There Perceval rested his case, so far as concerned the law. His three grounds were--(1) That as a neutral the United States could complain of no retaliation between belligerents, unless this retaliation was avowedly adopted with a view to injure neutrals; (2) That America ceased to be a neutral from the moment that she wished England to observe rules which France refused to recognize, and which America did not at once compel France to recognize; and (3) That the continued existence and recent enforcement of the Berlin Decree were sufficient proof of the neutral’s acquiescence. Thus a measure of vital consequence to England was proposed to the Cabinet on grounds which would hardly have been sufficient to warrant an injunction to restrain a private nuisance. So far as argument was concerned, Perceval had no more to say. Having in his opinion established his legal right to do what he pleased with American commerce, he next discussed the policy and extent of the proposed interference. His first idea was comparatively moderate. “If we actually prohibit all intercourse between neutrals and the enemies’ colonies,” he continued, “or between neutrals and the enemies’ continental possessions, it would be such a severe blow upon the trade of America as might make it no unreasonable choice on her part to prefer the dangers and chances of war to such a restriction upon her trade. I should therefore wish to leave such advantages still to neutral trade as to make it quite clear to be the policy of America, if she is wise, to prefer the neutral trade that will be left to her to the total stoppage of her trade with the enemy and with ourselves which a war might occasion.... With this view, therefore, I would recommend to relax thus far in the rigor of our retaliatory prohibitions as to leave to neutral nations the right of trading _directly_ in articles of their own growth, produce, and manufacture exported in their own vessels to enemies’ countries, and of importing from the enemies’ countries for their own use articles the growth, produce, and manufacture of such enemies’ countries; that is, leaving to them free the _direct_ trade between the enemy and themselves in articles of their respective growth, etc., but to prohibit the re-exportation of any articles the growth, etc., of the enemies’ countries or their colonies, or the carriage of them to any other country but their own.”