Thomas H. Nelson to William H. Seward, February 26, 1866

Mr. Nelson to Mr. Seward.

Sir: In my despatch No. 248, of the 15th instant, I had the honor to inform you of my endeavor to induce the government of Chili to terminate the present conflict with Spain and accept the arbitral decision of the United States in all questions between them. I likewise informed you of the verbal reply of Mr. Covarrubias, and that I should by the present mail transmit the official note containing the same.

On the 19th instant I received a note from the secretary of foreign relations, dated February 17th, repeating the expressions used by him in that interview, and stating that should the obstacles therein alluded to be overcome, the government of Chili would be most happy to find itself so placed as to be able to co-operate in the success of the pacific desires of our government and my own. (A.)

I replied under date of the 23d instant, acknowledging the receipt of this note, and informing his excellency that so earnest was my desire for the cessation of the present conflict, that I should deem his declination of my proposal as merely conditional and temporary in its character, and requested him to consider that proposal as still existing, and clothed with a quasi permanent character that would enable his government to renew its consideration, should a favorable opportunity for its acceptance occur. (B.)

In alluding to the reply of Admiral Mendez to the United States consul, dated February 8th, 1866, (which should have formed enclosure C in the despach of the 15th instant, but was omitted for want of time to copy and translate it, and is now forwarded, marked C,) I stated that he characterized the consular protest as hostile, and its signers liable to be considered by the admiral as enemies of Spain. The document so characterized appears to have been the protest of the American merchants at Valparaiso interested in the Chilian coal mines, made before the United States consul on the 31st January—not that of the consular corps.

Upon presenting this protest to the consul of the United States, the gentlemen signing it addressed him a letter bearing the same date, (see enclosure D,) giving their reasons for protesting, and requesting him to take measures for the protection of their interests.

On being informed by the consul of the reply of the admiral, the merchants alluded to addressed the former a further note, taking exception to the views of the commander-in-chief, and renewing their protest, (E.)

On the 14th instant the Spanish frigates Villa de Madrid and Blanca returned to Valparaiso, after an absence of twenty-four days, and a rumor shortly after circulated to the effect that they had been engaged in combat, and were both seriously injured. On the 17th the Blanca and Numancia left in the night, destination unknown.

On the 20th, official information reached the government of a severe engagement, on the 7th instant, between the Spaniards and the allies, at the island of Abtao, near Chiloe, and the rendezvous of the allied squadron.

The Spaniards had two heavy frigates, the Villa de Madrid and the Blanca; the Chili-Peruvian fleet consisted of the Amazon, (frigate,) America and Union, (corvettes,) and Covadonga, (gunboat,) (captured from the Spanish on the 26th November.) The engagement lasted two hours, when the Spanish forces retired, having received severe injuries. The number of casualties on board the latter vessel is unknown, but it-is supposed to be great, as many shell exploded on board, carrying away the wheel and almost destroying the cabin of the Villa de Madrid. Fragments of the cabin, clothing, bodies of the slain, and other evidences of the disastrous effects of the allied fire, floated ashore after the fight. The only loss on the side of the allies was two men killed on the corvette Union. Each of their vessels was struck three or four times, but the damage was trifling. The machinery of the frigate Amazon being under repair, she was compelled to fight at anchor.

A mutiny is supposed to have broken out on the Villa de Madrid during the fight, as great confusion was observed on board, followed by a volley of musketry.

About 1,500 shot and shell were fired during the engagement. These data are from the official reports.

A few days since Admiral Mendez notified the British naval authorities that in the event of a single torpedo-boat being launched, or any attempt made to destroy his vessels by means of torpedoes, he would instantly open fire upon the town. This threat was communicated through the British legation to the government of Chili, which replied that, if it found it expedient to make use of torpedoes it would do so, and warned Admiral Mendez that any act of barbarity on his part against non-combatants would be severely visited upon the Spanish prisoners in his hands.

This fact I have learned extra-officially, but have reason to believe it reliable.

I have the honor to remain your obedient servant,