Sir Julian Pauncefote to Mr. Wharton.

Sir: With reference to my previous note of this date and to the discussions which have taken place regarding the claims of our respective Governments to compensation in relation to the fur-seal fishery in Behring Sea, I have been instructed by the Marquis of Salisbury to state that he is not prepared to admit, as he gathers that the President thinks, that Her Majesty’s Government have objected to the arbitrators having jurisdiction as to damages inflicted in the past by the party against whom the award is given. He only objected to make Her Majesty’s Government liable for acts which they have not committed. His lordship is ready to consent to a reference on this point in the following terms:

That in case the arbitrators shall decide in favor of the British Government, that Government may ask them further to decide whether the United States Government have since 1885 taken any action in Behring Sea directly inflicting a wrongful loss on British subjects; and, if so, to assess the damage incurred thereby.

That in case the arbitrators shall decide in favor of the United States Government, that Government may ask them to decide further whether the British Governmens have since 1885 taken any action in Behring Sea directly inflicting a wrongful lost on the United States or its lessees; and, if so, to assess the damage incurred thereby.

I have, etc.,

Julian Pauncefote.