When Grant became President, Hamilton Fish renewed the negotiations through Motley, the American minister at London, but the latter was unduly influenced by the extreme views of Sumner, chairman of the Senate committee on foreign relations, to whose influence he owed his appointment, and got things in a bad tangle. Fish then transferred the negotiations to Washington, where a joint high commission, appointed to settle the various disputes with Canada, convened in 1871. A few months later the treaty of Washington was signed. Among other things it provided for submitting the Alabama Claims to an arbitration tribunal composed of five members, one appointed by England, one by the United States, and the other three by the rulers of Italy, Switzerland, and Brazil. When this tribunal met at Geneva, the following year, the United States, greatly to the surprise of everybody, presented not only the direct claims for the damage inflicted by the Confederate cruisers, but also indirect claims for the loss sustained through the transfer of American shipping to foreign flags, for the prolongation of the war, and for increased rates of insurance. Great Britain threatened to withdraw from the arbitration, but Charles Francis Adams, the American member of the tribunal, rose nobly to the occasion and decided against the contention of his own government. The indirect claims were rejected by a unanimous vote and on the direct claims the United States was awarded the sum of $15,500,000. Although the British member of the tribunal dissented from the decision his government promptly paid the award. This was the most important case that had ever been submitted to arbitration and its successful adjustment encouraged the hope that the two great branches of the English-speaking peoples would never again have to resort to war.
Between the settlement of the Alabama Claims and the controversy over the Venezuelan boundary, diplomatic intercourse between the two countries was enlivened by the efforts of Blaine and Frelinghuysen to convince the British Government that the Clayton-Bulwer treaty was out of date and therefore no longer binding, by the assertion of American ownership in the seal herds of Bering Sea and the attempt to prevent Canadians from taking these animals in the open sea, and by the summary dismissal of Lord Sackville-West, the third British minister to receive his passports from the United States without request.
President Cleveland's bold assertion of the Monroe Doctrine in the Venezuelan boundary dispute, while the subject of much criticism at the time both at home and abroad, turned out to be a most opportune assertion of the intention of the United States to protect the American continents from the sort of exploitation to which Africa and Asia have fallen a prey, and, strange to say, it had a clarifying effect on our relations with England, whose attitude has since been uniformly friendly.
The Venezuelan affair was followed by the proposal of Lord Salisbury to renew the negotiations for a permanent treaty of arbitration which had been first entered into by Secretary Gresham and Sir Julian Pauncefote. In the spring of 1890 the Congress of the United States had adopted a resolution in favor of the negotiation of arbitration treaties with friendly nations, and the British House of Commons had in July, 1893, expressed its hearty approval of a general arbitration treaty between the United States and England. The matter was then taken up diplomatically, as stated above, but was dropped when the Venezuelan boundary dispute became acute. Lord Salisbury's proposal was favorably received by President Cleveland, and after mature deliberation the draft of a treaty was finally drawn up and signed by Secretary Olney and Sir Julian Pauncefote. This treaty provided for the submission of pecuniary claims to the familiar mixed commission with an umpire or referee to decide disputed points. Controversies involving the determination of territorial claims were to be submitted to a tribunal composed of six members, three justices of the Supreme Court of the United States or judges of the Circuit Court to be nominated by the president of the United States, and three judges of the British Supreme Court of Judicature or members of the Judicial Committee of the Privy Council to be nominated by the British sovereign, and an award made by a majority of not less than five to one was to be final. In case of an award made by less than the prescribed majority, the award was also to be final unless either power should within three months protest against it, in which case the award was to be of no validity. This treaty was concluded in January, 1897, and promptly submitted to the Senate. When President Cleveland's term expired in March no action had been taken. President McKinley endorsed the treaty in his inaugural address and urged the Senate to take prompt action, but when the vote was taken, May 5th, it stood forty-three for, and twenty-six against, the treaty. It thus lacked three votes of the two thirds required for ratification. The failure of this treaty was a great disappointment to the friends of international arbitration. The opposition within his own party to President Cleveland, under whose direction the treaty had been negotiated, and the change of administration, probably had a good deal to do with its defeat. Public opinion, especially in the Northern States of the Union, was still hostile to England. Irish agitators could always get a sympathetic hearing in America, and politicians could not resist the temptation to play on anti-British prejudices in order to bring out the Irish vote.
The Spanish War was the turning point in our relations with England as in many other things. The question as to who were our friends in 1898 was much discussed at the time, and when revived by the press upon the occasion of the visit of Prince Henry of Prussia to the United States in February, 1902, even the cabinets of Europe could not refrain from taking part in the controversy. In order to diminish the enthusiasm over the Prince's visit the British press circulated the story that Lord Pauncefote had checked a movement of the European powers to prevent any intervention of the United States in Cuba; while the German papers asserted that Lord Pauncefote had taken the initiative in opposing American intervention. It is certain that the attitude of the British Government, as well as of the British people, from the outbreak of hostilities to the close of the war, was friendly. As for Germany, while the conduct of the government was officially correct, public sentiment expressed itself with great violence against the United States. The conduct of the German admiral, Diederichs, in Manila Bay has never been satisfactorily explained. Shortly after Dewey's victory a German squadron, superior to the American in strength, steamed into the Bay and displayed, according to Dewey, an "extraordinary disregard of the usual courtesies of naval intercourse." Dewey finally sent his flag-lieutenant, Brumby, to inform the German admiral that "if he wants a fight he can have it right now." The German admiral at once apologized. It is well known now that the commander of the British squadron, which was in a position to bring its guns to bear on the Germans, gave Dewey to understand that he could rely on more than moral support from him in case of trouble. In fact, John Hay wrote from London at the beginning of the war that the British navy was at our disposal for the asking.
Great Britain's change of attitude toward the United States was so marked that some writers have naïvely concluded that a secret treaty of alliance between the two countries was made in 1897. The absurdity of such a statement was pointed out by Senator Lodge several years ago. England's change of attitude is not difficult to understand. For a hundred years after the battle of Trafalgar, England had pursued the policy of maintaining a navy large enough to meet all comers. With the rapid growth of other navies during the closing years of the nineteenth century, England realized that she could no longer pursue this policy. Russia, Japan, and Germany had all adopted extensive naval programs when we went to war with Spain. Our acquisition of the Philippines and Porto Rico and our determination to build an isthmian canal made a large American navy inevitable. Great Britain realized, therefore, that she would have to cast about for future allies. She therefore signed the Hay-Pauncefote Treaty with us in 1901, and a defensive alliance with Japan in 1902.
In view of the fact that the United States was bent on carrying out the long-deferred canal scheme, Great Britain realized that a further insistence on her rights under the Clayton-Bulwer Treaty would lead to friction and possible conflict. She wisely decided, therefore, to recede from the position which she had held for half a century and to give us a free hand in the construction and control of the canal at whatever point we might choose to build it. While the Hay-Pauncefote treaty was limited in terms to the canal question, it was in reality of much wider significance. It amounted, in fact, to the recognition of American naval supremacy in the West Indies, and since its signature Great Britain has withdrawn her squadron from this important strategic area. The supremacy of the United States in the Caribbean is now firmly established and in fact unquestioned. The American public did not appreciate at the time the true significance of the Hay-Pauncefote Treaty, and a few years later Congress inserted in the Panama Tolls Act a clause exempting American ships engaged in the coast-wise trade from the payment of tolls. Great Britain at once protested against the exemption clause as a violation of the Hay-Pauncefote Treaty and anti-British sentiment at once flared up in all parts of the United States. Most American authorities on international law and diplomacy believed that Great Britain's interpretation of the treaty was correct. Fortunately President Wilson took the same view, and in spite of strong opposition he persuaded Congress to repeal the exemption clause. This was an act of simple justice and it removed the only outstanding subject of dispute between the two countries.
The Hay-Pauncefote Treaty was by no means the only evidence of a change of attitude on the part of Great Britain. As we have already seen, Great Britain and the United States were in close accord during the Boxer uprising in China and the subsequent negotiations. During the Russo-Japanese war public sentiment in both England and the United States was strongly in favor of Japan. At the Algeciras conference on Moroccan affairs in 1905 the United States, in its effort to preserve the European balance of power, threw the weight of its influence on the side of England and France.
The submission of the Alaskan boundary dispute to a form of arbitration in which Canada could not win and we could not lose was another evidence of the friendly attitude of Great Britain. The boundary between the southern strip of Alaska and British Columbia had never been marked or even accurately surveyed when gold was discovered in the Klondike. The shortest and quickest route to the gold-bearing region was by the trails leading up from Dyea and Skagway on the headwaters of Lynn Canal. The Canadian officials at once advanced claims to jurisdiction over these village ports. The question turned on the treaty made in 1825 between Great Britain and Russia. Whatever rights Russia had under that treaty we acquired by the purchase of Alaska in 1867. Not only did a long series of maps issued by the Canadian government in years past confirm the American claim to the region in dispute, but the correspondence of the British negotiator of the treaty of 1825 shows that he made every effort to secure for England an outlet to deep water through this strip of territory and failed. Under the circumstances President Roosevelt was not willing to submit the case to the arbitration of third parties. He agreed, however, to submit it to a mixed commission composed of three Americans, two Canadians, and Lord Alverstone, chief justice of England. As there was little doubt as to the views that would be taken by the three Americans and the two Canadians it was evident from the first that the trial was really before Lord Alverstone. In case he sustained the American contention there would be an end of the controversy; in case he sustained the Canadian view, there would be an even division, and matters would stand where they stood when the trial began except that a great deal more feeling would have been engendered and the United States might have had to make good its claims by force. Fortunately Lord Alverstone agreed with the three Americans on the main points involved in the controversy. The decision was, of course, a disappointment to the Canadians and it was charged that Lord Alverstone had sacrificed their interest in order to further the British policy of friendly relations with the United States.
At the beginning of the Great War the interference of the British navy with cargoes consigned to Germany at once aroused the latent anti-British feeling in this country. Owing to the fact that cotton exports were so largely involved the feeling against Great Britain was even stronger in the Southern States than in the Northern. The State Department promptly protested against the naval policy adopted by Great Britain, and the dispute might have assumed very serious proportions had not Germany inaugurated her submarine campaign. The dispute with England involved merely property rights, while that with Germany involved the safety and lives of American citizens. The main feature of British policy, that is, her application of the doctrine of continuous voyage, was so thoroughly in line with the policy adopted by the United States during the Civil War that the protests of our State Department were of little avail. In fact Great Britain merely carried the American doctrine to its logical conclusions.