No. 2.

Mr. Hamilton to Mr. Hammond.—(Received February 29.)

Sir: With reference to your letter of the 24th ultimo, I am commanded by the lords commissioners of her Majesty’s treasury to transmit to you herewith a copy of a report, dated 27th ultimo, from the commissioners of customs, and of a letter from Mr. Price Edwards, collector of customs at Liverpool, dated 26th ultimo, relating to a statement alleged to have been made by him in regard to [Page 315] the shipment of guns on board the ship Gibraltar, and I am to request that you will state to Earl Russell, with reference to Mr. Edwards’s letter, that it appears to this board to correct the wrong interpretation put upon Mr. Edwards’s statement by Mr. Klingender.

I am to observe that at the time of the conversation a clearance had been refused to the Gibraltar, because it was supposed that guns were about to be placed in her, not as merchandise, but as part of her armament, and intended to be used by her in hostilities; the refusal of the clearance being, however, only maintained pending further explanation.

In this state of things Mr. Klingender inquired from Mr. Edwards whether there would be any objection to the shipment of such guns to New York.

The meaning attached to this question by Mr. Edwards appears to have been that it related to guns shipped as merchandise, and not as part of an armament of a vessel of war, and he accordingly replied that there would be no objection, adding, that such shipments to New York were of common occurrence.

As soon as her Majesty’s government was satisfied that the guns in question were not and could not be intended to form part of the armament of the Gibraltar, the clearance was immediately granted.

I am, &c.,

GEO. A. HAMILTON.
[Enclosure 1 in No. 2]

Mr. Gardner to Mr. Hamilton.

Sir: With reference to your letter of the 25th instant, I am desired to transmit to you herewith, for the information of the lords commissioners of her Majesty’s treasury, copy of a report, with its enclosure, which the board have received from their collector at Liverpool with respect to a statement alleged to have been made by him concerning the shipment of guns in the Gibraltar, and referred to in page 8 of the Parliamentary Return, date 20th July, 1863, No. 461.

I am, &c.,

F. G. GARDNER.
[Enclosure 2 in No. 2]

Mr. Edwards to the commissioners of customs.

Honorable Sirs: I have this morning received your order of the 25th instant, enclosing the copy of a letter from the Foreign Office, dated the 24th instant, respecting a statement alleged to have been made by me concerning the shipment of guns on the Gibraltar, and directing me to report whether the statement correctly represents what I said to Messrs. Klingender & Co.; and if not, what I really did say.

I beg to report that, pursuant to your order of the 15th June last, I called upon Messrs. Klingender & Co. for an explanation as to the necessity of and reason for placing the guns and gun-carriages on board the ship in question, and placed a stop in the clearing of the ship until further orders. In consequence of this Mr. Klingender and his solicitor called upon me, and in the course of conversation inquired whether there would be any objection to the shipment of such guns to New York. Before replying to the question I sent for the principal office searcher, whose report I annex, and ascertained from him that shipment [Page 316] of all kinds of arms and guns to New York was continually going on, and I then answered there would be no objection to the exportation of such guns to New York.

I may add that shipments of this kind to New York have been continually going on since the commencement of the war between the federal and confederate States, and that on the 16th last February I transmitted to Sir Thomas Fremantle, for the information of the War Office, an account of the shipment of arms, &c., to America, showing the quantity, description, and value. No opinion was given by me as to the facility of shipping arms, either for the federal or confederate government, as I had nothing to do with reference to the ultimate destination of the goods, but merely to reply to an inquiry whether they could be shipped to New York; nevertheless the inference was a very natural one, that if arms were forwarded to New York they would be for the use of the federal government, and hence possibly Mr. Klingender, whom I have not seen since, and of whom I had no knowledge previously, may have formed his conclusions. I herewith return the copy of the letter from the Foreign Office.

S. PRICE EDWARDS.
[Enclosure 3 in No. 2.]

Mr. Goold to Mr. Edwards.

Sir: I beg to state that I remember being asked by you, in the presence of Mr. Hall, attorney, who had called to make inquiries respecting the shipment of two guns on board the vessel Gibraltar, whether arms were shipped to New York, to which I replied that they were.

An account of the number and value of rifles exported to ports in the United States of America during the year 1862, and openly cleared as arms, was forwarded to the board on the 16th February, 1863.

I beg to add that arms and other munitions of war are still being shipped to the United States.

H. GOOLD, Assistant Surveyor.

[The other enclosures, with Mr. Adams’s No. 616, being correspondence respecting the Alabama and the iron-clad vessels at Birkenhead, the material portions thereof having been published in the United States diplomatic correspondence for 1863, are omitted.]