Hammond to Merivale (Permanent Under-Secretary)

I have laid before Lord John Russell your letter of the 18th
Instant, inclosing Copies of Governor Douglas' correspondence with
General Scott respecting the temporary adjustment of the question
respecting the Island of San Juan.

I am to state to you, in reply, for the information of His Grace The
Duke of Newcastle, that Lord John Russell considers that Governor
Douglas has acted in conformity with his Instructions which did not
authorize his consenting to a joint occupation of the Island of San
Juan. Her Majesty's Government, however, being anxious to maintain
the most amicable Relations with the President of the United States,
and feeling the difficulty in which the President was placed by the
acts of General Harney, consented as the Duke of Newcastle is aware,
sometime ago to the principle of joint occupation.

Lord John Russell has in consequence given to Lord Lyons and the
Board of Admiralty Instructions of which Copies have already been
sent to the Colonial Office: The question of civil and criminal
Jurisdiction does not appear to have been satisfactorily treated by
General Scott, and the settlement of this question in conformity with
the principle laid down by Secretary Marcy will no doubt engage the
attention of The Duke of Newcastle.