No. 66.
General Schenck to Mr. Fish.

[Telegram.]

Lord Granville has to-night, after another Cabinet, sent me the following further communication:

[Earl Granville to General Schenck.]

I think it desirable at once to address to you the following observations in addition to what is stated in my letter of yesterday. Her Majesty’s Government proposed an Article on the suggestion of the American Government; that Article has been amended by the Senate. Her Majesty’s Government are not able to find for it, as amended, any means or standard of interpretation; the words appear to include the willful misconduct of a neutral, as well as a failure from want of due diligence. They cannot suppose this to be the meaning of the American Government. Her Majesty’s Government hold all the claims made by the United States for losses which were the direct results of the acts of vessels mentioned in the Treaty, to be claims for indirect losses as the result of the failure to observe neutral obligations. Her Majesty’s Government hold many of the claims for the losses above mentioned to be claims for losses which are remote as well as indirect, while resulting from a failure to observe neutral obligations. Her Majesty’s Government are unable to signify an assent to a form of Article of which they cannot for themselves discover the scope, and with respect to which, owing, probably, to the difficulty of telegraphic communication, they have not been apprised of the meaning which the American Government attaches to it, or of the reasons which have led to its being proposed. If the Government of the United States think it desirable to give the information which Her Majesty’s Government wish to receive on these points, and also think that for that purpose some adjournment of the time of meeting of the Arbitrators at Geneva should take place, Her Majesty’s Government would be ready to agree to any suitable proposal for that purpose, which they presume could only be done by a short treaty between the two Governments.

SCHENCK.