No. 367.

Mr. Sickles to Mr. Fish

No. 280.]

Sir: General Badeau reached Madrid on Wednesday, the 8th instant, and delivered to me the text of your telegram of the 28th ultimo, forwarded through the legation at London. I immediately draughted, and on the following day handed to the minister of state, in a personal interview, the note of which the inclosed is a copy, containing the bases of [Page 769] arbitration proposed on our part. I remarked to Mr. Martos that if he agreed to the conditions named, he was at liberty to regard the communication as official, and if he found occasion to suggest any modification, he might treat it as a draught submitted for revision, and return it to me with such amendments as he desired made. I stated that the same messenger who had brought me your final instructions was directed to wait and take with him my report of the conclusion of the negotiation, in order that it might reach Washington before the adjournment of the present Congress, on the 4th proximo.

His excellency promised to give early attention to the subject, and before I took leave of him he sent for Mr. Millan y Caro, the official in charge of the papers, and requested him to translate my note at once, and to have all the documents relating to the matter in readiness for examination on the following day.

I am, &c.,

D. E. SICKLES.

[Untitled]

Sir: Referring to our several conferences, and to the correspondence which has taken place on the subject, I have the honor to submit for your approval the following memorandum of the proposed arbitration for the settlement of the claims of corporations, companies, or citizens of the United States, against the government of Spain, for wrongs had injuries committed against their persons and property or against the persons and property of citizens of the United States, now deceased, by the authorities of Spain in or about the island of Cuba, since the commencement of the present insurrection.

1. It is agreed that all such claims shall be submitted to arbitrators, one to be appointed by the Secretary of State of the United States, another by the envoy extraordinary and minister plenipotentiary of Spain at Washington, and these two to name an umpire, who shall decide all questions upon which they shall be unable to agree; and in case the place of either arbitrator or of the umpire shall from any cause become vacant, such vacancy shall be filled forthwith in the manner herein provided for the original appointment.

2. The arbitrators and umpire so named shall meet at Washington within one month from the date of their appointment, and shall, before proceeding to business, make and subscribe a solemn declaration that they will impartially hear and determine, to the best of their judgment, and according to public law and the treaties in force between the two countries and these present stipulations, all such claims as shall, in conformity with this agreement, be laid before them on the part of the Government of the United States; and such declaration shall be entered upon the record of their proceedings.

3. Each government may name an advocate to appear before the arbitrators or the umpire, to represent the interests of the parties respectively.

4. The arbitrators shall have full power, subject to these stipulations, and it shall be their duty, before proceeding with the hearing and decision of any case, to make and publish convenient rules prescribing the time and manner of the presentation of claims, and of the proof thereof; and any disagreement with reference to the said rules of proceeding shall be decided by the umpire. It is understood that a reasonable period shall be allowed for the presentation of the proofs; that all claims, and the testimony in favor of them, shall be presented only through the Government of the United States; that the award made in each case shall be in writing, and, if indemnity be given, the sum to be paid shall be expressed in the gold coin of the United States.

5. The arbitrators shall have jurisdiction of all claims presented to them by the Government of the United States for injuries done to citizens of the United States by the authorities of Spain, in Cuba, since the 1st day of October, 1868. Adjudications of the tribunals in Cuba, concerning citizens of the United States, made in the absence of the parties interested, or in violation of international law, or of the guarantees and forms provided for in the treaty of October 27, 1795, between the United States and Spain, may be reviewed by the arbitrators, who shall make such award in any such case as they shall deem just. No judgment of a Spanish tribunal di allowing the affirmation of a party that he is a citizen of the United States shall prevent the arbitrators from hearing a reclamation presented in behalf of said party by the United States Government; nevertheless, in any case heard by the arbitrators, the Spanish government may traverse the allegation of American citizenship, and therepon competent and sufficient [Page 770] proof thereof will be required. And it is further agreed that the arbitrators shall not have jurisdiction of any reclamation made in behalf of a native-born Spanish subject naturalized in the United States, if it shall appear that the same subject-matter having been adjudicated by a competent tribunal in Cuba, and the claimant having appeared therein, either in person or by his duly appointed attorney, and being required by the laws of Spain to make a declaration of his nationality, failed to declare that he was a citizen of the United States; in such case, and for the purposes of this arbitration, it shall be deemed and taken that the claimant, by his own default, had renounced his allegiance to the United States; and it is further agreed that the arbitrators shall not have jurisdiction of any demands growing out of contracts.

6. The expenses of the arbitration will be defrayed by a percentage to be added to the amount awarded. The compensation of the arbitrators and umpire shall not exceed $3,000 each; the same allowance shall be made to each of the two advocates representing respectively the two governments; and the arbitrators may employ a secretary, at a compensation not exceeding the sum of $5 per day for every day actually and necessarily given to the business of the arbitration.

7. The two governments will accept the awards made in the several cases submitted to the said arbitration as final and conclusive, and will give full effect to the same in good faith and without delay.

I avail myself of this occasion to renew to your excellency the assurances of my most distinguished consideration.

D. E. SICKLES.

His Excellency the Minister of State.