Mr. Hay to Mr. Tower.
Washington, June 18, 1900.
Sir: I have to acknowledge the receipt of your No. 230 of the 1st instant, reporting the assent of the Imperial Government to add to the phrase which reads, “the general principles of international law and the spirit of international agreements applicable to the subject,” the following phrase:
It is understood and agreed that this stipulation shall have no retroactive force, and that the arbitrator shall apply to the cases now in litigation the principles of international law and of international agreements which were in force and binding upon the parties of this litigation at the moment when the seizures aforementioned took place.
The Department understands that the substantial terms of the protocol have now been fixed by agreement of the two Governments, and I take this opportunity to express my cordial appreciation of the high sense of justice and equity manifested by the Imperial Government in fixing the terms of the arbitration. You will accordingly proceed to the conclusion of the negotiations and to the embodiment of the protocol in definite form.
I am, etc.,