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thinks that the same may be said of that now proposed by Lord Gran ville; it appears to him to leave a large class of very probable cases unprovided for, and he holds that the result of bad faith, or of willful misconduct toward either of these two Governments, will never be the subject of pecuniary compensation.

I have suggested to Sir Edward Thornton that we sign the Article as recommended by the Senate, and thus put it in operation, and allow the arbitration to proceed.

It is not believed that there is any such difference of object between the two Governments in the definition and limitation which each desires to place upon the liability of a neutral, as to prevent an agreement on the language in which to express it, if time be allowed for an exchange of views by some other means than the telegraph.

There is no probability of a practical question on the extent of that liability arising immediately.

This Government is willing at once to enter upon negotiations for the purpose of ascertaining whether language can be employed which shall more clearly express the views which it is believed are entertained by both parties.

FISH.

[From British Blue Book "North America," No. 9, (1872,) p. 33.]

No. 77.

Earl Granville to Sir E. Thornton.

FOREIGN OFFICE, May 31, 1872.

SIR: I send you the draught of a Convention for adjourning the period for the presentation of the arguments under the Vth Article of the Treaty of Washington, to be used, however, by you only in case of the new Treaty Article proposed by us not being agreed to, and an adjournment being agreed to, in which case you are authorized to sign it as it is now sent to you.

I am, &c.,

GRANVILLE.

[Inclosure in No. 77.J

Sketch of a Convention.

Her Majesty the Queen of the United Kingdom of Great Britain and Ireland, and the United States of America, deeming it expedient to extend the time assigned in the Vth Article of the Treaty of Washington, of the 8th of May, 1871, for the delivery in duplicate to each of the Arbitrators appointed under the Ist Article of the said Treaty, and to the Agents of the respective parties, of the written or printed argument, showing the points and referring to the evidence upon which each of the said parties respectively relies, in regard to the matters submitted by them for arbitration under the afore said Ist Article, they have agreed to conclude a Convention for that purpose, aud have accordingly named as their Plenipotentiaries :

That is to say, &c.

ARTICLE I.

The High Contracting Parties agree that the period appointed under the Vth Article. of the Treaty of Washington, of May 8, 1871, for the delivery in duplicate to each of the Arbitrators, and to the Agents of the respective High Contracting Parties, of the written or printed argument, showing the points and referring to the evidence upon which each of the said parties respectively relies, in regard to the matters submitted by them for arbitration under the Ist Article of the aforesaid Treaty, shall not be insisted on, but that it shall be open to the High Contracting Parties, within the period of three months from the date of the exchange of the ratifications of the present Convention, jointly to notify, through their respective Agents to the Arbitrators, the day on which those Agents will be prepared to deliver at Geneva the said arguments to the Arbitrators.

ARTICLE II.

A copy of this Convention shall be forthwith communicated by the Agents of the High Contracting Parties to the several Arbitrators.

ARTICLE III.

The present Convention shall be ratified, and the ratifications exchanged at London, within weeks from the date thereof.

[From British Blue Book "North America," No. 9, (1872,) p. 46.]

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WASHINGTON, May 31, 1872. (Received June 11.)

I received a visit from Mr. Fish early in the morning of the 29th instant, when he read to me a telegram he had received from General Schenck, a copy of which was forwarded in your telegram of the 28th instant.

Mr. Fish said that he could not entirely understand the ground of your Lordship's objections to the supplementary Article as recommended by the Senate. He went on to say, that as the session was now so near its close, and as there was an immense amount of business still to be got through, he believed that it would be quite impossible to obtain an Executive Session for the purpose of taking into consideration even so short a Treaty as would be necessary to agree upon an adjournment of the meeting of the Tribunal of Arbitration, more particularly as in transmitting such a Treaty to the Senate for its sanction, it would be necessary to state that the supplementary Article recently recommended by that body had been rejected by Her Majesty's Government,. and to accompany that statement by the confidential telegrams which had passed between General Schenck and himself upon the subject.

Mr. Fish added, that even if such a Treaty of adjournment were signed and ratified, there would still be the same difficulty about making a convention as to the course which was to be pursued with regard to indirect claims. It could not be done immediately, and it would be a matter of great difficulty to convoke the Senate in Extraordinary Session during the summer for the purpose of ratifying such a convention. It could not, therefore, be submitted to the Senate till it met in December next, and it could not be foreseen when it might be taken

into consideration; and it would, therefore, be very difficult to decide until what date the meeting of the Tribunal should be postponed.

It is at present difficult to prevent members of Congress from availing themselves of any opportunity to interrupt the most necessary and pressing business, and to make violent party speeches in both Houses.

No. 246.]

No. 79.

General Schenck to Mr. Fish.

LEGATION OF THE UNITED STATES, London, June 1, 1872. (Received June 13.) SIR: I transmit herewith a copy of Lord Granville's note to me of the 30th May, communicating, on the part of Her Majesty's Government, another amended draught Article, received at 2.45 yesterday morning, and of which, both note and amended Article, I sent you the full text by telegraph early the same morning.

I transmit also a copy of my note to Lord Granville, acknowledging the receipt of the above-mentioned communication, and informing him that I would immediately telegraph his note and the new draught to you; and a copy of my note to him sent at midnight last night, conveying to him a copy of your telegram of yesterday received at that hour.

It is now afternoon, and I have as yet heard nothing from his Lordship in answer, or in relation, to that telegram.

I have the honor to be, sir, your obedient servant,

ROBT. C. SCHENCK.

[Inclosure 1 in No. 79.]

General Schenck to Earl Granville.

58 GREAT CUMBERLAND PLACE, HYDE PARK, W., Friday, 2.45 a. m., May 31, 1872.

MY LORD: I have just been called from my bed to receive your note, dated the 30th, putting me in possession of another form of a draught Article which Her Majesty's Government would be prepared to accept if adopted by the Government of the United States.

I will hasten to communicate your note and the draught to Mr. Fish by telegraph, so that they may reach Washington at the earliest possible hour for consideration there. I'am, my Lord, with the highest consideration, your Lordship's most obedient servant, ROBT. C. SCHENCK.

[Inclosure 2 in No. 79.]

General Schenck to Earl Granville.

58 GREAT CUMBERLAND PLACE, May 31, 1872, midnight.

MY LORD: I have just received from Mr. Fish a telegraphic dispatch, of which I hasten to communicat to you the inclosed copy.

I have the honor to be, my Lord, with the highest consideration, your Lordship's most obedient servant,

ROBT. C. SCHENCK.

No. 80.

Mr. Fish to General Schenck.

[Telegram.]

WASHINGTON, June 1, 1872.

The fifth Article of the Treaty requires the written arguments to be presented by the 15th June.

The adjournment of the Tribunal without amending that Article would, as we are advised, practically amount to a discontinuance, and that Article can be amended only by a new treaty.

The opinion attributed to me regarding the Senate Article is very incorrectly represented.

FISH.

No. 81.

General Schenck to Mr. Fish.

[Telegram.]

LONDON, June 1, 1872. (Received 3.50 p. m.)

Your telegram of yesterday was received at midnight, and immediately communicated to Lord Granville, who has just sent me an answer as follows:

[Earl Granville to General Schenck.]

SIR: In reply to the communication which I received from you this morning, I beg to inform you that Her Majesty's Government hold that by the Article adopted by the Senate, cases of bad faith and willful, misconduct are brought within the scope of the proposed agreement, which deals with pecuniary compensation. It appears to be the view of the Government of the United States that such cases are not a fit subject of pecuniary compensation, and I am informed by Sir Edward Thornton that Mr. Fish is of opinion that the Article adopted by the Senate is capable of improvement. The President thinks that the Article last proposed by Her Majesty's Government is also capable of improvement. The American Government state that "it is not believed that there is any such difference of object between the two Governments in the definition and limitation which each desires to place upon the liability of a neutral as to prevent an agreement on the language in which to express it if time be allowed for the exchange of views by some other means than the telegraph." The British Government must decline to sign a treaty which is not in conformity with their views, and which does not express the principles which the American Government believes to be entertained by both parties to the negotiation, and which, immediately after being signed, would become the subject of negotiation with a view to its alteration. In this position they repeat their readiness to extend the time allowed for the Arbitrators to meet at Geneva, and they have, as you are aware, provided Sir Edward Thornton with full powers to sign a treaty for this purpose, or they are willing to concur in a joint application to the Tribunal of Arbitration at once to adjourn the proceedings of the Arbitration, which they are advised it is within the competence of the Arbitrators to do upon such an application without a fresh treaty.

35 A-II

SCHENCK.

No. 82.

Mr. Fish to General Schenck.

[Telegram.]

WASHINGTON, June 2, 1872.

Although by a literal construction of the Senate Article, cases of bad faith or willful misconduct may be held to be within its scope, it is inconceivable that such cases can ever be the subject of diplomatic corre spondence with a view to pecuniary compensation between two Powers such as those now concerned.

FISH.

No. 83.

General Schenck to Mr. Fish.

[Telegram.]

LONDON, June 2, 1872. (Received 1.20 o'clock.)

Your telegram of yesterday just received. I will communicate it to Lord Granville to-morrow. Must I say it is final? They hold here that after the Arbitrators have received the arguments from the Agents on the 15th they may adjourn for a time, and would doubtless do so on joint request of the two Governments; that the power to adjourn is incident to the character of the Tribunal, reference being had only to the seventh Article of the Treaty, which requires a decision to be made, if possible, in three months. In this view I certainly concur, but have not expressed my opinion to any one. If the ministry were to enter into any such arrangement, putting in their argument and trusting to the chance of negotiating a supplementary Article afterwards, they must expect denunciation in Parliament; but that would be their concern, not ours. I heard from Davis last week that our argument would be ready by the 15th, and Lord Granville told me theirs would be.

SCHENCK.

No. 84.

Mr. Fish to General Schenck.

[Telegram.]

WASHINGTON, June 2, 1872.

Confidential. We concur in the opinion that the Arbitrators have the power to adjourn either on their own motion or on the motion of either party.

If the arguments be put in on both sides on 15th, and Great Britain move for an adjournment, this Government will concur.

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