The first arose as a result of a murder of some Japanese on the island of Formosa, and was settled by the English minister in Pekin, who was chosen by both parties as arbitrator, who decided that China should give Japan in redress a large sum of money, which was done.[11]
The second of these disputes concerned the sovereignty of the Liu Kiu Islands, and was adjusted by a compromise brought about by ex-president Grant, who in a conversation with the Chinese Minister uttered these memorable words: "An arbitration between two nations will never satisfy both nations alike; but it always satisfies the conscience of humanity."[12]
Not to be tedious, I pass over here many other remarkable instances in which war and lesser misfortunes have been averted by arbitration; and will now name further only some of the latest date.
In 1887 a lengthened dispute about boundaries between Chili and the Argentine Republic was adjusted by arbitration, through the mediation of the United States Ministers in the two countries. After a complete and precise fixing of the boundary line, an agreement was added: That the Straits of Magellan shall for ever be neutralized; free passage shall be secured to ships of all nations, and the erection of forts or other military works on either of its shores shall be forbidden.
Fresh in the memory is the passionate quarrel between Spain and Germany about the Caroline Islands. That was submitted, on Prince Bismarck's proposal, to Pope Leo XIII. for settlement, and was adjusted by him.
Most people now living remember the Afghanistan boundary question, which was happily solved by the friendliness on both sides of the Russian and English Governments. The whole world followed for a while that dispute with anxiety and disquietude. The press unhappily, as usual, employed its influence in stirring up the national passions in both countries. But before it had gone too far, fortunately the feelings were quieted by the public being reminded that both England and Russia had taken part in the resolution of the Paris Congress, which declared that when any serious dispute arose between any of the contracting powers, it should be referred to the mediation of a friendly power. Upon this ground the English Government proposed to the Russian that the "dispute should be referred to the ruler of a friendly State, to be adjusted in a manner consistent with the dignity of both lands." This proposal was accepted, but did not come into practice. It was not needed. The Afghanistan boundary commission itself carried out its duties to a successful issue.
Still later many smaller international disputes have been solved by arbitration; for instance:—
Between Italy and Colombia in South America, respecting Italian subjects who had suffered loss through the last revolution in Colombia, in which Spain as arbitrator decided in favour of Italy.
Between Brazil and Argentina respecting their boundaries, a dispute in which both parties appealed for a settlement to the President of the United States of America, and which was adjusted by him.
Between the United States of North America and Denmark, in which the latter was, by the chosen arbitrator, the English Ambassador at Athens, Sir Edward Monson, after long delay freed from the obligation to pay compensation to the Americans, because the Danish authorities had fired at an American ship which in 1854 was escaping out of the harbour of St. Thomas, and which was suspected of carrying supplies to Venezuela, at that time in insurrection.