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The few modifications, then, which the government of her Catholic Majesty desires to have admitted, and which she thinks indispensable for its complete symmetry (conformidad,) may be stated thus: 1st. To fix with precision a period from which only there shall be submitted to the conference the facts from which the present war originates, upon which, and none others, shall there be a submission to arbitrament, in case the plenipotentiaries are not able to agree among themselves. 2d. To affix some conditions in respect to the arbitrator, and that the president shall be at liberty freely to select him from the foreigners or states who possess these conditions or qualifications. Finally, General Calonge desires to inform Mr. Hale that while in the seventh article of the propositions made by the government of the United States an armistice is established from the time of the acceptance by the belligerents of the terms proposed, the government of her Majesty have no difficulty in agreeing that the armistice may commence immediately from the time in which Mr. Hale shall communicate to his government, without prejudicing the right of treating preliminarily on the modifications which Spain proposes, and those also which possibly other of the belligerents may have sought, by which means humanity will be the gainer, as well as the other great interests compromised by the war.

General Calonge improves this occasion for reiterating to Mr. Hale the assurances of his most distinguished consideration.

The MINISTER PLENIPOTENTIARY of the United States.

Mr. Seward to Mr. Hale.

No. 55.]

DEPARTMENT OF STATE,

Washington, January 28, 1867.

SIR: Your despatch of the 7th instant, No. 74, has been received.

Your execution of my instruction No. 52, proposing mediation on the part of the United States for the arrangement of the pending difficulties between Spain and the allied South American States, is entirely satisfactory. We have as yet heard nothing from the other belligerents, but their reply when received will be promptly communicated to you.

I am, sir, your obedient servant,

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

WILLIAM H. SEWARD.

Mr. Seward to Mr. Hale.

No. 58.]

DEPARTMENT OF STATE,

Washington, February 13, 1867.

SIR: The consul at Porto Rico reports that the administration of foreign wrecks at that island is withheld from consuls and exercised by local officials, with great delay and great expense to our citizens.

A reference of a question on this point by the captain general to his home government results in the reply by the latter, that it has referred to the proper committee of the council of state the consideration of the expediency of extending to the colonies the provisions of the royal decree of July 5th, 1864, which allows the administration of foreign wrecks to consuls in the kingdom.

The tenth article of the treaty with Spain of 1795 stipulates that our citizens shall be placed upon the same footing as Spanish subjects in respect to wrecks on Spanish territory. If, however, as the consul referred to reports, the business is mismanaged by the local authorities, it is desirable that it should be transferred to the consuls, you will consequently do whatever you properly can towards hastening a proper decision of the subject.

I am, sir, your obedient servant,

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

WILLIAM H. SEWARD.

No. 59.]

Mr. Seward to Mr. Hale.

DEPARTMENT OF STATE,

Washington, February 25, 1867. SIR: I have had the honor to receive your despatch of January 28th, No. 79, which is accompanied by a copy of a correspondence which has taken place between yourself and Mr. Calonge on the subject of the proposition by this government, to the several belligerents, of its good offices by way of mediation for the restoration of peace between Spain and certain allied republics of South America.

To guard against all misapprehension, I recite from the letter of Mr. Calonge his answer to the proposition which was made by me on the subject referred to on the 20th day of December last, in identical terms to each and all of the belligerent parties.

Mr. Calonge is understood to say, in behalf of the government of her Catholic Majesty, that Spain accepts the proposition of the government of the United States, subject to a certain condition, which is as follows:

Spain desires that by agreement of all the belligerents, certain amendments of the plan submitted by the United States, which Spain deems indispensable to the better direction of the conference proposed and for its more speedy termination, may be adopted by the United States, not, however, without the previous concurrence of all the belligerents.

The amendment which Mr. Calonge requires is defined by him as follows: 1. To fix with precision a period within which the matters shall have arisen which are to be submitted to the conference, upon which matters and none others shall there be a submission to arbitration in case the plenipotentiaries are not able to agree among themselves.

2. To affix some condition or qualifications in respect to the arbitrator; and that the President shall be at liberty freely to select an arbitrator from the sovereigns or states who possess these conditions or qualifications.

Mr. Calonge, having accepted the proposition of the United States, subject only to the reservation above recited, agrees, on behalf of Spain, that a conference shall be held at Washington, as proposed, and at the time proposed by the United States; that the conference shall be presided over in the manner proposed by the person to be designated by the President of the United States; that the plenipotentiaries of the several belligerent parties are to be appointed and to constitute the conference, and to act and proceed in the conference, with respect to their own several governments and with respect to all parties, in the manner proposed by the United States. Spain further accepts, subject to the same reservation, the armistice which the United States proposes, such armistice to last during the existence of the conference. And Spain further agrees that the points upon which the plenipotentiaries shall not be able to agree shall be submitted to the arbitration proposed, in the manner proposed by the United States, and that such arbitration shall be final.

According to Mr. Calonge, Spain further agrees that the armistice proposed by the United States shall begin on the day of the reception of Mr. Hale's despatch at this department, that is to say, on the 23d day of February, 1867, and it being understood that the agreement of armistice does not and shall not prejudice the right of Spain or of any or all of the other belligerents to treat preliminarily on the modifications which Spain proposes, and any other modifications which either or all of the other belligerents may have proposed or provided for proposing to the United States.

I think it proper to state in this place that at the present moment no answer upon the subject of our proposition has been received by this government from either of the allied belligerent enemies of Spain. It is therefore unknown and

uncertain whether those parties have accepted or will accept the proposition, and equally unknown and uncertain whether they, or any of them, would desire to propose any modification of the plan which was submitted to all the belligerents by this government.

Having taken the President's directions upon the matters thus recited, I have now to instruct you as follows:

1st. I shall desire to know as early as may be whether I have correctly conceived and expressed the meaning of Mr. Calonge's communication.

2d. As to armistice, the United States understand that an armistice is to be deemed established from this date, unless the allied enemies of Spain shall renew hostilities before receiving notice thereof from the United States, or, upon receiving notice by a copy of this paper furnished by me, they shall decline to accept the armistice on the terms upon which it is so accepted by Spain.

3d. As to the amendment presented by Mr. Calonge, the United States will oppose no objection to preliminary discussion between Spain and her allied enemies, with a reference to the fixing of a time within which the matters shall have arisen which are to be submitted to the conference, and upon which, and none others, there is to be a submission to arbitration in case the plenipotentiaries are not able to agree among themselves. If, in the view of the parties concerned, it will facilitate that discussion, this government would be willing that this department should be a channel of communication. On the other hand, I am authorized to express, with profound respect to the several parties, an apprehension that the carrying on of such a preliminary discussion might produce delays which would be more injurious than the advantages which it is conceived by the President would be likely to result from an ultimate agreement between the parties as to the suggested period of limitation.

In regard to the suggestion of conditions or qualifications of the arbitrator, restricting the President's liberty of choice, I am instructed to say that it would not be agreeable to this government to modify its original proposition in this respect. Impartiality and the good faith of the United States, as well as an exercise of sound discretion, are already pledges in the proposition to appoint an arbitrator in case the proceedings of the conference shall render it necessary. Should either of the belligerent parties insist upon such a condition in this respect as the one thus offered by Spain, the United States must be understood as declining to proceed further in the matter.

Finally, it being a matter of importance to save time in the negotiations which have been so happily begun, a copy of this communication, without further explanation, is transmitted to the legations of the United States near the allied belligerents, to be laid before them in the same words in which the minister of the United States at Madrid is hereby directed to submit the same to the consideration of her Catholic Majesty's government. Whatever communications bearing upon the subject may be received from either of the belligerents will, without delay, be made known to all other interested parties.

I am, sir, your obedient servant,

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

WILLIAM H. SEWARD.

No. 62.]

Mr. Seward to Mr. Hale.

DEPARTMENT OF STATE,

Washington, March 18, 1867.

SIR: Herewith I enclose for your information copies in translation of two notes,* dated respectively the 30th of January and the 26th of February, and

*For enclosures see despatches from United States Minister to Chili and Ecuador dated February 2d, 1867, and numbered respectively 39 and 25.

addressed to our diplomatic representatives at Santiago and Quito, by the ministers of foreign affairs of the republics of Chili and Ecuador, on the subject of the proposition by this government to mediate by the use of its good offices for the restoration of peace between Spain and certain allied republics of South America. I am, sir, your obedient servant,

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

WILLIAM H. SEWARD.

No. 83.]

Mr. Hale to Mr. Seward.

LEGATION OF THE UNITED STATES OF AMErica,
Madrid, March 26, 1867.

SIR: Your despatch, No. 59, dated February 25th, 1867, was received on the 23d of this present month, and agreeably to your instructions I communicated the same to the minister of state, General Calonge, by furnishing him a copy. I see by the newspapers of this city that the news by telegraph is that Chili and all the other belligerents in South America, except Peru, have been heard from, and that they have all accepted the proffered mediation of the United States, except Peru, and that no doubt was entertained that she would do the same.

With much respect, I have the honor to be your obedient servant,

Hon. WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.

JOHN P. HALE.

Mr. Hale to Mr. Seward.

No. 85.]

LEGATION OF THE UNITED STATES,
Madrid, April 10, 1867.

SIR: In the absence of any official information to give you in relation to Cuba, I have thought that the following statement, which may be relied upon as substantially correct, would not be without interest :

The newspapers of Madrid and at Cadiz have lately published a paragraph to the effect that this government had entered into negotiations for obtaining a loan of two thousand million reals, ($100,000,000,) nominal, the interest and capital of which debt to be paid by the colonial chest, as it is called, of the island of Cuba.

On making some inquiry into the truth of this statement, I find that, in fact, the minister of the colonies has been in frequent communication lately with the agents of the French Credit Mobilier, on this subject.

The sum to be furnished to the Spanish government by these parties is understood to be 300,000,000 francs in cash, ($57,000,000,) and the debt is, in fact, to be a Cuban debt, for the payment of which the revenues of Cuba are to be pledged, and the chest of the island is to be directly liable.

I am not aware whether these French negotiators are supported in any way by their own government in this transaction, nor am I informed as to the details of the negotiation, but its existence on the basis stated is beyond doubt.

Within three days past we have had alarming rumors here in regard to the state of things between France and Prussia, some parties supposing war to be imminent. The fall of the funds in Paris seems to confirm, to some extent, these reports, but whether this alarm in France will have any effect to retard

or prevent the favorable termination of the negotiation for a loan in that quarter on a mortgage of the revenues of Cuba, I cannot say.

Again there has been in session for some months, in this city, a council for deliberation on the affairs of Cuba and Porto Rico, composed of delegates sent from each of these islands separately, and also of some selected by the government of Spain.

The functions of this assembly I understand to be advisory merely, and they have agreed upon certain reforms relating to the matter of customs and taxes generally which they have recommended to the government of Spain, and which have been sanctioned by royal decree, which has all the force of law.

The subject of slavery has not yet appeared in any of the proceedings of this body, and probably will not. Nevertheless, I learn from undoubted authority that it has engaged very much of the attention of the delegates from Cuba and Porto Rico, those from the latter island being, or a majority of them at least, decidedly and unequivocally in favor of emancipation, and they have informally so stated to the government of her Majesty, both on grounds of expediency and humanity; those from Cuba, or a majority of them, are also in favor of emancipation, but not so decidedly nor immediately as those from Porto Rico. These Cubans are talking of some substitute for African laborers before emancipation is actually effected. Still the preponderance of the sentiments of the delegates from Cuba is decidedly on the side of emancipation.

Though this subject does not appear in any report of the proceedings of this body, still it is one of the ideas most prominent in the minds of the individual members, so much so that I am informed they take their seats on one side or the other of their place of session according to their sentiment on this great question of the age.

I am further informed that it is the opinion of those friendly to emancipation in those islands, that not only has the Spanish government not moved in this matter, but that they will not so long as the movement can be delayed. On this question I have no knowledge, but simply give you what has been told me. I learn that the public mind in those islands is very sensitive on anything which is said or done in the United States on this question, and they hope much from the moral influence of our government on it.

I have the honor to be, with the highest respect, sir, your obedient servant, JOHN P. HALE.

Hon. WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.

Mr. Hale to Mr. Seward.

No. 88.]

LEGATION OF the United States of AmERICA,
Madrid, May 1, 1867.

SIR: You will recollect that in my despatch No. 85, dated April 10th, 1867, I gave you some account of the proceedings of a meeting or advisory council, which was being held here in Madrid by certain delegates from the Spanish islands of Cuba and Porto Rico, in conjunction with other delegates appointed by the Crown. Knowing the very lively interest felt by the government and people of the United States in the abolition of slavery on the American continent and throughout the world, I have thought that the proceedings of this meeting or council would not be without interest to them.

That meeting or convention, or whatever it may be called, have just finished their labors, and I am able to give you a report of their proceedings so far as they relate to the subject of slavery.

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