No. 6.
General Schenck to Mr. Fish.


Granville informed me confidentially last night that Thornton has telegraphed him that Washington Cabinet has rejected your draught of reply to his note, and taken further time to consider, but that you have suggested he should make some proposal. He then said to me that in his note of third he had stated the views of Her Majesty’s Government as to indirect claims; that there were other portions of American Case they regret, and some of which appear to introduce matters not germane to reference; that he has not been able to consult Cabinet here, but is individually prepared to recommend to them, and thinks with reasonable expectation of success, that they should not press for withdrawal, of American Case, if the Government of the United States will undertake that their Agent shall inform Arbitrators at or before their meeting in June that the United States do not ask award on indirect claims, nor that such claims should be taken as an element of consideration in a gross award, nor brought forward in case of reference to assessors.

I made no comment, except to say that this was only equivalent to asking us to withdraw our Case, and I gave no intimation of belief that it could be accepted.