MR DEAR SIR:— Your favor of the 26th inst. did not reach Lancaster until yesterday afternoon. I had thought it strange that you did not answer my letter of the 14th instant; but this accidental omission has been kindly and satisfactorily explained by your favor of the 26th. It is, perhaps, scarcely necessary for me to repeat my unchanged purpose to accept the English mission and go to London without delay, if it be still your determination to intrust me with the settlement of the reciprocity, the fishery and the Central American questions. I confess, however, that I do not perceive how it is now possible, employing your own language, “to suspend negotiations (in Washington) at this moment” on the reciprocity and fishery questions. I agree with you that it was quite natural that the negotiations “should be taken up at once, where Mr. Crampton and Mr. Everett left them.” This could only have been prevented by an official communication to Mr. Crampton, upon offering to renew the negotiation, informing him of the fact that you had appointed me minister to London for the very purpose of settling these, as well as the Central American, questions. In regard to our Central American difficulties, I still entertain, after more mature reflection, the most decided opinions—I might even say convictions. Whilst these difficulties are all embarrassing, one of them is attended with extreme danger. I refer to the establishment by Great Britain of the Colony of the Bay of Islands. This wrong has been perpetrated, if I understand the question, in direct violation of the Clayton and Bulwer treaty. Our national honor imperatively requires the removal of this colony. Its withdrawal ought to be a sine qua non in any negotiation on any subject with the British government. With what face could we ever hereafter present this question of violated faith and outraged national honor to the world against the British government, if whilst, flagrante delicto, the wrong unexplained and unredressed, we should incorporate the British North American provinces, by treaty, into the American Union, so far as reciprocal free trade is concerned? How could we, then, under any circumstances, make this a casus belli? If a man has wronged and insulted me, and I take him into my family and bestow upon him the privileges of one of its members, without previous redress or explanation, it is then too late to turn round and make the original offence a serious cause for personal hostilities. It is the first step which costs; and this ought to be taken with a clear view of all the consequences. If I were placed in your exalted and well merited station, my motto should be, “all the questions or none.” This is the best, nay, perhaps the only mode of satisfactorily adjusting our difficulties with that haughty, overreaching and imperious government.