27 OCTOBER 1838, Page 2

Sir GEORGE VILLIERS arrived in Madrid on the 15th; and

his presence was needed to accommodate a rather serious quarrel between the British Legation and the Spanish Ministry, which had occurred while lie was in, England. Some weeks ago, Mr. SOUTHERN, Sir GEORGE'S Secretary, made an excursion to Barce- lona, it is said for a literary purpose. Barcelona is always in a troubled state, in consequence of the intrigues of the Carlists and the Ultras. No sooner had Mr. SOUTHERN left Madrid, than letters were sent to Barcelona accusing him of a design to en- courage the malecontents of both factions ; and warning the Baron DE MEER, Governor of Barcelona, that he was plotting to over- throw the Queen's Government. These absurd lies were pub. lished in the official paper of Barcelona, and thence copied into the Espana, of Madrid, the principal organ of the Duke DE FRIAS, the Spanish Prime Minister. Lord WILLIAM HERVEY,. who represented the Queen of England in the absence of Sir GEORGE VILLIERS, demanded a retractation and an apology. This was promised by the Duke DE FRIAS ; who, however, would not show the article to Lord WILLIAM HERVEY before its publication; and it turned out that the so-called apology, which appeared in the official Gazette of Madrid, only aggravated the offence. Lord WILLIAM HERVIeY absented himself from the Queen's assemblies, and all communication between the British Embassy and the Spanish Government was suspended.

There is no news of interest from the seat of war.