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ART. 2. It is forbidden in like manner to the owners, masters, or captains of merchant vessels to accept letters of marque, or contribute in any way whatsoever to the armanent or equipment of vessels-of-war or privateers. ⚫ ART. 3. It is forbidden to vessels-of-war or privateers with their prizes to enter or to remain for more than twenty-four hours in the ports of the monarchy, except in case of stress of weather. Whenever this last shall occur, the authorities will keep watch over the vessel and oblige her to get out to sea the soonest possible without permitting her to take in any stores except the purely necessary for the moment, but in no case arms nor supplies for

war.

ART. 4. Articles proceeding from prizes shall not be sold in the ports of the monarchy.

ART. 5. The transportation under the Spanish flag of all articles of commerce is guaranteed, except when they are directed to blockaded ports. The transportation of effects of war is forbidden, as well as the carrying of papers or communications for belligerents. Transgressors shall be respon sible for their acts, and shall have no right to the protection of my govern

ment.

ART. 6. It is forbidden to all Spaniards to enlist in the belligerent armies or take service on board of vessels-of-war or privateers.

ART. 7. My subjects will abstain from every act which, in violation of the laws of the kingdom, can be considered as contrary to neutrality.

ART. 8. Those who violate the foregoing provisions shall have no right to the protection of my governmer, shall suffer the consequences of the measures which the belligerents me y dictate, and shall be punished according to the laws of Spain.

Palace, on the seventeenth of June, one thousand eight hundred and sixty-one.

The minister of state,

SIGNED WITH THE ROYAL HAND. SATURNINO CALDERON COLLANTES.

No. 6.]

Mr. Seward to Mr. Schurz.

DEPARTMENT OF STATE,

Washington, June 22, 1861.

SIR: I send you an extract of a letter from Mr. Sanford, our minister at Belgium.

You will perceive, at once, how important it is that the Spanish government shall prevent the fitting out or departure of privateers from its friendly ports. We do not doubt your activity. You will need to see that our consuls in Spain are watchful and active.

I am, sir, your obedient servant,

CARL SCHURZ, Esq., &c., &c., &c., Madrid.

WILLIAM H. SEWARD.

No. 13.]

Mr. Perry to Mr. Seward.

LEGATION OF THE UNITED STATES,
Madrid, July 12, 1861.

SIR: I have been prevented, by my recent illness and the pressure of affairs, from communicating to you till this moment the import of various

conversations which I had with Mr. Calderon Collantes, minister of state, previous to entering the protest of June 19, upon the subject of the commercial relations of the two countries and the West Indian colonies.

I confess this subject has been a favorite with me ever since I succeeded, in 1854, in inducing the Spanish government to consent to negotiate with me for the conclusion of a commercial treaty upon the liberal and advantageous basis of the eleven articles then drawn up and sent to the State Department, accompanied with this offer on the September of that

year.

On entering again upon the discharge of the duties of this legation, I took an early opportunity, therefore, to sound the dispositions of the present minister of state on this subject, as well as the feeling of other officers and personages influential in this government.

In no quarter has the idea of arranging the commercial intercourse of the two countries upon a more liberal basis been repelled. The minister of state told me, without hesitation, that he would enter with me upon the work of negotiating a treaty for this purpose readily, and with the idea that we should find no great difficulty in bringing it to a successful conclusion.

I mentioned, especially, the subject of the Cuban flour duties, and received the reply, now as in years before, that these would be yielded by Spain, and the Spanish colonial market thrown open to the introduction of our grains and provisions of all kinds.

Some compensation, or show of compensation, to the Castilian wheatgrowers may be asked in the form of a reduction of our duties on the cheap wines of Castile; and whilst I see no great objection to such an arrangement, I am, at the same time, persuaded that practically it would amount to little in its effects either upon our revenue or upon the agricultural interests of Castile.

The motive of these conversations was to assure myself, for your information, what were the present wishes and dispositions of the Spanish government on this subject, prior to that coolness in our relations which must follow the presentation of the protest of June 19. I repeat, I have found these dispositions, now as heretofore, entirely favorable to the object mentioned, and I could have undertaken to carry a negotiation on this subject to a conclusion satisfactory to you, and highly advantageous to our people interested in the trade with the Spanish colonies.

As to the convention for the settlement of claims, which was signed by Mr. Preston, the minister of state expressed his regret that it had not received the ratification of the Senate, but had no doubt we should be able to arrange it so as to avoid the objections of that body. Other more pressing affairs induced me not to go much into the matter in the absence of your instructions.

But may I inquire what objection there would be on the part of the present administration, or of the Senate, to such a convention for this purpose, as I had the honor of offering to the acceptance of the administration of President Pierce, in September, 1854, a convention on the model of that concluded with Great Britain in February, 1853, free from especial clauses in reference to any particular claim, and embracing all claims by citizens or subjects of either country on the government of the other, without designation nor exception of any?

Should any change of circumstances lead you to recur to this subject, it will perhaps be useful to know that such an arrangement can be made. With the highest respect, sir, your obedient servant, HORATIO J. PERRY.

Hon. WILLIAM H. SEWARD,

Secretary of State.

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Señor Calderon Collantes then asked me whether the declaration of neutrality on the part of Spain in regard to our domestic troubles was satisfactory to my government. I replied that the government of the United States asked for and expected from foreign powers nothing but to be left to dispose of our domestic controversy as it deemed best As to the declaration of neutrality on the part of Spain, I had received no expression of opinion from my government, and that I thought it would be considered satisfactory.

I then asked Señor Calderon Collantes whether any application had been made to her Majesty's government for the recognition of the so-called Confederate States. He replied that no such application had been made, and that to his knowledge none of the gentlemen said to have come to Europe for that purpose had touched the soil of Spain. He assured me, in addition, that if anything of the kind should occur he would immediately communicate the fact to this legation.

In relation to my presentation to the Queen, Señor Calderon Collantes said that it was uncertain whether her Majesty would be able to receive me previous to her departure for Santander, which was to take place on the 15th instant; but that he would bring the matter before a meeting of the cabinet, to be held the same evening, and advise me in due time of their decision. He requested me, at the same time, to communicate to him the draft of the speech which I intended to deliver at the reception.

In the course of the night Mr. Perry was advised that her Majesty would be pleased to receive me the next day, at 9.30 o'clock p. m.

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At the appointed hour I was received by her Majesty. I have the pleasure to annex a copy of the speech I delivered in presenting my letter of credence, as well as her Majesty's answer.

Last night there was a general reception by the Queen and the King consort of the diplomatic corps, which I attended, accompanied by Mr. Perry. I may mention that on both occasions I was, contrary to the rules of court etiquette, admitted in a plain citizen's dress, the shortness of the time not having permitted me to prepare a proper court costume.

I cannot close this despatch without expressing my sincere gratification at the manner in which Mr. Perry had prepared for my reception here, and the many obliging attentions he has shown me since. Although my acquaintance with him is of but three days standing, yet I have no doubt our official and social interconrse will be of the most cordial nature.

I am, sir, your obedient servant, &c., &c.,

Hon. Wм. H. SEWARD,

Secretary of State, Washington, D. C.

C. SCHURZ.

Copy of the speech of Mr. Schurz.

MADAM: In appearing before your Majesty as envoy extraordinary and minister plenipotentiary of the United States of America, I regard it as my most agreeable duty to communicate to your Majesty the friendly feelings which the President of the United States and the American nation entertain towards your Majesty and the people of Spain.

I beg leave to assure your Majesty that, for the purpose of maintaining amicable relations with the government of your Majesty, as far as may be consistent with the dignity and legitimate interests of the United States, the President could not have selected a more willing instrument than myself. I have now the honor to place into your Majesty's hands the letter of credence confided to me by the President, and of presenting my best wishes for the health of your Majesty and the royal family, and for the prosperity of the Spanish nation.

Reply of the Queen to Mr. Schurz.

[Translation.]

MR. MINISTER: With true satisfaction I receive the letter which accredits you as envoy extraordinary and minister plenipotentiary of the United States of America in my court, and appreciate most highly the assurances which you give me of the sentiments of friendship which animate the President and those States towards my person and the Spanish people.

I take a lively interest in the prosperity of the nation which you come to represent, and cherish the hope that its relations with Spain will always be maintained in such a way as to satisfy the dignity and interests of both peoples.

I do not doubt that you will contribute with your enlightenment to this object, and that your comportment will make you worthy of the estimation of my government.

I am much gratified, Mr. Minister, with the wishes you express for my felicity, for that of my family, and for the prosperity of the Spanish nation.

Mr. Seward to Mr. Tassara.

DEPARTMENT OF STATE,

Washington, July 15, 1861.

The undersigned, Secretary of State, has the honor of addressing Mr. Tassara on the subject of certain vessels belonging to citizens of the United States now, or lately, detained at the port of Cienfuegos, in the Island of Cuba.

Information has been received at this department that a piratical armed steamer called Sumter, on the 6th July instant, entered that port with seven vessels belonging to citizens of the United States, which she had captured, with their officers, and also the officers and seamen of another such vessel which she had captured and burned on the high seas. The department is further informed that the Sumter was, on that occasion, manned by a full

complement of seamen, marines, officers, and firemen; that she carried an armament of five or eight heavy guns, and that thus manned and armed the vessel was supplied with coal and water at Cienfuegos, and was allowed to depart on the same day to a destination unknown.

The undersigned is further informed that the captured vessels were detained in the port of Cienfuegos, and that their crews, together with that of the vessel which had been burned, were set at liberty.

It is the duty of the undersigned to bring this extraordinary transaction to the notice of the Spanish government. This government will cheerfully receive any explanations of it which the Spanish government may feel itself at liberty to give. But in the meantime, assuming the facts to be correctly presented as they are above stated, the undersigned is instructed by the President of the United States to inform the Spanish government that he deems the admittance of the said piratical vessel, the Sumter, into the port of Cienfuegos, with the captured vessels and crews before described, her supply there with coal and water, and her permitted departure, to have been in violation of the treaties existing between this government and Spain, as well as of the law of nations; and this government, in this view, will expect the immediate release and discharge of the captured vessels and their cargoes. Reserving the subject of indemnity for the injury inflicted upon the United States by the transaction, as recited, until time for explanation shall have been afforded, the undersigned is nevertheless instructed to ask at once that her Catholic Majesty's government will take effective measures to prevent the recurrence of transactions in the ports of Spain of the kind now in question, which are not more injurious to the commerce of the United States than toward that of Spain herself and of all other commercial nations. The undersigned is induced to believe that those requests will not only meet prompt attention, but will even be answered in a manner satisfactory to the United States. This belief is founded on these facts: first, a correspondence which has taken place between the consul general of the United States and his excellency the governor general of the Island of Cuba re-. lating to the subject has been submitted to this department, in which correspondence the governor general announces that he has been left withont the aid of instructions in the matter, and that he shall abide the directions of his government, in the meantime taking your advice in the premises. Further, this government has been advised by a communication from Mr. Perry, lately acting as chargé d'affaires at Madrid, under date of the 13th of June last, that he was directed by the Spanish government to inform the government of the United States that Spain would prohibit the entrance of southern privateers into any of her ports, peninsular or colonial, and would also prohibit the furnishing of any supplies to the rebels, whether arms, provisions, coals, ships, or any other merchandise, and that armed vessels, with their prizes, would not be permitted to enter the ports of Spain. Moreover, the same mail which brought the information of this transaction, brought also a despatch from Mr. Perry, containing later assurances received from the government of Spain similar to those already recited, together with an official copy of a royal decree of the 15th June, giving legal effect to the promises thus so repeatedly made.

In specifying these particular grounds of confidence for an expectation of a satisfactory disposition of the subject of this communication, the undersigned is by no means to be regarded as excluding the more general assurances of amity and friendship which have been lately exchanged between the two governments, or their habits of good faith and reciprocal justice which have been confirmed by an almost unbroken experience of two-thirds of a century.

In order to elucidate the subject of this note, the undersigned causes to

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