The United States and Great Britain have pioneered the use of arbitration to resolve their disputes. It was first used in the Jay Treaty of 1795, negotiated by John Jay, and played an important role in the Alabama Claims affair of 1872, which resolved greater tensions over British support for Confederation during the American Civil War. At the First International Conference of American States in 1890, a systematic arbitration plan was developed but was not accepted. At the 1899 Hague Peace Conference, the world`s major powers agreed on an arbitration system and the creation of a permanent arbitration tribunal. Between 1890 and 1914, arbitration was the subject of intense discussion among diplomats and elites. The dispute between the United States and Great Britain over Venezuela in 1895 was settled peacefully by arbitration. Both nations recognized that a mechanism was desirable to avoid future conflicts. The Olney Pauncefote Treaty of 1897 was a treaty between the United States and Great Britain in 1897, which allowed important disputes to be resolved before. The treaty was rejected by the U.S. Senate and never came into force.  Lord Justice Moore-Bick found that a conciliation agreement in London has no close legal connection to the legal system of the insurance policy, the purpose of which has nothing to do with dispute resolution.
Instead, it has its closest and most real connection to the law of the place where arbitration is to take place and which exercises the necessary expertise in assistance and supervision to ensure the effectiveness of the procedure. In this case, the arbitration agreement had its closest and most real connection to English law, so english law governs the arbitration agreement. For the consequences of the absence of an arbitration agreement, see ICAC Benefits section. The issue of arbitration opens a window into a bitter philosophical quarrel among American progressives. Some, led by Taft, saw legal conciliation as the best alternative to war. Taft was a defender of constitutional rights, who later became head of justice; he had a deep understanding of legal issues.  Taft`s political base was the conservative economy, which largely supported peace policy movements before 1914.