AMERICA, MADRID,

Aranjues, May 31, 1866.

SIR: I have the honor to inform you that the minister of the Spanish treasury has, within the last three or four days, resigned his office, and that his resignation has been accepted. The papers in opposition to the government persistently represent that this resignation has much political significance, and

Second. All sums arising from sequestrations, confiscations, loans, deposits, &c., made or taken by the independent government or its authorities for carrying on the war of emancipation.

On these bases we opened fresh negotiations, and if I have anything to excuse myself for it would be for not having done all for the interests of Spanish subjects. But I attributed such importance to this arrangement with Peru that I made no difficulty about passing unnoticed the payments of debts of small amount.

Mr. Riestra differed from me as to my scheme of settlement, but such was my desire to conclude the treaty that I yielded by admitting that nothing that remained due on account of the armies of Ferdinand VII's reign should be funded, and that no more should be paid than what the independent government had taken from Spanish subjects.

There remained only one point of difference, and on that we agreed at our latest conference.

To facilitate the arrangement, I conceded that we would consider the republic as a foreign nation from the moment when an American or European State had recognized it as such republic.

After such concessions, to remind me that I had made requisitions, had created difficulties, had renewed claims for seventy millions, had abandoned the assured base of the treaty of January 21, of Callao, is completely absurd.

News came that Pezet was replaced by Canseco. Riestra told me he should go away. I asked him to address me officially on the subject. He replied he would not. I rejoined, if he would not I must write to him, because on such a grave occasion it was necessary that each should maintain the position proper to him. My note bore date of February, 1866.

Mr. Llorente wished to know something of the good offices offered by France and England. It is indeed true, that from the beginning of the contest with the republic of Chili, when news arrived that Admiral Pareja had established the blockade of Valparaiso, both the English and French governments hastened to offer their kind services, to try if it were possible to settle these disagreements. The Spanish government accepted those good services, declaring it could not accept mediation of any kind, because, in questions such as that pending between the republic of Chili and the Spanish nation, it could not accept of it, nor have any other judge than its own honor. It then accepted their kind offices, which was commu nicated by the respective governments to their ministers at Santiago, and I have no hesi tation in mentioning the compromise offered by Spain, because it is a proof of the moderation of its requirements, as it is also a proof of the moderation of the administration which immediately preceded us.

The satisfaction asked by Mr. Benavidez was a salute of twenty-one guns, and explanatory notes which should contain full satisfaction to Spain of the affronts she had received. Nothing was said of indemuity, except in case hostilities should have broken out.

Well, then, the requirements being so moderate, the conduct of Chili appears consequently so strange and so anomalous, that the two nations I speak of and the United States of America, which had before employed all the means suggested by friendship-the United States, whose kindly sentiments, impartial and friendly conduct toward this nation in these circumstances, the Spanish government can never too highly appreciate-found not only that these propositions were not exaggerated, but that from themselves came the proposal that their good offices should be exercised to obtain from Chili, to advise Chili, to cause Chi to see that it was its obligation to give satisfaction to Spain, and the same as that which the Spanish government asked from it.

The Spanish government had not asked indemnity of any kind, and had said it would ask it if hostilities should break out. As for the salute, the Spanish government accepted at once, as a modification, that in place of the twenty-one guns fired in succession, they should alternate, Chili taking the initiative. This, however, is a delicate subject, and Mr. Llorente will understand why I cannot enter upon it. These good offices may, perhaps, have to be modi fied, because the circumstances and situation have changed by the unfortunate loss of the Covadonga.

No. 30.]

Mr. Seward to Mr. Hale.

DEPARTMENT OF STATE, Washington, May 23, 1866. SIR: The President thinks that a time has come when he can with propriety ask the attention of her Catholic Majesty's government to the very interesting subject of slavery in the Spanish islands near the United States, viz: Cuba and Porto Rico. You are, therefore, expected to mention it in a confidential manner to Mr. De Castro. You will assure him, in the first place, that this government does not in any case indulge any thought in the nature or spirit of intervention, and that the suggestions now made are inspired by feelings of entire respect and good will towards Spain and those provinces.

Although this government has in no manner published the fact, yet it has nevertheless observed that the policy of emancipation seems to be profoundly agitating the people of all classes, white, black, and colored in those islands. This condition of things is, perhaps, due in a large degree to a ripening of the consciences and judgments of mankind everywhere in regard to the institution of slavery. The desire for emancipation in the islands mentioned has undoubtedly been intensified by the success with which it has been recently crowned in the United States. It seems unreasonable to suppose that slavery could be perpetuated in any part of the West Indies, after its extinguishment throughout the American continent, except Brazil.

I make these observations with greater freedom, because I am aware that the subject is already in the thoughts of the government, as well as of the people of Spain. The United States think that Spain herself could within a reasonable time be able to conform the social and political institutions of those islands to the principle of universal freedom, without hazarding the calamities of civil war, if her freedom of action should not be affected injuriously by external agencies and influences. It is the desire of this government that she may exercise this independence and enjoy its beneficial results.

It is hardly necessary to acknowledge that at a period not long past, many persons in this and other countries conceived and attempted a dangerous design of disturbing the peace and security of Cuba. That design, so far as it was embraced by any portion of the American people, received its impulse, as it is believed, from a desire among slaveholders here, that the island with its slaveholding population might be annexed to the United States, and thus increase the slaveholding political interest, which then was a great power in our country. It would be a strange thing if now a propagandism of emancipation should prompt a portion of the people in several of the American republics to similar aggressions. It is to be expected that such a proceeding would be far more effective when seeming to have the sanction of benevolence, than was the aggressive movement to which I have referred, which former movement had for its encouragement here the contrary spirit of slaveholding aggrandizement I hope it will not be thought either unfriendly or unbecoming on my part when I say that the controversies with which Spain has been involved during the last four years with several of the republican states of South America, have produced a feeling of exasperation in most, if not all, of the Spanish-American states; that those states, justly calculating upon the sympathies of the people of the United States, are not likely to be slow in directing public attention everywhere to the now anomalous toleration of slavery in the Spanish dependencies, so ultimately connected in commercial and social intercourse with the people of the United States. When you have made these observations to Mr. De Castro, you will have said all that it seems necessary to have said at the present time upon this important subject. The President has no apprehension that the motives of these suggestions will be misinterpreted.

I am, sir, your obedient servant,

JOHN P. HALE, Esq., &c., &c., &c.

WILLIAM H. SEWARD.

Mr. Hale to Mr. Seward.

LEGATION OF THE UNITED STATES OF AMERICA, MADRID,

Aranjues, May 31, 1866.

SIR: I have the honor to inform you that the minister of the Spanish treasury has, within the last three or four days, resigned his office, and that his resignation has been accepted. The papers in opposition to the government persistently represent that this resignation has much political significance, and