No. 49.
General Schenck to Mr. Fish.

[Extract.]
No 225.]

Sir: Since my No. 216 on the 2d instant, our correspondence by telegraph has been so constant and full, that I must refer to that mainly for a connected history of what has transpired.

It would be vain to attempt to give anything like a detailed account of what passed or was said in the almost daily interviews and conversations, and sometimes much oftener than daily, and often lasting for hours at a time, which took place between Lord Granville and me. I sought, as my telegrams will show, to keep you continually, regularly, and clearly informed as to results, and with my last dispatch (No. 224) I furnished you copies of all the notes and written matter which came to me with the new Treaty Article proposed by this Government.

Perhaps, however, I cannot better report or explain to you the manner and spirit with which I sought to present and urge the views of our Government in this contention about the presentation of the claims for indirect damages, than by forwarding to you the annexed copy of a paper which I read to Lord Granville on the morning of the 10th instant.

By referring to my several telegrams of the 9th, you will observe that at the end of that day, it seemed as if all hope of agreement between the two Governments must be given up. Her Majesty’s Government had expressed their decision against the suggestion of a new Article as a mode of settlement, and I had informed them that no note could be accepted by the President and assented to which did not embody the conditions expressed in your telegram of the 27th of April.

But early next morning came the message from Lord Granville asking me to telegraph you immediately that a Cabinet would be held that day, and that he wished me to meet him afterwards. * *

I did not wait for the conclusion of the Cabinet meeting, but sought Lord Granville almost immediately at the Foreign Office. I had made [Page 516] up my mind to present once more to His Lordship, as briefly and yet as clearly as I could, a summary statement of the views of my Government, and the position, as I understood it, of the question between us. I had to this end very hastily prepared myself by reducing what I had to say to him to writing, in order that there might be no misunderstanding afterward of the points advanced, or of my language. This was the paper of which I send you a copy. Lord Granville came out of Cabinet to meet me. I read it to him, and placed as much of it as was copied in his hands. I afterward furnished him a full copy. He replied at once verbally by informing me that Her Majesty’s Government would probably conclude to take the initiative and propose a Treaty Article, in which case the proposal in such form as it might be agreed to offer it, would be communicated to me after the Cabinet had decided; and afterward, on that day, the proposed article was delivered to me. If my summing up that morning did not contribute towards bringing this conclusion to the correspondence and discussion, at least it did not prevent this Government from concurring in what I regarded as the only effective form of adjustment which appeared to remain to us.

It is not for me to comment now on the merits of this plan of adjustment which has been placed before the Senate for consideration. Before this dispatch can reach you, that body will probably have advised the President to accede to it, or will have refused its assent. I sincerely trust that the former will be the decision arrived at. This I venture to say, not from a desire merely to adopt what seems to be perhaps the only remaining chance of preserving a Treaty so important to the peace and interests of the two countries, but because I think the principle declared in this Article for future observance between the two nations is one which if settled and maintained must be of inestimable advantage to the United States. With our chances of being generally neutral when Great Britain and other European States are belligerent, the benefits of the rule are to be principally and oftenest ours. Our continental position, our extended sea-coast, our numerous ports, the enterprising character of our citizens, and the difficulty of restraining their spirit of adventure, surely make the rule that would thus be established more valuable and more favorable to the United States than to perhaps any other country.

All this we secure in exchange for the surrender of certain claims which we were pressing before the Arbitrators at Geneva, not with a view to pecuniary compensation, but only because they were a portion of the grounds of disagreement between us and Great Britain, upon which that Tribunal was empowered, for the sake of perfect peace, to make an award, while we ourselves did not hesitate to admit that it must be to our gain to have the decision against us. * * *

I have the honor to be, sir, your obedient servant,

ROBT. C. SCHENCK.
[Inclosure in No. 49.]

Summary of views of the United States on the indirect claims read by General Schenck to Earl Granville on May 10, 1872.

General Schenck, in an interview with Lord Granville, summed up what he regarded as the present position of the question between the two Governments in the following remarks, which he had reduced to writing to prevent misunderstanding of his views or language:

When we parted, after our long conversation yesterday, your last words to me were these: “I carefully avoid anything that may be construed into menace, but in consequence of the views and information you have presented to me yesterday and to-day I take an unfavorable view of the chances of settlement.” Those words I felt it my [Page 517] duty to telegraph last night, as I told you I would, to my Government, and I added to them, “I told Lord Granville that I was of the same mind.”

It was painful to me beyond expression to have to do this—a grave thing to have to believe that the result of all the labor and care which led to the making of the Treaty of Washington—the end of all the hopes which it had inspired for the future of our two countries, and for the cause of civilization and the nations—was to be but failure, disappointment, and estrangement, instead of success, close and lasting friendship, and peace. I have not slept well on that conclusion to our interview.

If this be the end, then I am well aware that each Government will, in one form or another, present its explanation to the world, all the States and peoples of which, it is no exaggeration to say, are waiting the issue of our attempts to come to a good understanding; and each party will naturally seek to justify itself and to throw the blame on the other.

This must be my excuse, at the risk of too much repetition, for one more effort, which must now, in this pressure of time, be hastily and imperfectly made, to present the views and position of my Government in relation to the points on which we so unfortunately differ.

The difficulty has its root entirely in the opposing interpretations given to the Treaty “by the two Governments.

The United States understand that it was the intention of that instrument to provide a mode for the settlement, wiping away, and blotting out forever of all claims against Great Britain growing out of the acts of the Alabama and other such cruisers; and they claim therefore to put forward, and have put forward, in their Case before the Arbitrators, the whole of their demands for damages, direct and indirect. This they insist they may rightfully do; and that they are entitled to ask and expect of the Arbitrators a decision as to each class of claims, as to its admissibility before the Tribunal for consideration in the first instance, and if adjudged admissible, then such award as that High International Court constituted by the Treaty may think it just within the scope of their powers to make. But the United States have not desired or expected any award of compensation from Great Britain for the indirect damages. They have even been free to admit in advance that it would be better for their future advantage and the interest of nations generally that the judgment of the Arbitrators should be adverse to that class of claims. What they contend for is the right under the Treaty to submit them for consideration, as a known part of their demands against Great Britain; and that it is important to both countries and in the interest of peace and good feeling that every question in regard to such claims should be solemnly considered and passed upon, so that they may disappear forever.

Great Britain maintains that it is not within the meaning and intention of the Treaty that such claims should be placed before the Tribunal, or that they come within the province of the Arbitrators to consider and decide upon.

The long argumentative discussion of this point has ended unfortunately in neither party being able to convince the other of the soundness of its interpretation.

Each is bound to admit good faith and fair intention in the other.

Both nations desire mutual and cordial friendship.

Both are earnestly and sincerely desirous to maintain the Treaty.

Some other way out of the difficulty, therefore, must be found if these objects are to be attained.

Anticipating this irreconcilable disagreement on the point of interpretation, various expedients were suggested as probable means for escape from the dilemma, even before the conclusion of the discussion had been reached; but none of these suggestions were adopted or acted on, and it is now unnecessary to revive or refer to them.

At the last, in consequence of a conversation between himself and the British Minister at Washington, Mr. Fish was led to believe that Her Majesty’s Government might make a proposal to the effect that they would engage that in the future, should Great Britain be a belligerent and the United States neutral, and should there be any failure on the part of the United States to observe their neutral obligations, Great Britain will make or advance no claims against the United States by reason or on account of any indirect, remote, or consequential results of such failure, and that, in consideration of such stipulation, the United States shall not press for a pecuniary award of damages before the Geneva Tribunal on account of the claims, respecting which Great Britain has expressed the opinion that they are not included in the submission, viz, the transfer of the American shipping, increased insurance, and the prolongation of the war. If such a proposal should be made by the British Government they were informed that the President would assent to it. But it was to be understood that there was no withdrawal of any part of the Case of the United States, but an agreement not to demand damages on account of those particular claims, leaving the Tribunal to make such expression of opinion as it might think proper on that question. A communication to this effect was made to the British Government, and a form of a note was given me containing in some sort a proposal of this kind to be submitted to my Government, but it was found to be in so many essential particulars different from the suggestion which was understood to have been made by Sir Edward Thornton, and [Page 518] which had commended itself to Mr. Fish, that it was not assented to by the President. A modification of this note was subsequently made, and it was submitted in an amended form.

The modified note omitted or changed some portion of what was objectionable in the first proposal, but was still so far short of what is consistent with the views and position of the United States that it could not be accepted.

The grounds of objection to the proposal as framed and presented by this note I will hereafter state.

There was then a suggestion made to Her Majesty’s Government that their proposal might be submitted in the shape of a new article to be added to the Treaty of Washington. This would effectually bind both nations for the future to the observance of the rule which they might agree on, and would remove, if properly and carefully-framed, all objections made to an interchange of notes as a secure and effective mode of reaching the object in view.

But Her Majesty’s Government, it is understood, altogether decline, or have thus far declined, to open any negotiation to define by treaty the extent or limit of the responsibility of a neutral to a belligerent for indirect or consequential damages. I deeply regret this, and my Government regrets it; and I will proceed to explain presently wherein it is thought a treaty stipulation has an advantage over any other form of agreement, and ought to be desired by both parties.

But to return to the difficulty—nay, the impossibility—of adjusting the disagreement by an interchange of notes, if we must adopt the form and substance of the proposal offered in that shape by the British Government. In the first place, that proposal, as Great Britain appears to be only willing to present it, either directly stipulates for, or implies, a withdrawal or abandonment on the part of the United States of the indirect claims; that is, to regard and treat them as eliminated from the case presented to the Arbitrators, and not to be in any way considered or adjudged as the subject of award by the Tribunal. The British Government holds—notwithstanding the principle that every tribunal must necessarily, by its very creation, possess an inherent right and power to decide questions relating to its own jurisdiction, considering inevitably and at the very threshold whether a matter brought before it is or is not one of which it can take cognizance—the British Government holds that the Arbitrators cannot look at the indirect claims even for the purpose of determining that they are inadmissible. This is not overstating their position, extravagant as it may seem, when they maintain that under the Treaty the United States had no right to put such claims forward in their Case. But the United States not only maintains that the mentioning and putting forward of these claims is rightful, with a view to obtaining a judgment as to their admissibility, but also hold that it was the intent and meaning of the Treaty that they should be submitted for whatever they may be worth, even if this has to be done only with a view to get rid of them as a cause of difference and complaint between the two countries.

Now, the President of the United States, acting through his Agent at Geneva, can put forward, withhold, or withdraw such portion of the claims as he may think proper. That is not denied. But if any of these claims are contemplated and intended by the Treaty itself for submission, such withholding or withdrawing of them by the President alone is not an extinguishment of them. The power of the President of the United States is limited by the Constitution. He cannot of himself make a treaty; nor can he alter, abridge, or depart from the spirit or intention of a treaty. To do that requires the assent, advice, and concurrence of the Senate. If the Treaty submits these claims, as he is of opinion it clearly does, to the consideration of the Tribunal, then his putting them into the Case, or his taking them out of the Case, does not dispose of them. If they are withdrawn by him, they are only laid away, preserved perhaps to be a future plague, unsettled; kept as a possible source of irritation and complaint. They can be extinguished only by some judgment of the prescribed Tribunal appointed for their consideration, or by being given up through the action of the whole treaty-making power exercising its constitutional functions in behalf of the nation.

Thus you should clearly see the reason why the President may be able to agree not to press for a money-award on claims which he regards as now before the Tribunal, but to leave them to be disposed of or commented on by the Arbitrators, while he refuses to withdraw them as not being properly a subject for their consideration.

There is objection, too, to the substance of the proposal made in the British note. The engagement, to be of value in the future, should be reciprocal. The note professes to make it so; but how? The offer of Her Majesty’s Government is to agree that the view which they have heretofore presented of such indirect claims shall be their principle of future action and conduct; and that at any time when the United States may be a neutral, and Great Britain a belligerent, she will not advance any claims inconsistent with that principle.

This is vague; and yet it is limited and narrow.

It is a vague undertaking to promise generally to adhere to a “view” or a “principle,” when there must be a search to ascertain what that view is, or principle is; and it is a narrow undertaking which confines itself to an abnegation of the right to pursue [Page 519] certain specific classes of damages, when the particular kinds of injury out of which those damages may arise are only to be determined by comparison. There should be general words of description, and a clear enunciation of principle, in any rule that is to serve as a law of action, instead of a reference only to special cases that have before occurred; because no two cases can ever be exactly similar. A rule depending for its application only on tests of comparison would breed disputes instead of removing them.

A treaty stipulation might be made free of all these objections.

In the first place there could be no question about its mutually binding force; and in the next place, being the joint concurrent declaration of the two parties to it, reduced to a single form of expression, it would have a precision not likely to be found in a collation or comparison of the several notes embraced in a diplomatic correspondence.

Great Britain has not merely denied the right of the United States to put forward the indirect claims because she denies that the Treaty admits of any construction which will authorize their being considered by the Tribunal. She has also taken the .alternative view, that if, by reason of any ambiguity in the Treaty, or any possible interpretation of it, such claims could be brought forward by the United States, it is not to be supposed for a moment that she ever intended to agree to submit to arbitration demands upon her of such character and nature that they might be dangerous to the very existence of any nation, and make the condition of a neutral possibly worse than that of a belligerent.

To insist that the Treaty is so clear in its terms as in no sense to admit of the American interpretation, is only going back to and begging the question which has been fruitlessly discussed. But if it be so clear in the meaning, then Great Britain, by such a treaty stipulation, yielding nothing, giving no consideration, would secure immunity for the future against a class of claims which she asserts to be always dangerous and improper to be made.

But, on the other hand, if the Treaty does admit of the American interpretation, Great Britain would obtain that immunity for the future not only without cost or sacrifice, but with the additional advantage of escaping from an obligation into which, she .avers, in that case, she was unwittingly drawn, and which she regards as so dangerous that, if it does exist, she would rather repudiate a solemn treaty than abide by what she has done.

What, then, is it that Great Britain will gain if a new article prescribing a rule against claims for indirect damages be added to the Treaty? She will have the Treaty with all its benefits to her, as it now stands, remain intact. She will be relieved from the responsibility on the one hand of answering to any award against her which may be made by the Arbitrators in case the American interpretation is sustained, and on the other from the deplorable alternative of abrogating her own solemn act. And she will obtain formal and certain security for the future that she is never to be held to answer for damages of a kind which she asserts are so dangerous and uncertain that they ought to be resisted.

Is she prepared to hold back from an invitation to offer or concur in what must bring such results?

What will be the gain to the United States? The settlement of a safe rule for the future, and the saving of the advantages to their interests, which are to be found in the friendly adjustment which was thought to have been made of all the questions likely to disturb the relations of the two countries, at the cost of giving up that portion of their demands for past injuries which they have been pressing, not with a view to obtaining pecuniary compensation, but only in the assertion of their right to have such an award from the Tribunal at Geneva as will make the Treaty of Washington what it was really intended to be, a means for wiping away forever from between these kindred nations all differences and complaints as well as all claims.