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memorandum that, as the Imperial Government has accepted the proposition of submitting its claims to arbitration, and has invited the President of the United States to accept the duties of arbitrator, this invitation must take precedence of the course proposed by the Government of Venezuela. I have, etc.,

CHARLEMAGNE TOWER.

[Inclosure.- Translation.]

Memorandum.

The Imperial Government has accepted the proposition of submitting its claims against the Venezuelan Government to arbitration under certain conditions, which are communicated at the same time herewith to the American ambassador, and has therein expressed the wish that the President of the United States should accept the duties of arbitrator.

In common with the British Government, the Imperial Government believes that it has found in this way every guaranty for a satisfactory solution of the difficulty, so that this course deserves to have precedence accorded to it over the course recently proposed by the Venezuelan Government, namely, that the two powers should negotiate through the American minister, Mr. Bowen, as intermediary.

Mr. Tower to Mr. Flay.

No. 12.]

EMBASSY OF THE UNITED STATES,

Berlin, December 29, 1902. Sir: I have the honor to acknowledge the receipt on the 27th of December of your telegram containing the reply of the President to the invitation extended to him by the powers to accept the duty of arbitrator in the matters now pending in Venezuela.

Immediately upon the receipt of this telegram I proceeded to the foreign office, where I met the Baron von Richthofen, Imperial secretary of state for foreign affairs, to whom I communicated it. Baron von Richthofen received with evident disappointment the announcement of the President's decision not to act as arbitrator, and he requested me at once to convey to him the earnest thanks of the Imperial Government for the part he has taken in bringing the controversy to an amicable settlement. I communicated this to you in my telegram of the 27th of December.

In this last message I said: “I think it would expedite proceedings if a statement were made by Venezuela as to her acceptance of the preliminary conditions announced by Germany,” because Baron von Richthofen expressed to me very strongly his desire to know what Venezuela intends to do in that regard, and, although he did not wish me to inquire formally of you, he intimated that he should be much obliged if I would obtain that information for bim.

I received on the 28th of December your telegram in reply, saying: I have telegraphed in full to Minister Bowen the German preliminary conditions received from you and await Venezuelan response, of which you will be promptly advised.

Very great disappointment has been felt throughout Germany at the decision of the President not to act as arbitrator,

* * * It was believed to be almost certain that the difficulties with Venezuela would be finally submitted to him for adjustment, and the personal

character of the President, as well as his breadth of view and unquestioned integrity, gave to the German people a sense of relief, in view of the assurance of speedy and complete justice which his acceptance would have ineant to them.

The general opinion now appears to be one of fear that the negotiations before the court of arbitration are likely to be voluminous and probably long in duration. I have, etc.,

CHARLEMAGNE TOWER.

Mr. Ilay to Mr. Tower.
[Telegram.- Paraphrase.)

DEPARTMENT OF STATE,

Washington, December 31, 1902. (Mr. Tower is instructed to communicate to the German Government the following telegram which Mr. Hay has just received from the United States minister to Venezuela:

I have received the following answer from the President of Venezuela:

“I recognize in principle the claims which the allied powers have presented to Venezuela. They would already have been settled if it had not been that the civil war required all the attention and resources of the Government. To-day the Government bows to superior force and desires to send Mr. Bowen to Washington at once to confer there with the representatives of the powers that have claims against Venezuela in order to arrange either an immediate settlement of all the claims or the preliminaries for reference to the tribunal of The Hague or to an American Republic to be selected by the allied powers and by the Government of Venezuela. Mr. Bowen would be duly authorized to settle the whole question as the representative of Venezuela.

“CIPRIANO Castro.” Mr. Tower is authorized to say to the German Government that the suggestion of the President of Venezuela that an American power be chosen to arbitrate is not supported by the Government of the United States.)

Mr. Tower to Jr. Ilay.
[Telegram.-Paraphrase.)
EMBASSY OF THE UNITED STATES,

Berlin, January 2, 1903. (Mr. Tower acknowledges the receipt of the Department's telegrams conveying the answer of Venezuela and relating to Mr. Bowen, which be bas communicated to the German Government.)

Mr. Hay to Mr. Tower.
[Telegram.-Paraphrase.)

DEPARTMENT OF STATE,

Washington, January 6, 1903. (Mr. Hay advises Mr. Tower of the receipt of the British reply accepting the negotiation if Venezuela assents to conditions imposed by Great Britain, and appointing the British ambassador to confer with Mr. Bowen in Washington.)

FR 1903

-28

Mr. Torer to Mr. May.

[Telegram.-Paraphrase.)

EMBASSY OF THE UNITED STATES,

Berlin, January 6, 1903. (Mr. Tower reports the receipt from the German minister for foreign affairs of the following memorandum:

The German Government has learned with satisfaction that the Venezuelan Government has accepted its demands in principle. Before further negotiations can be undertaken with Venezuela, however, it seems necessary that the President of Venezuela should make a definite statement as to the unconditional acceptance of the three preliminary conditions set forth in the German memorandum of December 22, 1902. He will also have especially to declare how he intends either to pay or to secure the claims set forth in paragraph 1. On receipt of a satisfactory assurance from the Government of Venezuela the German Government will be prepared to instruct its ambassador in Washington to open negotiations with Mr. Bowen as representative of Venezuela, and to consider his proposition in regard to an adjustment. These propositions may relate to an immediate settlement or to a reference to The Hague tribunal of all claims, except, of course, those mentioned in paragraph 1. The German Government makes the condition, however, that the discussion of any proposition for immediate payment shall not prejudice the right of reference to The Hague tribunal.

The German Government will be very greatly obliged to the Goyernment of the United States if it will transmit the foregoing reply to President Castro.)

Mr. Tourer to Mr. Hay.

No. 17.].

EMBASSY OF THE UNITED STATES,

Berlin, January 8, 1903. Sir: I have the honor to inclose to you herewith a copy and a translation into English of the reply of the German Government to President Castro, which was sent to me in a memorandum from the Imperial foreign office on the 6th of January, 1903.

Immediately upon receipt of this memorandum I communicated it to you in a telegram.

I received on the 6th of January your telegram announcing the fact that you had then received the reply of Great Britain which appointed the British ambassador in Washington to treat with Mr. Bowen. I have, etc.,

CHARLEMAGNE TOWER.

[Inclosure.- Translation.]

Memorandum sent to Mr. Touer by the Imperial German foreign office, January 6, 1903.

MEMORANDUM.

The German Government has learned with satisfaction that the Venezuelan Government has accepted its demands in principle. But, before further negotiations upon this basis can take place with Venezuela, it seems necessary that President Castro should make a definite statement as to the unconditional acceptance of the three preliminary conditions set forth in the German memorandum of December 22, 1902. He will have also to declare especially in what manner he intends either to pay or to secure the claims set forth in paragraph 1.

Upon receipt of a satisfactory statement from the Government of Venezuela, the German Government will be prepared to instruct its ambassador in Washington to open negotiations with Mr. Bowen as representative of Venezuela and to consider his propositions for an adjustment. These propositions, except in the case of the claims made in the preliminary condition No. 1, which are to be met at once, may relate to an immediate settlement, or to a reference to the tribunal of The Hague. "The German Government wishes it to be understood, however, that a discussion of any proposition for an immediate payment shall not prejudice the right of reference to The Hague tribunal.

The German Government will be greatly obliged to the Government of the United States if it will transmit the foregoing reply to President Castro.

BERLIN, January 5, 1903.

Mr. Way to Mr. Tower.
(Telegram.–Paraphrase.]

DEPARTMENT OF STATE,

Washington, January 8, 1903. (Mr. Hay states that the following telegram was received on the eighth instant from Minister Bowen:

I have just received the following from President Castro:

“Mr. MINISTER: The Venezuelan government accepts the conditions of Great Britain and Germany; requests you to go immediately to Washington for the purpose of conferring there with the diplomatic representatives of Great Britain and Germany and with the diplomatic representatives of the other nations that have claims against Venezuela, and to arrange either an iminediate settlement of said claims or the preliminaries for submitting them to arbitration.

“CIPRIANO CASTRO,

Constitutional President." If, as I understand, Great Britain and Germany want to know what guarantee they will have, please inform them it will be the custom-houses. Consequently, I beg that the blockade be raised at once.

Mr. Tower is directed to communicate with the foreign office at once, saying that Mr. Bowen will come to Washington immediately.)

Mr. Tower to Mr. Hlay.

[Telegram.—Puraphrase.)

EMBASSY OF THE UNITED STATES,

Berlin, January 9, 1903. (Mr. Tower acknowledges the receipt of the Department's telegram, and reports that he has communicated to the German minister for foreign affairs President Castro's answer, as well as Mr. Bowen's request that the blockade be raised, and the Department's announcement that Mr. Bowen will come to Washington immediately.

Baron Richthofen accepted Mr. Tower's communication, but remarked incidentally that this answer still gives no specific statement as to the payment or security of the claims described in the preliminary conditions.)

Mr. llay to Mr. Tower. .
[Telegram.- Paraphrase.)

DEPARTMENT OF STATE,

Washington, January 10, 1903. (Mr. Hay states that Mr. Bowen will leave Caracas for Washington on January 11; that he is anxious for the raising of the blockade at the earliest moment possible, on account of the fact that the scarcity of provisions in Venezuela threatens general distress. Mr. Hay has answered Mr. Bowen that no preliminaries can be adjusted before his arrival, and that the raising of the blockade may depend on the sufficiency of Venezuela's guarantee. Mr. Tower is directed to suggest to the German minister for foreign affairs that the matter might be taken into consideration with a view to early determination.)

Mr. Tower to Mr. Ilay.
[Telegram.- Paraphrase.)
EMBASSY OF THE UNITED STATES,

Berlin, January 13, 1903. (Mr. Tower reports that he has communicated to the German minister for foreign affairs the wish of Mr. Bowen that the blockade may be raised as soon as possible, and suggested that the matter be taken under consideration with a view to early determination.

The minister for foreign affairs replied that the subject will be dealt with in the answer of Germany to Venezuela, which will probably be delivered within a few days; but Mr. Tower states that he has reason to believe that no progress can be made until Venezuela accepts specifically the preliminary conditions.)

Mr. Tower to Mr. Ilay. No. 21.)

EMBASSY OF THE UNITED STATES,

Berlin, January 14, 1903. Sir: I have the honor to acknowledge the receipt, on the 10th of January, at night, of your dispatch announcing that Mr. Bowen intended to leave Caracas for Washington upon the following day, and expressing his anxiety that the blockade of Venezuelan ports should be raised at the earliest moment possible, by reason of the growing scarcity of provisions likely to produce general distress.

In compliance with your instructions contained in that dispatch, I brought the subject to the attention of Baron Richthofen, imperial secretary of state for foreign affairs, in a personal interview with him at the German foreign office. Baron Richthofen answered that the subject of the blockade would be referred to in a definite reply which the German Government will probably make to President Castro within a few days. But he alluded with considerable earnestness to the fact that although President Castro has declared that he accepts in principle the terms offered him by the powers, he has not as yet announced his acceptance of the condition precedent, namely, the pay

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