328 DIPLOMATIC CORRESPONDENCE. 



ts SO apparent tkat it is not seen how in the less teclmical tribunal of 

 an international arbitration it could be held to be inapplicable. 



The United States njight well insist that Her Majesty's Government 

 should admit responsibility for the acts of the Canadian sealers, which 

 it has so directly encouraged and promoted, precisely as in the proposal 

 the United States admits resi)onsibility for the acts of its revenue ves- 

 sels. But, with a view to remove what seems to be the last point'of 

 difference in a discussion which has been very much protracted, the 

 President is willing to modify his proposal and directs me to offer the 

 following : 



The Goverument of Great Britain having presented the claims of its subjects for 

 compensation i'or the seizure of their vessels by the United States in Behriug Sea and 

 the Government of the United States having presented on its own behalf, as well as 

 of the lessees of the privilege of taking seals on the Pribilof Islands, claims for com- 

 pensation by reason of the killing of seals in the Behriug Sea by persons acting under 

 the protection of the British iiag, the arbitrators shall consider and decide upon such 

 claims in accordance with justice and equity and the respective rights of the high 

 contracting parties, and it shall be competent for the Arbitrators to award such com- 

 pensation as, in their judgment, shall seem equitable. 



The President thinks that a particular statement of tlie claims of 

 the respective Governments is more likely to lead to a satisfactory 

 result than the general reference proposed by you. It is believed that 

 the form of reference now pioposed by him removes the objections 

 urged by you to his former xjroposal, 

 I have, etc.; 



William F. Wharton, 



Actimj Secretary. 



Sir Julian Faunce/ote to Mr. Wliarton. 



British Legation, 

 N'eicport, R. I., August 8, 1891. 

 Sir: On the 23d of June last I had the honor to place in your hands 

 a memorandum embodying the substance of the instructions issued to 

 British cruisers in Behring Sea in puisuance of the modus vivendi signed 

 on the 15th of that mouth. The memorandum also contained a pro^iosal 

 for an agreement between the Government of Great Britain and of tlie 

 United States for mutual indemnities in resi^ect of acts committed by 

 the cruisers of one nation against the vessels of the other in execution 

 of the modus vivendi. 



To that propcsrtl I have not as yet been favored with a reply, and I 

 should be extremely obliged if you would be good enough to inform me 

 at your earliest convenience of the views of your Government with 

 respect to the suggested agreement. 

 I have, etc., 



Julian Pauncefote. 



Mr. Wliarton to Sir Julian Pauncefote. 



Department of State, 



Washington, Aiigust 17^ 1891. 

 Sir : I have the honor to acknowledge the receipt of your note of the 

 8th instant, in which you refer to a menujrandum of June 23, left with 

 me June 24, in which you submitted a proposal for au agreement be- 



