'The correspondence opens with a note from Mr. Bayard to Lord Salisbury, dated Feb. 97 of the present year, asking that hor Majesty's Ambassador at' Washington should be empowered: to discuss the Venezuelan question with the United States Secretary of State. At the same time the Ambassador stated that. the United States Government were still anxious to constitute a tribunal of arbitration. Lord Salisbury at once acceded to the request of Mr. Bayard, and on March 5, while the negotiations were still in progress, address-oda long despatch to Sir Julian Pauncefote enclosing the following draft of a suggested treaty for settling disputes. between Great Britain and the United States.
1.—Her Britannic Majesty and the President of the United States shall each appoint tivo or more permanent judicial officers for the purpose of this Treaty; and on the appearance of any difference between the
either of them, cannot be settled by nego-two Powers, which, in the judgment of tiation, each of them shall designate one of the said officers ax arbitrator; and the two arbitrators shall hear and determine any matter referred to them in accordance with this Treaty.
2,—Before entering on such arbitration, the arbitrators shall select an umpire, by whom any question upon which they dis agree, whether interlocutory or final, shall be decided. The decision of such umpire upon any interlocutory question shall be binding upon the arbitrators. The determination of the arbitrators, or, if they disagree, the decision of the umpire, shall be he award upon the matters referred.
3.—Complaints made by the nationals of one Power against the officers of the other; all pecuniary claims or groups of claims, amounting to not more than £100,000 made on either Power by the nationals of the other, whether based on an alleged right by treaty, or agreement, or otherwise; all claims for damages or indemnity under the said amount; all questions affecting diplomatic or consular privileges; all alleged rights of fishery, access, navigation, or commercial privilege, and all questions referred by special agreement between the two parties shall be referred to arbitration in accordance with this Treaty; and the award thereon shall be final.
4.—Any difference in respect to.a question of fact, or of international law, involving the territory, territorial rights, sovereignty, or jurisdiction of either Power, or any unwary claim, or group of claims of any ind, involving a sum larger than £100,000, shall be referred to arbitration under this Treaty. But if in any such case, within three months after the award has been reported, either Power protests that such award is erroneous in respect to some issue of international law, the award shall be reviewed by a Court composed of three of the judges of the Supreme Court of Great britain and three of the judges of the Supreme Court of the United States; and if the said Court shall determine, after hearing the case, by a majority of not less to one, that the said issue has tly determined, the award shall stand and be final; but in default of such determination it shall not be valid. If no protest is entered by either Power against the award within the time limited it shall be final.
5.—Any difference, which in the judgment of either Power' materially affects its honour or the integrity of its territory, shall not be referred to arbitration under this Treaty except by special agreement.
6.—Any difference whatever, by agreement between the two Powers, may be referred for decision by arbitration, as herein provided, with the stipulation that, decision shall not be vali unless "accepted by both Powers, the The time and place of their meeting, and all arrangements for the hearing, and all questions of procedure shall be decided by the arbitrators or by the umpire, if need
Text read from the printed page and cleaned; old type leaves the occasional error.