Do you have a source for this? The British declined an offer to mediate and the US accepted it in late 1812.
While the British would have accepted status quo ante bellum, they were less interested in negotiations. It appears that the Russian offer of mediation forced the Liverpool government to offer direct negotiation, while at the same time telling the Russians that they would not accept mediation. The British were absolutely opposed to the introduction of maritime issues in negotiations with European countries and were worried that mediation would lead to that. Direct negotiations with the US raised the question of impressment that the British would not compromise on. Foreign Secretary Castlereagh made the British government's position clear to the British ambassador to the Russian court Lord Cathcart on July 14, 1813:
"My dear Lord —I cannot omit again impressing upon your lordship the importance of awakening the Emperors mind to the necessity, for his own interests as well as ours, of peremptorily excluding from the general negociations every maritime question. If he does not, he will risk a misunderstanding between those Powers on whose union the safety of Europe now rests. Great Britain may be driven out of a Congress, but not out of her maritime rights, and, if the Continental Powers know their own interests, they will not hazard this.
It is of great importance to strip any negociation between America and us even of the appearance of foreign intervention.
The Emperor, if he knows anything of England, must be convinced that no Government dare surrender the right of search for enemy's property, or British subjects: that the only question is, whether it can be so regulated by municipal laws, and regulations, as to the mode of conducting the search, and accounting for the person so withdrawn from the ship searched, as to guard against abuse, so far as this may be found practicable: there is every disposition to meet the question fairly, but the mere fact of an arrangement being made through the intervention of a third Power would probably decide the nation against it. You must, therefore, press London; and, if that cannot be managed, you will consider Gottenburgh as a sine quá non. Any place near the Russian Court, or the seat of other negociations, would give to our refusal of the mediation the air of a shabby pretence.
The mention of London and Gottenburgh (Gothenburg, Sweden) is about the possible locations for direct US/British negotiations.
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