No. 72.
Memorandum communicated by General Schenck, May 30, 1872.

[From British Blue Book “North America,” No. 9, (1872,) p. 32.]

I assume that your object, like ours, is to affirm the principle that neutrals are not to be held liable for indirect and remote damages which may be the result of a failure to observe neutral obligations, and to establish that principle, as a rule, to be observed between our two nations. Your proposed form of Article, as it was amended by the Senate, we think does that. You think it is too vague. We think your proposal, either as originally made, or as modified by your proposed amendment of the language of the Senate, would be altogether uncertain as a rule in practice, confines itself to hypothetical cases which may never occur; and, instead of recognizing and applying the general principle, limits the rule to some three classes, only indirect claims, being those which are put forth by the United States in their Case at Geneva.