No. 25.

Mr. Hammond to Messrs. Sinclair, Hamilton & Co.

Gentlemen: I am directed by Earl Russell to acquaint you that the matters arising out of the seizure of the British vessel Saxon, by the United States man-of-war Vanderbilt, to which you called his lordship’s attention in your several letters of the 4th and 29th of January, and 3d, 8th, 12th, and 17th instant, have been fully considered by his lordship in communication with the law officers of the crown, who also had before them the information on the same matters which had reached her Majesty’s government from other quarters.

The questions arising out of this transaction are three in number:

1. The seizure of the vessel.

2. The death of the first mate.

3. The coals taken by the Vanderbilt from Penguin island.

As regards the first question, I am to state to you that Angra Pequena not being a British possession, and the proclamation of Governor Grey, purporting to extend the jurisdiction of the British crown over Penguin island, not having been previously authorized or subsequently recognized by her Majesty, there exists no ground for seeking to withdraw the case of the Saxon from the jurisdiction of the prize courts in the United States.

As regards the second question, I am to state to you that Lord Lyons has been instructed to express to the government of the United States the opinion of her Majesty’s government that if the facts deposed to by second mate Aitcheson are true, the officer who killed the first mate has been guilty of wilful murder, and should be brought to trial without delay. And it appears from despatches received from Lord Lyons, that, without waiting for instructions, his lordship at once represented the case to the United States Secretary of State, and has received from him an assurance that a court of inquiry would be immediately held on the matter.

Lord Lyons has further been instructed to apply to the government of the United States for pecuniary compensation to the widow of the deceased.

As regards the third question, Lord Lyons has been instructed to state to the government of the United States that her Majesty’s government cannot doubt that full compensation will be immediately made to the owners for the value of the coal and for the loss which the owners may have sustained by reason of its seizure.

I am, &c.,

E. HAMMOND.