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LETTER FROM THE SECRETARY OF THE TREASURY, TRANSM,'.TTINO A commwnication from the Secretary of State in regard to an appropria- tion for the payment by the United States of all claims that may be made by Great Britain arising out of the Bering Sea controversy. February 13, 1895.— Referred to the Committee on Appropriations and ordeivd to be printed. Treasury Department, February 13, 1895. Sir: I have the honor to transmit herewith, for the consideration of Congress, a communication from the Secretary of State, under date of to-day, in regard to an appropriation of $425,000 — For the payment by the United States, in full satisfaction of all claims which may be made by Great Britain for damages growing out of the controversy as to fur seals in Bering Sea, or the seiznre of British vessels engaged in taking seal in those waters. Respectfully, yours, J. G. Carlisle, Secretary. The Speaker of the House of Representatives. Department of State, Washington, February 13, 1895. Sir: In the annual message of the President, transmitted to Con- grt: s at the opening of the current session, appears a statement that an understanding had been reached with Great Britain — for the payment by the United States of $425,000, in full satisfaction of all claims which may be made by Greikt Britain for damages growing out of the controversy as to fur seals in Bering Sea, or the seizure of British vessels engaged in taking seal in those waters. The message add 4: I am convinced that a settlement npon the terms mei^tioned would be an equitable and advantaceons one, and I reoonunend that provision be made for the prompt payment of toe stated sum. 2 BERING SEA CONTttOVERSY. The correspondence in regard to that understanding, and a report of the undersigned in support of the President s recommendation, were transmitted to the Speaker of the House of Eepresentatives on Decem- ber 21, 1894, pursuant to a resolution of that body dated December 15. Copy thereof is annexed. ^ .. ^ x, a i * I have now the honor to reciuest that you submit to the Speaker ot the House of Representatives, as soon as may conveniently be, an estimate for the appropriation of the sum recommended by the Presi- dent for the purpose stated, the same to be included in the deficiency appropriation bill. , ,. ^ I have the honor to be, sir, your obedient servant, W. Q. Geesham, The Seoeetaey of the TreASUev, BERING SEA CONTROVERSY. 8 of :& [I- 5. of in u- Hoiue Ex. Doc. No. 132, Fifty-third Congress, third session. LETTER FROM THE SECRETARY OF STATE, TRANSMITTING, Pursuant to Rouse resolution dated December 15, the correspondence touching iJie Bering Sea controversy. Dbcembkr 21, 1894. — Referred to the Committee on Foreign Affairs and ordered to be printed. The Speaker of the House of Representatives: The undersigned is directed by the President to respond to the reso- lution adopted by your honorable body on the 15th instant, requesting the Secretary of State "to communicate to the House of Representa- tives, if not inconsistent with the interests of the public service, all correspondence, reports, and other documents not heretofore mtule pub- lic touching the payment by the United States of $425,000 to Great Britain for damages growing out of the controversy as to fur seals in Bering Sea or the seizure of British vessels engaged in taking seals in those waters." The undersigned accordingly has the honor to communicate to the House of Representatives copies of the correspondence exchanged on the subject covered by the resolution, in which will be found a state- ment of the claims filed by Great Britain for damages sustained by British subjects by reason of the seizure of their sealing vessels in Bering Sea or of being warned to cease operations therein. The Paris Tribunal of Arbitration held that the United States had no right of protection or property in the fur seals in Bering Sea out- side the ordinary 3-mile limit. Article 8 of the convention of February 29, 1892, whereby the qiies- tions which had arisen bet\T m the two Governments concerning the jurisdictional rights of the l" ited States in the waters of Bering Sea were submitted to arbitre on, recited that the high contracting parties had been unable to agree upon a reference which would inclnde the question of the liability of each for the injuries alleged to have been sustained by the other, or by its citizens, in connection with the claims presented and urged by it, and that, being solicitous that this subor- dinate question should not interrupt or longer delay the submission and determination of the main questions, they had agreed "that either may submit to the Arbitrators any question of fact involved in said q«n BERING SEA CONTROVERSY. claims and ask for a finding thereon, the question of the liability of either Government upon the facts found to be the subject of further negotiation." Under this article the Arbitrators unanimously found that a number of British sealing vessels were seized in Bering Sea or warned tliere- froml)y cruisers of the United States on the days and at the places in the special finding mentioned, leaving for future detorminatioi the questions as to the value "of the said vessels or their contents, or either of them, and the quISStion as to whether the vessels mentioned in the schedule to the British case, or any of them, were wholly or in part the actual property of citizens of the United States." If the plan of settlement recommended by the President in his last annual message is not acceptable to Congress, the remaining contro- verted questions must be determined either by the organization of a joint commission or by negotiations between the two Governments. Experience has shown that international commissions are slow and expensive. Should such a course be restorted to the evidence would be found mostly on the Pacific Coast, widely scattered, and counsel would be needed to examine and cross examine witnesses. The question of indirect or consequential damages having been withdrawn from the Tribunal of Arbitration, the pending (jlaims are for British vessels actually seized in Bering Sea or warned out of it by cruisers of the United States. It will appear from the submitted correspondence that the agreement to pay a lump sum of $425,000 in full settlement of all demands authorized to be made under the treaty and award «vas proposed by this Government. The amount is considerably below the damages clainied by Great Britain, exclusive of interest for a number of years. If this arrangement does not receive the approval of Congress and the disputed questions are submitted to an international commission, it is believed tliat the amounts alIowe(! and the expense of the tribunal, including witnesses and the taking of their testimony, will largely exceed $425,000. In view of all the facts and what" may be reasonably expected as the result of a commission, the undert:igned submits that a prompt and final settlement of the vexatious controversy by an appropriation of the lump sum agreed ui)on is advisable. EespectfuUy submitted. W. Q. Gresham. Department op State, Washington, December 20, 1894, Sir Julian Pauncefote to Mr. Gresham. Washington, June 7, 1894. Sir: Adverting to the verbal communications which have passed between us respecting the best mode of verifying and adjusting the British claims for compensation for the seizure of British sealing ves- sels in Bering Sea, I have now the honor to transmit herewith, by direction of Her Majesty's principal secretary of state for foreign afiairs, a complete list and summary of those claims, together with memoranda of the additions and amendinents made since their origi- nal presentation. I am at the same time to make the following sug- gestion, with a view to adjustment of those claims with the least possible labor, expense, and delay: The whole of the claims, excepting that of the Henrietta and that of BEIilNO SEA CONTROVERSY. 6 the Jilack Tiiamond (18S0), were laid before the Tribuiinl of Arbitration nt I\uis, lo^jetJH'r witli tlie evidence in .sui)i)ort of tijciii. Tlie facts on Nvliicii tliey rest were found by tlie Arbitrators as provided by Article VIll of tlie Treaty of Arbitration and form part of the award. In view of the decision of tlie Tribunal on the questions of law submitted to them, it only now remains to assess the damat^es. I am accordin^^ly authorized by the ICarl of Kimberley to propose that, for the purpose of such assessment, each Government should api)oint a duly qualilied commissioner, who should be a lawyer and if possible possess some knowled^'e of the conditions of the sealing industry. That the two commissioners should sit tofjether at Victoria, British Columbia, where all the evidence in verification of the claims can be obtained on the spot. That they should make a joint report on all the claims in which they have agreed as to the amounr of damages, and separate rejiorts in tin; cases in which they have failed to agree, fully stating the grounds of such disagreement. That the assessment of damages by the two commissioners, where they hsive been able to agree, shall be final. That in cases where they have been unable to agree the differences shall be settled by the two Governments within a fixed period, failing which such difierences shall be referretl for final adjustment to an umpire to be appointed by the two Governments jointly, or, in case of disagreement, to be nominated by a foreign Government. Y^ou informed me some time ago that, in the view of your Govern- ment, a convention would be necessary for the jMljustment of the claims, and the Earl of Kimberley, to whom I did not fail to communicate that oi)inion, has instructed me to proceed at once with the negotia- tion of such a convention, on the basis of the arrangement .above pro- posed, sliould it be favorably entertained by your Government. I have, etc., Julian Pauncefote. [Inologurc] Memoranda of addUiom and avieiidnients made since original presentation of list of British claims for compensation for the seisnre of British sailing vessels in Bering iSea, ADA. Claim of the master, Captain Gaiidin, for juTsoual loss and damage $3,000 This claim was, by a mistake on the part of the agent of the owner of the Ada, not included when the other claims in connection with this vessel were entered. Captain Gaudin thought that it had been so included, and it was only on seeing the printed list of the Hritish claims that he discovered that sucJi was not the case. He at once re(iuested that the omission might be rectified and his claim added to the list, and Iler Majesty's Government, after causing an inquiry to be made -nto the circumstances of the case, decided that his application should be grantjul. Oajitain Gaudin's claim has accordingly been added to the schedule of the claims entered with respect to the schooner Ada. HENUIETTA. [Seized by the U. S. war sliip Torktown on September 4, 1892.] Value of vessel $4,000 Value of outfit and equipment 3,000 Value of 420 seal skins at $18 7, 560 Value of balance of estimated full catch for season in Bering Sea for three boats and three canoes, viz, oOl skins at $18 10,098 Legal auil personal expenses in defending actiim against vessel and cargo at Sitka, and in preparing and forwarding this claim 2, 000 Claim of owner, with interest at 7 per cent, to date of payment , 26,658 ^m mmm b BERmo SfiA CONTftOVfiRsY. In hifi note, dated IStli of Mardi Inst, Mr. Gnmlinin stated tlmt from the date on which tho lle.nrtrlta wiis handiMl over to tier captain, tlie Unitod StateH Guverniiiuut ceaued to hour uiiy reapoiiHibility or to exercise any control with regard to that ves- Hul, and that thorufore thoy were unable to comply with thtt renueNt of Her Majesty's Oovoniinuut that Hhe Hhould be sent to a BritiHU port for trial ; but he added that tlie claim of her owner for compeiisatioD would receive duo conHideratioD when presented. The claim in question has, therefore, been added to the general list of British claims. BLACK DIAMOND. lAdililiiinal claim submitted by tlin master. Mr. Henry Paxton, for damA,{es alleged tn have been Hiiiitiiinril l)y rnasoii of the above Hchoouer iiaving been unlurod out of Bering Son in 1886 by tlie Unit»'(l StntiiH ftiithuritleii.] Estinuited catcii for Angnst, 1886, 1,000 skins at $7.50 each (the price of skins ot Victoria during the full of 1886) $7,500 This claim was sent in too late for insertion in the general list of British claims. In view of the length of time that had elapsed since the occurrence of the action coni|)lained of, Her Majesty's Government deemed it advisable to cause an inquiry to be made as to the reason for the delay in presenting the claim. The reason given wits that at the time of the seizure of the vessel, the coowners, who were three in number, were doubtful as to how far an appeal to the United States Government for redress would be entertained. In the following year one of the owners was lost at sea uud another left tho country, and it was only after the publication of the award that the surviving ownur consulted his' solicitor and was informed that he had a good and equitable claim for compensation. The claim was then drawn up and pre- sented at once. Her Majesty's Government also ascertained f om the solicitors in Question that the fact of the Black Diamond bein^ boarded by the revenue officers of the United States and ordered out of Bering Sea in 1886 is entered in the records of the custom-house of Uualaska, and that due protest was made by the master of the vessel on the arrival of the schooner at Victoria. Under the circumstauces Her Mi^jesty's Qovornment considered that the reasons alleged for tho delay were reasonable, and gave instructions that the claim should be presented to the United States Government, together with the other similar claims JU ANITA. It will be noticed that the original claim of the owner of the Juanita, which was stated at $14,695, has been amended so an to amount to $17,697.66. The ground upon which this claim was amended was that the owner made his original statement on the basis of $8 per skin, whereas it was ascertained afterwards that the skins had been sold at Son Francisco at an average of $9.67 per skin. List and tummary of the claims for compensation in respect of the seizures of British vessels in Bering Sea by th^ authorities of the United States. CAROLBNA. [Seized by U. S. S. Corwin August 1, 1886.] For— Amount of claim as pui forward by owner. Value of veRm;!, 32 tons Value of ontQt (inconsumable) ., Insurance Wiiges of crew up to date of seizure PasHHite of crew from San Francisco to Victoria , PassaKO of m.ito. bitka to Victoria, after release from prison Persimnl expenses of owner Legal expcuMcs Estimated seal ctkUsh for 1886 Deduct value consumed during a full voyage Claim by owner, with Interest at 7 per cent to date of payment $4,000.00 3,002.89 3.5L'. 50 1,833.22 71.72 100.00 250. UO 1, 250. 00 16, 667. 00 27, 526. 33 3,213.32 24,318.01 BERING SEA C0NTR0VER8V. lAtt and gummary of the claims for eompeniation, 0fo.— Continued. THORNTON. [Selcwl by D. 8. 8. Oonoin Aiiguit 1, 1880.] Amount of olaiiii at) put forward by uwiiur. Vnlne of veoBel, 78 tons Vnlue o** outfit (iucousumable) Insnrar oe WttK"* pi'Jd toi]at« of neizuro to vro«r, cti; I'aRBaKu iiioiuu«eaof owners LeKal expenses Estimated catch of seals fur 1880 Deduct value consumed on a full voyage I Claim by owners, with interest at 7 per cent to date of payment ONWAKD. [Seized by U. S. S. Oorwin August 2, 188«.] Value of vHMHel, 04 tons Value of outfit (Inconsumable) . . lUHuranoo Wages paid for voyage PuMHago, et<;., of master nnd mate. Personal ex|)0nite8 of owner Legal exi>eUH08 Estimated catch Dodnct value consumed during full voyage Claimed by owner, with interest nt 7 per cent to date of payment. Passage of crew, etc PaHsage of otUcers Legal expenseH of owners Proliable seal catch, 1887, 3,500 seals, at»5.60 Loss by detention, Oct»l)or 1, 1887, to February 1, 1888 Loss or profit in season 1888 (February 1 to October 1) Personal expeiiBes of owners Claim by owner, with interest at 7 pei cent to date of payment Cost of suit before Supremo Court United Stau^s, in reseizure of IT. P. fSayward $0. DUO. 00 2,9U.(M .'i»1.43 l,;i70.00 177. 16 2U0. 00 l,0U0.UO 1, 2.^0. 00 10, 607. 00 uO, 1B7. 23 :i, 37U. S8 28, 817. 65 $4, 000. 00 1,778.69 260.00 1,820.00 200.00 2S0.OO 1,260.00 16, 667. 00 2C, 225. OB 2, 955. 08 23,269.71 FAVOURITE. (■Warned out of Uorlng Sea by U. S. 8. Oormn August 2, 1880.] Estimated loss of catch of l,0CO seals 97, 000. 00 Claim bv owner, with interest at 7 per cent to date of navment ...•..•.........•••••..... 7,000.00 W. P. SATWAllD. [Seized by U. S. 8. Sichard Jtuth July 9, 1887.] $255.00 260.00 850.00 19,260.00 1,200.00 0,000.00 250.00 28,055.00 62,847.12 Total , 118,957.12 GRACE. [Seized by U. S. S. Richard Ruth July 17, 1887.] Value of vessel. 182 tons Nonconsumable outfit PiiHsatte of moHter nnd crew Pernoual oxpenHcs of owners Legal expenses Probable catch, 1887, 4,200 seals, at $5.50 Claim of owner, with interest at 7 per cent to date of payment $12, 000. 00 1,742.57 200.00 250.00 850.00 23, 100. 00 38,142.57 8 BERING SEA C0NTB0VEB8Y. Lilt ami summary of the olaimH/or compentalioH, «(o. — Continued. ANNA UKC'K. [8«i>«d by U. 8. S. Kieha-rd Ruth Jane 28. 18H7.| For— Amonntof I'luim iiB put forwarduy owner. Value of vesRpl Noncouauiuablo outfit PnNsaK<>'of niaHt<'r and crew I'eraonal ex|)en«eH of ownvr I.e((al *ixponH(w Trobublo Her.i uatcli, 19H7, 3,1S0, at $5.60. Chitnot owner, with Interest at 7 p4tr cent to dat« of payment. 18,000.00 077. .W 400,54 250.00 850.00 17,325.00 ?7, w;.. oi DOLPHIN. [Seised by U. 8. S. Richard Ruth Jnly 12, 1887. Valno of vessel, 174 tout^ Value of uonconBiimublo ontttt I'ai4saif;eH of master and crew.. Personal expenses of owner... Legal expuuseM $12, 000. 00 2,Q!.1.50 IIOO.OO 260.00 86U. OU Pr6bable"catoh, 1887, 4,600, at $6.50 1 24,760.00 Claim of owner, with interest at 7 per cent to date of payment. ALFltED ADAMS. rSeiced by U. 8. S. Rienard Ruth Jnly 10, 1887.) Value of outfit seized Personal expenses licgnl expenses Probable catch, 3,600, at $5.50. Claim of owner, with iut«re8t at 7 per cent to date of payment. ADA. [Seized by IT. S. S. Bear Angnst 25, 1887.] Value of vessel, 68 tons Value of noncousumable ontfit Passage, etc., of mast«r Personal expenses Lo(:al expenses Probable catch, 1887, 2,876, at $5.50. Claim of owner, with interest at 7 per cent to date of payment . TEIUMPH. [Ordered not to enter Bering Sea by IT. S. S. Richard Ruth August 4, 1887.] Illegal boarding and searching of Triumph, as set forth in affidavit.. 1,000 seal skin4 Ix^gal and other expenses Claim of owner, with interest at 7 per cent to date of payment. JXJ^NITA. [Seized by U. S. S. lUthard Ruth July 81, 1889.] 620 seal skins, at $8 Balance of estimated catch for 1889, at $8 . STMiBrs, etc New ship's papers Legal and other expenses Claim of owner, with interest at 7 per cent to date of payment For amended claim, see colonial office to foreign office, November 23, 1893. 40,201.60 $683.00 200.00 300.(10 19, 250. 00 20,433.00 $7,000.00 2,600.00 100. UO 250.00 850.00 15, 81g. 00 26,518.00 $2,000.00 8,000.00 260.00 10, 250. 00 $4,060.00 9,424.00 36.00 25.00 260.00 14, 695. 00 17,697.66 \ I BERING SEA C0NTR0VKR8Y. » I Litt and lummary of the claivufitr compenaation, vie, — Continnod. PATHrrNDEU. |BotM4 by U. K. H. lUtkmrd Uuih July SO. I8M.] For— 8S4 akltiB lotiod, andp.il/ >ati<)l baliincr of catch (1,240), lit $13.25 n mU In. (ill IIR, l^tC, R<'i tffti N<>w papl^rri Legal (>xiH'u»v*. Claim of owner, with InK i oat at 7 p«r ctnt to dato of payment . TKlUMPn. [Ordurcd out of JloriiiK Sea by l). S. S. Uiehard Ituth J aly II, 1880.] B«lan(i« of catlmntrd calcli of 2,500, at .fji i nkln. Legal and otbcrexiicuitua Claim by owner, with int ereat at 7 per cent to dut« of payment BLACK DIAMOND. [Seized by r. K. S. Richard Jiuth July II, 1889.) A mount uf Iniiii UHpiit I'orward by owner. 126,726.00 765.00 2.^. ot) 260.00 20,706.00 $10, 424. 00 250.00 11). 074. 00 70 skinH Rfllzed, at $8 2,024 skiuR, balance of ostiraated catcb, at $8 . KiticH, Rpearn, etc., Heized New Nliip's papers Legal and other uzpeuscs Claim of owner, with interest at 7 per cent to date of payment. $008.00 16,102.00 110.00 25.00 2.10. (H) 17,185.00 i LILT. [Seized by V. S. >S. Itiehard Ruih August 0, 1888.) 333 skins seized, at $8 Balance of catch. 1,707, at $8 . Spears and salt seized New ship's papers Legal and other expenses . . . . Claim of owner, witli interest at 7 per cent to date of payment . ARIEL. [Ordered out ofBering Sea by U. S. 8. Jtiehard Huth Jnly 30, 1880.]' Balance of estimated catch of 2.000 (1,158), at $8 . Legal and other expenses Claim of owner, with interest r.t 7 per cent to date of payment. $2, 064. 00 14.1,16.00 101.00 25.00 250.00 17,170.00 $9, 248. 00 250.00 0, 498. 00 KATE. [Ordered out of Bering Sea by U. S. S. Richard Rush August 13, 1889.] Balance of catch Legal and other expenses. Claim of owner, with interest at 7 per cent to date of payment. $10, 960. 00 250.00 11.210.00 ywtrmamr •^fmBmmmmmm 10 BERING SEA CONTROVERSY. Lilt and summary of the claims for compensation, etc. — Continued. MIITNIE. [Seized by IT. S. S. Richard Rush July 6, 1889.] 420 ekins seized Balnnce of catch GuoH and epears seized Legal and other expenses . Ainonntof claim as put forwarduy owner. $3, 360. 00 12,752.00 98.00 250. 00 Claim of owner, with interest at 7 per cent to date of payment i 16, 460. 00 ' PATHFINDER. [Seized by TT. S. S. Thoma* Corivin March 27, 1890.] Seizure and detention from Tdnrch 27, 1890, to March 29, 1890 .. Claim of owner, with intereHt nt 7 percent to date of payment. $2, 000. ^0 2,000.00 CLAIMS FOR 1886. ClaiAed by- Amount claimed. David Moore, master of Onward Margotich, mate of Onward Hang Giittomasen, master of Thornton Illegal arrest and imprisonment .... .do $4,000 2, 500 do 4,000 Harry Kornian, mate of Thornton.- do 2,500 das. Ocilvie, master of Caroleua Jas. B ack, mate of Carolona do 2,500 do 2,500 Total for 1886 18,000 CLAIMS FOR 1887. Warren, majster of Dolphin , Suflferingsand losses navigating four vessels from Uualaska to Sitka. . . do $2, raS John Rielv, mate of Dolphin l,floo George P.Ferey master of W. I'. Say ward... do 2,000 A. IJ. Lain^, nic'? of A\'. I*, l-iavward do 1, 0-JO Louis Olseu, master of Anna lieck do 2, 000 ^licliael Keefe, mate of Anna Beck do 1,000 W. Petit, master of Grace do 2,01)0 C A . Lundberg, mate of ACa ... do 2,000 Total for 1887 13, 61)5 Total for 1880 and 1887 31.6S5 To b(> added to 1880, personal claims Captain Gaudin, 3, COO Amend(Ml total 1886 and 1887 34, 635 BERING SEA CONTROVERSY. 11 1886. 1887. 1889. 1890. List and summary of the claims for compensation, etc. — Continued. RECAPITDLATION. Year. Vessel. A mount cluimed. Total. 1886 Caro1(!iia .... . ............. ..... ......... $24, 313. 01 20,817.65 23, 209. 71 7, 000. 00 18, 000. 00 PfirHonul claims .. . . .. W. P. Say ward $99,400.37 1887 28, 055. 00 38, 142. 57 27, 863. 04 40, 201. 50 20, 518. 00 20,433.00 10, 250. 00 13, 635. 00 Uolnhin Ada Alfred Adams 'Triiimnli .. , .. .... Fersoual claims 205,098.11 1880 14,695.00 26, 765. 00 19, 674. 00 17,185.00 17, 176. 00 9,498.00 16, 460. 00 11, 210. 00 Pathfinder Trinmnh Black Diamond Lily Anel Afinnie ............... 132, 663. 00 2, 000. 00 1890 439. 161. 48 CoRts of suit before Supreme Court, United States, in reseizure of W . P. Say ward • 62, 847. 12 TOTAL. Vessels Personal claims. Vessels Personal claims. Vessels Vessels W. P. Say ward costs. Total Extra for Juanito Extra for Black Diiunouil (1880) Extra for Ada Total. Henrietta... $81, 400. 37 18,000.00 191,463.11 13, 635. 00 132, 663. 00 2, 000. 00 439, 161. 48 62, 847. 12 502, 008. 60 3, 002. 66 7, 500. 00 3, UOO. 00 515.511.26 26, 658. 00 Amended total 642,169.26 Mr. Gresham to Sir Julian Pauncefote. \ Dear Sir Julian Department op State, Washington, August 16, 1894, I have your note of the 15th instant in relation to the proposed con- vention for the settlement of the Bering Sea claims. Referring to tbe doubts raised by Her Majesty's Government as to the restrictive ettcct of the words "British subjects," in the fourth recital of Article I of my counterdraft, you state that you mentioned to Lord Kiraberley I had given you the assurance that the Government of the United States "desired to satisfy all claims, tbe payment of which was Justly due by international law ;" and you then say that you have received a reply from His Lordship " to the effect that Her M^yesty's ■ V.WMJLJM l^f^t mm 12 BERING SEA CONTROVERSY. Government take note of that assurance and waive their objection to the words in question." While I am not of opinion that the language of your note is ambigu- ous, it is lierhaps advisable, in order to avoid any possible misunder- standing hereafter, to say that in referring to international law it was not my intention either to enlarge or restrict the language of the pro- posed convention, but it was my intention to convey the idea that tho commissioners would, in construing its terms, be governed by the prin- ciples of international law. Such I understand to be your interpreta- tion of my meaning, as expressed in your note; but out of abundant caution, I desire to avoid any possible ground for the inierence that anything may have been said by me with the intention of modifying or controlling the convention by assurances given outside of it. If convenient to you I shall be pleased to meet you at this Depart- ment at 11 o'clock a. m. to-morrow, for the purpose of signing the convention. I remain, etc., etc., W. Q. Gbesham. Mr. GresliaM to Sir Julian Paunee/ote. * Department of State, Washington, Augv.st 21, 1894. Excellency: Referring to our verbal communications of a recent date, I have now the honor formally to acknowledge the receipt of your note of the 7th of June last, in which you proi^ose in behalf of Her Majesty's Government the establishment of a mixed commission for the purpose of "verifying and adjusting the claims for compensa- tion for the seizure of British sealing vessels in Bering Sea." While no serious difficulty is anticipated in settling and determining the claims by means of a mixed commission, it is a matter of interest to both Governments that they should, if possible, be disposed of in a simpler and less expensive way. Proceedings by a mixed commis- sion, while always more or less formal and cumbersome, are, like all other processes of litigation, necessarily attended with expense, not infrequently considerable in amount, as well as with delay. In the present case the award and findings of the Tribunal of Arbi- tration at Paris have, to a great extent, determined the facts and the principles on which the claims should be adjusted, and in the course of the negotiations for a mixed commission, they have been subjected by both Governments to a tliorough examination, both upon the i)rin- ciples and the facts which they involve. Under these circumstances the President, after full consideration of the whole subject, has reached the conclusion that it may be practi- cable as well as advantageous to effect a diroct settlement of tlie claims by the payment of a lump sura in full satiyfaction of all demands ■ damages against the United States growing out of the controversy between the two Governments as to the fur seals in Bering Sea; and to this end I am instructed by the President to propose the sum of $425,000. This proposition, if it should prove to be acceptable to Her Majesty's Government, is to be understood as having been made subject to the action of Congress on the question of api^ropriatiug the money. The ^f^^ BERING SEA CONTROVERSY. 13 President can only undertake to submit the matter to Cougrress at the beginning of its session in December next, with a recommendation that the money be appropriated and made immediately available for the purpose above expressed, and if at any time before the appropriation is made your Government shall desire, it is understood that the negotia- tions on which we have for some time been engaged for the establish- ment of a mixed commission will be renewed. I have, etc., W. Q. Gresham. Sir Julian Pauncefote to Mr. Gresham. Washington, Avgust 21, 1894. Sir: I have the honour to acknowledge the receipt of your note of this date on the subject of our recent negotiations for the adjustment, by means of a mixed commission, of the claims of Great Britain against the United States in respect of the seizure of British sealing vessels by United States cruisers in Bering Sea. You state that the President, after full consideration, is of opinion that it would be in the interest of both Governments to efl'ect the direct settlement of the claims by the payment of a lump sum, in order to avoid the delay and expense of a mixed commission, and that you have been instructed to propose the sum of $425,000. You also state that the proposal is made subject to the necessary appropriation by Congress, to which it would be submitted at the begin- ning of its session in December next, with a recommendation that the money be made immediately available for the purpose above mentioned. You add that if at any time before the appropriation is made Her Majesty's Government shall desire it the negotiations for the estab- lishment of a mixed commission shall be resumed. I have the honour to state in reply that Her Majesty's Government concur in the views of the l^resident as to the expediency of eifecting a settlement by the method proposed, and that they are indeed so fully sensible of the great advantages presented to both Governmeits by that course that they are willing to accept the sum oliered, coupled with the assurance of prompt payment, although the amount is much below their estimate of the compensation, which might fairly be awarded by a mixed commission. It should be understood, therefore, that if the negotiations for a mixed commission should be resumed the acceptance of your proposal shall in no way prejudice the claimants in the further prosecution of their demands. It only remains for me to express my gratification at this amicable solution of the last subject of discussion in the long Bering Sea controversy. I have, etc., Julian Pauncefote,