Mr. McMahon to Mr. Seward.

No. 11.]

Sir: I have the honor to inform you that I left Buenos Ayres on the 21st November ultimo in company with Admiral Charles H. Davis, commanding the South Atlantic squadron, who had transferred his flag to the Wasp. We passed the military lines of the allied belligerents on the 3d instant at Las Palmas and arrived the same day opposite the headquarters of President Lopez, and in front of the Paraguayan battery of Angostura. Three vessels of the squadron, the Pawnee, Quinnebago, and Kansas, remained at Corrientes below the allied lines.

Immediately upon arriving the admiral communicated with President Lopez, demanding the delivery of the two men, Bliss and Masterman. His letter, a copy of which I inclose, marked A, was delivered to the President by Captain Kirkland, of the Wasp, who returned in a few hours with the information that the President requested an interview with the admiral on the beach, and also expressed a desire that I should be present at the interview. Believing that it would be more consistent with the dignity of the government that the negotiations for the delivery of Bliss and Masterman should be conducted wholly by the admiral, I declined to accompany him to the interview. Shortly after five o’clock in the afternoon the arrival of the President at the beach was signified to the ship by the dipping of the Paraguayan flag in the fort. The admiral immediately went on shore and had an interview of some hours’ duration, in which it appears the President expressed the following views: That the men, Bliss and Masterman, were guilty of serious crimes, and were not members in good faith of the United States legation; that they were at that moment actually undergoing trial; that, nevertheless, the President of Paraguay, confiding in the justice of the American government, would deliver them to the authorities of the United States, thereby exercising arbitrary authority in taking them from the custody of the judicial authorities, and expected to justify their seizure [Page 692] in Asuncion by showing to the government of the United States that their pretended connection with its legation was merely for the purpose of shielding them from the consequences of their guilty acts; that, if he had delivered them under the terms of the admiral’s letter claiming them as attached to and under the protection of the legation, he believed that it would be conceding an important point, which he denied and hoped to disprove. The admiral, although not fully concurring in this construction of his first letter, or of its effect, consented to replace it by another in different terms.

On the following day he sent the second letter, as agreed upon—a copy inclosed, marked B. He received on the same day a reply, a translation of which is inclosed, marked C. This reply of the President was not definite. He was willing to deliver the men, and confide them to the justice of the government of the United States; but he still objected to the terms.

Here the correspondence was interrupted by two Brazilian iron-clads, which came around the point about a mile below us, the leading one carrying the American flag and a flag of truce at the fore. The commanding officer notified us that he was about to open fire on the Paraguayan batteries. We accordingly dropped out of range—an example shortly afterwards followed by the Brazilian vessels. They continued their fire, however, until the following morning, the Paraguayans not replying after dark.

The next day we returned to our former position, and the admiral addressed a letter, a copy of which is inclosed, marked D, in which he stated in substance that it was not his province, nor had he authority either to offer or refuse any terms that would in any manner affect the status before the law of the men whose delivery he claimed. The same day the President replied to the effect that the men would be delivered on board the flag-ship on Tuesday, the 8th instant, at three o’clock in the afternoon, and requested that the admiral would appoint one or two officers to witness the verification of the legal process against the accused on the morning of the same day. This communication, a copy of which is inclosed, marked E, stated that the delivery was made as an act of courtesy on the part of the government of Paraguay, and as a proof of its friendship for the government of the United States and of confidence in its justice, and that he did not understand it to be in answer to a reclamation or demand.

The admiral’s previous communication having sufficiently expressed that his purpose was simply to obtain the men, and that his doing so did not commit him to or against any view which the government of Paraguay might entertain or express on the subject, replied that he would be prepared to receive the men on board at the hour named, and would send two officers to verify or witness the legal declarations, as requested. (See inclosure, marked F.)

Before this reply was sent ashore we were again disturbed by the arrival of a Brazilian iron-clad flying the American flag and a flag of truce at the fore, as a notice to the Wasp, followed by a single turreted monitor. We dropped down the river out of range, and in half an hour the Brazilians did the same.

The following morning we returned and the letter was sent ashore. Later in the day an officer came on board with the information that the President was at Ivahé, a few miles above us on the river, where on the day previous he had defeated the Brazilians with heavy loss.

On the 8th instant Commander Ramsey and Lieutenant Commander Kirkland went to the headquarters of President Lopez and heard the [Page 693] declarations of the accused persons, Bliss and Masterman, read over to them, sworn to and signed. The officers who witnessed the transaction inform me that the declarations are voluminous, containing much irrelevant matter; that the manner of the two men while listening to their declarations and undergoing examination was different. Bliss seemed self-possessed and frequently corrected his testimony; Masterman was nervous and frightened, and when questioned by Captain Ramsey as to whether he intended to swear voluntarily to all he had heard, said, “Please don’t ask me any questions.”

On the 10th (yesterday) at 11 p. m. the men were seat on board the Wasp, at the same time the President sent to inquire at what time I desired to land. I replied that I would land to-day at 1 p. m.

The papers which accompanied the prisoners are sealed and addressed to you and will be transmitted by the admiral.

I trust that my course under the circumstances I have narrated in this and previous dispatches will be approved by the government.

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

M. T. McMAHON.

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

A.

Rear-Admiral Davis to President Lopez.

Sir: I have the honor to inform your excellency that I have arrived in front of Angostura, having on hoard his excellency General M. T. McMahon, the minister of the United States to the repuhlic of Paraguay.

As an indisputable preliminary step to the presentation by General McMahon to your excellency of his credential letter, I have to request that Messrs. Bliss and Masterman, the persons arrested and detained in Asuncion while under the protection and attached to the legation of the previous United States minister, he restored to the authority of the United States flag.

Knowing that before the occurrence of this arrest and detention it was the earnest desire of the government of the United States to continue under the existing circumstances its friendly relations with the republic of Paraguay, a desire sufficiently manifested by the pronrpt appointment of General McMahon, it is my hope that your excellency will hasten to remove the only obstacle which stands in the way of these relations.

I have the honor to be, with the highest respect, your excellency’s most obedient servant,

C. H. DAVIS,Rear-Admiral Commanding the Naval Forces of the United States in the South Atlantic.

His Excellency Marshal Don Francisco Solano Lopez, President of the Republic of Paraguay.

B.

Rear-Admiral Davis to President Lopez.

Sir: I have the honor to apprise your excellency of my arrival in front of the batteries of Angostura.

My object in placing myself in personal intercourse with your excellency is to request that Messrs. Bliss and Masterman, the individuals arrested and detained in Asuncion on the 10th day of September last, may be delivered into my keeping subject to the orders of the United States.

[Page 694]

It does not belong to me to define, or even to consider, the status of these individuals But on this subject your excellency will, I do not doubt, repose confidence in the justice and friendship of the United States, which has afforded your excellency many recent proofs of its respect and sympathy.

Any papers your excellency may be pleased to send with these individuals will be transmitted to Washington by the earliest opportunity.

I have the honor to be, with the highest respect, your excellency’s most obedient servant,

C. H. DAVIS, Rear-Admiral Commanding Naval Forces of the United States in the South Atlantic.

His Excellency Marshal Don Francisco Solano Lopez, President of the Republic of Paraguay.

C.

[Translation.]

Señor Palacios to Rear-Admiral Davis.

Admiral: I have the honor to inform your excellency of the receipt of the note which you have been pleased to address, under the date of yesterday, to his excellency the marshal President of the republic, by whose order I now reply to your excellency.

The Paraguayan government, always influenced by the best and most friendly sentiments towards the United States of America, would gladly avail itself of every opportunity in which, without receding from its sovereignty and its rights, it could offer fresh proofs of its constant friendship, but his excellency the President regrets that it is not in his power to accede to the delivery, on the terms of your excellency, of the accused Bliss and Masterman to the keeping of your excellency, who, if not called upon to define or even to consider, should not at least conceal from yourself the fact of their being criminals deeply committed in the affairs of a horrible conspiracy, very particularly the former.

Nevertheless, his excellency the President of the republic would cheerfully consent to the delivery of the criminals Bliss and Masterman, provided it were requested in a manner more in conformity with the fact of their being accomplices of Mr. Washburn, and the first intimately acquainted with his intrigues in the character of conspirator and agent of the enemy, of which he is now accused in the national tribunals, since they could be useful in the administration of justice by the American government, to whose judgment he would confide the above-mentioned criminals.

I avail myself of this opportunity to assure your excellency of my very distinguished consideration.

JUAN MANUEL PALACIOS, Chief Military Secretary.

His Excellency Rear-Admiral C. H. Davis, Commanding Naval Forces of U. S. in the South Atlantic.

D.

Rear-Admiral Davis to President Lopez.

Sir: I have the honor to acknowledge the receipt of a communication from your excellency, in reply to my communication of the 4th instant, in which your excellency expresses a willingness to deliver to the United States government, in my keeping, the accused persons, Bliss and Masterman, mentioned in the said note, but that your excellency objects to their delivery under the terms of my note.

I wish your excellency to believe that it is no part of my official duty either to offer or to refuse any terms which will affect the alleged criminal condition of the two persons in question.

The papers accompanying those two persons will sufficiently express to the government of the United States the judgment of the government of Paraguay in their cases.

I take this occasion to inform your excellency that I am accompanied by a minister [Page 695] accredited to the government of Paraguay, who, should no difficulties exist to prevent it, will present his credentials.

Considering this, and the friendship of the government of the United States of America for that of the republic of Paraguay, I have to ask your excellency to embark the accused persons, Bliss and Masterman, on board of this vessel, in order that I may keep them in security, subject to the disposition of the government of the United States, of whose justice and friendly sentiments your excellency can entertain no doubt.

Your excellency is aware that the present position of this vessel is one in which she should not be detained longer than is absolutely necessary.

Will your excellency, therefore, be pleased to inform me when I may expect to receive these persons on board, or to apprise me at the earliest moment that it is not your excelcency’s intention to send them at all, if such should be your final decision.

I have the honor to be, with the highest respect, your excellency’s most obedient servant,

C. H. DAVIS, Rear-Admiral Commanding the Naval Forces of the United States in the South Atlantic.

His Excellency Marshal Don Francisco Solano Lopez, President of the Republic of Paraguay.

E.

[Translation.]

Señor Palacios to Rear-Admiral Davis.

Admiral: His excellency the marshal President of the republic directs me to reply to the communication of yesterday’s date, which he has just received from your excellency, in answer to the communication of mine of the same day, written also by his excellency’s command.

As to what is said of the form of your excellency’s application for the embarcation of the criminals Bliss and Masterman, that it never intended either to offer or refuse terms which might affect the criminal condition of the individuals in question, but to leave it well understood that this application could not be complied with in the sense of a reclamation, but of a graceful courtesy on the part of the government of Paraguay towards that of the United States of America, if in my answer your excellency could find anything different I beg pardon.

Your excellency will now permit me to remark that I have written nothing in that communication which authorizes your excellency to believe that it has ever been the intention of his excellency the President of the republic not to deliver up the criminals Bliss and Masterman unreservedly.

I thought that I had made it distinctly apparent that his excellency regretted that it was not in his power to accede to the conditions of the first demand, but since neither a reclamation nor a demand is in question, thus strengthening my former communication, his excellency has given the necessary orders for the delivery of the criminals in a conspiracy, Bliss and Masterman, on board of your excellency’s vessel, that they may be securely retained subject to the disposition of the government of the United States of America, asking permission to recommend to your excellency their entire non-intercourse with the belligerent countries in whose service the conspiracy was set on foot.

Your excellency will consider this application sufficiently justified by the actual state of the war, which has also led your excellency to request that you should not be detained longer than is essentially necessary.

In this prospect I am happy to inform your excellency that the prosecuting officers, who have received the order of his excellency, with a recommendation to be brief, expect to get through in time for the embarcation of the criminals Bliss and Masterman by 3 o’clock of the afternoon of the 8th instant, and at the same time they have expressed a wish, which they hope will be gratified, that your excellency will name one or two of your officers who can witness, on the morning of the same day, the verification of the declarations of both of the accused in the case.

His excellency the President thanks your excellency for the information that you are accompanied by a minister accredited to this republic, the presentation of whose credentials the minister will be pleased to arrange at his convenience in the customary form.

I profit by the occasion to offer to your excellency the assurance of my very distinguished consideration.

JUAN MANUEL PALACIOS, Chief Military Secretary.

His Excellency Rear-Admiral C. H. Davis, Commanding the Naval Forces of U. S. in South Atlantic.

[Page 696]

F.

Rear-Admiral Davis to President Lopez.

Sir: I have the honor to acknowledge the receipt of your excellency’s letter of the 6th instant.

In obedience to your excellency’s wishes I shall appoint two superior officers, one of them the chief of my staff, to witness the verification of the declaration of the accused, Bliss and Masterman, and I shall he ready to receive the accused on board of my flagship at the time appointed by your excellency.

These officers will be at your excellency’s command on the morning of the 8thinstant.

I have the honor to be, with the highest respect, your excellency’s most obedient servant,

C. H. DAVIS, Rear-Admiral Commanding the Naval Forces of the United States in the South Atlantic.

His Excellency Marshal Don Francisco Solano Lopez, President of the Republic of Paraguay.