(Secret.) Rio de Janeiro, November 18, 1823.

MOST EXCELLENT SIR,

In my letter, No. 38, I communicated to your predecessor my intention of aiding the Provisional Junta of Maranham, in the payment of the auxiliary troops of Cearà and Piahuy, who being in a naked and destitute condition had become clamorous for their arrears; and I now beg to state that in prosecution of such intention, I placed at the disposal of the Junta the monies taken in the Portuguese treasury, amounting in cash and good bills to Rs. 62,560 $243, together with outstanding debts amounting to Rs. 147,316 $656, and I have also left in their hands the balance which we found in the Portuguese custom-house, amounting to Rs. 54,167 $877. All these accounts I have the honour to convey to you for the information of the Imperial Government.

In addition to these large sums, I left at the disposal of the Junta much moveable property which belonged to Portuguese individuals in Europe, desiring the authorities to render an account of the same for the information of the Imperial Government.

Your Excellency will perceive that in leaving at Maranham these monies, and other property captured from the enemy, instead of bringing them to Rio for adjudication, we could be influenced by no other motive than zeal for the interests of His Imperial Majesty and the good of his people; as by so doing, we enabled the Provisional Government to meet the present exigencies of the moment, and to quiet the Cearà and Piahuy troops; whilst the revenue of the province thus remains clear and unanticipated— being applicable to such purposes as His Imperial Majesty shall command. All which I trust His Imperial Majesty will take into his gracious consideration, and be pleased to award such compensation to the officers and seamen as he, in his princely justice, shall deem fit.

(Signed) COCHRANE.

For some days no notice was taken of this letter, but on the 24th I received a visit from the Minister of Marine, bringing what professed to be a verbal message from His Majesty, that he "would do every thing in his power for me personally." The way in which this intimation was conveyed led me to infer that these personal favours implied a sacrifice on my part of the rights of the squadron, by shutting my eyes to the restoration of the captured Portuguese ships and property to the friends and adherents of the ministry, for the purpose of conciliating the Portuguese party. Taking the message, however, literally—I told the Minister that His Majesty had "already conferred honours upon me quite equal to my merits—and that the greatest personal favour he could bestow, was, to urge on the speedy adjudication of the prizes, so that the officers and seamen might reap the reward decreed by the Emperor's own authority."

The policy of the Portuguese faction in power, was—now that the squadron had expelled the fleet and army of the mother country—to conciliate their countrymen who remained, and thus to create and maintain an influence which should reduce the Imperial authority to the smallest possible dimensions. The first object—if I could be brought to acquiesce—was to restore Portuguese property, captured by Imperial order, and now the right of the captors—my connivance being supposed to be procurable by offers of personal enrichment! I scarcely need say that the offer failed in its purpose.

As the squadron had received no pay during the performance of all its services, it became my duty to urge attention to the subject, and this was apparently complied with, the 27th of November being appointed for the payment of the men. On that day three months' pay only was offered to them, notwithstanding all they had achieved. This paltry pittance was refused.

About this time the extraordinary news was received, that great rejoicings and a general illumination had taken place in Lisbon in consequence of the destruction of the Brazilian squadron by the Portuguese fleet at Bahia! this version having, no doubt, been transmitted home subsequently to the affair of the 4th of May. Singularly enough, these ill-founded rejoicings were going on in Lisbon at the time the flagship was chasing the Portuguese fleet across the Equator! It is difficult to say how the Portuguese admiral contrived to reconcile this premature vaunt, and the unwelcome fact of his arrival in the Tagus, with the loss of half his troops and more than half his convoy.