Mr. Seward to Mr. Koerner.

No. 93.]

Sir: I had only just closed my despatch of the 16th instant, No. 90, when information reached me of the very important events that have occurred in Peru, namely, the suspension of the diplomatic intercourse between the diplomatic agent of Spain at Lima, and the Peruvian government, the seizure of the Chincha islands and some Peruvian vessels by the Spanish squadron, and the preparations made by that government for resistance and defence.

The Peruvian government has now distinctly invoked the good offices of the United States. I have suggested to them the expediency of sending a special agent to Madrid, invested with ample powers to give all just satisfaction to Spain in case the public property of the republic should be restored, and the agent by whose direction it was seized shall be withdrawn or relieved. Such a proposition, if made by Peru, would seem to be a very reasonable one at this distance, and in the absence of any special knowledge of the views of the Spanish government. Nevertheless if Spain should be disposed to maintain peace and friendly relations with Peru, and should yet find insuperable objections to the course I have indicated, there would still remain the measure of a reference to some friendly power, which the President would very cheerfully recommend to Peru, as he would any other alternative that Spanish honor might justly claim, and Peru could accept with due self-respect.

At an early stage of this question I took measures to engage the attention of the government of France, and the last advices from Mr. Dayton inform us that that government has advised the Spanish government to adopt a conciliatory policy. I have now again instructed Mr. Dayton to renew his good offices there in view of the violent culmination of the controversy which has taken place at Lima. I give you a copy of that instruction, together with a copy of the documents which have been transmitted to me by our minister at Lima.

It remains only to commend the subject to your earnest attention, and to assure you that if you shall be able to contribute in any degree to the preservation of peace between two countries which the United States are accustomed to regard with special friendship, you will have crowned your mission with success that will be most gratifying to the President and to the friends of freedom and liberty in the world.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Gustavus Koerner, Esq., &c., &c., &c., Madrid.