Confidential

With reference to my despatch of the 19th September marked
confidential in which I transmitted to you copies of the correspondence
that had taken place between H.M's Government and H.M's Minister at
Washington respecting the occupation of San Juan, I have to inform you
that the Government of the United States has declined to accept the
compromise of the question of title to the Island which was proposed in
Lord John Russell's despatch of the 24th of August.

I enclose herewith a copy of the instructions given to General
Scott by the U.S. Secretary of State for War from which you will
percive that the U. States Government have accepted the proposal for a
joint occupation of the Island pending the settlement of the question of
Title, and I have to authorize you to act upon any proposition which may
be made to you by General Scott to carry this arrangement into effect,
and to place in the Island a force equivalent to that retained by the
United States.