made by the Imperial Government, and had insisted that the blockade should be warlike in character. He added that Germany had thereupon acceded to the wishes of Great Britain and had decided to unite in the establishment of a warlike blockade, though, as under the German law a measure of this kind could not be undertaken without the previously granted assent of the Bundesrath, the announcement of the warlike blockade would not probably be made until Monday or Tuesday, when it was expected that the necessary assent of the Bundesrath would have been obtained. I inquired of Doctor von Muehlberg whether it was intended that the warlike blockade should be accompanied by all the conditions attending such naval measures in general, to which he answered that this was the intention of Germany and Great Britain. I inquired further whether it was intended to declare war, to which Doctor von Muehlberg replied, quite emphatically, that the united powers did not then intend to make a declaration of war or to take any hostile step beyond the declaration of a warlike blockade. No. 3.] I have, etc., CHARLEMAGNE TOWER. Mr. Tower to Mr. Hay. EMBASSY OF THE UNITED STATES, SIR: I have the honor to acknowledge the receipt on Saturday morning, the 13th of December, of your telegram of December 12. I went at once to the imperial foreign office, where I presented to Doctor von Muehlberg, by whom I was received, a memorandum of the contents of your dispatch, adding that if the Imperial German Government wished to make a reply to the request of the President of Venezuela that the present difficulty respecting the manner of settling claims for injuries to British and German subjects during the insurrection be submitted to arbitration I should have the honor to transmit it to you without delay. Doctor von Muehlberg, under secretary of state for foreign affairs, answered that he should submit the communication to the Imperial German Government. Thereupon I telegraphed you to acknowledge the receipt of your telegram, which arrived at the same moment with that of similar date relating to the blockade of Venezuelan ports. I have, etc., Memorandum. CHARLEMAGNE TOWER. IMPERIAL GERMAN EMBASSY, Of the three Venezuelan men-of-war captured by the German squadron the Restaurador is a boat of 600 tons. The two other vessels, Totumo and General Crespo, were quite small boats of 137 tons each. The Restaurador has been manned with German sailors, and is now flying the German flag. The two other vessels were not sufficiently seaworthy to let them undertake the voyage to Trinidad with a crew on board, nor were they in a condition which would have rendered it It possible to tug them to that port. Besides, such a way of procedure would have considerably impaired the movements of the German squadron in looking for the rest of the Venezuelan men-of-war. did not seem feasible, either, to let the two vessels simply drift along, as in that case they would very likely have been recaptured by the Venezuelans. The only possible thing to do was therefore to sink the ships, which had absolutely no value whatever. Mr. Hay to Mr. Tower. [Telegram-Paraphrase.] DEPARTMENT OF STATE, Washington, December 18, 1902. (Mr. Hay states that the United States minister to Venezuela telegraphs that the Government of Venezuela confers upon him full powers to enter into negotiations on the part of Venezuela to settle the present difficulties with Germany, Great Britain, and Italy. Mr. Tower is instructed to communicate the Venezuelan proposition to the Government of Germany, and ascertain if it is disposed to assent thereto.) Mr. Tower to Mr. Hay. [Telegram-Paraphrase.] EMBASSY OF THE UNITED STATES, (Mr. Tower reports that he has been informed by the German minister for foreign affairs that although it is not intended to make a formal declaration of war a state of war actually exists, and the warlike blockade will be accompanied by all the conditions of such a measure and with the same effect as if war had been formally declared. The German minister for foreign affairs further declares that the present blockade will follow the rules laid down by Capt. Charles H. Stockton, of the United States Navy, in section 7, page 22, of his Naval War Code, published at the Government Printing Office in Washington in 1901. The German minister for foreign affairs declares that the question of arbitration is now being considered jointly by Germany and Great Britain, but that no decision has yet been reached, though the British cabinet is to meet for that purpose Thursday afternoon, and an answer to the request of Venezuela may possibly be formulated Thursday evening or Friday morning. In the meantime Mr. Tower is authorized to say that Germany is not disinclined in principle to an arbitration.) Mr. Tower to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (Mr. Tower reports that he has been informed by the German minister for foreign affairs that the German and British governments are agreed in principle to an arbitration in order to adjust their claims. against Venezuela, and to invite the President of the United States to act as arbitrator. They reserve for the present certain of their claims, in regard to which they will make a further communication. The German minister for foreign affairs announces that the two governments had already arrived at the agreement mentioned above before the receipt of the second communication made by the United States Government.) Mr. Tower to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (Mr. Tower reports that, in accordance with the Department's cabled instructions, he has communicated to the German Government the Venezuelan proposition that the United States minister at Caracas be empowered to enter into negotiations on the part of Venezuela to settle the present difficulties, and has asked whether Germany is disposed to assent thereto.) Mr. Hay to Mr. Tower. [Telegram.-Paraphrase.] DEPARTMENT OF STATE, Washington, December 20, 1902. (Mr. Hay states that the President has informed Venezuela of the invitation which may be extended to him by the powers, and inquired if it is also the wish of Venezuela that he so act. Pending the receipt of the Venezuelan answer the President would be glad to be informed more precisely of the reservations of the subject-matter of arbitration contemplated by the powers as soon as they are formulated.) Mr. Tower to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED States, (Mr. Tower reports that the German Government announces officially the blockade of Puerto Cabello and Maracaibo, to take effect December 20. Ships under other flags than that of Venezuela sailing from West Indian or eastern American ports before that date shall have an allowance of twenty days for sailing vessels and ten days for steamships. Vessels coming from all other ports shall be allowed forty days for sailing vessels and twenty days for steamers. Ships under other flags than that of Venezuela and lying upon that date within the blockaded harbors shall be allowed fifteen days. Ships which shall try to disregard the blockade shall be subject to the rules applicable either by international law or treaty provision to neutrals under such circumstances.) No. 5.] Mr. Tower to Mr. Hay. EMBASSY OF THE UNITED STATES, SIR: I have the honor to inform you that late yesterday evening, December 21, I received a communication from Baron von Richthofen, imperial secretary of state for foreign affairs, stating that the Venezuelan Government having refused to satisfy the demands of the Imperial Government, it was considered necessary to decree the blockade of the ports of Puerto Cabello and Maracaibo. Inclosed was a copy of the official proclamation of the blockade which I was desired to bring to your knowledge. This morning I accordingly telegraphed you the substance of the proclamation. A copy of the proclamation transmitted to the embassy, together with an English translation, are appended hereto. I have, etc., CHARLEMAGNE TOWER. [Inclosure.-Translation.] Blockade proclamation. Proclamation regarding the blockade of the Venezuelan ports of Puerto Cabello and Maracaibo of the 20th of December, 1902. The Government of the United States of Venezuela having refused to satisfy the demands of the Imperial Government duly communicated to it, the blockade of the ports of Puerto Cabello and Maracaibo is decreed. The blockade comes into effect on December 20, 1902. Ships under other than Venezuelan colors which have cleared before the date of this proclamation from West Indian or eastern American ports are given a time allowance, this being twenty days in the case of sailing ships and ten days in that of steamships. Sailing ships from all other ports are given a time allowance of forty days and steamships one of twenty days. Ships under other than Venezuelan colors lying at the date of this proclamation in the blockaded ports are given a time allowance of fifteen days. Ships attempting to violate the blockade will be subject to the rules applicable according to international law and the treaties with the neutral powers. Berlin, December 20, 1902. EMBASSY OF THE UNITED STATES, (Mr. Tower reports that the German minister for foreign affairs has made the following communication to him: The German Government expresses to the Government of the United States its earnest thanks for the efforts of the latter Government to adjust the troubles with Venezuela. The proposition made by the United States to establish an arbitration appears to Germany, as well as to England, a suitable means by which to arrive at a just decision in regard to their claims. It is to be noted, however, that there are certain claims of Germany which can not be submitted to arbitration, namely, such claims as had arisen out of the civil war from 1898 to 1900, which were set forth in the memorandum addressed by the chancellor to the Reichstag on December 8, 1902. These claims have been assessed by Germany at an aggregate of $325,000, which must be paid immediately or sufficiently guaranteed by Venezuela. All other claims set forth in the ultimatums will be submitted to arbitration; that is to say, not only those arising out of the present civil war in Venezuela, but, also, as far as Germany is concerned, the claims referred to in the above-mentioned memorandum, which are based on the failure of the Government of Venezuela to fulfill its obligation toward German contractors under treaty engagements. The arbitrator shall decide upon the claims submitted as well as on the mode of satisfying them and the security to be given in the case of claims arising from damage to or illegal seizure of property. The Government of Venezuela also will be required to admit in principle its responsibility; that is to say, that this responsibility does not form the basis of the present arbitration, but that the arbitrator shall decide solely as to the injury to or illegal seizure of property and shall assess the damages therefor. The Government of the United States will place Germany and Great Britain under profound obligations if it will use its good offices to induce the Government of Venezuela to accept these propositions. The two governments would be grateful to the President of the United States if he would accept the position of arbitrator under the foregoing conditions. If, however, the President of the United States should, to the great regret of the two governments, decline their invitation, they are prepared to submit the case to The Hague tribunal.) Mr. Tower to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, Berlin, December 24, 1902. (Mr. Tower reports that the German minister for foreign affairs announces that as the German and British Governments have invited the President of the United States to act as arbitrator, this invitation must take precedence of the proposal made by Venezuela that Mr. Bowen should be empowered to negotiate as representative of Venezuela with the two Governments.) Mr. Tower to Mr. Hay. No. 6.] EMBASSY OF THE UNITED STATES, SIR: I have the honor to inclose to you herewith a copy and a translation into English of a memorandum which was handed to me by Baron von Richthofen, Imperial secretary of state for foreign affairs, on Tuesday afternoon, the 23d of December, setting forth the attitude of Germany and Great Britain in regard to the acceptance by those powers of the proposition made by the Government of Venezuela, and |