Mr. Choate to Mr. Hay.

No. 274.]

Sir: Since my No. 268, of the 3d instant, inclosing copy of my note to Lord Salisbury dated the 1st instant, I have the honor to report that I received, on the 4th instant, a note from Lord Salisbury, dated the 29th ultimo (copy inclosed), the main points of which I sent to you in my cable dated the 6th instant. You will observe that Sir Alfred Milner’s telegram dated the 23d ultimo, referred to in Lord Salisbury’s note of the 28th ultimo, above mentioned, states that the United States consul-general at Cape Town sent in to him a list of consignments showing the names of the American owners of goods on board the Mashona, many of which on inquiry he found had been claimed by other parties, and on the 22d ultimo the consul-general sent in a further list, which did not show the names of the owners of the goods. Two of the consignments shown in this second list were, it is stated, claimed by a Russian subject.

The consul-general was accordingly informed that it would be impossible for the high commissioner to go to the court on the information so far furnished, especially as regards proof that any loss accruing would fall on United States citizens. He was further informed, however, that if these particulars could not be obtained by the 2d of March that Sir Alfred Milner would be ready to consider any representations that might be made to him, and to give all possible assistance even in the event of the goods having been consumed.

To-day I received a further note from Lord Salisbury, dated the 3d instant (copy inclosed), respecting the case of the Beatrice, the substance of which is contained in my cable of this date. This note is in answer to mine of the 6th ultimo.

You will observe that his lordship takes issue with me in regard to the position I took in my note to him on the 6th ultimo in respect to the damages due to the owners of the cargo, on account of the failure [Page 604] of the ship to deliver it at the port of destination, but if, as it now appears most likely, Her Majesty’s Government is willing to purchase all the flour at a given price, the contention set forth in his lordship’s note would seem to be of a purely academic nature.

I therefore stated in my telegram to you of to-day, already mentioned, that the price offered, if accepted, would, I assumed, cover all claims for damages to goods so purchased.

Meanwhile I am daily expecting an answer to the special case of the Pennsylvania Milling Company’s goods, which I have reason to believe will be treated separately.

I shall do what I can when I see Lord Salisbury, as I expect to do to-day, to secure the release of the Mashona, so that she may resume her regular service between New York and the British ports of South Africa; although, in view of his Government’s definite purpose to prevent any violation by British ships of their municipal law, it may be a little embarrassing.

I have, etc.,

Joseph H. Choate.
[Inclosure 1.]

Lord Salisbury to Mr. Choate.

Your Excellency: With reference to my note of the 9th instant, respecting the case of the Mashona, I have the honor to inform you that it appears from a telegram from Her Majesty’s high commissioner for South Africa, dated the 23d instant, that the United States consul-general sent in a list of consignments showing the names of the American owners of goods on board that vessel.

On inquiry, however, Sir A. Milner ascertained that many of these consignments had been claimed by other parties.

On the 22d instant the United States consul-general sent in a further list, which did not, however, show the names of the owners of the goods. The high commissioner has since ascertained that in the case of two of the consignments shown in this second list the claimant before the prize court states in an affidavit that he is a Russian subject.

The high commissioner has accordingly informed the consul-general that it is impossible to go to the court on the information with which he has so far been furnished, and that between now and the 2d proximo he hopes to receive further particulars of each case, especially as regards proof that any loss accruing would fall on United States citizens. He has added that if these particulars can not be obtained by the time mentioned he will be ready to consider any representations that may be made to him and to give all possible assistance, even in the event of the goods having been consumed.

Sir Alfred Milner hopes that it is understood that the difficulties which have arisen in connection with dealing with the matter are due entirely to the impossibility of at once obtaining the necessary information on the various points involved.

I have, etc.,

Salisbury.
[Inclosure 2.]

Lord Salisbury to Mr. Choate.

Youe Excellency: I have had under my consideration your note of the 6th ultimo, respecting the case of the Beatrice, and I have the honor to inform you that Her Majesty’s Government are prepared to buy such flour, being owned by United States citizens, as was taken out of that vessel, paying for it the price it would have fetched at Lourenço Marquez on the day on which it would have arrived there had the voyage of the ship conveying it not been interrupted.

In carrying out this purchase Her Majesty’s Government, as already stated in my [Page 605] note of the 9th ultimo, are prepared to accept the intermediation of the United States consul under the conditions therein stated; but the transaction can not be completed until clear evidence that the goods concerned are owned by United States citizens is forthcoming and until it is known to whom the purchase money in respect of them should be paid.

With regard to your excellency’s observations as to the damages due to the owners of the cargo on account of the failure of the ship to deliver it at the port mentioned in the freight contract, it would appear that any claim for damages (assuming such | claim to be sustainable at law, a matter which will apparently depend on the terms of the contract of carriage) should properly be brought by the owners of the goods against those who entered into or became responsible for the execution of a contract for delivery which they failed to perform. Her Majesty’s Government are unable to admit that they are in any way liable in damages to the owners of the flour, as its detention has been due entirely to the circumstance that the vessel was unable to complete its voyage, owing to the fact that such voyage was illegal by the law of the flag under which the vessel was sailing.

I have, etc.,

Salisbury.