No. 46.
General Schenck to Mr. Fish.
[Extract.]
Legation of
the United States,
London, May 11, 1872.
(Received May 27.)
No. 224.]
[For inclosure in No. 45, see p.
516.]
Sir: When I received last evening from Lord
Granville the draught of the new Article which is proposed by Her
Majesty’s Government as a supplement to the Treaty of Washington, I
hastened to communicate it to you by telegraph. This, with the labor of
carefully preparing it to be transmitted in cipher, made it impossible
to furnish in time for the mail of to-day, copies of the papers, less
important in their character, which accompanied that draught. These
accompanying papers consist of two notes with their respective
inclosures, of all of which I send copies now.
The first is a note of the 10th instant, addressed to me by Lord
Granville, recapitulating in a general and compendious way what had
recently passed between us, and concluding with the information that
although they think it belongs to the Government of the United States to
frame the suggested Article, yet, in order to meet our wishes and to
save any inconvenient delay, they would transmit a draught of an
Article, which if the Government of the United States thinks fit to
adopt will be accepted by Her Majesty’s Government. Accompanying this
note and appended to it are a copy of the draught or memorandum, in
relation to a proposed exchange of notes on the subject, which was
communicated to me on the 6th instant, and a copy of a memorandum which
he made of one of our several interviews, being that of the 8th instant,
when I communicated to him the substance of your telegram of the 7th,
and informed him that the President would be willing to consider, and if
possible would present to the Senate, any new Article which might be
proposed by the British Government.
The second is the brief note from Lord Granville, also of the 10th
instant, with which he transmitted the draught of the Article referred
to in his first.
But the draught which he inclosed was not in fact and precisely, in
terms, the one which I have telegraphed to you. After it had been copied
and prepared to be sent in cipher, Lord Tenterden came in haste to the
Legation from Lord Granville to recall it, and substituted the amended
form which I forwarded to you. I preserve and send you a
[Page 502]
copy of the draught which was withdrawn,
as well as of the one which was finally submitted, simply as marking a
step in the progress of the negotiation.
As these two notes, with their inclosures, were of the same date, and
delivered at the same time, I acknowledged the receipt of the whole
together, stating that I would immediately transmit the Article to you
by telegraph, and that I did not doubt it would be considered at once by
my Government, and the result of that consideration communicated tome
through the same medium, and with as little delay as possible and in the
same friendly spirit in which the proposal of Her Majesty’s Government
had been offered. A copy of my note of acknowledgment is inclosed
herewith.
This evening I have received from Lord Granville a note, for the first
time formally acknowledging the receipt of your dispatch to me of the
16th of April, a copy of which I had communicated to him on the 1st
instant. This note, although dated on the 6th, has obviously just been
written, and is now delivered to me antedated in order to keep up the
chronological sequence and logical connection of the correspondence. I
transmit herewith a copy of it.
* * * * * * *
I have the honor to be, sir, your obedient servant,
[Inclosure 1 in No. 46.]
Earl Granville to
General Schenck.
Foreign
Office, May 10,
1872.
Sir: In replying to the communication which
you made to me on the 8th instant, I think it well to recapitulate
the recent communication which I have had with you on the subject of
the arbitration on the Alabama claims.
On the 29th of April you made an informal communication to me which
you subsequently rendered official, informing me that a proposal
made by this country on a certain basis would be acceptable. Her
Majesty’s Government thereupon decided to assume the initiative, and
they framed upon that basis, as they understood it, the accompanying
draught with a view to an exchange of notes.
This draught, which had been subjected to various alterations to
bring it more closely in conformity with the views which you had
expressed, and to make it, as they believed, more acceptable to the
Government of the United States, was delivered to you on the 6th
instant.
On the 8th instant you communicated to me a telegraphic message,
apparently in reply to this draught, from your Government, of which
I made the accompanying memorandum.
Her Majesty’s Government are by this telegram invited to propose an
Article in addition to or in amendment of the Treaty of the 8th of
May, 1871.
The Treaty is, in the judgment of Her Majesty’s Government, clear and
sufficient, and excludes from the arbitration the claims for
indirect losses advanced by the Government of the United States. It
is therefore difficult for Her Majesty’s Government to take the
initiative in the manner the United States have proposed.
They think that it belongs to the Government of the United States, to
whose friendly suggestions the communications which have taken place
since the date of Mr. Fish’s reply to my letter of the 20th of March
have been due, to frame the suggested Article; yet, in order to meet
their wishes and to save any inconvenient delay, I will transmit to
you a draught of an Article which, if the Government of the United
States think fit to adopt, will be accepted by Her Majesty’s
Government.
I have the honor to be, with the highest consideration, sir, your
most obedient, humble servant,
[Page 503]
[Inclosure 2 in No. 46.]
Memorandum.
The United States Government claim, and insist upon their claim,
that, under the Treaty, claims for the indirect losses which have
been put forward are admissible to be considered by the Arbitrators,
although they do not expect, and never have expected, a pecuniary
award of damages for such claims. Great Britain denies, that such
claims come within the scope or province of the Arbitrators to
consider or decide upon.
The argumentative discussion has ended, leaving each party adhering
to their position.
The United States Government, in this condition of things, have been
willing to accept a proposal from Great Britain that in
consideration of not pressing for a pecuniary award on these
indirect claims, Great Britain would on her part agree to engage not
to advance in the future in any case, when she should be a
belligerent and the United States a neutral, such claims for
indirect damages as .are put forward by the United States Government
in the Case presented on their behalf to the Tribunal of Arbitration
at Geneva, and to make that reciprocally the rule for the future.
Great Britain is understood to object to this on the ground that an
agreement not to press for compensation for these indirect claims is
not sufficient, because the Arbitrators in that case might,
themselves, proceed to take them into consideration and make them
the subject of an award. And, therefore, Great Britain has only been
willing to establish the rule in regard to indirect damages on
condition that the American part of the Case at Geneva which puts
forward these particular claims should be entirely withdrawn from
the consideration of the Arbitrators. The President holds that he
has power to give instructions in regard to the management of the
Case before the Arbitrators, and therefore could direct that these
claims should not be pressed for an award.
But inasmuch as the Government of the United States hold that the
claims are admissible to be considered by the Arbitrators under the
Treaty, he cannot withdraw the claims as not being rightfully pat
forward without its being such an alteration of the terms and
principles of the Treaty as is inconsistent with his understanding
of it, and the interpretation which has been put upon it by his
Government.
The Treaty itself, however, may be amended in such a manner as to
accomplish the object and remove all differences between the two
Governments arising out of their different interpretations of its
provisions.
General Schenck is therefore authorized to state that the President
will be willing to consider, and, if possible, will present for the
consideration of the Seriate, any new article for the Treaty which
may be proposed by the British Government, which, while it settles
the principle involved in the presentation of what are called the
indirect claims, will remove the differences which have arisen
between the two Governments in the consideration of the Treaty.
The President is earnestly desirous to do everything consistent with
his duty and with the great interest for the future of both
countries, and to preserve principles, so important to civilization
as he thinks are involved in the Treaty, of which he is anxious to
prevent the failure, and to this end he is willing to exhaust all
proper efforts as far as can be done without abandoning any
principle and consistently with the honor and dignity of both
Governments.
[Inclosure 3 in No. 46.]
Earl Granville to
General Schenck.
Foreign
Office, May 10,
1872.
Sir: I have the honor to transmit to yon
herewith the draught1 of an Article referred -to in my
preceding note of this day’s date.
I have the honor to be, with the highest consideration, sir, your
most obedient, humble servant,
[Page 504]
[Inclosure 4 in No. 46.]
General Schenck
to Earl Granville.
Legation of the United States,
London, May 10, 1872.
My Lord: I have the honor to acknowledge
the receipt, at 4 o’clock p.m. to-day, of your note of this date, in
which you take occasion to recapitulate some recent communications
we have had with each other on the subject of the Arbitration on the
Alabama claims, and to state briefly, according to your
understanding and note of the transactions, what occurred
subsequently in consequence of those communications. You refer to
and furnish me at the same time with copies of a draught of a
proposed note delivered to me on the 6th instant, and your
memorandum of a conversation I had with you afterward, at an
interview on the 8th instant, in which it was suggested to you to,
propose an Article in addition to, or in amendment of, the Treaty of
the 8th of May, 1871.
This suggestion of a Treaty stipulation, you will remember, was made
in consequence of the failure to obtain from you any draught of a
note which, in the opinion of the Government of the United States,
was in conformity with the proposal which Mr. Fish telegraphed to me
on the 27th of April, as I informed you he was led to expect would
be made.
Your Lordship proceeds’ to say that the Treaty is, in the judgment of
Her Majesty’s Government, clear and sufficient, and excludes from
the Arbitration the claims for indirect losses advanced by the
Government of the United States, and that it is therefore difficult
for Her Majesty’s Government to take the initiative in the manner
the United States have proposed; that Her Majesty’s Government think
it belongs to the Government of the United States, to whose friendly
suggestion the communications which have taken place since the date
of Mr. Fish’s reply to your letter of the 20th of March have been
due, to frame the suggested article; but yet, in order to meet their
wishes and to save any inconvenient delay, you will transmit to me a
draught of an Article, which, if the Government of the United States
think fit to adopt, will be accepted by Her Majesty’s
Government.
And I have also to acknowledge the receipt of another note of this
date from your Lordship, which was delivered to me at the same time,
inclosing the draught of an Article in the preceding one referred
to.
I will hasten to communicate immediately by telegraph this draught to
my Government; and I doubt not it will be considered at once, and
the result of that consideration communicated to me through the same
medium, and with as little delay as possible, and in the same
friendly spirit in which your proposal is offered.
I have the honor to be, with the highest consideration, my Lord, your
Lordship’s most obedient servant,
[Inclosure 5 in No. 46.]
Earl Granville to
General Schenck.
Foreign
Office, May 6,
1872.
Sir: I have the honor to acknowledge the
receipt of Mr. Fish’s dispatch of the 16th April, which you
communicated to me on the 1st instant. I abstain from addressing any
observations to you on the tenor of that dispatch pending the result
of the communications which are now passing between us, and which it
is the earnest hope of Her Majesty’s Government may lead to a
satisfactory settlement of the questions under discussion between
our two Governments.
I have the honor to be, with the highest consideration, sir, your
most obedient, humble servant,
