<P> Throughout the war, all European powers adopted a policy of neutrality, meeting informally with Confederate diplomats but withholding diplomatic recognition . None ever sent an ambassador or official delegation to Richmond . However, they applied principles of international law and recognized both sides as belligerents . Canada allowed both Confederate and Union agents to work openly within its borders . </P> <P> Northerners were outraged at British tolerance of non-neutral acts, especially the building of warships . The United States demanded vast reparations for the damages caused by British - built commerce raiders, especially CSS Alabama, which Palmerston bluntly refused to pay . </P> <P> The dispute continued for years after the war . After Palmerston's death, Prime Minister Gladstone agreed to include the US war claims in treaty discussions on other pending issues, such as fishing rights and border disputes . In 1872, pursuant to the resultant Treaty of Washington, an international arbitration board awarded $15,500,000 to the US, and the British apologized for the destruction caused by the British - built Confederate ships but admitted no guilt . </P> <P> The Union victory emboldened the forces in Britain that demanded more democracy and public input into the political system . The resulting Reform Act 1867 enfranchised the urban male working class in England and Wales and weakened the upper - class landed gentry, who identified more with the Southern planters . Influential commentators included Walter Bagehot, Thomas Carlyle, John Stuart Mill, and Anthony Trollope . Additionally, many Irishmen saw service in both the Union and Confederate State Army . </P>

What two reasons were given for supposed british support of the confederacy during the civil war