326 DIPLOMATIC CORRERPONDENCE. 



the form of a.ii:re(Miient for cnrryiiiii; out tlie arrangement for ilie appoint- 

 ment of a joint cojnmission to inquire into the conditions of seal life in 

 Behring" Sea. 



I desire at present to confine myself to the clause proposed in your 

 note which deals with the question of compensation, namely, clause 7. 



It is the only one which ajipears to me to raise any serious difficulty, 

 and I trust that, after considering the following observations, and with 

 a view to expediting the conclnsion of this negotiation, the President 

 will not object to the substitution of a clause in the form which I shall 

 presently have the honor to submit. 



Her jViajesty's Government have no desire to exclude from the con- 

 sideration of the arbitrators any claim of compensation in relation to 

 the Behring Sea fisheries which the United States Government may be- 

 lieve themselves entitled to prefer consistently with the recognized 

 principles of international law. But they are of opinion that it is inex- 

 pedient, in a case involving such important issues and presenting such, 

 novel features, to prejudge, as it were, the question of liability by de- 

 claring that compensation shall be awarded on a hjqootlietical state of 

 facts. Her Majesty's Government consider that any legal liability 

 arising out of the facts, as proved and established at the arbitration, 

 should be as mncli a qnestion for argument and decision as the facts 

 themselves; and, in order that this should be made (piite clear and that 

 both Governments should be placed, in that respect, on the same foot- 

 ing, I am authorized l)y Lord Salisbury to submit the following clause 

 in substitution for the seventh clause proposed by the President: 



(7) Either Government may submit to the arbitrators any claim for compensation 

 wliicli it may desire to prefer against the other Government in respect of any losses 

 or injuries in relation to the fur-seal fishery in Behring Sea for which such other Gov- 

 ernment may be legally liable. Tlie arbitrators shall decide on the legality of every 

 Buch claim, and, if it shall be established, they may award such compensation as, in 

 their judgment, shall seem equitable, 



I have, etc., 



Julian Pauncefote. 



Mr. Wharton to /S'/r Julian Pauncefote. 



Derartment of State, 



Washhujton.July 23, 1891. 

 Sir : The Presid<^.nt directs me to say, in response to your note of the 

 13th instant, that he notices with pleasure the good progress toward a 

 full agreement upon the terms of arbitration imlicated by your state- 

 ment that only the seventh clause as proposed by this Government ap- 

 X)ears to you " to raise any serious difliculty." 



That clause was thus stated in my note of June 25: 



It shall be competent to the arbitrators to award such compensation as, in their 

 judgment, sliall seem equitable to the subjects or citizens of Great Britain whoso 

 vessels may have been seized by the United States in tlie I5eliring Sea, if sucli seizures 

 sliall be found by the arbitrators to have been un warranted; and it shall also bo 

 competent to the arbitrators to award to the Unilcd States such compensation as, in 

 their judgnumt, shall seem equitable for any injuries resulting to the United States 

 or to tlie lessees from tliat Government of the privil»>ge of taking seals on the PriT)i- 

 lof Islands, by reason of the killing of seals in the Jiehring Sea l)y ]iersons acting 

 und(!r the protection of the British ilag, outside! of the ordinary territorial limits, 

 and since the 1st day of .January, LSS(5, if such killing shall bo found to have been 

 an infraction of the rights of tlie United States. 



