The 
San Juan affair has been an unfortunate one, and
                     the protracted joint occupation of the Island must always
                     be attended with hazard.  On the other hand there has hardly
                     been a moment for some years when the question could be
                     mooted with any prospect of a conciliatory spirit on the
                     part of the Americans.  If the expected Commission on the
                     claims arising out of the Civil War proves successful, it
                     may possibly evoke a better spirit and a more favorable
                     chance than at present of dealing satisfactorily with the
                     
San Juan question.
                     
                     With reference to the
last
 last letter from the Foreign Office
                     dated the 
6th July 1864 send them the present letter for
                     consideration?—and (perhaps) add that the protracted joint
                     occupation of 
San Juan must always be attended with
                     inconvenience and risk of misunderstanding, but that 
Lord
                        Stanley will have the best means of judging whether the
                     present or a later time may afford the best prospect of
                     arriving at some satisfactory agreement with the 
Govt
                     of the United States on the manner of providing for the
                     settlement of the claims of the two Countries?