Mr. Seward to Mr. Adams

No. 2037.]

Sir: I have now to recur to Lord Stanley’s despatch to Sir Frederick Wright Bruce of the 24th of May, concerning the so-called Alabama claims, a copy of which paper he placed in my hands during our recent visit at Auburn.

You are authorized to inform his lordship that I did not understand his previous offer of arbitration to apply alone to the claims arising out of the depredations of the Alabama, to the exclusion of those arising out of the depredations of the Florida, the Shenandoah, the Georgia, and other vessels of that description; and that, on the contrary, Lord Stanley’s offer of limited arbitration was understood to apply equally to those claims arising out of the depredations of the several vessels last named as to those arising out of the depredations of the Alabama.

His lordship now observes that the British government is ready to go to arbitration upon the question whether, in the matters connected with all those vessels out of whose depredations the claims of American citizens have arisen, the course pursued by the British government and those who acted upon its authority was such as would involve a moral responsibility on the part of the British government to make good, either in whole or in part, the losses of American citizens.

The President considers these terms to be at once comprehensive and sufficiently precise to include all the claims of American citizens for depredations upon their commerce during the late rebellion which have been the subject of complaint upon the part of this government. But the United States government, in this view, would deem itself at liberty to insist before the arbiter that the actual proceedings and relations of the British government, its officers, agents, and subjects, towards the United States in regard to the rebellion and the rebels as they occurred during that rebellion, are among the matters which [Page 124] are connected with the vessels whose depredations are complained of, just as in the case of general claims alluded to by Lord Stanley, the actuai proceedings and relations of her Majesty’s government, its officers, agents, and subjects, in regard to the United States and in regard to the rebellion and the rebels, are necessarily connected with the transactions out of which those general claims arose.

Lord Stanley’s plan seems to be to constitute two descriptions of tribunals— one an arbiter to determine the question of the moral responsibility of the British government in respect of the Alabama, Florida, Georgia, and other vessels of that class; and the other a mixed commission to adjudicate the so-called general claims of both sides; and a contingent reference to the same or other mixed commission, to ascertain and determine the amount of damages, for indemnity, to be awarded in the cases examined by the first tribunal in the event of a decision upon the question of moral responsibility in favor of the United States.

No distinction as to principle between the tribunals seems to the United States to be necessary, and in every case the United States agree only to unrestricted arbitration. Convenience may require that the claims should be distributed between two tribunals, both of which, however, in the opinion of the United States, should proceed upon the same principles and be clothed with the same powers.

The President will be gratified if this explanation shall conduce to remove any of the difficulties which have heretofore prevented the two governments from coming to the amicable and friendly understanding and arrangement which is so sincerely desired by both.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Charles Francis Adams, Esq., &c., &c., &c.