No. 81.
General Schenck to Mr. Fish.
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 t he Arbitration, which they are advised it is within the competence of the Arbitrators to do upon such an application without a fresh treaty.