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Despite being across the world from the conflict, the Australian colonies were affected by the American Civil War both economically and by immigration. The Australian cotton crop became more important to England, which had lost its American sources, and it served as a supply base for Confederate blockade runners. Immigrants from Europe seeking a better life also found Australia preferable to war-torn North America.
The Australian public was shocked by the revelation by a turncoat Russian officer, who claimed that a direct engagement was secretly planned by Russia in case the Confederacy was recognised by Britain. The Russian navy had just paid Australia a visit in preparation for launching attacks. Fear of a possible military confrontation led to a massive buildup of coastal defences and to the acquisition of an ironclad warship.
Australia became directly involved when the Confederate navy visited in order to repair one of their warships. This led to protests from the Union representative at Melbourne, while the citizenry of nearby Williamstown entertained the Confederates and some Australians joined the crew. Accounts disagree as to whether Australians generally favored the Union or the Confederacy, as sorrowful demonstrations were held in Sydney when news arrived of Abraham Lincoln's assassination.
Involvement, and relations of the British colonies that would become Australia in the U.S. Civil War