On the other hand, Mr. Vaughan, the British Envoy at Washington, said
April 12, 1826, "that His Majesty's Government regretted to find
themselves under the absolute impossibility of accepting the terms of
compromise offered by the envoy from the United States in London." He
did not admit, moreover, that the question of interest should be
referred to arbitration, but maintained that the demand was
unwarranted by the convention and unfounded by the Law Officers of the
Crown.[76] In reply to his observation, Clay informed Vaughan of the
fact that Great Britain's representatives had refused to refer many
questions to arbitration and that if this refusal to cooperate in this
regard should be upheld it would virtually be making him the final
judge of every question of difference that arose in the joint
commission.[77] This disagreement continued until 1825, when the
commissioners met to collect and weigh evidence.

Soon thereafter, Albert Gallatin, who had been appointed Envoy of the
United States to London, was authorized to treat with Canning on the
oft-discussed question. During the first interview he discovered that,
while there was a great reluctance to recede from the ground already
taken by Jackson, there was also a disposition to settle that
controversy.[78] Following the instructions given to King, Gallatin
used the 250,000 pounds as the basis of settlement. This sum he was
authorized to accept. He, however, did not make this offer known
immediately but waited for the formal offer of $1,200,000 from the
British Government; and in conformity with his instruction of a later
date, Gallatin offered as an ultimatum an acceptance of $1,204,960,
which the British Government reluctantly agreed to pay.[79]

On November 13, 1826, a convention to carry out this agreement was
concluded. The amount specified above was to cover all claims under
the award of the Emperor of Russia. It provided, moreover, that the
money was to be paid in Washington, in the current money of the United
States, in two installments; the first twenty days after the British
Minister in the United States should have been officially notified of
the ratifications of the convention, and the second August 1, 1827. In
this way the convention of 1822 was annulled, save as to the two
articles relating to the average value of slaves which had been
carried into effect, and as to the third article as related to the
definitive list which had also been carried out.