in charge of United Stales Legation to William H. Seward, February 16, 1867

Mr. Otterbourg to Mr. Seward

Sir: Prince Maximilian left, as notified in enclosure No. 1, for Queretaro, accompanied by an army corps from General Marquez’s division, estimated variously at 3,500 and 5,000 men.

The impression among those best informed upon subjects of this nature prevails that the emperor, convinced at last of the unsatisfactory results which the present situation promises for the country, goes with the object of extending propositions to President Juarez. The main desire of his majesty is to obtain guarantees for those who as partisans have been compromised in his service, and to resign his position in favor of the liberal party.

Enclosed, No. 2, is a copy of the protest addressed to this government by the foreign representatives against the recent contribution of one per cent., to which no reply has been returned by the office of foreign affairs up to the present hour. Aware of the result so far attendant upon the action of the diplomatic corps, I have refrained from the expression of any opinion which might positively influence the course of citizens of the United States, and, the more, as the decree imposing this contribution affects American interests chiefly where it applies to the issue of licenses or patents, the tax upon which has never been greater than one-fourth of the amount collected upon capital or large mercantile establishments.

The liberals are fast closing in about the capital. Diego Alvarez occupies Cuernavaca with between 4,000 and 5,000 troops from the State of Guerrero, and has pushed his advance into the valley within a distance of four leagues from this city. On the road to Vera Cruz the forces of the same party are stationed at three leagues from Mexico. Since the withdrawal of the French army every courier to the coast has been intercepted, and the wires of the telegraph are cut to the interruption of the regular and usual communication with the port of Vera Cruz.

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