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.