336 DIPLOxMATIC CORRESPONDENCE. 



Since then I liave been in correspondence witli his lordship respect- 

 in £i' the new form of chmse on that snbject proposed in your note as 

 article 7. 



I re,i>Tet to inform yon that Her IMajesty's Government, after the fiall- 

 est consideration, have arrived at the conclusion that this new clause 

 conld not ])roperly be assented to by them. In their opinion it implies 

 an admission of a doctrine respecting the liability of governments for 

 the acts of their nationals or other persons sailing under their flag on 

 the high seas, for which there is no warrant in the law of nations. 

 Thus it contains the following words: 



The Govcruioent of tbe United States having presented on its own behalf, as well 

 as of the lessees of the privilege of talking seals ou the Pribilof Islands claims for 

 compensation by reason of the killing of seals in Behring Sea by persons acting under 

 the protection of the British flag, the Arbitrators shall consider and decide upon such 

 claims, etc. 



These words involve the proposition that Her Majesty's Government 

 are liable to make good losses resulting from the wrongful action of 

 persons sailing outside their jurisdiction under the British flag. 



Her Majesty's Government could not accept such a doctrine. The 

 article dealing with the question of comi)ensation is therefore likely to 

 give occasion for lengthy negotiations, ^^hich must retard indefinitely 

 the decision of the main questions of law, on which the validity of the 

 claims of either Government entirely depends. 



Both Governments being equally desirous to find a prompt solution 

 of the diliiculty which now impedes the conclusion of the Arbitration 

 agreement, Lord Salisljury has authorized me to make the following 

 proposal : His lordship suggests that the six articles of the Arbitration 

 agreement already accei>ted by both Governments should be signed 

 now, and also an article providing for the reference to the Arbitrators 

 of any question of fact which either Government may desire to sub- 

 mit to them regarding the claims for compensation to which it considers 

 itself to be entitled. The application of international law to those facts 

 would be left as a matter for future negotiation after they shall have 

 been ascertained, and might be subsequently referred to the Arbitrators, 

 in whole or in part, if the two Governments should agree to do so. 



The above projxjsal presents so logical and prac^tical an isstte out of 

 the difficulty that I can not but think that it will commend itself to the 

 favorable consideration of the President, and I hope it will meet with 

 his acce]>tance. 



I have, etc., 



Julian Pauncepote, 



Mr. Wharton to Sir Julian Pauncefote. 



Department of State, 



Washington, October 22, 1891. 



Sir: I have laid before the President your note of the 17th instant, 

 and he directs me to express his regret that your Government has not 

 seen fit to accept the modified form of the seventh clause which was 

 proposed in my note of July 23 last. 



This moditi cation of the clause in question was made with a view to 

 obviate the objection urged in your note of July 13, and the President 

 IS unable to see how it can beheld to imply au admission on the part of 

 Great Britain ''of a doctrine respecting the liability of governments for 



