Jan 1865- CSS SHENANDOAH in Melbourne

In Jan 1865 the Confederate commerce raider CSS SHENANDOAH pulled into harbour at Melbourne, and her crews were feted by the local population, to the immense chagrin of the UN consul, who denounced the commerce raiders as pirates preying on helpless Union shipping, and demanded that the Vic governor Gipps (?) respect Britain's neutrality in the matter by interning the ship and crew since they'd stayed longer than th 24 hrs customarily granted to belligrent ships in neutral waters in time of war. The governor refused to follow this line, allowing the SHENANDOAH to sail out again and claim more Union shipping by and after the war's end. Now how would've the course of the war been affected by the British, although belatedly, utilising this incident as the pretext for intervening on the Confederacy's side ?
 
It's too late

I can't see any reason for Britian to enter the war at this time. Britian tends to enter wars when there's a chance for victory.
The Union army was fully mobilized, most of the South was occupied, weapons and warships were coming out of the factories in vast numbers.
The Royal Navy would control the seas, but Union monitors could contest coastal waters.
I'd expect the war to end with a Confederate defeat, Canada occupied, Yankee merchant shipping basicly wiped out--and quite possibly a United States that would not forgive Britian for a long time.
By the end of the century, Canada is mostly absorbed, and the US streches from the Rio Grande to Hudson Bay.
If butteflies don't change European affairs, England is without Canadian support in 1914, and the US is likely a true neutral--or worse, a hostile neutral--when the Great War breaks out.
Certainly, no one in Europe will discount the US in their plans, and the US might be drawn into the European allianace system--at least it will certainly be courted by everyone.
 
Other way around

Technically it was causus belli, but America was tired of war in 1865. We would not have annexed Australia over it. The war would have had to have lasted another five years, and as I said, we were tired. We didn't even want to annex Canada, let alone Australia.
 
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