A Confederate warship put in at Liverpool and was refitted. The British authorities did nothing to prevent this.
The US brought a legal action over this.
The Lord Chief Justice said allowing the refit was lawful because the ship did not have guns when she left port.
A Birkenhead yard later built two ironclas for the Confederacy but these were seized by the United Kingdom and not given to the Confederate States of America.
Other ships were built in the UK and secretly sold to the CSA
1871. The United Kingdom and the USA signed the Treaty of Washington. Presidnet Ulysses S Grant agreed that 6 representatives form the USA and the Britieh Empire and some neutral judges would adjudicate the issue
They met in Geneva. The ruling was
The UK paid $ 15 million. This was balanced by $1.5 m and some fishing provilegeds ceded by the USA. The USA was paying compensaiton for an illegal blockade.
These was arbitration.