On his return to Lisbon, Captain M'Dougall was ordered to sell the steamer to the Spanish government, through Don Evanston Castor da Perez, then the Spanish ambassador to the court of Lisbon. The transaction was completed on the 10th of September 1834, when the _Royal William_ became the _Ysabel Segunda_, and the first war-steamer the Spaniards ever possessed. She was ordered to the north coast of Spain against Don Carlos. Captain M'Dougall accepted the rank and pay of a Commander, and, by special proviso, was guaranteed six hundred pounds per annum, and the contract to supply the squadron with provisions from Lisbon. The _Ysabel Segunda_ proceeded to the north coast; and about the latter part of 1834 she returned to Gravesend, to be delivered up to the British government, to be converted into a war-steamer at the Imperial Dockyard. The crew and officers were transferred to the _Royal Tar_, chartered and armed as a war-steamer, with six long thirty-two pounders, and named the _Reyna Governadoza_, the name intended for the _City of Edinburgh_ steamer, which was chartered to form part of the squadron. When completed, she relieved the _Royal Tar_ and took her name. In his interesting letter, from which these facts are drawn, to Robert Christie, the Canadian historian, Captain M'Dougall thus completes the story of the pioneer Atlantic steamer: 'The _Ysabel Segunda_, when completed at Sheerness Dockyard, took out General Alava, the Spanish ambassador, and General Evans and most of his staff officers, to Saint Andero, and afterwards to St Sebastian, having hoisted the Commodore's broad pennant again at Saint Andero; and was afterwards employed in cruising between that port and Fuente Arabia, and acting in concert with the Legion against Don Carlos until the time of their service expired in 1837. She was then sent to Portsmouth with a part of those discharged from the service, and from thence she was taken to London, and detained in the City Canal by Commodore Henry until the claims of the officers and crew on the Spanish government were settled, which was ultimately accomplished by bills, and the officers and crew discharged from the Spanish service about the latter end of 1837, and _Ysabel Segunda_ delivered up to the Spanish ambassador, and after having her engines repaired, returned to Spain, and was soon afterwards sent to Bordeaux, in France, to have the hull repaired. But on being surveyed, it was found that the timbers were so much decayed that it was decided to build a new vessel to receive the engines, which was built there, and called by the same name, and now [1853] forms one of the royal steam-navy of Spain, while her predecessor was converted into a hulk at Bordeaux.'