No. 4.
General Schenck to Earl Granville.

My Lord: I have the honor to acknowledge the receipt, on the evening of the 3d instant, of your note of that date, in which, after stating that Her Majesty’s Government have had under their consideration the Case presented on behalf of the United States to the Tribunal of Arbitration at Geneva, you proceed to say that you will not allude to several portions of that Case which are of comparatively smaller importance, but that Her Majesty’s Government are of opinion that it will be in accordance with their desire that no obstacle should be interposed to the prosecution of the arbitration, and that it will be more frank and friendly toward the Government of the United States to state at once their views respecting certain claims, which you describe as of an enormous and indefinite amount, which appear to have been put forward as matters to be referred to arbitration.

You then go on to state that Her Majesty’s Government hold that it is not within the province of the Tribunal of Arbitration at Geneva to decide upon the claims for indirect losses and injuries put forward in the Case of the United States, including the loss in the transfer of the American commercial marine to the British flag, the enhanced payment of insurance, and the prolongation of the war, and the addition of a large sum to the cost of the war and suppression of the rebellion.

Referring, then, to the importance which Her Majesty’s Government attach to the prosecution of the arbitration, you proceed to speak of the objects which Her Majesty’s Government had in view in that arbitration. [Page 427] The primary object, you say, was the firm establishment of amicable relations between two countries which have so many and such peculiar reasons to be on friendly terms; and you add that the satisfaction with which the announcement of the Treaty was received by both nations showed the strength of that feeling.

But you say there is another object to which Her Majesty’s Government believe the Government of the United States attach the same value as they do themselves, namely, to give an example to the world how two great nations can settle matters in dispute by referring them to an impartial tribunal.

And you close your note with the statement that Her Majesty’s Government on their part feel confident that the Government of the United States are also equally anxious with themselves that the amicable settlement, which was stated in the Treaty of Washington to have been the object of that instrument, may be attained, and that an example so full of good promise for the future may not be lost to the civilized world.

The purpose of Your Lordship’s writing appearing to be to notify me of the opinions which Her Majesty’s Government hold as to the power of the Tribunal of Arbitration to decide upon certain claims for indirect losses and injuries put forward in the Case of the United States, I shall hasten to communicate your note with this information to my Government.

In the mean time, I venture to assure Your Lordship that the Government of the United States will be gratified by this renewed assurance of the desire of Her Majesty’s Government that no obstacle should be interposed to the prosecution of the arbitration, and by the frank and friendly terms in which this statement of their views is made to me. The objects which the Government of the United States proposed to itself in the Treaty, and the arbitration for which it provides being identical with those stated by Your Lordship—that is, the firm establishment of. amicable relations between the two countries and the giving to the world an example showing how two great nations can settle matters in dispute by referring them to an impartial tribunal—I can further assure Your Lordship that my Government does reciprocate most fully and earnestly the anxiety that the speedy settlement by arbitration, which was provided for by the Treaty of Washington, may be attained, so that, as Your Lordship has eloquently expressed it, an example so full of good promise for the future may not be lost to the civilized world.

I have the honor to be, with the highest consideration, My Lord, Your Lordship’s most obedient, humble servant,

ROBT. C. SCHENCK.