But the most flagrant act of injustice was the deduction from my claims of costs and damages for the detention of neutral vessels seized under the orders of blockade issued by the Chilian Government. The circumstances were as follows:—

The Spanish Government had chartered the Edward Ellice and other ships to transport troops from Spain to Peru, but internal divisions in the parent state prevented their despatch. The masters of these vessels thereupon claimed demurrage, which it was not convenient for the Spanish Government to pay—but in lieu thereof licences were granted to carry Spanish goods to Peru. These ships, being thus loaded, proceeded to Gibraltar, where the house of Gibbs & Co. provided them with British papers, in addition to the Spanish manifests supplied at Cadiz—this fact alone shewing that they considered the speculation illegitimate.

Furnished with these double sets of papers, they came to Peru for the purpose of trading; but as I had advice of this proceeding—and afterwards found the Spanish duplicates in the Peruvian Custom Houses—I seized the vessels on account of the fraudulent papers, they having also on board contraband of war, and was about to send them to Valparaiso for adjudication, when their commanders offered to surrender to me all the anchors, cables, and other illegal cargo, if I would forego this determination, which I did, and applied these articles to the use of the Chilian squadron, which at that time had not a trustworthy anchor in any of the ships.

The course pursued was satisfactory to the masters and supercargoes, and subsequently, on explanation, to Sir Thomas Hardy, whilst it was highly approved by the Chilian Government. After my return to England, actions were brought against me for even the contraband which had been voluntarily surrendered by the masters; but as I was fortunately enabled to produce the Spanish duplicates, they were abandoned, otherwise I should have been involved in utter ruin, for releasing British vessels subject to condemnation, and at the same time gratuitously providing for the Chilian ships of war, the essential articles of which they were entirely destitute.

In order to conciliate the English merchants at Valparaiso, the Admiralty Court acquitted various vessels seized under the orders of the Government, charging the costs and damages to my account! and that in the face of its own right to blockade and seizure as expressed to the British Commodore, Sir Thomas Hardy, who, though he insisted on the protection of British ships, disavowed their taking advantage of his protection to supply the enemy with contraband of war, as had been done.

Sir Thomas Hardy's view was this, that if the blockading power was not in a position to render the blockade efficient over the whole coast, it was not recognisable anywhere by the law of nations; but, whilst expressing this erroneous view of blockade, he added, "nor can I resist the right which the Government of Chili has to establish and maintain blockade on the same footing as other belligerents."

But even in the extreme views of Sir Thomas Hardy, we were competent to establish and maintain a blockade in its widest extent, and the best proof of the fact is, that the blockade was established. Even Zenteno, the Minister of Marine, pointed out to Sir Thomas Hardy, the ability of the squadron to maintain the blockade which he recognised.

"Our naval forces, perhaps diminished in apparent magnitude by distance, was not believed sufficient to maintain the blockade in all its extent, yet it has had the glory of setting at liberty, and of placing in the hands of the American Independents, all the ports and coasts of Peru, excepting only the port of Callao. Moreover, from the very centre even of that port, and from under the fire of the batteries, the Spanish ship of war, Esmeralda, has been cut out by our naval forces, and our strength thereby augmented, whilst that of the enemy is reduced to nothing."

(Signed) "JOSE IGNACIO ZENTENO."

So that, in face of this declaration by the Chilian Minister himself, as to the naval supremacy of the squadron on the coast of Peru, and its consequent right of seizure, the Admiralty Court, for its own sinister purposes, chose to decide that I was liable for seizures of neutral vessels made by my captains, without my knowledge—condemning me in costs and damages for their acts; the result being that I was mulcted in this, and every other charge it saw fit to make in my absence. The injustice of this was the more striking, as San Martin was appointed Commander-in-Chief of the squadron as well as the army, so that, even supposing the decisions of the Admiralty Court to be right, the onus lay upon him, not me. Yet he was rewarded, and I was compelled to pay for acts executed under his authority.