The British note of August 19 and the American rejoinder of August 24, brought about a situation where Lord Castlereagh’s influence could make itself felt. Castlereagh had signed the British instructions of July 28 and August 14,[27] and himself brought the latter to Ghent, where he passed August 19, before going to Paris on his way to the Congress at Vienna. He was at Ghent when Goulburn and his colleagues held their conference and wrote their note of August 19;[28] and he could not be supposed ignorant of their language or acts. Yet when he received at Paris letters from Goulburn, dated August 24 and 26,[29] he expressed annoyance that the American commissioners should have been allowed to place England in the attitude of continuing the war for purposes of conquest, and still more that the British commissioners should be willing to accept that issue and break off negotiation upon it. In a letter to Lord Bathurst, who took charge of the negotiation in his absence, Castlereagh suggested ideas altogether different from those till then advanced in England.[30]

“The substance of the question is,” said Castlereagh, “Are we prepared to continue the war for territorial arrangements? And if not, is this the best time to make our peace, saving all our rights, and claiming the fisheries, which they do not appear to question? In which case the territorial questions might be reserved for ulterior discussion. Or is it desirable to take the chance of the campaign, and then to be governed by circumstances?... If we thought an immediate peace desirable, as they are ready to waive all the abstract questions, perhaps they might be prepared to sign a provisional article of Indian peace as distinct from limits, and relinquish their pretensions to the islands in Passamaquoddy Bay, and possibly to admit minor adjustments of frontier, including a right of communication from Quebec to Halifax across their territory. But while I state this, I feel the difficulty of so much letting down the question under present circumstances.”

At the same time Castlereagh wrote to Goulburn, directing him to wait at Ghent for new instructions from London.[31] Lord Liverpool shared his disapproval of the manner in which the British commissioners had managed the case, and replied to Castlereagh, September 2, that the Cabinet had already acted in the sense he wished:[32]

“Our commissioners had certainly taken a very erroneous view of our policy. If the negotiation had been allowed to break off upon the two notes already presented, or upon such an answer as they were disposed to return, I am satisfied that the war would have become quite popular in America.”

The idea that the war might become popular in America was founded chiefly on the impossibility of an Englishman’s conceiving the contrary; but in truth the Ministry most feared that the war might become unpopular in England.

“It is very material to throw the rupture of the negotiation, if it is to take place, upon the Americans,” wrote Liverpool, the same day, to the Duke of Wellington;[33] “and not to allow them to say that we have brought forward points as ultimata which were only brought forward for discussion, and at the desire of the American commissioners themselves. The American note is a most impudent one, and, as to all its reasoning, capable of an irresistible answer.”

New instructions were accordingly approved in Cabinet.[34] Drawn by Bathurst, and dated September 1, they contained what Liverpool considered an “irresistible answer” to the American note of August 24; but their force of logic was weakened by the admission that the previous British demands, though certainly stated as a sine qua non, were in reality not to be regarded as such. In private this retreat was covered by the pretext that it was intended only to keep the negotiation alive until better terms could be exacted.

“We cannot expect that the negotiation will proceed at present,” continued Liverpool’s letter to Castlereagh; “but I think it not unlikely, after our note has been delivered in, that the American commissioners will propose to refer the subject to their Government. In that case the negotiation may be adjourned till the answer is received, and we shall know the result of the campaign before it can be resumed. If our commander does his duty, I am persuaded we shall have acquired by our arms every point on the Canadian frontier which we ought to insist on keeping.”

Lord Gambier and his colleagues communicated their new instructions to the American negotiators in a long note dated September 4, and were answered by a still longer note dated September 9, which was also sent to London, and considered in Cabinet. Bathurst felt no anxiety about the negotiation in its actual stage. Goulburn wrote to him that “as long as we answer their notes, I believe that they will be ready to give us replies,” and urged only that Sir George Prevost should hasten his reluctant movements in Canada.[35] Bathurst wrote more instructions, dated September 16, directing his commissioners to abandon the demands for Indian territory and exclusive control of the Lakes, and to ask only that the Indians should be included in the peace.[36] The British commissioners sent their note with these concessions to the Americans September 19; and then for the first time the Americans began to suspect the possibility of serious negotiation. For six weeks they had dealt only with the question whether they should negotiate at all.

The demand that the Indians should be included in the treaty was one that under favorable circumstances the Americans would have rejected; but none of them seriously thought of rejecting it as their affairs then stood. When the American commissioners discussed the subject among themselves, September 20, Adams proposed to break off the negotiation on that issue; but Gallatin good-naturedly overruled him, and Adams would not himself, on cool reflection, have ventured to take such responsibility. Indeed, he suggested an article for an Indian amnesty, practically accepting the British demand.[37] He also yielded to Gallatin the ungrateful task of drafting the answers to the British notes; and thus Gallatin became in effect the head of the commission.