The British government issued a proclamation of neutrality and recognized the Confederates as belligerents. If you were explaining this to a peer, how would you articulate the complex motivations behind Britain's decision, and what were the immediate and potential long-term consequences of this "neutral" stance for both the Union and the Confederacy?

From the book

tes on the 13th of April 1861. On the 19th of April President Abraham Lincoln declared a blockade of the southern ports. On the 14th of May the British government issued a proclamation of neutrality, by which the Confederates were recognized as belligerents. This example was followed shortly afterwards by France and other nations. The blockade of the southern ports was not at first effective, and blockade-running soon became an active industry. The Confederates established agencies in England for the purchase of arms, which they despatched in ordinary merchant vessels to the Bahamas, whence…

rpool in two British ships. Captain Semmes there took command of her under a commission from the Confederate government. After a most destructive career she was sunk off Cherbourg by the “Kearsarge” on the 19th of June 1864. On these facts the United States government alleged against Great Britain two grievances, or sets of grievances. The first was the recognition of the Southern States as belligerents and a general manifestation of unfriendliness in other ways. The second was in respect of breaches of neutrality in allowing the “Alabama,” the “Florida” (originally the “Oreto”, the…

nfriendly utterances of British politicians and the material assistance afforded to the Confederates by British traders. The inclusion of the indirect losses and the other matters just referred to caused great excitement in England. That they were within the treaty was disputed, and it was argued that, if they were, the treaty should be amended or denounced. In October 1872 Lord Granville notified to General Schenck, the United States minister, that the British government did not consider that the indirect losses were within the submission, and in April the British counter-case was filed…

rst agreed upon.” After some discussion the British commissioners consented that the three following rules should apply. A neutral government is bound—(1) to use due diligence to prevent the fitting out, arming or equipping within its jurisdiction of any vessel, which it has reasonable ground to believe is intended to cruise or to carry on war against a power with which it is at peace, and also to use like diligence to prevent the departure from its jurisdiction of any vessel intended to cruise or carry on war as above, such vessel having been specially adapted, in whole or in part, within…

. With respect to the “Alabama” claims the British commissioners suggested that they should be submitted to arbitration. The American commissioners refused “unless the principles which should govern the arbitrators in the consideration of the facts could be first agreed upon.” After some discussion the British commissioners consented that the three following rules should apply.