Mr. Tower to Mr. Hay.

No. 214.]

Sir: Subsequently to my conversation with the Imperial Russian minister for foreign affairs, the purport of which I had the honor to communicate to you in my dispatch No. 206, of the 31st of March, relating to the modification, in the proposed protocol for the arbitration of the whaling and sealing claims against the Russian Government, of the phrase “and of international agreements applicable to the subject,” I addressed to the Count Mouravieff, on the 29th of March, a note of which I respectfully inclose a copy herewith.

I repeated in that note, as he had requested me to do, the objections to that phrase expressed by you on account of its lack of definiteness, [Page 868] and 1 called his attention once more to the unwillingness of the United States Government to accept a provision of the agreement to arbitrate which was so obscure of purpose as this, or to bind itself by an expression which left it quite uncertain from our point of view what specific kinds of agreements are to be held to be applicable.

I argued also that it could not be supposed that either international agreements subsequently made, or principles of international law subsequently accepted as such, could be made retroactive and applicable to the cases in hand if they were not in existence and not recognized at the time when the seizures of these vessels actually took place.

But I offered, under the authority already given to me by you, of which I had availed myself previously in my personal interview with the minister for foreign affairs, to accept the phrase on behalf of the United States Government, provided the following language, in substance, should be added:

But, in rendering his decision, the arbitrator shall be governed by the law actually in force and binding upon the parties to the controversy at the time when the seizures were respectively made.

On the 22d of March (4th of April) M. de Mouravieff replied to me by a note, of which I have the honor to inclose to you a copy herewith.

He declares, as you see, that, while the Imperial Government appreciates the readiness of the United States to admit the phrase now under discussion, since “it is undeniable that the arbitrator must be governed by such international agreements as he may consider applicable to the subject. The Imperial Government does not hold it to be necessary to make the addition proposed,” because, in the opinion of the Government, “it is important to avoid going into any detailed specification as to what agreements the arbitrator shall base his decision upon, in order not to restrict in the least his freedom of judgment, which is to be considered in law and in fact as absolute.”

The Russian Government is thus exceedingly tenacious of its point of view, and has again refused to accept any modification of this objectionable phrase, even upon the liberal basis upon which we have offered to treat; for you will recall the fact that before proposing the perfectly just qualification, that no international agreements shall be given a retroactive force in order to make them applicable in the sense here understood, we have offered heretofore to cut out the phrase entirely, and leave the decision to the learning and wisdom of the arbitrator without any qualification whatever.

We are met now, however, by the objection that we must not restrict the freedom of judgment of the arbitrator. And I regret to say that we are again temporarily held in check, and unable to take up the more important questions of the arbitration and the arguments of counsel for the parties in interest and the Government itself.

I do not despair, however, even yet, of reaching ultimately an agreement as to this small and troublesome difference which shall be satisfactory to both participants in the controversy; and I shall confer with the imperial minister of foreign affairs immediately to that end.

I beg leave in the meantime to report to you the exact position of the matter to-day.

And in this connection I venture to suggest that as this question has developed to such an extent that it has attained the proportions of an international litigation, and is so regarded by the Russian Government, the Government of the United States will of course so consider it and [Page 869] so direct the proceedings of the arbitration. These cases are likely to be argued with very great skill upon the Russian side—the note, of which I inclose a copy herewith, may serve to forecast this—and, while I have no information as to whom the Government intends to select as counsel to watch the interest of the United States, I trust I may not be going too far if I refer to the necessity of intrusting that duty to an international lawyer whose skill and experience in matters of this kind may enable him to face any adversary he may encounter in the course of this contest.

Another point to which I ask permission to refer is the adoption of French as the language of intercourse during the proceedings before the arbitrator. I have reported to you heretofore the request of the Russian Government that this should be done, but as yet I have not received your reply in regard to it. There can be no doubt that by adopting the French language the progress of the arbitration will be greatly facilitated; for if we insist upon making our arguments in English—which of course we may do—the Russian arguments will all be sent to us in Russian, a not very agreeable anticipation for the counsel either of the Government or of the respective individual parties in interest.

I have, etc.,

Charlemagne Tower.
[Inclosure 1.]

Mr. Tower to Count Mouravieff.

Excellency: In compliance with your request made yesterday when I had the honor to discuss with you the question of the form of protocol intended to be used in the arbitration between the Imperial Russian Government and that of the United States in regard to the seizure of certain American vessels, I beg leave to confirm what I then announced to your excellency, that the Government of the United States, appreciating the willingness of the Imperial Government to adopt the principle of arbitration in this case, which it regards as one of the most auspicious steps recently taken in the interest of peace and justice among nations, earnestly hopes that the slight difference of opinion as to one phrase in the language of the protocol may be speedily adjusted to the complete agreement and satisfaction of both high contracting powers.

This phrase, as your excellency will remember, is that which provides that the arbitrator, in giving his judgement upon the questions submitted to him by the parties in interest, shall take note of the rules of international law, and also of the “spirit of international agreements applicable to the subject.”

The Government of the United States, upon mature consideration of the protocol which I had the honor to transmit to Washington in accordance with your excellency’s request, regards this phrase as not sufficiently definite in meaning. It would have this language made to express more precisely than it does in its present form what specific class of international agreements the arbitrator shall be authorized to consult in order to determine the spirit which is applicable to the subject now in hand.

I have already had the honor upon several occasions to call your excellency’s attention to this wish of the United States Government.

I venture to believe that your excellency has been constantly in accord with me in the discussion of the principles here involved, in so far, at least, as to agree that, in considering the questions of law submitted to him in this arbitration, the arbitrator must take cognizance of the rules of international law as they existed at the time when the seizures of the vessels occurred.

It is not understood that rules of law which may be recognized to-day but were unknown then can be given a retroactive force so as to make them apply to the [Page 870] occurrences which took place at a time when these rules were not yet accepted as law.

No more could any international agreement now existing be made ex post facto to govern the cases which relate to conditions prior to its existence. And if the spirit of international agreements is to be regarded as applicable to this subject, I have the honor to submit to your excellency that it must apply only to the spirit of such international agreements as were actually in force and applicable to the subject at the time when these seizures took place.

This is the view taken of the question by the Government of the United States, which I venture to believe does not differ in principle from that of your excellency.

I have already had the honor to propose in my note addressed to you on the 29th December, 1899 (12th January, 1900), that the phrase relating to the “spirit of international agreements “might be eliminated entirely from the language of the protocol. But as the Imperial Government has hitherto insisted upon the retention of that provision I beg to suggest that the Government of the United States will assent to its inclusion on condition that the following language, in substance, be added:

“But in rendering his decision the arbitrator shall be governed by the law actually in force and binding upon the parties to the controversy at the time when the seizures were respectively made.”

I avail myself, etc.,

Charlemagne Tower.
[Inclosure 2.]

Count Mouravieff to Mr. Tower.

(Translation.)

No. 1652.]

Monsieur l’Ambassadeur: I have had the honor to receive your excellency’s note of the 16th (29th) of March announcing the acceptance by the Government of the United States of the clause suggested by the Russian Government, in the protocol for the arbitration relating to the seizure of the American schooners, which provides that the arbitrator shall be governed by the general principles of international law and by international agreements applicable to the subject, but asking, at the same time, that the following language shall be added:

“But in rendering his decision the arbitrator shall be governed by; the law actually in force and binding upon the parties to the controversy at the time when the seizures were respectively made.”

The Imperial Government appreciates highly the spirit of justice with which the Government of the United States has embraced the opportunity to admit into the text of the protocol the passage setting forth expressly, as one of the bases of the arbitrator’s decision, the principle, which appears to be unquestionable, that the arbitrator shall be governed by such international agreements as he may consider applicable to the subject.

But the Imperial Government does not hold it to be necessary to add the language proposed in the note of the 16th (29th) March, because, in its opinion, it is important to avoid any detailed specification of the international agreements upon which the arbitrator shall base his decision, in order not to restrict in the least his liberty of action, which ought to be, in law and in fact, absolute.

This was the view of the character of an arbitrator called upon to decide international differences which was taken at the peace conference held last year at The Hague.

The Imperial Government is solicitous to such a degree in maintaining in practice this view that it must insist upon the complete independence of the arbitrator’s judgment and upon the high station reserved for the arbitrator himself, charged as he is by the confidence of both parties to settle the differences which have arisen between them.

We hope, therefore, that these reasons will not escape the enlightened judgment of the United States Government, and that it will appreciate the circumstances which have made it impossible for the Imperial Government to enter in advance into an examination of the specific grounds upon which the arbitrator shall render his final decision after having heard the arguments presented to him by the parties on both sides.

I avail, etc.,

Count Mouravieff.