No. 64.
General Schenck to Mr. Fish.
I communicated your telegram of yesterday to Lord Granville. He submitted it to the Cabinet, who took it under long consideration. He has just given me their answer. It is as follows:
Her Majesty’s Government are of opinion that the definition by the Senate of the principle which both Governments are prepared to adopt for the future is so vague that it is impossible to state to what it is or is not applicable, and they believe that it would only lead to future misunderstandings. They prefer the article as they had draughted it, but have no objection to accept the article in the form proposed by the Senate, with the substitution of the words “of a like nature,” for the words “for remote or indirect losses,” and the substitution of the words “such want of due diligence on the part of a neutral,” for the words “the failure to observe neutral obligations.”
In reply to my inquiry of Lord Granville, whether any possible interpretation of the form proposed by the Senate would be held by them to prevent taking before the Arbitrators, to be considered by them in making their award, that part of the claims which relates to the cost of pursuit and capture of cruisers, he states that he must on behalf of Her Majesty’s Government decline to answer my question as to the effect of the Article as altered by the Senate, or to state what possible construction it may bear. Lord Granville says he has informed Sir Edward Thornton that he may tell you Her Majesty’s Government will not insist on the words you desire to omit from the preamble if you will give assurance in writing that the United States will agree to the form of note he proposed communicating the Convention on the part of the two [Page 529] Governments to the Tribunal of Arbitration. Lord Granville tells me confidentially that Thornton informed him you had stated that the Committee on Foreign Affairs was ready to recommend the following form:
And whereas the Government of the United States contend that the said claims were included in the Treaty, now the two Governments agree that the principle involved in the second of the contentions hereinbefore set forth by Her Majesty’s Government will guide their conduct in future in their relations with each other.
Which proposal he says they were prepared to adopt.