No. 34.
General Schenck to Mr. Fish.
Your telegram of yesterday was received this morning.
After some discussion, Lord Russell’s motion was postponed yesterday to next Monday, on Lord Granville’s promise that on or before that day he would produce the correspondence or make a statement as to the position of the negotiations now going on. This was only acceded to upon a distinct assurance being given that the Government would not retract its position, that the claims for indirect damages are not within the intention and scope of the reference. To this I am sure they will adhere if no agreement or adjustment be made between now and next Monday. I have little doubt that they will make a declaration which will be decisive against submission to arbitration, and will have the nearly, if not quite, unanimous support of both Houses of Parliament. Desirable and important as it is to both parties and to all nations to have a decision of the Arbitrators, that a nation is not responsible in [Page 492] pecuniary damages for consequential results of failure to observe neutral obligations, I see no chance of getting this Government to agree in terms to a submission so as to obtain such decision; they will not consent to unite in asking the Tribunal for an opinion on the question, although we assure them that we expect, and they have every reason to feel confident, that that opinion would be against affirming such national responsibility.
The above portion of this telegram I have read to Lord Granville, and have his admission that it is a correct statement. May I hope that if you do not mean to decide that no other way can be found out of the controversy, and therefore the arbitration and Treaty must fail, you will conclude to instruct me explicitly on their proposals communicated to you in my telegrams of the 5th and 6th?
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