Granville to Robert C. Schenck, May 27, 1872

Earl Granville to General Schenck.

Sir: I have lost no time in laying before the Cabinet the telegraphic dispatch from Mr. Fish, which you communicated to me this afternoon, informing you of the result of the deliberations of the Senate on the draught Article submitted for their advice by the President of the United States. It appeared from this dispatch that the Senate had agreed to advise and consent to the adoption of the proposed article, with the substitution for the third and fourth paragraphs, of two paragraphs, as follows:

“And whereas the Government of the United States has contended that the said claims were included in the Treaty; and whereas both Governments adopt for the future the principle that claims for remote or indirect losses should not be admitted as the result of the failure to observe neutral obligations, so far as to declare that it will hereafter guide the conduct of both Governments in their relations with each other, now, therefore,” &c.

In communicating this dispatch to me, you inquired whether any possible interpretation could be given to the proposed Article in the form in which the Senate have modified it, taking all its parts together, which would prevent taking before the Arbitrators, to be considered by them in making their award, that part of the claim called “direct claims” in the Case, which relates to the cost of pursuit and capture of cruisers.

I have now the honor to state that I must, on behalf of Her Majesty’s Government, decline to answer the question which you have put to me as to the effect of the article as altered by the Senate, or to state what possible construction it may bear.

Her Majesty’s Government are of opinion that the definition as therein expressed, 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. That Her Majesty’s Government 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 and 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.” The article would then run thus: “And whereas both Governments adopt for the future the principle that claims of a like nature should not be admitted as the result of such a want of due diligence on the part of a neutral, so far as to declare that it will hereafter guide the conduct of both Governments in their relations with each other.”

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,