No. 101.
General Schenck to Mr. Fish.
Received yesterday morning your telegram of 9th, and communicated to Lord Granville immediately all except the instructions at the close. Late last night, after a long Cabinet, he sent me the following note:
[Earl Granville to General Schenck.]
Sir: Her Majesty’s Government understand that the Government of the United States decline any agreement between the two Governments, unless the Government of Her Majesty consent to sign the supplemental Article as altered by the Senate, to which Her Majesty’s Government have stated their objections, or unless without any declaration as to our doing so sub modo they agree to take a further step in the proceedings before the Arbitrators, while a misunderstanding exists as to what both parties agreed to submit to arbitration. Mr. Fish states to you that the Government of the United States have no reason to ask for an adjournment of the Arbitration at Geneva. The reason which actuated Her Majesty’s Government in proposing it was to obtain time for the conclusion of an agreement at which both parties had already nearly arrived. Her Majesty’s Government will have now to consider what may be the course [Page 569] most consistent with the declarations they have heretofore made most respectful to the Tribunal of Arbitration and the most courteous to the United States. The British Arbitrator will proceed to Geneva, and at the meeting of the Tribunal the British Agent will be directed to present to them a statement to the following effect:
“Her Majesty’s Government regret to be under the necessity of informing the Arbitrators that the difference between Her Majesty’s Government and the Government of the United States referred to in the note which accompanied the presentation of the British Counter Case on the 15th of April last, has not yet been removed. Her Majesty’s Government have, however, been engaged in negotiations with the Government of the United States, which have continued down to the present time, for the solution of the difficulty which has thus arisen, and they do not abandon the hope that, if further time were given for that purpose, such a solution might be found practicable. Under these circumstances, the course which Her Majesty’s Government would respectfully request the Tribunal to take is to adjourn the present meeting for such a period as may enable a supplementary convention to be still concluded and ratified between the High Contracting Parties. In the mean time the High Contracting Parties not being in accord as to the subject-matter of the reference to arbitration, Her Majesty’s Government regret to find themselves unable to deliver the written argument, which their Agent is directed to put in under the fifth Article of the Treaty, (although that argument has been duly prepared and is in the hands of their Agent,) or to take any other steps at the present time in the intended arbitration. It will of course be understood by the Tribunal that Her Majesty’s Government (while they would consider the Tribunal to have full power to proceed at the end of the period of adjournment if the difference between the High Contracting Parties should then have been removed, notwithstanding the non-delivery on this day of the argument by the British Agent) continue, while requesting this adjournment, to reserve all Her Majesty’s rights in the event of an agreement not being finally arrived at in the same manner as was expressed in the note which accompanied the British Counter Case.”