Mr. Tower to Mr. Hay.

No. 152.]

Sir: I have the honor to inform you that in compliance with the instructions contained in the dispatch No. 89 of Mr. Hill, Acting Secretary, [Page 861] dated the 28th of September, 1899, in regard to certain modifications which the Government of the United States wished to have made in the wording of the protocol proposed by the Imperial Russian Government to be used in arbitrating the claims which have grown out of the seizure of the American vessels, James Hamilton Lewis, C. H. While, Kate and Anna, and Cape Horn Pigeon, the said modifications were duly presented to the Imperial Russian ministry of foreign affairs by Mr. Peirce, chargé d’affaires ad interim.

The modifications as contained in the memorandum which accompanied Mr. Hill’s dispatch were apparently acceptable to the Russian Government, though, as Count Mouraview, the Imperial minister of foreign affairs, was then abroad upon leave, the gérant of the ministry, Count Lamsdorff, requested Mr. Peirce to confer upon this subject with Professor de Martens, who acts as counsel for the ministry in similar cases.

Mr. Peirce thereupon saw Professor de Martens, with whom he discussed the modifications proposed by the United States Government, and obtained from him the impression that they would be found quite acceptable to the Imperial Government and would be introduced into the protocol.

Professor de Martens was very unwilling, however, to omit from the protocol the phrase, “and the spirit of international agreements bearing upon the subject,” in connection with the method in which the arbitrator should arrive at his decision. But upon the representation that this phrase was not entirely acceptable to the Government of the United States he consented to waive it, and Mr. Peirce understood that he would so advise the Imperial minister of foreign affairs.

I have received to-day, however, from the Count Lamsdorff a note (a translated copy of which I have the honor to inclose to you herewith), in which he declares that the Imperial Government insists upon retaining the phrase, “and the spirit of international agreements bearing upon the subject,” upon the ground that it is essential to the arbitration, and that the decision as to what is relevant to the subject in this connection should be left to the arbitrator himself to decide.

The Imperial Government also proposes that the arguments of each of the contestants shall be made in the French language, in order to facilitate the interchange of memoranda and give greater celerity to the transactions than if the American side were presented in English and the Russian in Russian.

I inclose, also, herewith a copy of Mr. Peirce’s letter of the 20th of October to Professor de Martens, which is referred to in the note of Count Lamsdorff.

I request the instructions of the Government for my further direction in this negotiation.

I have, etc.,

Charlemagne Tower.
[Inclosure 1.]

Count Lamsdorff to Mr. Tower .

[Translation,]
No. 5719.]

Mr. Ambassador: Mr. Privy Counsellor Martens has sent me the letter which Mr. Peirce had the goodness to address to him on October 20, transmitting to him a new draft for the protocol to be exchanged between the Imperial Government and that [Page 862] of the United States on the subject of the arbitration procedure in the affair of the American vessels James Hamilton Lewis, C. H. White, Kate and Anna, and the Cape Horn Pigeon.

The Imperial Government has no objection to make for its part to the modifications contained in the new draft, except on the two following points: The draft in question does not contain the clause mentioned in the ministerial notice of August 16, stipulating that the arbitrator shall be guided by “the spirit of international agreements bearing upon the subject;” the imperial ministry of foreign affairs finds itself obliged to insist that the stipulation in question be introduced into the text of the protocol. In the opinion of the Imperial Government there can be no objection to the clause in question since it refers to agreements applicable to the subject. It is for the arbitrator to decide to what extent the agreements which might be cited could be made applicable to the present litigation.

The Imperial Government further considers that, with regard to the official languages to be employed in the course of the proceedings as regards the communications of the parties and the decision of the arbitrator, it is desirable, that uniformity be observed. To this end the use of the French language, as in general use in diplomatic correspondence, seems to it indicated in the present case, for otherwise, if each of the parties made use of his native language, this fact would impede the progress of the proceedings and render the task of the arbitrator more difficult.

Please to accept, etc.,

Count Lamsborff.
[Inclosure 2.]

Mr. Peirce to Professor de Martens.

Your Excellency: Referring to our recent conversations regarding the protocol of the arbitration between the Imperial Government and the Government of the United States to adjudicate the claims arising out of the seizure of certain American vessels by officials of the Imperial Government, I have the honor to inclose herewith an amended copy of the Russian draft of the protocol conforming to certain changes desired by my Government, and certain other changes which, in the course of our conversations on the subject have appeared to be advisable, to all of which we have mutually agreed, subject on the part of each of us to the approval of our respective Governments.

For convenience in comparison I have marked with red ink those passages in which the text of the original Russian draft has been altered.

I avail, etc.,

Herbert H. D. Peirce.