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ment or the securing the payment of the German claims, assessed at $325,000, upon which I have heretofore had the honor to report to you.

This preliminary condition is held strongly by the German Government as a condition sine qua non to arbitration, and in replying to your dispatch I said, in view of this: “I have reason to believe that no progress can be made until Venezuela accepts specifically the preliminary conditions." I have, etc.,

CHARLEMAGNE TOWER.

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

Berlin, January 17, 1903. (Mr. Tower reports that the German minister for foreign affairs has announced to him that the German Government will instruct its representative in Washington to open negotiations with Mr. Bowen as plenipotentiary of Venezuela, but only upon the distinct agreement that the Venezuelan Government first declares itself bound by the three conditions precedent set out in the German memorandum of December 22, 1902.)

Mr. Torer to Mr. Tlay.
[Telegram.- Paraphrase.]
EMBASSY OF THE UNITED STATES,

Berlin, February 19, 1903. (Mr. Tower reports that the German Government has officially notified him of the raising of the blockade of Puerto Cabello and Maracaibo.)

Mr. Tower to Mr. Ilay.

No. 50.)

EMBASSY OF THE UNITED STATES,

Berlin, February 21, 1903. SIR: I have the honor to inclose to you herewith a copy and a translation into English of a note which I have received from the Imperial secretary of state for foreign affairs, announcing that the blockade of the Venezuelan ports of Maracaibo and Puerto Cabello has been raised. I have, etc.,

CHARLEMAGNE TOWER.

[Inclosure 1.- Translation.] Notice regarding the raising of the blockade of the Venezuelan ports of Puerto Cabello and

Maracaibo.

FEBRUARY 16, 1903. The differences between Germany and the United States of Venezuela having been settled, the blockade which the active naval forces of Germany maintained at the ports of Puerto Cabello and Maracaibo (see No. 299 of the “Reichsanzeiger" of the 20th of December, 1902) has been raised. Berlin, February 16, 1903.

GRAF VON BÜLOW,
The Imperial Chancellor.

[Inclosure 2.— Translation.]

Note from the foreign office.

The differences between Germany and the United States of Venezuela having been settled, the blockade which the active forces of Germany maintained at the ports of Puerto Cabello and Maracaibo has now been raised. The undersigned, referring to his note of December 20, 1902, has the honor to communicate to his excellency the ambassador extraordinary and plenipotentiary of the United States of America, Mr. Tower, the text of the notice which appeared in the Reichsanzeiger relating to the raising of the blockade, with the request that he bring the notice to the attention of his Government. The undersigned avails himself of this opportunity to renew, etc.

RICATHOFEN.

Memorandum.

IMPERIAL GERMAN EMBASSY,

Washington, February 25, 1903. Can the chargé d'affaires of the United States remain in charge of German interests in Venezuela until arrival of German minister, Mr. Peldram, at Caracas, about March 10?

If so, could United States chargé d'affaires be instructed to inform the Government of Venezuela that the presentation of the first German draft (for payment of first installment) due March 15, may be possibly delayed for a few days on account of German minister's late arrival?

Mr. Adee to Baron von Sternburg.

[Personal.]
DEPARTMENT OF STATE,

Washington, March 8, 1903. DEAR MR. MINISTER: I have received this morning a cable message from our chargé d'affaires at Caracas, communicating the notification made by the Venezuelan Government to him as the temporary representative of Great Britain, Germany, and The Netherlands, that the blockade of the Orinoco River, which was declared on the 28th of June last, is reestablished from March 7, and that the ports of Carupano and Guanta are blockaded from the same date, the same number of days of grace being allowed as in the former decree. I am, etc.,

ALVEY A. ADEE.

Mr. Loomis to Baron von Sternburg.

[Personal.]

DEPARTMENT OF STATE,

Washington, March 13, 1903. MY DEAR MR. MINISTER: Referring to Mr. Adee's personal note of the 8th instant, informing you of the receipt of a telegram from the United States chargé d'affaires at Caracas announcing the blockade of certain ports by the Venezuelan Government, I have the honor to say

that I have received a further telegram from Mr. Russell, dated the 12th instant, in which he requests me to inform you that “the blockade decree of the 7th has been revoked since yesterday." I am, etc.

FRANCIS B. LOOMIS,

Acting Secretary of State.

Freiherr von dem Bussche-lladdenhausen to Mr. Hay.

IMPERIAL GERMAN EMBASSY,

Washington, April 4, 1903. DEAR MR. Hay: The German, British, and Italian Governments, having agreed on the terms of a protocol to be signed by the representatives of those three powers, of Venezuela, and of the other powers interested about the submission of the question of preferential or separate treatment of the blockading powers to The Hague tribunal, I have the honor to submit to your excellency the draft of the said protocol. a Believe me, etc.,

BUSSCHE.

Mr. Hay to Baron von Sternburg.

DEPARTMENT OF STATE,

Washington, April 6, 1903. MY DEAR MR. MINISTER: I have received the note of the 4th instant which Mr. Bussche of your embassy addressed to the Department, forwarding a copy of the text of the protocol, which the German, British, and Italian Governments have agreed to submit to the Government of Venezuela for signature, relating to the reference to the international court of arbitration at The Hague of the question of preferential treatment in the payment of claims owing by Venezuela to the Governments named or to their subjects. I am, etc.,

John Hay.

PROTOCOL OF AGREEMENT BETWEEN VENEZUELA AND GERMANY-TO WHICH THE UNITED STATES AND OTHER POWERS ARE PARTIES-RESPECTING THE REFERENCE OF THE QUESTION OF THE PREFERENTIAL TREATMENT OF CLAIMS TO THE TRIBUNAL AT THE HAGUE.

Signed at Washington May 7, 1903. Whereas protocols have been signed between Germany, Great Britain, Italy, the United States of America, France, Spain, Belgium, The Netherlands, Sweden and Norway, and Mexico on the one hand, and

a See Protocol, page 439.

Continuation of this correspondence and negotiations at The Hague will appear in the Volume of Foreign Relations for 1904.

Venezuela on the other hand, containing certain conditions agreed upon for the settlement of claims against the Venezuelan Government:

And whereas certain further questions arising out of the action taken by the Governments of Germany, Great Britain and Italy, in connection with the settlement of their claims, have not proved to be susceptible of settlement by ordinary diplomatic methods:

And whereas the Powers interested are resolved to determine these questions by reference to arbitration in accordance with the provisions of the Convention for the Pacific Settlement of International Disputes, signed at the Hague on the 29th July 1899.

Venezuela and Germany have, with a view to carry out that Resolution, authorized their representatives, that is to say:

Mr. Herbert W. Bowen as plenipotentiary of the Government of Venezuela and

The Imperial German Minister Baron Speck von Sternburg as representative of the Imperial German Government to conclude the following Agreement:

ARTICLE 1.

The question as to whether or not Germany, Great Britain, and Italy are entitled to preferential or separate treatment in the payment of their claims against Venezuela, shall be submitted for final decision to the Tribunal at the Hague.

Venezuela having agreed to set aside 30% of the customs revenues of La Guay ra and Puerto Cabello for the payment of the claims of all nations against Venezuela, the Tribunal at the Hague shall decide how the said revenues shall be divided between the blockading Powers on the one hand and the other creditor Powers on the other hand and its decision shall be final.

If preferential or separate treatment is not given to the blockading Powers, the Tribunal shall decide how the said revenues shall be distributed among all the creditor Powers and the parties hereto agree that the Tribunal in that case shall consider in connection with the payment of the claims out of the 30% any preference or pledges of revenue enjoyed by any of the creditor Powers, and shall accordingly decide the question of distribution so that no Power shall obtain preferential treatment, and its decision shall be final.

ARTICLE II.

The facts on which shall depend the decision of the questions stated in Article 1 shall be ascertained in such manner as the Tribunal may determine.

ARTICLE III.

The Emperor of Russia shall be invited to name and appoint from the members of the permanent Court of the Hague three arbitrators to constitute the Tribunal which is to determine and settle the questions submitted to it under and by virture of this agreement. None of the arbitrators so appointed shall be a subject or citizen of any of the signatory or creditor Powers.

This Tribunal shall meet on the first day of September 1903, and shall render its decision within six months thereafter.

ARTICLE IV.

The proceedings shall be carrried on in the English language but arguments may with the permission of the Tribunal be made in any other language also. Except as herein otherwise stipulated, the procedure shall be regulated by the Convention of the Hague of July 29th 1899.

ARTICLE V.

The Tribunal shall, subject to the general provision laid down in Article 57 of the International Convention of July 29, 1899, also decide how, when and by whom the cost of this Arbitration shall be paid.

ARTICLE VI.

Any nation having claims against Venezuela may join as a party in the Arbitration provided for by this Agreement.

Done in duplicate at Washington this seventh day of Mayone thousand and nine hundred and three. (SEAL.]

HERBERT W. BOWEN. [SEAL.]

STERNBURG.

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The undersigned nations having claims against Venezuela hereby join with her as parties in the arbitration provided for in the foregoing protocol. For the United States of America

John Hay For the Republic of Mexico [SEAL.

M. DE AZPIROZ. For Sweden and Norway, (SEAL.] May 27, 1903.

A. Grip.

L'Ambassadeur de France, dûment autorisé et agissant au nom de son Gouvernment, adbère au Protocole ci-dessus, sous réserve qúil est bien entendu que l'article IV dudit protocole ne fera pas obstacle à l'application de la disposition de l'article 38 de l'acte de La Haye, aux termes de laquelle c'est le tribunal arbitral qui décide du choix des langues dont il fera usage et dont l'emploi sera autorisé devant lui. 1er JUIN 1903. [SEAL.]

JUSSERAND

Le Ministre de Belgique, dûment autorisé et agissant au nom de son Gouvernement adhère au protocole ci-dessus. 12 Juin 1903 (SEAL.]

BN. MONCHEUR.

Le Ministre des Pays-Bas dûment autorisé et agissant au nom de son Gouvernement adhère au protocole ci-dessus.-WASHINGTON, le 13 Juin, 1903.(SEAL.]

GEVERS.

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