Charles Francis Adams, U.S. minister to Great Britain, threatens war unless the British honor their neutrality and stop construction on a warship allegedly being built for the Confederacy.
A U.S. warship seizes a British merchant vessel in neutral waters, which threatens to cause an international crisis.
The leaders of Great Britain express new reluctance to recognize Confederate independence, and Emperor Napoleon III of France proposes foreign mediation between the two warring factions.
As news of the Federal setbacks travels overseas, the European powers begin to seriously consider mediating an end to the war and recognizing Confederate independence.
Confederates try to curry favor with France, and Great Britain suffers a severe economic downturn due to the lack of southern cotton.
The government of Great Britain receives the official news that the U.S. would release Confederate envoys James Mason and John Slidell, thus averting an international crisis.