Under the altered state of things in Chili, in order to secure such vessels from capture by the Chilian ships of war, as having Spanish property on board, the device of simulated papers was resorted to, representing the cargoes as British property, coming from the port of Gibraltar; one set of papers being used ashore, and the other afloat, or as occasion required.  Several British vessels had been detained by the Chilian squadron, whereof the Spanish papers were found in the Peruvian custom-houses when taken possession of; they were accordingly liable to be libelled as Spanish property.

In order, however, to land their cargoes in safety, the commanders and supercargoes of such British vessels voluntarily offered terms which should confer upon their trade a legitimate character, viz. to pay a certain impost as an equivalent for customs’ duties.  I accepted these terms as furnishing me with means to supply the necessities and defray the expenses of the squadron, the wants of which were with great difficulty supplied, as the Protectoral Government refused to aid in any way, notwithstanding that it owed its very existence to our efforts.

The duties thus collected,—­for the most part in contraband of war,—­were duly accounted for by me to the Government of Chili, whilst such compromise was received as a boon by the British merchants, and highly approved of by the British naval authorities, Sir Thomas Hardy especially.

Yet General San Martin, and others interested in a line of policy which in its prosecution was inimical to the true interests of Chili, afterwards charged these proceedings upon me as “acts of piracy.”

That the Chilian Government was, however, well satisfied with all the steps taken for provisioning and maintaining the squadron, as well as with the seizure and disposal of the public money at Ancon, is evident from the following acknowledgment:—­

   Most Excellent Sir,

I have informed the Supreme Director of the note which you addressed to me on the 7th of October, accompanying the accounts of the monies supplied to the payment of the officers and seamen of the squadron, and to the other objects of the naval service; as well as the accounts of money and bars of silver returned at Ancon to their respective owners.

   His Excellency approves of all that you have done in these matters
   and orders me in reply to convey his approbation, which I have the
   honour now to do.

   Accept the assurance of my high consideration,

   (Signed) JOAQUIM DE ECHEVERRIA,
   Ministry of Marine, Santiago de Chili.

   To LORD COCHRANE,
   Vice-Adm. & Comm.-in-Chief.  Nov. 13, 1821.

On the same date, the following was received relative to the officers who had deserted from the squadron, for the purpose of entering the service of the Protector:—­

   Santiago de Chili, Nov. 13, 1821. 
   Most Excellent Sir,