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*The Herald sailed for Charleston on Saturday last; Captain Coxeter went out in her. The Bermuda will sail this week.

I have, &c.,
(Signed)

H. DUDLEY, United States Consul.

P. S.-The gun-carriages for the Oreto, I have just learned, were taken on board on Friday night last, in a rough state, and taken down in the hold. Frazer, Trenholm & Co. have made advances to Fawcett, Preston & Co., and Miller, the builder.

H. D.

Immediate inquiries to be made.

No. 2.

Mr. Hammond to the secretary to the treasury.

[Immediate.]

FOREIGN OFFICE, February 19, 1862.

SIR: I am directed by Earl Russell to transmit to you a copy of a letter from Mr. Adams, inclosing an extract of a letter from the United States consul at Liverpool, in which he calls attention to a steam-vessel called the Oreto, reported to be fitting out at Liverpool as a southern privateer; and I am to request that you will move the lords commissioners of Her Majesty's treasury to cause immediate inquiries to be made respecting this vessel, and to take such steps in the matter as may be right and proper.

I am, &c.,
(Signed)

E. HAMMOND.

No. 3.

Earl Russell to Mr. Adams.

FOREIGN OFFICE, February 19, 1862. SIR: I have the honor to acknowledge the receipt of your letter of yesterday's date calling the attention of Her Majesty's government to a steam-vessel now fitting out at Liverpool, which you state it is believed is about to be dispatched with a view of making war against the people of the United States; and I have to acquaint you that I have lost no time in communicating with the proper department of Her Majesty's government on this subject.

I am, &c.,
(Signed)

RUSSELL.

No. 4.

Mr. Hamilton to Mr. Hammond.

TREASURY CHAMBERS, February 24, 1862. (Received May 24.)

SIR: I am directed by the lords commissioners of Her Majesty's treasury to transmit herewith, for the information of Earl Russell with reference to your letter of the 19th instantcopy of a report of the commissioners of customs, dated 22d instant,

Report from customs.

1 No. 1.

relative to the steamer Oreto, stated, in a communication from the United States consul, to be fitting up at Liverpool as a southern privateer.

I am, &c.,
(Signed)

GEO. A. HAMILTON.

[Inclosure in No. 4.1

The commissioners of customs to the lords commissioners of the treasury.

CUSTOM-HOUSE, February 22, 1862.

Your lordships having referred to us the annexed letter from Mr. Hammond, transmitting, by desire of Earl Russell, copy of a letter from Mr. Adams, inclosing an [3] *extract of a communication from the United States consul at Liverpool, in which he calls attention to a steam-vessel called the Oreto reported to be fitting out at Liverpool as a southern privateer, and requesting that immediate inquiries may be made respecting this vessel,

We report

That, on the receipt of your lordships' reference, we forthwith instructed our collector at Liverpool to make inquiries in regard to the vessel Oreto, and it appears from his report that she has been built by Messrs. Miller & Sons for Messrs. Fawcett, Preston & Co., engineers, of Liverpool, and is intended for the use of Messrs. Thomas Brothers, of Palermo, one of that firm having frequently visited the vessel during the process of building.

The Oreto is pierced for four guns; but she has, as yet, taken nothing on board but coals and ballast. She is not, at present, fitted for the reception of guns, nor are the builders aware that she is to be supplied with guns while she remains in this country. The expense of her construction has been paid, and she has been handed over to Messrs. Fawcett & Preston. Messrs. Miller & Sons state their belief that her destination is Palermo, as they have been requested to recommend a master to take her to that port, and our collector at Liverpool states that he has for the Italian gov every reason to believe that the vessel is for the Italian government.

Vessel said to be

ernment.

We beg further to add that special directions have been given to the officers at Liverpool to watch the movements of the vessel, and that we will not fail to report forthwith any circumstance which may occur worthy of your lordships' cognizance. (Signed)

THO. F. FREMANTLE.
GRENVILLE C. L. BERKELEY.

No. 5.

Earl Russell to Mr. Adams.

FOREIGN OFFICE, February 26, 1862.

Copy of customs

SIR: With reference to my letter of the 19th instant, on the subject of the steamer Oreto, which was believed, from reports you had received, to be fitting out at Liverpool with a view to acting report forwarded to hostilely against the people of the United States, I have the

Mr. Adams.

honor to transmit to you herewith a copy of a letter from the commissioners of customs to the lords commissioners of Her Majesty's treasury,' reporting the result of the investigations which they had caused to be instituted with regard to the vessel in question.

I am, &c.,
(Signed)

RUSSELL.

Inclosure in No. 4.

prepared under similar circumstances to concede, and entertaining full confidence in the disposition of Her Majesty's ministers on their part to act to the utmost of their ability in the same spirit, I pray, &c., (Signed)

CHARLES FRANCIS ADAMS.

[Inclosure in No. 8.]

Mr. Dudley to Mr. Adams.

UNITED STATES CONSULATE,

Liverpool, March 22, 1862.

SIR: The Oreto is still in the river. A flat-boat has taken part of her armament to her. A part of the crew of the steamer Annie Childs, which came to this port loaded with cotton, have just left my office. They tell me that Captain Bullock is to command the Oreto, and that four other officers for this vessel came over with them in the Childs. The names of three are Young, Low, and Maffet or Moffit, the fourth was called Eddy; the two first are lieutenants, and the two last-named midshipmen. They further state that these officers during the voyage wore naval uniforms; that they came on the Childs at a place called Smithville, some twenty miles down the river from Wilmington; that it was talked about and understood by all on board that their object in coming was to take command of this vessel, which was being built in England for the southern confederacy. They further state that it was understood in Wilmington, before they left, that several war-vessels were being built in England for the South. As they were coming up the river in the Childs, as they passed the Oreto, she dipped her flag to the Childs. I have had this last from several sources, and the additional fact that the same evening, after the arrival of this steamer, a dinner was given in the Oreto to the officers who came over in the Childs. I understand she will make direct for Madeira and Nassau.

I have, &c.,
(Signed)

THOMAS H. DUDLEY.

The vessel to be vigilantly and detained if any

No. 9.

Mr. Hammond to the secretary to the treasury.

FOREIGN OFFICE, March 26, 1862. SIR: With reference to your letter of the 24th ultimo, I am directed by Earl Russell to transmit to you a copy of a further letter watched, addressed by the United States consul at Liverpool to Mr. armament prohibited Adams, United States minister for foreign affairs, in which is dis it is again affirmed that the Oreto is being fitted out as a vessel of war for the southern confederacy, and various statements are reported in support of that assertion.

by the foreign en-
listment act
covered.

I am to request that you will lay the letter of the United States consul before the lords commissioners of Her Majesty's treasury, and move their lordships to instruct the commissioners of customs to give directions that the Oreto may be vigilantly watched, and that if any armament prohibited by the foreign enlistment act is discovered, the vessel may be at once detained.

It would appear certain that the Oreto is not intended for service either in Italy or Sicily.

I am, &c.,
(Signed)

E. HAMMOND.

Inclosure in No. 8.

[6]

*No. 10.

Earl Russell to Mr. Adams.

FOREIGN OFFICE, March 27, 1862.

Reply to

Mr.

SIR: Upon receiving your letter of the 25th instant I immediately directed that the treasury and customs department should be requested to take such steps as may be necessary to as Adams's representa certain whether the Oreto is equipped for the purpose of making war on the United States, and if that fact can be proved to detain the vessel.

tions.

The charge that nearly all the assistance now obtained from abroad by the persons still in arms against the Government of the United States, and which enables them to continue the struggle, comes from Great Britain and its dependencies, is somewhat vague. I believe the greater part of the arms and ammunition sent from this country to America during the struggle has gone to the United States.

I agree with you in the statement that the duty of nations in amity with each other is not to suffer their good faith to be violated by ill-disposed persons within their borders, merely from the inefficacy of their prohibitory policy. But it is, at the same time, a duty not to punish persons on suspicion without any proof of their evil intent. It is not

the custom of this country to deprive any person of liberty or property without evidence of some offense. If such evidence can be obtained the laws are sufficient to prevent the accomplishment of their evil designs against friendly nations.

You have not yourself hitherto furnished me with evidence that any vessel has received a hostile or warlike equipment in British waters, which has been afterward used against the United States. The care that was taken to prevent the warlike equipment of the Nashville in British waters must be familiar to your recollection.

With regard to co-operation with the policy of the United States in respect to the blockade, I must remind you that Great Britain has abstained, as far as possible, from complaints of the irregularity of the blockade which has been instituted. Her Majesty's government has been mindful of the suddenness of the danger with which the United States were threatened; of the inadequacy of the naval force then at the disposal of the Government, and of the great difficulty of blockading a coast of 3,000 miles.

But beyond forbearance, and a liberal interpretation of the law of nations in favor of the United States, Her Majesty's government cannot go. If by co-operation with the policy of the United States is meant, either taking part is the civil war still raging, or imposing restraints on the Queen's subjects, unknown to international law, I cannot undertake that Her Majesty's government will adopt either of those courses. It would be an unheard of measure to prohibit merchants from sending ships to sea destined to the southern ports. Should such ships attempt to violate the blockade, capture and condemnation are the proper penalty of such attempts; no authority can be found for any

other.

Enlistment of Brit18h subjects in the United States,

But while these attempts are made on the one side, the United States Government have willingly received in the ranks of their Army British subjects who violate the Queen's proclamation in order to serve against the confederates. Nay, the law of the United States, by which parents can prevent the enlistment of their sons, being minors, has been set aside to the prejudice of British subjects,

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Lord Russell presents his compliments to Mr. Adams, and, with ref erence to his letter of the 27th ultimo, has the honor to report forwarded to transmit to him the accompanying copies of a report and its inclosure, which have been received from the board of

Copy of customs Mr. Adams.

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Mr. Hamilton to Mr. Hammond.

TREASURY CHAMBERS, May 9, 1862. (Received May 10.)

SIR: I am directed by the lords commissioners of Her Majesty's treas ury to transmit herewith, for the information of Earl Russell, with reference to your letter of the 12th ultimo, the inclosed copy of a report of the commissioners of customs, dated 1st instant, further relative to the fitting out of the Oreto at Liverpool.

I am, &c.,
(Signed)

GEO. A. HAMILTON.

1 No. 13.

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