Mr. Newel to Mr. Hay.

No. 331.]

Sir: I am pleased to be able to report that I called with the Russian minister at noon to-day upon Mr. Asser, member of the council of state of the Netherlands, and we asked him if he would assume the office of arbitrator in the matter of the claims of American citizens for the seizure of their vessels in the northern Pacific Ocean by Russia if it should be offered to him, and then what amount of compensation he would deem adequate.

He consented to act as arbitrator with great cordiality, but as to the compensation he could not have any idea at this time, as it is impossible to know how much labor and time may be necessarily employed. He assured us he regarded it as a great honor to be selected, and that the honor was more to him than any consideration of money, and that he preferred to leave the amount of his compensation to be determined by the parties to the convention.

Both the Russian minister and myself appreciated the importance of settling this question of compensation at this time, but we were obliged to leave it undetermined.

I have, etc.,

Stanford Newel.