of the grave
differences between this Government and that of Her Britannic Majesty,
which by the treaty of Washington had been referred to the tribunal of
arbitration which had met at Geneva, in Switzerland.

The arbitrators, however, disposed of the question which had jeoparded
the whole of the treaty and threatened to involve the two nations
in most unhappy relations toward each other in a manner entirely
satisfactory to this Government and in accordance with the views and
the policy which it had maintained.

The tribunal, which had convened at Geneva in December, concluded its
laborious session on the 14th day of September last, on which day,
having availed itself of the discretionary power given to it by the
treaty to award a sum in gross, it made its decision, whereby it awarded
the sum of $15,500,000 in gold as the indemnity to be paid by Great
Britain to the United States for the satisfaction of all the claims
referred to its consideration.

This decision happily disposes of a long-standing difference between
the two Governments, and, in connection with another award, made by the
German Emperor under a reference to him by the same treaty, leaves these
two Governments without a shadow upon the friendly relations which it is
my sincere hope may forever remain equally unclouded.

The report of the agent of the United States appointed to attend the
Geneva tribunal, accompanied by the protocols of the proceedings of the
arbitrators, the arguments of the counsel of both Governments, the award
of the tribunal, and the opinions given by the several arbitrators, is
transmitted herewith.

I have caused to be communicated to the heads of the three friendly
powers who complied with the joint request made to them under the treaty
the thanks of this Government for the appointment of arbitrators made by
them respectively, and also my thanks to the eminent personages named by
them, and my appreciation of the dignity, patience, impartiality, and
great ability with which they discharged their arduous and high
functions.

Her Majesty's Government has communicated to me the appreciation by
Her Majesty of the ability and indefatigable industry displayed by Mr.
Adams, the arbitrator named on the part of this Government during the
protracted inquiries and discussions of the tribunal. I cordially unite
with Her Majesty in this appreciation.

It is due to the agent of the United States before the tribunal to
record my high appre