The New York herald., 1872-05-15

and hoped that such settlement had been
secured by the rules to which they have given their
assent. But they cannot see that II would he ad.
vantageous to either country to render the obiga-
tons of neutrality onerous as they would become
II claims of thus nature were 70 he treated as proper
subjects OF International arbitration. Whatever
construction may be placed upon the first article OF
the treaty II Is impossible to sever the terms OF ref
erence therein contained from the rules in the sixth
article and the measure OF liability under the arbi-
ratlOn therefore will be the measure OF
liability Incurred by any neutral State
which after, according to these rules NAV by
any act or omission fail to fulfil any OF the duties
set forth In them. The United States and Great
Britain have bound themselves by the treaty TO OBJ
they have, moreover bound themselves to bring
these rules to the knowledge OF other maritime
Powers and to invite them to accede to them.
genia y hays been expected that those Powers
would accept proposal which might entail
upon neutral such an unlimited liability,
ana in some instances might involve the
government cannot, for themselves, accept
such liability, nor recommend the acceptance OF
OF the United States themselves prepared to under
take the obligation OF paying to an aegrieved bel
ltgerent the expenses OF the prolongation of the
war and other indirect damages II when the United
states are neutral they can be shown to have per-
mitted the Infringement OF any one or
part OF any one OF the three rules through want of
due diligence on the part or their executive ocersp
TO attach such tremendous consequences to an uu-
Intentional violation OF neutrality, 1t might be a
any consequences more formidable to a
be by Dsstrs ch ssS ght thus
as these were once admitted they would present
without any such compensation, the risk Of intol-
cradle loss. With respect TO the disclaimer made
by Mr.. Fish OF any expectation wish on the part
Of the United States government to obtain any un.
Of these indirect claims, / think Il sum. sum.
cient here to observe that on the ques-
ton OF amount the British people and gov.
nnt hnu nrtIu hnn c1l
,loOk to the nature and grounds OF the claims as
they stated In the case Ofthe United States and
nave Q, course Eeen ~ @naoe th ao 70 m %smen,
by whom the claims are advanced. II these claims
could be considered as well grounded In principle,
4 appears the magnitude OF the damages which
might be the result OF their admission is enOr.
nous. The grounds OF these views are more fully
stated in the third part Of the enclosed memOran-
dunn.
THE CONFEDERATE COTTON CLAIMS.
Mr. Fish has appealed to the proceedings at the
the Confederate cotton claims. Her Maiesty's gov
ernment must, however, observe that there is no
analogy between the two cases, as by the treaty
In each case whether any claims have or have not
been duly made, preferred and laid before
sSen either the ey esssn na wn anS
meaning Of the treaty, no similar words being
used as to the powers OF the Geneva Tribunal. 1t
decide upon variety Of general claims not OF one
kind, nor limited or defined beforehand and Her
Majesty's agent was instructed that his duty
would, psinld jdcte, be to present such claims as
private individuals might tender Tor that purpose
Tor acceptance or rejection by the Commission,
Her Majesty's government not Intending to make
themselves responsible either for the merits OF the
particular claims or for the arguments by which
they might be supported.
THE JURISDICTION OF THE GENEVA COURT OF ARBI-
TRATION ON THE BONDS
The Jurisdiction Of the Geneva Tribunal was Inn
to ars as Ts "n4 as Of
November, In pursuance OF the general instructions
which had been given to Her Majesty's agent,
crate States for a sum forming part OF loan called
the "cOttOn l0an." contracted by those States and
for the payment OF which certain cotton seized by
the United States was alleged to have been
hypothecated by the Confederate government, was
filed at Washington, and on the 21st learned from
claims OF this kind being even presented. Some
delay took place In consequence Of unavoidable
causes, with some Of which you are well acquainted
only Of communicating with my colleagues,
but with Sir E. Thornton, aud Of con-
slaering how far S under the ,e, same general
substantially different. The dispatches from Her
Majestys agent giving the details Of the nature of
United M States agent, did not reach me until the
9Th Of December. had In the meantime ascer-
tanned from Sir E. Thornton that the expression
''acts cOmmitted'' had been used by mutual agree.
ment In the negotiations which preceded the ap.
pointment Of the High Commission, with view to
In the twelfth article Of the treaty with regard
to private claims The question was brought be
and was finally decided on the 14th, as recorded In
Q minute. by Mr.. Gladstone. The decision was that
the Confederate cotton claim should not be
for cotton which had thereby become the actual
property Of the claimant and directions were given
10Th I informed you that you might write to Mr.
Fish that Her Majesty's agent would be instructed
not to present any claims that did not come ,,
1t appears that the understanding need
not necessarily have extended beyond the re-
e e aase ny Which the com
missi0ners have power to decide whether any claim
Is preferred within the true intent and meaning of
similar article In the Claims Convention OF 1853.
Her Majestys government acceded to the con.
struction which the United States government
had put upon that understanding. Mr.. Fish
win observe the feeling BY which l,n Her T
1et On
ing which the United States government might
have supposed to exist. Information reached me
which Her Majestys government had not expected
to take place. upon the merits Of the claim by the
This required rsconsideratlSn of
snd sss also | 81 se,egspn to Sir to
which % appeared to % Be manestiy without the terms
Of the treaty. should be withheld, and that when
Her Majesty's agent was or opinion that claim
belonged to class that ought not to be permitted
it would be desirable That an agreement to
that effect should be made and signed
by Sir e. Thornton and Mr. Fish. These instruc
tions were communicated to Mr.. Fish. Her
Majesty,s government has since acted In accord.
ace with the decision Of the Cabinet Of the 14th Of
December. New claims OF the like character have
been rendered to him by parties who were unwl-
ing to acquiesce In the decision OF the commits
si0ners as applicable to their own cases, but which
claims, under Instructions from Her Majestys gov
ernmcnt. have not been presented.
THE GENERAL ARGUMENT AGAINST INDIRECT DAMAGE
CLAIMS.
have now placed In your hands for examination
by the government Of the United States state
nient OF the reasons which, In the opinion OF Her
Majesty 8 government sufficiently shows that claims
for indirect losses not within the meaning OF the
treaty that they were never intended to be included
by her Malcsty's goyernmenti thas TINS was was pup.
error. II any, might have been corrected; that
such claims are wholly beyond the reasonable scope
Of any treaty OF arbitration whatever and that 70
submit them for the decision OF the tribunal would
be measure fraught with pcrnicious consequences
to the interest OF all nations and to the future
peace OF the world. ! appreciate the desire sub
stantially but indirectly expressed by the govern.
ment or the United States TO be advised OF the
reasons which have prompted the declaration made