 Shuldham's recommendation for promotion was turned down however due to his previous involvement in the Palliser affair.In 1780, Berkeley was appointed to HMS "Fairy", a 14-gun brig under his cousin George Keppel and together they captured the American ship "Mercury", taking prisoner Henry Laurens who was on a secret mission to loan money from the Dutch government.The information procured from Laurens led to a British declaration of war against the Netherlands.