'New York Herald' of 10th October, 1860, as the question is therein, I think, correctly stated. Since then I am aware that there has been an amendment in our law relating to the liability of Shipowners; but it would appear from the communication you have received from the Lords of Trade that while we have extended the limitation to foreign ships in cases arising in British courts, we have overlooked altogether the still more important part of the question so far as this country is concerned, and that is the unlimited liability of British shipowners in cases arising in foreign courts. If such is the fact, then we, I fear, have neglected a favourable opportunity of inviting foreign nations to place our ships in their courts on the same terms as we had placed their ships when thrown into our courts. Had we done so, I think the Government of the United States would have readily met us in so just and reasonable a request.
Considering, then, the position in which British shipowners would be placed if an action was raised against them in foreign courts for the recovery of claims arising through a collision at sea, your Lordship will perceive that this is not a question in which foreigners alone are interested, for we have given them all they asked in our courts, but one which deeply affects the interests of British subjects, and which, now more than ever, requires adjustment by special communication with the United States and those other countries where the responsibility of British shipowners is still unlimited. Since we have conceded all they require, it may be found more difficult now to obtain the necessary alterations in their law than it would have been at the time to which my previous communications referred; but I daresay that when the justice of our claim is represented, steps will still be taken to grant in their courts the same limitation of responsibility to our Shipowners as we have granted to their Shipowners in our courts.
- [Footnote: ship caused. This arises from the fact that our laws have jurisdiction only
over British ships, and your laws have jurisdiction over only American ships. Now, considering the vast trade which is carried on between the two countries, I hope you may agree with me in the opinion, that as the laws of both countries are similar, the Shipowner's liability in the courts of either country should in all cases be limited to the value of the ship and freight. I hope you will use your influence to extend that limitation to the vessels of both countries, which might easily be done by a convention between the two nations. . . ."]
