No. 38.
Earl Granville to Sir E. Thornton.

[Extract.]

[From British Blue Book “North America,” No. 9, (1872,) p. 10.]

With reference to my other dispatch of this day’s date, I have to inform you that I saw General Schenck again after the meeting of the Cabinet, and told him that the Cabinet had considered the report which I made to them of our conversation of this morning, the message from Mr. Fish, and the three personal suggestions of General Schenck as to the mode of executing Mr. Fish’s proposals.

I stated that they saw objections to the three modes proposed, and were not themselves prepared to frame an Article. They thought it would be better to return to the proposal of an interchange of notes. They understood that the proposal of an Article was intended by Mr. Fish to obviate a difficulty occasioned by the form of words as to the agreement which the United States was to make. They were willing to substitute for the words “having regard,” &c., the words, “will not bring the indirect claims before the Tribunal” for consideration.

If required to do so, I could give some explanation of the principle “founded on the heretofore presented,” &c.