No. 48
               
            
            
               21 August 1861
               
            
            
               I have the honour to acknowledge the receipt of Your Grace's
               Despatch marked "Confidential", of the 
11th of May last, on
               the subject of the impending
hostilities
 hostilities, which have since
               commenced, between the United and Confederate States of North
               America, and informing me that it was the intention of Her
               Majesty's Government to apprise me, from time to time of their
               views on the questions which are likely to arise out of this
               state of conflict, and in respect to which I may be called upon to act.
               
               I observe by the same
Despatch
 Despatch that Her Majesty's Government
               are disposed to admit the claim of the Southern States to be
               recognized as a Belligerent, and as such, invested with all
               the rights and prerogatives of a Belligerent.
               
               I presume by those terms is meant that we are bound to
               respect their Blockades, and to abstain from any act which may
               violate the conditions of the strictest neutrality.
               
            I 
            
            
               I also observe that it is the intention of Her Majesty's
               Government to dispatch adequate reinforcements to the Squadrons
               on the North American and West Indian Stations for the protection
               of British Shipping; and that it is Her Majesty's pleasure that
               nothing should be done by the Naval Forces, indicative of
               partiality or preference of either party in the conflict.
               
            
            
               I will, according
to
 to Your Grace's instructions, consider
               those directions as indicating the course which Her Majesty's
               Government desire me, in any emergency, to pursue.
               
               I have the honor to be
               My Lord Duke,
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  
                     Put by.