I have the honor to acknowledge the receipt of Your Graces
               Confidential Despatch of the 
16 November last, informing me that
               the Government of the United States had declined to accept the
               compromise of the question of Title to the 
Island  of of San Juan
of San Juan,
               proposed by 
Lord John Russell's Despatch of the 
24 of August, and,
               in forwarding me a copy of the instructions issued to 
General Scott
               by the Government of the United States, directing me to place upon
               the Island a force Equivalent to that retained by the United States.
               
               2. Immediately on receipt thereof I communicated with 
Rear Admiral Baynes, the Naval Commander in Chief, and on the following day he
               called upon me. I laid before him Your Graces Despatch, and after
               consultation, we mutually agreed, that as all was quiet at 
San Juan,
               and as the next Mail (which is expected in the course of a few days),
               would bring intimation of 
General Scott's arrival at 
Washington
Washington, and
               probably some Communication from 
Lord Lyons which might affect the
               proceeding, it would be advisable to defer carrying out the
               instructions of Her Majesty's Government, until after that Mail had
               been received; which arrangement I trust may meet with Your Grace's
               approval.