With regard to the property of American citizens seized here at the Custom-house, and which was formerly part of the Sea Bride’s cargo, I would suggest that it also be held by the Colonial Government, subject to the order of the original owners.  An announcement to that effect from you would be received with great satisfaction by me.

[Illustration:  THE MESURADO LAGOON]

Rear-Admiral Sir B. Walker to the Secretary to the Admiralty.  January 18, 1864.

With reference to my letter of the 5th instant, I have the honour to submit, for their Lordships’ information, a further correspondence between the Governor of this Colony and myself relative to the American vessel Conrad, of Philadelphia, lately called the Tuscaloosa.

2.  Lieutenant Low, belonging to the Confederate States ship of war Alabama, lately in charge of the Tuscaloosa, having paid off and discharged his crew, finally quitted the vessel on the 9th instant; and I have ordered him a passage to England by the mail-packet Saxon, together with his first officer, Mr. Sinclair.

3.  The Conrad now remains in charge of a warrant officer and two ship-keepers, awaiting to be properly claimed or disposed of as the Government may direct.

Rear-Admiral Sir B. Walker to Sir P. Wodehouse.  January 6, 1864.

With reference to your Excellency’s communication of yesterday’s date, I have the honour to inform you that I will make arrangements for the safe custody of the Conrad, of Philadelphia (late Tuscaloosa), by mooring her in this bay, and putting ship-keepers in charge of her, until she can be properly transferred to her lawful owners.

Lieutenant Low has requested to be allowed to remain on board the vessel, together with his crew, for the present, as he expected the Alabama to arrive here shortly, to which arrangement I have made no objection.

There are some guns and other articles on board the Conrad said to belong to the Alabama, a list of which I have already forwarded to your Excellency.  It is a matter for consideration how these things should be disposed of.

I think, as a precautionary measure, it may be desirable that some person on the part of the United States Consul should visit the Conrad, to observe the state she is in, on being taken into British custody, to prevent any question thereon hereafter.

The Duke of Newcastle to Sir P. Wodehouse.  March 4, 1864.

I have received your despatches of the 11th and 19th January, reporting the circumstances connected with the seizure of the Confederate prize-vessel Tuscaloosa, under the joint authority of the Naval Commander-in-chief and yourself.  I have to instruct you to restore the Tuscaloosa to the Lieutenant of the Confederate States who lately commanded her, or, if he should have left the Cape, then to retain her until she can be handed over to some person who may have authority from Captain Semmes, of the Alabama, or from the Government of the Confederate States, to receive her.