Mr. Kilpatrick to Mr. Seward.

No. 68.]

Sir: I have the honor to report that the condition of affairs in Chili, which I made the subject of despatch No. 61, has not materially changed. The government of Chili still professes to doubt that Spain will renew hostilities in the Pacific; but at the repeated solicitations of the merchants of Valparaiso, has finally intimated that it would facilitate the removal of goods from the customhouses, where they are exposed to the risks of a bombardment. Work on the fortifications of Valparaiso are also progressing vigorously, but with these exceptions there is little or nothing to indicate that this government apprehends the return of the enemy. The animated debates in congress and exciting discussion by the press on the subject of the war continue, and each arrival of steamers with confirmatory reports of Spain’s design to reopen the campaign in the Pacific add to the agitation now distracting the country. Great alarm prevails among commercial men, and trade is almost paralyzed.

The recent arrival of minister Hovey from Peru, who visits Chili for the benefit of his health, occasioned considerable stir, and the idea was generally circulated that he had come with new propositions of mediation by the United States. That belief, however, was speedily dissipated, and the majority of the [Page 272] people have about accepted the conclusion that Chili and her allies must now confront their enemy alone.

Since the first rejection of all mediatory propositions by Chili, the members of the diplomatic corps in Santiago have not manifested any disposition to exert themselves again for averting the calamities which now threaten Chili and Peru, and it is impossible that any concerted action will be taken by the foreign representatives in the event of a renewal of hostilities.

I have the honor to remain, very respectfully, your obedient servant,

J. KILPATRICK.

Hon. William H. Seward, Secretary of State, Washington, D. C.