Indirect characterization is the process of describing a character through that character's thoughts, actions, speech, and dialogue. An author will use this type of characterization to guide the reader in making their own conclusions about a character.
Indirect characterization is the process by which the writer shows the character's personality through speech, actions and appearance. When you watch a movie or television show, you can usually gather what type of person the main character is based on the character's actions and reactions in different situations.
I read the passage and the question in your comments and in my opinion it makes sense for it to be: by showing that only the threat of war has ever caused the British to alter their oppressive policies.
I'm not 100% sure of course because I'm not a genius but I'm quite sure that's it.