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No. 21.

Mr. Layard to the secretary to the admiralty.

FOREIGN OFFICE, August 9, 1862.

SIR: I have laid before Earl Russell your letter of the 4th instant, inclosing copies of a correspondence respecting the seizure Approval of seizure. of the steamer Oreto, by Captain Hickley, of Her Majesty's ship Greyhound; and I am to request that you will state to the lords commissioners of the admiralty, in reply, that Captain Hickley should, in Lord Russell's opinion, be secured from all costs and damages for this very proper act.

1 am, &c.,
(Signed)

A. H. LAYARD.

Opinion of law officers.

No. 22.

The law-officers of the Crown to Earl Russell.

TEMPLE, August, 1862. (Received August 12.) MY LORD: We are honored with your lordship's commands signified in Mr. Layard's letter of the 22d instant, stating that he was directed by your lordship to transmit to us the accompanying letter and its inclosures from the Colonial Office, respecting the seisure of the vessel Oreto at the Bahamas on the suspicion of having on board stores intended for the use of the Confederate States. [31] *Mr. Layard was also pleased to state that he inclosed a letter addressed to the Colonial Office, from which we should see that this vessel is to be detained until further instructions are sent to the governor of the Bahamas, and that he was directed by your lordship to request that we would take these papers into our consideration, and furnish your lordship with our opinion as to the form of prosecution to be adopted in this case, whether proceedings should be instituted under the provisions of the foreign-enlistment act or for a violation of the law of nations, and with any other observations which we might have to offer on the matter.

Mr. Layard was further pleased to state that he also inclosed for our information a previous correspondence respecting this vessel when she was being fitted out at Liverpool.

In obedience to your lordship's commands we have taken these papers into our consideration, and have the honor to report—

That it appears to us to be proper, in the first instance, to correct a misapprehension which is to be found in Mr. Layard's letter, and also in that of Sir F. Rogers of the 31st July. The seizure is therein described as the "seizure of the vessel Oreto at the Bahamas on the suspicion of having on board stores intended for the use of the Confederate States," whereas the seizure in reality took place, and can only be justified on the ground of a violation of the foreign-enlistment act by those in charge of the Oreto, by reason of her having been "equipped, furnished, fitted out, or armed for the purpose of being employed in the conduct of hos tilities against" the Government of United States. A merchant-vessel under the British flag, lying at the Bahamas, and having for her cargo "stores intended for the use of the Confederate States," even though such stores were military or naval stores, would not be guilty of a breach of the foregn-enlistment act, or of any other provision in the

municipal law of this country; though, by the laws of war, she would be liable to capture on the high seas by cruisers of the United States, as carrying contraband, or sailing with an express intent to violate an existing effective blockade.

As regards the manner in which this vessel ought now to be dealt with, we concur in the views expressed by Governor Bayley that the question of condemnation ought to be submitted to the local court of vice-admiralty. The act, section seven, directs that the prosecution of the vessel to condemnation is to be "in such courts in which ships or vessels may be prosecuted and condemned for any breach of the laws made for the protection of the revenues of customs or excise, or of the laws of trade and navigation." We think that the facts warranted the seizure, but we must add that it is very important that, on the trial, evidence should be adduced of what occurred at Liverpool, as regards the building and fitting out, and the alleged ownership and destination of the Oreto; and also that, if possible, the circumstances under which she took on board the shot, shells, and ammunition which she is said to have discharged into some other vessel when off Nassau, should be ascertained and proved. This, coupled with the subsequent career of the vessel, strengthens the conclusion that she was destined and "equipped" in her structure and otherwise for taking part in the war against the United States.

We have &c.,
(Signed)

WM. ATHERTON.

ROUNDELL PALMER.

No. 23.

Mr. Layard to Sir F. Rogers.

FOREIGN OFFICE, August 14, 1862. SIR: With reference to my letter of the 2d instant respecting the gun-boat Oreto, I am directed by Earl Russell to transmit to you, to be laid before the Duke of Newcastle, a copy of the opinion of the lawofficers of the Crown as to the proceedings to be adopted in this case.1 I am further to transmit to you for his grace's information a copy of a letter which has been sent to the treasury, suggesting the propriety of directions being given to the commissioners of customs to send to Nassau a custom-house officer from Liverpool, who can give evidence of the facts with regard to the Oreto which occurred there.

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SIR: With reference to the correspondence which took place between this department and the treasury in the early part of this year respecting the gun-boat Oreto, which was asserted to have been fitted out at Liverpool for the service of the so

No. 12.

Proposal to send a Liverpool to give evidence.

customs officer from

styled Confederate States of North America, I am directed by Earl Russell to state to you that it appears from reports which have reached Her Majesty's government that this vessel has been seized at Nassau by Commander Hickley, of her Majesty's ship Greyhound, on the ground that she was fitting there as an armed vessel for the service of the Confederate States, in contravention of the Queen's proclamation of the 13th May, 1861, and the provisions of the foreign enlistment act, and that the case is to be tried before the vice-admiralty court of that colony.

I am to transmit to you a copy of an opinion of Her Majesty's advo cate and solicitor general as to the proceedings to be adopted in this case; and I am to request that, in laying the same before the lords commissioners of Her Majesty's treasury, you will suggest to their lordships the propriety of giving directions to the commissioners of customs to send to Nassau a custom-house officer from Liverpool, who can give evidence of the facts with regard to the Oreto which occurred there. I am, &c., (Signed)

A. H. LAYARD.

No. 25.

Mr. Hamilton to Mr. Hammond.

TREASURY, August 20, 1862. (Received August 20.)

SIR: I am commanded by the lords commissioners of Her Majesty's treasury to acquaint you, for the information of Earl Russell, that they have caused Mr. Layard's letter of the 14th instant, with its inclosure on the subject of the proceedings to be adopted in the case of the gun-boat Oreto, which has been seized by Her Majesty's ship Greyhound at Nassau, Bahamas, for an alleged violation of the foreign enlistment act, to be communicated to the commissioners of customs, with a request to that board to take the necessary steps for sending to Nassau some gentleman connected with their department who is competent to afford the information required in this matter, putting him in communication with the under-secretary of state for foreign affairs previously to his departure for Nassau.

My lords desire me to suggest for the consideration of Earl Russell, whether it would not be advisable that the customs officer should have an interview with the law-oflicers of the Crown previously to starting for Nassau, in order that it may be ascertained whether the information he possesses is that which will be conducive to the object in view, I am, &c., (Signed)

GEO. A. HAMILTON.

No. 26.

Mr. Layard to the secretary to the treasury.

FOREIGN OFFICE, August 20, 1862.

SIR: I am directed by Earl Russell to request that you will state to the lords commissioners of Her Majesty's treasury that his lordship concurs in the suggestion, contained in your letter of to-day's date, that

1 N c. 22.

the officer of customs, who is to proceed to Nassau to give evidence respecting the Oreto, should have an interview with the law-officers of the Crown previously to his departure; and Lord Russell has accordingly requested the law-officers to name a day on which it may be con- . venient to them to receive him.

I am, &c.,
(Signed)

[33]

*No. 27.

A. H. LAYARD.

Mr. Layard to the law-officers of the Crown.

FOREIGN OFFICE, August 20, 1862. GENTLEMEN: With reference to your report of the 12th instant, respecting the case of the Oreto, I am directed by Earl Russell to acquaint you that it has been determined to send one of the customs officers from Liverpool to Nassau, to give evidence as to the equipment of this vessel in England; and I am to request that you will be good enough to appoint a day on which you can receive this gentleman, in order that it may be ascertained whether the information he possesses is that which will be conducive to the object in view.

I

am, &c., (Signed)

No. 28.

A. H. LAYARD.

Mr. Hamilton to Mr. Hammond.

TREASURY CHAMBERS,

August 26, 1862. (Received August 26.) SIR: With reference to Mr. Layard's letter of the 14th instant, on the subject of the gun-boat, Oreto, which was fitted out at Liverpool, and has since been captured by Her Majesty's ship Greyhound at Nassau, Bahamas, for an alleged violation of the foreign enlistment act, I am directed by the lords commissioners of Her Majesty's treasury to transmit herewith copy of a report of the commissioners of customs of the 25th instant, with its inclosures, for the information of Earl Russell, with reference to this question.

I am, &c.,
(Signed)

GEO. A. HAMILTON.

[Inc'osure 1 in No. 28.]

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

Report from ens tous as to proved shes at Liverpool.

CUSTOM-HOUSE, August 25, 1862. Your lordships having, by Mr. Hamilton's letter of 20th instant, transmitted to us, with reference to previous correspondence on the subject of the gun-boat Oreto, which was fitted ont at Liverpool, and has since been captured by Her Majesty's ship Greyhound at Nassau, for an alleged violation of the foreign enlistment act, copy of a letter from the Foreign Office, and of its inclosure, on the subject of the proceedings to be adopted in the matter, and requested that he would take the necessary steps for sending to Nassau some gentleman connected with this department competent to afford the information

required in the case, we beg to transmit, for the information of your lordships, copies of the report of our collector at Liverpool, with whom we have been in communication on the subject, together with copies of the statements of Mr. Morgan, the surveyor, and Mr. Lloyd, the examining officer, who visited and kept watch on the . Oreto from the time that suspicions were first entertained of her being fitted for the so-called Confederate States until she sailed from the port, together with copy of the statement on oath of Mr. Parry, the pilot who had charge of the ship from the time she left the Toxteth dock until she left the Mersey; and as, from these papers, the pilot would appear to be the most fitting person to give evidence in the case, we beg to be favored with your lordship's further instructions as to the person who should be directed to proceed to Nassau.

(Signed)

F. GOULBURN.
R. W. GREY.

[34]

*[Inclosure 2 in No. 28.]

Mr. Edwards to the commissioners of customs.

LIVERPOOL, August 23, 1862. HONORABLE SIRS: It will be seen from the annexed statement of Mr. Morgan, surveyor, that he will be able to state the fact of the vessel being built by Messrs. Miller & Sons, and of the absence of all warlike stores on board when she left the docks: while the evidence of Mr. Lloyd, the examining officer, fully supports the statement of the pilot, Mr. Parry, which, from its importance, I have taken on oath, as it appears to me he would be the most fitting person to give evidence of the absence of all warlike stores on board the vessel when she left this country.

I am satisfied that she took no such stores on board, and indeed it is stated, thongh I know not on what authority, that her armament was conveyed in another vessel to Nassau. The board will therefore perceive that the evidence to be obtained from this port will all go to prove that she left Liverpool altogether unarmed, and that while here she had in no way violated the law.

(Signed)

S. PRICE EDWARDS.

[Inclosure 3 in No. 28.]

Statement of Mr. Edward Morgan.

I am one of the surveyors of enstoms at this port; pursuant to instructions I received from the collector on the 21st February in the present year and at subsequent dates, I visited the steamer Oreto at various times, when she was being fitted out in the dock, close to the yard of Messrs. Miller & Sons, the builders of the vessel. I continued this inspection from time to time until she left the dock, and I am certain that when she left the river she had no warlike stores of any kind whatever on board.

After she went into the river she was constantly watched by the boarding officers, who were directed to report to me whenever any goods were taken on board, but, in reply to my frequent inquiries, they stated nothing was put in the ship but coals. (Signed) EDWARD MORGAN, Surveyor.

[Inclosure 4 in No. 28.]

Statement of Mr. Henry Lloyd.

In consequence of instructions received from Mr. Morgan, surveyor, I, in conjunction with the other three surveyors of the river, kept watch on the proceedings of the vessel Oreto from the time she left the Toxteth dock, on the 4th March last, till the day she sailed, the 22d of the same month. On one occasion I was alongside of her, and spoke to Mr. Parry, the pilot, and the chief mate. Neither I nor any of the other river surveyors saw at any time any arms or warlike ammunition of any kind taken on board, and we are perfectly satisfied that none such was taken on board during her stay in the river.

(Signed)

[Inclosure 5 in No. 28.]

H. LLOYD, Examining Officer.

Statement on oath of Mr. William Parry.

I was the pilot in charge of the ship Oreto when she left the Toxteth dock on the 4th March, 1862. I continued on board to the day of her sailing, which was the 22d of the same month, and never left her save on Sunday, when all work was suspended. 1

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