Mr. Adams to Mr. Seward.

No. 728.]

Sir: After a long interval Lord Russell has resumed the correspondence, copies of the first portion of which I transmitted to you with my despatch No. 663, of the 21st of April last.

I now transmit copies of the two last notes which have passed on the same subject.

I have the honor to be, sir, your most obedient servant,

CHARLES FRANCIS ADAMS.

Hon. William H. Seward, Secretary of State, Washington, D. C.

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[Enclosures.]

1. Lord Russell to Mr. Adams, 18th June, 1864.

2. Mr. Adams to Lord Russell, 20th June, 1864.

Earl Russell to Mr. Adams.

Sir: Her Majesty’s government have not failed to consider with the attention they deserved the observations contained in your note of the 16th of April, in which you enclosed copies of certain papers in confirmation of your position that British subjects captured in blockade runners may properly be treated by the United States as enemies, but I feel constrained to observe that in the opinion of her Majesty’s government there is really nothing in the acts of the Congress of the so-styled Confederate States, or in the prospectus of the “Atlantic Trading Company, Limited,” which either calls for or tends in any degree to explain or justify the orders issued by the United States government on this subject.

Her Majesty’s government must continue to insist that it is not competent to the United States government to treat generally as enemies the subjects of her Majesty captured in the act of trading with the other belligerent, whatever may be the regulations of the confederate government under which that trade is carried on. If the circumstances of any peculiar case should prove that any of her Majesty’s subjects have been taken while actively employed in the military service of the belligerent states, no just cause of complaint would be given if such subjects were treated as enemies. But the subjects of her Majesty are entitled by international law to carry on the operations of commerce equally with both belligerents, subject to the penalty of the capture of their vessel and to no other penalty, if they attempt to violate a properly constituted blockade -or to carry contraband of war to the enemy. This is a proposition which Great Britain in common with all neutral states is bound to maintain and uphold, and her Majesty’s government are decidedly of opinion that the circumstances under which the trade between the Confederate States and this country is now carried on are in no respect so exceptional as to entitle the United States government to depart in their manner of dealing with it from the ordinary course of procedure.

Her Majesty’s minister at Washington will therefore be instructed to continue to protest against the course adopted by the United States government in this matter, and to press for the revocation of the orders issued by the United States government.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

RUSSELL.

Charles Francis Adams, Esq., &c., &c., &c.

Mr. Adams to Earl Russell.

My Lord: I have had the honor to receive your note of the 18th instant, in reply to that which I addressed to you on the 16th of April last, on the position in which British subjects who consent to navigate vessels destined to any port occupied by the insurgents in the United States are placed by the regulations established by those who assume to aot by authority among them, without assenting to which they cannot be received.

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Your lordship is pleased to observe that whatever may be the nature of those regulations, the subjects of her Majesty captured in the act of trading should not be treated as enemies. I regret to be compelled to adhere to the position heretofore assumed, that regulations which require as a preliminary condition to an act of trade that the vessels to the extent of one-half of their carrying capacity should be placed under the control of the so-called government, for conveying the public property used for the, continued prosecution of the war in which it is engaged to and fro, necessarily take to that extent the character of transports engaged in the service of the enemy, and must be considered accordingly. All British subjects, therefore, who, as a preliminary to trade, voluntarily enter into a like compact, cannot be considered in any other light than as changing their neutral character of traders, and becoming for the occasion allies and servants to the insurgents in carrying on the war. As such they appear to forfeit their immunity in case of capture. It being apparent from this fixed opposition of sentiment that little can be hoped from further pressing my views upon your lordships here, I shall content myself with referring your latest note as well as the subject involved to my government, by whom I doubt not it will be again respectfully considered with an earnest desire to decide on it with the most scrupulous regard to every international obligation.

I pray your lordship to accept the assurances of the highest consideration with which I have the honor to be, my lord, your most obedient servant,

CHARLES FRANCIS ADAMS.

Right Hon. Earl Russell, &c., &c., &c.