No. 21.

Earl Russell to Lord Lyons.

My Lord: I stated to you in my despatch of the 30th January that I was about to consult the law officers on the further papers which, since the date of my despatch of the 21st of January, had been communicated to this office in the case of the capture of the Saxon by the United States steamer-of-war Vanderbilt.

I now send to your lordship copies of such of those papers as it is necessary that you should have in your possession.

The conclusions to which, after consulting the law officers of the crown, I have come on the several points in this case are as follows:

1. As regards the capture of the Saxon, as Angra Pequena is not a British possession, but would seem to be a deserted spot, and, as the proclamation of Governor Grey, of the 12th of August, 1861, purporting to extend the jurisdiction of the crown over Penguin island, was not previously authorized, and has not since been confirmed by her Majesty, no violation of neutral or British territory appears to have taken place, and the jurisdiction of the United States prize court could not be contested on the assumption of such violation having been committed.

It seems, moreover, to have been admitted, by one of the owners of the Saxon to Governor Wodehouse, that the vessel had been actually engaged in taking on board part of a prize cargo landed from the Tuscaloosa, for the purpose of conveying it to market as the property of, and on account of, Captain Semmes, of the Alabama.

Under these circumstances her Majesty’s government see no grounds for seeking to withdraw the case from the jurisdiction of the prize court.

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2. As regards the murder of the mate of the Saxon, I have already instructed you, by my despatch of the 30th January, to express to Mr. Seward the opinion of her Majesty’s government that the officer of the Vanderbilt, by whom that murder was committed, should be brought to trial without delay; and you will further state to the American minister that pecuniary compensation to the widow ought to form part of the redress which the government of the United States should make for this atrocious act of their officer.

3. As regards the coal taken by the Vanderbilt from Penguin island, her Majesty’s government cannot doubt that the government of the United States will immediately make to the owners thereof full compensation for the value of the coal, and for the loss they may have sustained in consequence of the violent act of the commander of the Vanderbilt in appropriating it for the use of that vessel; but you will not fail to call the serious attention of Mr. Seward to the proceeding of the United States officer, for which no justification or excuse can be discovered in any reports which have reached her Majesty’s government in regard to those matters which form the subject of this despatch.

I am, &c.,

RUSSELL,