No. 52.] Mr. Seward to Mr. Johnson. DEPARTMENT OF STATE, SIR: I have to acknowledge the receipt of your dispatch of the 28th of November, No. 65. Before the date of the present writing you will have received a full explanation of the President's views upon the subject which you have now discussed. It only remains for me, therefore, to say that the indications here leave no room to doubt that the views submitted by me are entirely in accordance with the expectations of the country. I am, sir, your obedient servant, REVERDY JOHNSON, Esq., &c., &c., &c. WILLIAM H. SEWARD. No. 80.] Mr. Johnson to Mr. Seward. LEGATION OF THE UNITED STATES, SIR: I am unable as yet to report satisfactory progress in the matter of the claims convention. I had an interview at the foreign office with Lord Clarendon yesterday, by appointment, in regard to it. His lordship had not had time during the period of his short accession to office to make himself acquainted with the exact state of the negotiation. I found him, however, most desirous to bring it to a satisfactory conclusion; and I do not anticipate much difficulty in our accomplishing it. I explained to his lordship the terms of the convention signed by Lord Stanley and myself, and your objections to some of them, with the reasons upon which they were placed. As was the case with Lord Stanley, his lordship told me that he thought that from the character of the questions upon which the liability of this country for the Alabama claims rested, it was better that the arbitrator who should decide them, if the commissioners fail to agree, should be the head of some foreign friendly government. I believe, however, that if he shall not waive this view we may be able to devise a plan by which it can be gratified without conflicting with the objections you have in that particular to the present convention. His lordship told me that he would at the earliest period examine the whole matter and appoint an early day for another meeting. I have the honor to remain, with high regard, your obedient servant,, REVERDY JOHNSON. Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. Mr. Johnson to Mr. Seward. [Telegram per cable.] LEGATION OF THE UNITED STATES, London, December 18, 1868. Fourth, fifth, and sixth articles omitted. In place: If commissioners, or two of them, be unable to decide any claim, and think, from its nature, it should be left to arbitration of foreign state, they so to report to their respective governments, who shall, within six months, agree upon some sovereign or head of a friendly state. Other amendments agreed to. Will the one above be approved? Answer. Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. REVERDY JOHNSON. Mr. Johnson to Mr. Seward. No. 82.] LEGATION OF THE UNITED STATES, SIR: Until I receive an answer to my cable cipher dispatch of yesterday, I do not deem it proper to proceed further with the negotiation in relation to the claims convention. If your answer shall approve of my suggestion as to an article in lieu of the fourth, fifth, and sixth articles of the convention signed by Lord Stanley and myself, I apprehend no difficulty in bringing the matter to a speedy and satisfactory conclusion. Lord Clarendon is as anxious for such a result as we are. The moment I hear from you by cable I will renew the negotiation, and if necessary advise you of its progress by the same mode. I have the honor to remain, with high regard, your obedient servant, REVERDY JOHNSON. Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. Mr. Seward to Mr. Johnson. Cipher telegram received. DEPARTMENT OF STATE, We definitively propose what follows on claims: Substitute protocol for convention; but this not indispensable. Protocol to be signed here, not London; but this not indispensable. Date to be day of signature. Article I, paragraph first-Amend, "by and with advice and consent of the Senate." Article I, paragraph second-Instead of "London," "Washington." Article I, paragraph third-Substitute following: "The commissioners shall then, and before proceeding to any other business, name some person to act as an arbitrator or umpire, to whose final decision shall be referred any claim upon which they may not be able to come to a decision. In the case of any and every claim, the arbitrator or umpire may be the head of a friendly sovereign state or nation. In naming or agreeing upon an arbitrator or umpire, the commissioners on each side may refer themselves to their own government for instructions; and the contracting parties will, in such case, within six months after notice of such reference shall have been given, decide upon such arbitrator or umpire, and instruct their commissioners accordingly. If it shall happen, nevertheless, that at the expiration of the period of six months before named no person, the head of a sovereign state or otherwise, has been agreed upon as arbitrator or umpire, then and in that case the commissioners on each side shall name a person, the head of a sovereign state, or otherwise, as arbitrator or umpire. And in each and every case in which the commissioners shall not be able to come to a decision, they shall determine by lot which of any two persons so named shall be the arbitrator or umpire in that particular case, the person first so drawn by lot being regarded as the choice of the commissioners. The person or persons so to be chosen as arbitrator or umpire, if not the head of a sovereign state or nation, shall, before proceeding to act as such in any case, make and subscribe a solemn declaration, in a form similar to that made and subscribed by the commissioners, which shall be entered on the record of their proceedings. In the event of the death, absence, or incapacity of such person or persons, or of his or their omitting or declining or ceasing to act as such arbitrator or umpire, another person shall be named, in the same manner as the person originally named, to act as arbitrator or umpire in his place and stead, and shall make and subscribe such declaration as aforesaid." Article II-Omit last paragraph. Strike out articles IV, V, and VI. Article IX-" Eighteen" months instead of "twelve." Article XI-Amend as before proposed. Thornton concurs in expediency of signing here. If signed here, all three protocols go to Senate January 5. REVERDY JOHNSON, Esq., &c., &c., &c. WILLIAM H. SEWARD. No. 86.] Mr. Johnson to Mr. Seward. LEGATION OF THE UNITED STATES, SIR: After deciphering (and, as I believe, correctly) your cipher cable dispatch of the 20th, received on the 21st instant, at 12.20 noon, I had an interview with Lord Clarendon at his house, on yesterday morning. I found that he had received by cable a dispatch, substantialiy the same, from Mr. Thornton. After an interview which lasted an hour, I left him under the impression that he would agree substantially to that part of the amendment suggested by you to the first article of the convention signed by Lord Stanley and myself on the 10th of November, which provides that for the paragraph you quote there be substituted the following: In the case of any and every claim, the arbitrator or umpire may be the head of a friendly sovereign state or nation. In naming or agreeing upon an arbitrator or umpire, the commissioners on each side may refer themselves to their own government for instructions, and the contracting parties will in such case, within six months after notice of such reference shall have been given, decide upon such arbitrator or umpire, and instruct their commissioners accordingly. But he strongly objects, and I do not believe that he will yield the objection, to that portion of your proposed amendment which provides that "If it shall happen, nevertheless, that at the expiration of the period of six months before named no person, the head of a sovereign state or otherwise, has been agreed upon as arbitrator or umpire, then and in that case the commissioners on each side shall name a person, the head of a sovereign state or otherwise," &c. The grounds of his objections are, first, that it would be to call in question the good faith of the two governments to suppose that if the choice of an arbitrator was referred to them in the manner suggested in the first part of your amendment, that they would not agree upon one; and, second, that the com missioners being authorized to appoint as arbitrator the head of a foreign state, he thinks, and he is probably right, would be deemed so discour teous that no head of a foreign government so selected would agree to serve. His lordship's long diplomatic experience gives to his opinions upon all such subjects great weight. I have no doubt that the contingent provision you suggest is altogether unnecessary, as I am satisfied that his lordship and yourself would very promptly agree upon an arbitrator. The other amendments you propose I believe he will agree to, except that of changing the convention into a protocol, and the signing it in Washington instead of London. In order to make the obligation of the two governments to appoint an arbitrator, if the appointment is referred to them, the more absolute, I suggested to his lordship, and he concurred in it, the insertion of the words "shall and" before the word "will," in that part of your amendment, so as to make it read thus: "The contracting parties shall and will in such case, within six months," &c., make the appointment. It cannot for a moment be believed that, if this be done, either government would hesitate to comply with so imperative a stipulation. If, upon further reflection, with these objections of Lord Clarendon before you, you agree to waive that part of your amendment to which they refer, it is very advisable that you telegraph to me at once, as I think that will enable me to bring the negotiation to a speedy and satisfactory termination. I remain, with high regard, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. REVERDY JOHNSON. Mr. Johnson to Mr. Seward. [No. 87. LEGATION OF THE UNITED STATES, SIR: I have just had another interview by appointment with Lord Clarendon, at his house, upon the subject of the claims convention. Having before left with him a copy of the amendment proposed in your last cipher telegram as a substitute for the fourth and other articles of the convention signed by Lord Stanley and myself relative to the Alabama claims, he told me that he brought it before the cabinet at a meeting at which all the members were present on Tuesday last, and that the result was this: They refuse to convert the convention into a protocol, and to have it signed at Washington instead of London. They think that this would be disrespectful to the late government, and wholly unnecessary. They concurred with his lordship in thinking that the provision in your amendment which looks to the contingency that the two governments might not agree upon the head of some foreign friendly nation as an arbitrator, if the appointment was referred to them, would be to call in question their good faith; and also concurred with him that the appointment of such an arbitrator by the commissioners would be esteemed so discourteous that no head of a foreign government so ap pointed would consent to act, and that thereby the convention would be rendered futile. He gave me reason to understand that all the other amendments proposed by you would be adopted, and that they would also agree so to modify the signed convention as to clear it of the objections stated in your dispatch to me, No. 47, of the 27th of November, to the provisions it contains that they discriminate between the Alabama claims and the other claims to the disadvantage of the Alabama. This I understand will be proposed by a stipulation which shall provide that if, in the case of any claim by either government upon the other, the commissioners, or any two of them, shall desire to have the question of liability referred to the head of a friendly foreign state; and the two governments, when so advised, will agree to select such an arbitrator. He told me that the cabinet was unanimous that a provision of this kind would be no departure from the convention of February, 1853, but on the contrary almost a literal compliance with it, and that they hoped that you upon reflection would agree in this view. His lordship also informed me that he proposed to send by the mail which will take this, a dispatch to Mr. Thornton, in which he would discuss the entire subject, and which of course Mr. Thornton will be authorized to lay before you. I am perfectly satisfied that every member of the cabinet is most anxious to bring the controversy in regard to the Alabama claims to a satisfactory termination, and I trust, therefore, that you will be able to concur substantially in the propositions which will be made in the dispatch to Mr. Thornton. I can get the Alabama claims specifically mentioned as among the claims to be submitted to the commissioners and this I think most important. Referring you to Lord Clarendon's note to Mr. Thornton, I have the honor to remain, with high regard, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. NSON REVERDY JOHNSON. Mr. Seward to Mr. Johnson. No. 56.] DEPARTMENT OF STATE, SIR: Your dispatch of the 16th of December, No. 80, which concerns the negotiations upon claims, is before me. The telegraphic correspondence between yourself and the department which has intervened has superseded the necessity for replying to your present communication. We are now awaiting your answer to my telegraphic instruction of the 20th instant. I am, sir, your obedient servant, REVERDY JOHNSON, Esq., &c., &c., &c. WILLIAM H. SEWARD. Mr. Seward to Mr. Johnson. No. 58.1 DEPARTMENT OF STATE, Washington, January 2, 1869. SIR: Your dispatch of the 19th of December last, No. 82, has been received. In that paper you express an opinion that it would not be proper to proceed further with the negotiation in relation to the claims convention until you should have received an answer to your cable cipher of the 18th of that month. You observe, further, that if the suggestion which was contained in that cable dispatch of a new article in lieu of |