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The British government and upper classes were favourable towards the South, partly because they saw America as a growing economic rival, which they would be happy to see split into two, and partly because they still thought the American revolution had been a bit of cheek and were glad to see the young republic in trouble. (The textile workers of Lancashire were, of course, opposed to the slavery that lay behind the cotton trade, and were willing to sacrifice jobs on principle.)

In the Summer of 1862, with Lee's triumphant campaign in Virginia, the Confederacy began to acquire credibility in the eyes of Europe, and Britain came close to granting recognition and sending military aid. Only the unexpected Northern win at Antietam prevented this, as it gave Lincoln a chance to issue his Emancipation Proclamation, turning the war into an official crusade against slavery, so that foreign powers could not then aid the Confederates without looking pro-slavery themselves.

Apart from this, Britain had been supplying the Confederacy with shipping that they were not able to build themselves owing to the blockade. This was conducted through neutral agents, but it was obvious where the vessels had been built. The US Ambassador in London, the highly talented C.F. Adams, was able to persuade the government to cease this provocative trading.

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