quite satisfied at his having the Foreign Office. With regard to the chances of a pacific settlement, the assurances from St. Petersburg are all very favourable, but the acts of the Russian generals in the Principalities are quite inconsistent with them, and between these conflicting manifestations Clarendon is in no small doubt and apprehension as to the result. NEGOTIATIONS WITH RUSSIA AND TURKEY. _London, August 8th._--Ever since last Monday, when Clarendon made a speech in the House of Lords on which a bad interpretation was put in reference to the question of peace or war, there has been a sort of panic, and the public mind, which refused at first to admit the possibility of war, suddenly rushed to the opposite conclusion, and everybody became persuaded that war was inevitable. The consequence was a great fall in the funds, and the depreciation of every sort of security. So matters remained till the end of the week. On Saturday afternoon I met Walewski, who told me he had that day received a letter from Castelbajac (the French Ambassador at St. Petersburg), informing him that the Emperor had signified his willingness to accept the proposal which was then expected from Vienna, and last night fresh news came that the proposal had arrived, and he had said he would take it, if the Turks would send an ambassador with it, exactly as it had been submitted to him. This I heard late last night, and Granville considered it conclusive of an immediate settlement. But this morning I went to Clarendon and found him not so sure, and not regarding the pacific solution as so indubitable; there still remain some important matters of detail to be settled, though certainly the affair wears a much more favourable aspect, and there is every reason to hope it will all end well. But while this proposal was concocted at Vienna, the Cabinet here (last Saturday week) made some small verbal alterations in it, so that ultimately it will not be presented for the Emperor's formal acceptance word for word the same, and if he wants a pretext to back out of his present engagement, he can therein find one, as he only agreed to take it if it was word for word the same. Then it has not yet been submitted to the Turks, and it is by no means sure they may not make difficulties, or that Stratford Canning may not raise obstacles instead of using all his influence to procure their agreement, so that Clarendon does not consider that we are _out of the wood_, though he expects on the whole that it will end well. If it does it will be the triumph of diplomacy, and a signal proof of the wisdom of moderation and patience. Granville says it will be principally owing to Aberdeen, who has been very staunch and bold in defying public clamour, abuse, and taunts, and in resisting the wishes and advice of Palmerston, who would have adopted a more stringent and uncompromising course.