The Sun.
London, England, 1863-07-06 00:00:00

ecraplioations afi to tile R lfs cf
Neutraiz.

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(RELTER'S ExPnEss.)
Per the Parana.

RIO DE JANEIRO, June 9.

The proceedings of the Confederate cruisers
Alabama, Georgia, and Florida, which recently
visited the Brazilian ports of Fernando, Noronha,
Pernambuco, and Bahia, have given rise to
questions from 'which serious complications may
not improbably result.
On the 19th ult. the American Consul complained
that sailors belonging to Federal vessels burnt by
the Alabama and Florida, put ashore at Bahia, and
placed in charge of the Brazilian authorities, under
the protection of the American Consul, had been
subsequently taken on board the Confederates pri-
vateers, and now formed portion of their crews.
Immediately upon receipt of this communication
the President of the province of Bahia addressed
letters to the commanders of the Confederate pri-
vateers, stating "this fact" was a flagrant breach
of the neutrality imposed upon itself by the Go-
vernment of Brazil, that he protested warmly
against such violation, and requested that the indi-
viduals in question might be given up.

The Confederate officers denied that any such
occurrence had taken place, and their vessels were
permitted to leave the port.
Previously to this incident upon the 14th ult.,
the English ship Castor, loaded with coal, said to
be bound for Shanghai, entered the port of Bahia
ostensibly to repair damages.
Upon the 15th the American Consul informed the
President of Bahia that the Castor bad on board
several pieces of artillery and some 20 sailors in-
tended for the Alabama or the Georgia.
The President next day forwarded this complaint
to the English Consul at Bahia, inviting him to
accompany the Custom-house officers on board the
Castor, to see whether the complaint had any foun-
dation. Meantime the Castor had commenced dis-
charging a portion of her coal into the Confederate
cruisers.

Upon the 18th the English Consul returned the
following reply :
" The denunciation of the American Consul is
devoid of foundation. The facts be has put forward
are quite inexact; the opinion he expresses is en-
tirely illusive. The English Consul has been on
board the Castor, has ascertained that she does not
carry arms, that her crew consists only of the men
upon theohip's books, and that the only real fact
of those alleged is her delivery of coal, a proceed-
ing which it is the sole aim of the American Consul
to prevent. The Consul is ready to be present at
the visit proposed by the President. The captain
of the Castor is perfectly willing to permit such
visit, but the Consul in any case protests against
every act assuming the character of the right
of search or of requisition by the Consul of the
United States. He (the English Consul) enter-
tains grave doubts of the American Consul's right,
owing to the mere supply of coal, to raise any
claim against an English ship belonging to a neu-
tral nation at anchor in the harbour of Bahia,
a neutral port. The neutrality resulting from the
independent exercise of its right by a State cannot
obstruct commercial relations, and a belligerent
Power is not entitled to demand their cessation, in
a neutral port, between its opponent and the sub-
jects of a neutral nation, Toleration by the !resi-
dent of the province of the supply of coal by an
English ship to the Confederate cruisers in this
port cannot (without infringing common sense and
international law) be considered a hostile act, con-
trary to the strict neutrality of Brazil."
The proposed visit on board the Castor took place,
accompanied by interrogation of the captain and
crew. The result showed no proof whatever of
the allegations, although it seemed pretty clear
that the cargo of coal had no other original
destination than the Confederate privateers.
The captain of the Alabama, indeed, admitted the
fact, plainly declaring that he had a perfect right
to purchase coal in England, and to provide for its
discharge taking place out of a neutral ship within
a neutral port. Captain Semmes at the same time
requested the President's authorisation to continue

taking in his coal.
The President replied that the coal must be put
on shore and sent into the market, where Captain
Semmes could buy as much as he pleased. He
added that his instructions forbade him to allow
the delivery of any kind of goods coming direct
from another country where the sale had taken
place abroad.
The American Consul, however, still insisting
upon search for and delivery of the contraband of
war, the English Consul, upon the 21st, dpposed the
application, repeating more forcibly his arguments
of the 18th. The President, therefore, upon the
22d, notified to the American Consul that his duty
was confined to confiscating contraband whenever

its existence was proved, but did not extend to mak-
ing investigations upon the subject.
The American Consul, still persisting, again re-
ceived the same reply, the President declaring him-
self convinced that the alleged delivery of arms and
munitions had not taken place.

The consignees of the Castor, in concert with the

British Consul, upon their parts offered to unload
the ship entirely, provided the expenses were paid
by Brazil. The President forwarded this offer to
the American Consul, with a proposition that the
latter should defray the costs.
At this juncture the Federal steam frigate Mohi-
can put in at Bahia, and a report was immediately
circulated that she intended to seize the Castor.

The captain of the English vessel (while drunk, as
is rumoured) attempted to leave the port without
having complied with the forms required by the cus-
toms. He was brought to by the guns of the forts,

put back, and went through the accustomed formali-
ties preparatory to setting sail anew. Before the
Castor was outside the harbour, the Mohican got up
steam, and went in pursuit. Perceiving himself
chased the captain of the Castor determined not to
leave the port, but to place himself under the pro-
tection of Brazilian ships until the arrival of an
English man of war. Thereupon the Mohican left
Bahia to look after the Confederate privateers;
and, upon the Ist inst., an American brig, coming
from Rio Grande do Sol , reported having recently
passed the Florida, with the Mohican in chase.
The above facts were all respecting the matter
known at Rio upon the 9th. They have given rise
to an exchange of notes between the Minister for
Foreign Affairs and the Minister of the United
States. The latter is reported to have sent in an
ultimatum, demanding, let, the dismissal from
their
posts of the Presidents of Bahia and Pernambuco ;
2d, payment by the Brazilian Government of the
value of Federal ships captured or burnt in Brazilian
dispute has been
ports or waters; 3d, an indemnity
not transpired.
A rumour is current that the
manner has
settled, but in what red.
The report, in fact, must be taken with all
reserve.