[Extracts.]

Mr. Dayton to Mr. Seward

No. 457.]

Sir: Your despatches, from No. 524 to No. 528, both inclusive, have been duly received. * * * * * * * * * * *

Your despatch, No. 516, on the “Talambo question,” so called, between Peru and Spain, was immediately acted upon by me. M. Drouyn de l’Huys did not seem to recognize the case when his attention was called to it by that name, but said that he had already, in reference to the differences existing between the two powers, advised Spain, in conformity with your wishes, recommending a settlement in the spirit of peace, and he presumed all matters would be amicably arranged between those powers.

I am, sir, your obedient servant,

WM. L. DAYTON.

Hon. William H. Seward &c., &c., &c.