No. 359.
Mr. Blaine to Sir Edward Thornton.

Sir: I was advised by Mr. Lowell, by his dispatch of the 9th of March last, that Lord Granville would either pay £15,000 in the Fortune Bay matter for a receipt in full against all claims up to and including the close of the past year, or he would refer the matter to yourself and me for adjustment.

I chose the latter, because I had at that time no means of knowing with definiteness whether there might not be claimants whom I could not properly bar by a receipt given without an opportunity of a hearing assured to them.

As I told you in our first consultation, I did not seek the reference with any desire to urge you to a larger sum than was offered by Lord Granville, unless new facts could be found which would warrant the demand.

Both of us have discovered, I think, that we have no practical means of assessing the damages except by taking the facts as stated in the American case, unless, indeed, we should resort, at great expense and with endless trouble, to a new, independent, and exhaustive investigation by original testimony in each and every claim.

Under these circumstances it is proper that I should frankly state to you that I find no other claims than those already presented for wrongs inflicted in the waters of Newfoundland and its dependencies; and, as I originally advised you, I have no desire to urge you to increase the sum offered by Lord Granville on the old claims.

My investigations have included the period up to March 4, 1881; and in giving the receipt I would, if desired, be willing to cover that period. I make this offer in the hope that you will recognise in it a disposition on the part of the United States to be not merely just but liberal in dealing with Her Majesty’s Government on this complicated and somewhat delicate question.

Your understanding, communicated verbally, that the injury at Aspee Bay was to be included, is correct, and the receipt which I shall give will cover that case.

In accepting Lord Granville’s offer in this matter I desire to state that at your convenience I will discuss the subject of joint cruisers on the fishing grounds, and the code of instructions under which they should sail. I understand this subject to have been also referred by Lord Granville.

I have, &c.,

JAMES G. BLAINE.