[Inclosure Numbers 3.]

BOUTTE'S PLANTATION,

Near New Iberia, December 12, 1863.

Colonel E. L. MOLINEUX, U. S. Army,

Commissioner for Exchange:

COLONEL: Having been clothed with authority by Major-General Taylor, commanding C. S. forces in Western Louisiana, to effect with you arrangements for the exchange of all prisoners now in hands of the U. S. and C. S. authorities, respectively, captured in this military district, and where there might be an excess on either side to agree upon terms whereby the excess might be paroled and delivered to their friends; and having been informed by you that you have no authority to enter into any agreement embracing other prisoners than those captured by the forces of Major-General Franklin, and now in his possession, I submit in behalf of Major General R. Taylor, C. S. Army (commanding as aforesaid), the following propositions for the consideration and action of Major General W. B. Franklin, U. S. Army (commanding as aforesaid), and such ether authority whose approval may be necessary to enable proportions to be agreed to in behalf of the U. S. authorities:

Major-General Taylor will parole and deliver at the outpost of their friends which may be nearest to that of the forces of Major-General Taylor the excess of prisoners now in his hands, who have been captured from the U. S. troops in Western Louisiana commanded by Major-General Franklin, the paroles of the prisoners thus delivered to be recognized by the proper U. S. authorities, or in the event of their not being thus recognized such prisoners to be returned to Major-General Taylor, commanding C. S. forces in Western Louisiana.

The prisoners belonging to the U. S. forces commanded by Major-General Taylor who have been captured from time to time in Western Louisiana at Fort Butler or elsewhere, and now in the hands of the U. S. authorities, to be delivered to Major-General Taylor as his outpost which may be nearest to that of the U. S. forces in Western Louisiana.

Major-General Taylor will also exchange for prisoners captured from time to time from his command all of other prisoners in his hands who have been from time to time captured from the U. S. forces in Western Louisiana upon the terms this day agreed upon their for the exchange of prisoners between Colonel E. L. Molineux and myself, commissioners, and if the excess shall be paroled and delivered on the terms and with the understanding hereinbefore mentioned.

The approval of the commanding officer of the department to be given to the agreement if entered into by Major-General Franklin, or such other officer as may be authorized to make the arrangement and agreements; and it shall be distinctly avowed and understood that such prisoners received by either party under the terms of this cartel to be entered into shall not be released from their parole until regularly exchanged, and should the Government of either party refuse to recognize such paroles then the prisoners who may have been thus delivered shall be returned to their captors.

This agreement is not to be effected by the action or by any cartel agreed upon by the two Governments, whether general or special, but if either Government should direct the discontinuance of exchange or delivery of prisoners as herein proposed, due notice thereof shall be given by the parties respectively, as the orders discontinuing the cartel herein proposed may proceed form one or the other Government. Any excess of prisoners released on parole by either party under the