<P> Even before the war started, Lord Palmerston pursued a policy of neutrality . His international concerns were centred in Europe, where he had to watch both Napoleon III's ambitions in Europe and Otto von Bismarck's rise in Prussia . There were also serious problems involving Italy, Poland, Russia, Denmark and China . British reactions to American events were shaped by past British policies and their own national interests, both strategically and economically . In the Western Hemisphere, as relations with the United States improved, Britain had become cautious about confronting it over issues in Central America . As a naval power, Britain had a long record of insisting that neutral nations abide by its blockades, a perspective that led from the earliest days of the war to de facto support for the Union blockade and frustration in the South . </P> <P> Diplomatic observers were suspicious of British motives . The Russian Minister in Washington, Eduard de Stoeckl, noted, "The Cabinet of London is watching attentively the internal dissensions of the Union and awaits the result with an impatience which it has difficulty in disguising ." " De Stoeckl advised his government that Britain would recognize the Confederacy at its earliest opportunity . Cassius Clay, the United States Minister in Russia, stated, "I saw at a glance where the feeling of England was . They hoped for our ruin! They are jealous of our power . They care neither for the South nor the North . They hate both ." </P> <P> Lincoln appointed Charles Francis Adams, Sr., as minister to Britain . An important part of his mission was to make clear to the British that the war was strictly an internal insurrection and afforded the Confederacy no rights under international law . Any movement by Britain to recognizing the Confederacy officially would be considered an unfriendly act toward the US . Seward's instructions to Adams included the suggestion that it should be made clear to Britain that a nation with widely scattered possessions, as well as a homeland that included Scotland and Ireland, should be very wary of "set (ting) a dangerous precedent ." </P> <P> Lord Lyons was appointed as the British minister to the United States in April 1859 . An Oxford graduate, he had two decades of diplomatic experience before being given the American post . Lyons, like many British leaders, had reservations about Seward and shared them freely in his correspondence, which was widely circulated within the British government . As early as January 7, 1861, well before the Lincoln administration had even assumed office, Lyons wrote to British Foreign Secretary Lord Russell about Seward: </P>

To help pay for the civil war both the union and the confederacy