§ MR. LIDDELL
said, he rose to ask the Under Secretary of State for Foreign Affairs, Whether any, and, if so, what steps have been taken by Her Majesty's Government to obtain redress at the hands of the Government of Paraguay for the owners of the steamer Little Polly, which was run down, on the 11th of July, 1858, in the river La Plata, by a Paraguayan War Steamer; and whether Her Majesty's Government are prepared, by a show of force or otherwise, to obtain from the Government of Paraguay redress and compensation for this and other losses sustained by British subjects in that country.
§ MR. LAYARD
replied, that owing to various circumstances, the diplomatic relations between the Government of Paraguay and the Government of this country were suspended, and, consequently, no direct communication on the subject of this vessel had taken place; but late last year Her Majesty's Government were in formed that the Government of Paraguay were disposed to submit the matter to arbitration. In January last, Her Majesty's Government intimated that in that case they would not be disinclined to concur in a reference to arbitration; but they had as yet heard nothing in reply to that intimation. As it was a "running-down case," something, no doubt, was to be said on both sides; and Her Majesty's Government did not, consequently, intend to exact reparation by force, before a full and careful inquiry had been made.