Washington, Treaty of, was signed on May 8, 1871, by the United States and Britain in Washington, D.C. It led to the settlement of several disputes that had arisen during the American Civil War (1861-1865) or soon afterward. The chief issue consisted of U.S. demands that Britain pay for damages caused during the war by the Alabama and other British-built warships. Britain had sold the ships to the Confederacy. The U.S. demands became known as the Alabama Claims. The treaty also dealt with a dispute over whether the United States or British-ruled Canada owned the San Juan Islands in Puget Sound, in what is now the state of Washington. In addition, the treaty resolved a disagreement over fishing rights in territorial waters off the coasts of the United States and Canada.
The Treaty of Washington established guidelines for the settlement of the Alabama Claims. It also referred the claims to a special court of arbitration in Geneva, Switzerland. In 1872, the court ruled that Britain should pay the United States $151/2 million.
The treaty referred the San Juan Islands dispute to the German Emperor Wilhelm I, who upheld the U.S. claim to the islands. The treaty also granted fishing rights to the United States in territorial waters along Canada’s east coast. Britain gained similar rights in U.S. waters north of the 39th parallel.