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of hostilities, I beg leave to inform Your Excellency that the latest despatches received from the Lords Commissioners of the Admiralty have brought bearing on the probability of a rupture between Great Britain and the United States of America, which there is every reason to suppose would have been the case had hostilities been contemplated.

The Scout and Banosa ordered some time since to proceed to Shanghai, will probably already have reached that port; and as the former is directed to remain for the present under the orders of Captain Nolloth, it is hoped her presence will afford the necessary security to the Colony.

I am further informed by the United States Minister in Japan that it is his intention to request Captain Price to proceed immediately in the "James Town" to those waters, to remain with the "Wyoming" which is here at present.

I have &c.

Signed, Augustus L. Kemper,

(True Copy)

Vice-Admiral and Commanding in Chief.

Acting Colonial Secretary-

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