Charles R. Lowell to Walker Blaine, March 5, 1881

No. 307. Mr. Lowell to Mr. Blaine.

Sir: Referring to my dispatch No. 130, of the 22d ultimo, I have the honor to report that immediately on receiving your second cipher-telegram I had an interview with Lord Granville and informed him that my government was willing to entertain his proposal of a lump sum in satisfaction of the Fortune Bay claims. In the conversation at which Lord Granville first made the suggestion, I had asked him what he would consider a fair offer. He told me that two or three thousand pounds, at most, seemed to him quite high enough. I told him that no such offer would be entertained for a moment by my government, and that I thought he should consider less the intrinsic value he might be inclined to set upon the claims than the larger questions at issue between the two countries, and the interests which would be furthered by a liberal settlement tending to allay natural ill-feeling.

He asked me in turn what in my own opinion would be an offer that would have any chance of acceptance. I replied that I had no intimation of your views on the point, and no authority to make even a guess, but that if I were called upon to decide the question myself, I would not accept less than five times the highest amount he had suggested, I afterwards explained to him that in my estimate I had omitted to include the interest on the original claims. He seemed to look upon my estimate as extravagant, and said that in any event it would be necessary for him to consult his colleagues before coming to any conclusion.

On receiving your third cable telegram I wrote at once to Lord Granville, asking an interview. He replied, making an appointment for such interview at four in the afternoon. He then told me that he was ready to offer £15,000 in compensation for the Fortune Bay claims and the two inclosed in your No. 109. I replied that I had reason to believe that you would accept £16,000, provided that the money could be at your immediate disposal, but that I had no authority to accept less. He said that he thought the offer he had made an almost absurd one, considering the nature of the claims, adding, “You will not suspect Mr. Bright of any unfriendly feeling towards the United States, and he thinks we are already making far too large an offer.” I answered that the mere question of damages to be paid for specific acts of violence to our fishermen was not the only nor the most important consideration. He alluded to what I had said at our last interview, and said that it was precisely such general considerations that had been influential with the cabinet in obtaining their consent to so large an offer.

On receiving your fourth telegram, on the morning of 26th February, I sought an interview with Lord Granville at his house, when I communicated it to him, and agreed upon an interview at the foreign office in the afternoon. At this interview he gave me the answer in writing which I cabled to you on the 26th. As this took entirely new ground, I of course told him that I could not give the assurance he asked for without consulting my government, which I would do without delay. As I had no authority, I did not think it prudent to argue a question which by so doing I might only embarrass.

Immediately after the reception of your fifth telegram I again called on Lord Granville at his house, asking him to allow the importance of my business to be my apology for my unseasonableness. I said I was prepared to give him the assurance you authorized me to give, that the sum would be accepted in full of claims hitherto presented to either government, and that you knew of no others nor had the Government of the United States entertained any such. He informed me that he must adhere to the terms stated in his note to me, dated 26th February, adding that he held the money at your disposition on your accepting those terms. That there might be no chance of misapprehension, on my return to the legation I at once sent him a note couched in the exact terms of your telegram.

On receiving your last telegram I called on Lord Granville at his house, and acquainted him with its purport, reading to him the more important passages. He asked me if I would allow him a copy, and accordingly later in the day I sent him one, with a note explaining that part of the translation was conjectural, the telegraph having blundered in some few words, though not enough to affect the general meaning. The important part of what he said to me I have already communicated by telegram.

* * * * * * *

I may add that Lord Granville at our last interview assured me that he had no knowledge of any new interferences with our fishermen, except in the case of the Moro Castle and the Minnesota, both of them of very trifling importance.

I inclose copies of such correspondence as has passed between Lord Granville and me in the course of this affair.

I have, &c.,

Translation of a cable telegram in cipher from Mr. Evarts to Mr. Lowell, received at 25 Westburne Place, March 3, 1881, 6.30 a.m.