The Brazilian government refused to yield, and Christie issued orders for British warships to capture Brazilian merchant vessels as indemnity. Brazil prepared for what was seen as an imminent conflict. Pedro II was the main reason for Brazil's resistance; he rejected any suggestion of yielding. This response came as a surprise to Christie, who changed his tenor and proposed a peaceful settlement through international arbitration. The Brazilian government presented its demands and, upon seeing the British government's position weaken, severed diplomatic ties with Britain in June 1863.