Mr. Blaine to Sir Julian Pauncefote.

Sir: Your note of the 27th ultimo, covering Lord Salisbury’s reply to the friendly suggestion of the President, was duly received. It was the design of the President, if Lord Salisbury had been favorably inclined to his proposition, to submit a form of settlement for the consideration of Her Majesty’s Government which the President believed would end all dispute touching privileges in Behring Sea. But Lord Salisbury refused to accept the proposal unless the President should “forthwith” accept a formal arbitration, which His Lordship prescribes.

The President’s request was made in the hope that it might lead to a friendly basis of agreement, and he can not think that Lord Salisbury’s proposition is responsive to his suggestion. Besides, the answer comes so late that it would be impossible now to proceed this season with the negotiation the President had desired.

An agreement to arbitrate requires careful consideration. The United States is perhaps more fully committed to that form of international adjustment than any other power, but it can not consent that the form in which arbitration shall be undertaken shall be decided without full consultation and conference between the two Governments.

I beg further to say that you must have misapprehended what I said touching British claims for injuries and losses alleged to have been inflicted upon British vessels in Behring Sea by agents of the United States. My declaration was that arbitration would logically and necessarily include that point. It is not to be conceded, but decided with other issues of far greater weight.

I have, etc.,

James G. Blaine.