Overview

 

Following the Civil War the United States and Great Britain were loggerheads over damages to America by ships built in Britain for use by the Confederate Navy to destroy American merchant marine ships. The CSS Alabama was the most famous Confederate raider, which took more than 60 prizes before it was sunk off the French coast in 1864. The resolution of the differences led to America and Great Britain becoming allies rather than belligerents. 

 

After international arbitration endorsed the American position in 1872, Britain settled the matter by paying the United States $15.5 million, ending the dispute and leading to a treaty that restored friendly relations between Britain and the United States. The international arbitration established a precedent. Even better, British capital financed the incredible industrial boom in the North following the Civil War.

 

The scholar of international law John Bassett Moore called this treaty "the greatest treaty of actual and immediate arbitration the world has ever seen." The so-called rules of Washington required neutrals to act according to certain rules. 

Those rules affected the 1878 Congress of Berlin. Also, this precedent grew into the League of Nations and the United Nations.

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Backstory

 

The British Prime Minister, Lord Palmerston and Foreign Secretary, Lord John Russell, failed to stop the Alabama from putting to sea from British shipyards. At the time it was assumed that Palmerston and Russell favored the Confederacy in opposition to a majority of the British public who favored the North.

 

Claims

 

The United States claimed direct and collateral damage against Great Britain. The United States claimed that Britain violated neutrality by allowing a hostile ship to be constructed in Great Britain.

 

Originally Charles Sumner, Chairman of the U.S. Senate Foreign committee wanted $2 billion in damages or ceding Canada to the United States. To be blunt, there was no way in hell that Britain would have compensated America that much in money or given up Canada. Most Americans opposed taking Canada and complications involving Reconstruction prevented American focus on the Alabama Claims.

 

Treaty of Washington (1871)

 

This Treaty settled claims between the United States and Great Britain. Afterwards the United States became perpetual allies with Great Britain, and the British Government gave America $15.5 million dollars.

 

Conclusion

 

America and Great Britain have a special relationship leading to our closest military alliance. This goodwill resulted directly from the friendly settlement of the dispute involving damages caused CSS Alabama.