The Washington times., 1915-08-17
Expert Board TO Fix
Indemnity for Frye
Nation Name an Arbiter on Value of VESSEL
American Rights Not to Be Prejudiced.

The American reply to the German
government on the case Of the schooner
William p. Frye. American merchant
liner sunk by German sea raiders, was
made public today by the State De-
partment.
Tho United States. in It's reply, agrees
to tho proposal of the German govern
ment that each Of two governments
designate an expert to AK the amount
Of indemnity for the vessel."
Acceptance Of such payments, how
ever. shall be without prejudice to the
American contention that the sinking
was without legal Justification. The
american Government also agrees to
the proposal to submit the Prussian-
American treaty involved in the case
e. e = board OF arbitration under Tho
Tn this way" says tho note. the
question Of indemnity ana treaty inter
probation can promptly Be settled"
German Views Welcomed.
II this proposal proves acceptable TO
the German government. says tho note.
1T will be necessary also to determine
whether pending the arbitrai award. the
imperial German government shall gov
ern its naval operations in accordance
with its own Interpretation. or In ao-
cordance with the Interpretation main
tained by the United States. as to the
obligation imposed by their treaty
stipulationS: and the Government Of the
asss s.sts' q tx. H view: ss
German government on this point"
The American Government. says the
note. learns with regret that the OBJ
d. A. h,,t . IN n
sion Of the case to prize court" have
not been accepted by the German gov
srnment. 1t also regrets. the note sets
forth. that the German reasons FOR sup.
failed to remove the American oojec-
tions to that court. A. further exchanxe
Of views along these lines. II is stated;
wouid doubtless s,,inn be anpron,sos of snother q
method Of settlement Is welcomed.
Concerning the amount OF indemnity
to be paid the United States the note
says that the Amssicana a..iF. oVae thnt the
amount should be settled by diplomatic
negotiations" and 1t thoroughly agrees TO
the plan submitting the indemnity ques-
ton to a board OF experts.
Agreed To On Conditions.
The American Government. however.
would agree to such a plan only on the
condition that its legal contentious be
not prejudiced. and in this course II
follows the lead Of the German govern
ment, which has promised to agree to
the expert board plan. only on similar
conditions that tho payment OF indem-
nltv thereby would not constitute an
admission that american ,iS TaS ~
regarded by the German government
merely as fulfilling q duty or policy
founded on existinx treaty obligations
The state Department. from the lang,
government to give some expression OF
It's plans for naval warfare. pending
the settlement Of tho controversy. &C,
cordinE to the virtual query Q ., contained lined
munication from Berlin on the Frye
case IL expected to be definite In char.
acter. and probably will be answered
within a short time.
1t Is probable that the ,, mater "a .od ot
by Berlin.
The full text of the Frye note fol-
lows:
You arc instructed to present the
following note to the German min
lister for foreign affairs:
Under Instructions from my Gov
ernment, l have the honor to inform
your excellency. in reply TO your
claim for reputation for the sinking
Of the William p Frye, that the the
learns With regret that the objec-
tions urged by 1t against the sumts-
sion Of this case to the prize court
for decision have not commended
themselves to the imperial German
that the reasons presented by the
imperial German government FOR
submitting this case to the prize
court have failed to remove the OBJ
- ho CoNyNrnp1anf
United States to the adoption Of that
course. As this disagreement has
been reached after the full presenta-
ton Of the views OF both Govern
ence. further exchange Of views
on the questions in dispute would
doubtless be Improbable. and the
Government Of the United States.
therefore. welcomes your excel
way should be found for settling the
Coee.
The two methods Of settlement
proposed as alternative suggestions
In your excellencys note have been
given careful consideration. and It
! it is believed that If they can be
combined 20 that they may both be
adopted. they will furnish a salts
factory basis for the solution Of the
| The. Government Of the United
States has already expressed its
desire that the question of the
amount of indemnity to be paid by
| the imperial German government
under its admitted liability for the
losses of the owners and captain
on account of the destruction Of
the Frye should be settled by dip
lomatic negotiation. and 1T entirely
concurs with the suggestion Of the
imperial German government that
the simplest way would be to agree,
as proposed in your note, that
each Of the two governments desig-
nate an expert and that the two
experts Jointly fix the amount of
indemnity for the vessel and any
American property which may have
been sunk with her." to be paid by
the imperial German government
when ascertained as stated in your
note. 1t Is assumed that the ar
rangement will include some pro-
vision for calling in an umpire in