Tenterden to the Arbitrators, April 15, 1872

Lord Tenterden to the Arbitrators.

The undersigned, Agent of Her Britannic Majesty, is instructed by Her Majesty’s Government to state to Count Sclopis, Baron d’Itajuba, M. Stämpfli, Sir A. Cockburn, Mr. C. F. Adams, that, while presenting their Counter Case, under the special reservation hereinafter mentioned, in reply to the Case which has been presented on the part of the United States, they find it incumbent on them to inform the Arbitrators that a misunderstanding has unfortunately arisen between Great Britain and the United States as to the nature and extent of the claims referred to the Tribunal by the first Article of the Treaty of Washington.

This misunderstanding relates to the claims for indirect losses put forward by the Government of the United States under the several heads of (1) “The logs in the transfer of the American commercial marine to the British flag.” (2) “The enhanced payments of insurance.” (3) “The prolongation of the war and the addition of a large sum to the cost of the war, and the suppression of the rebellion;” which claims for indirect losses are not admitted by Her Majesty’s Government to be within either the scope or the intention of the reference to Arbitration. Her Majesty’s Government have been for some time past, and still are, in correspondence with the Government of the United States upon this subject, and as this correspondence has not been brought to a final issue, Her Majesty’s Government being desirous (if possible) of proceeding with the reference as to the claims for direct losses, have thought it proper in the mean time to present to the Arbitrators their Counter Case, (which is strictly confined to the claims for direct losses,) in the hope that, before the time limited by the fifth Article of the Treaty, this unfortunate misunderstanding may be removed.

But Her Majesty’s Government desire to intimate, and do hereby expressly and formally intimate and notify to the Arbitrators that the Counter Case is presented without prejudice to the position assumed by Her Majesty’s Government in the correspondence to which reference has been made, and under the express reservation of all Her Majesty’s rights, in the event of a difference continuing to exist between the High Contracting Parties as to the scope and intention of the reference to Arbitration.

If circumstances should render it necessary for Her Majesty to cause any further communication to be addressed to the Arbitrators on the subject, Her Majesty will direct that communication to be made at or before the time limited by the fifth Article of the Treaty.

The undersigned, &c.,