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Mr. Hay to Mr. White.
[Telegram.--Paraphrase.]

DEPARTMENT OF STATE,

Washington, December 12, 1902. (Mr. Hay states that the Venezuelan Government requests the United States minister to communicate a proposition to Great Britain and Germany that the present difficulty respecting the manner of settling claims for injuries to British and German subjects during the insurrection be submitted to arbitration.

Mr. White is directed to communicate this proposal to the minister for foreign affairs, and to advise the Department of his reply.)

Mr. White to Mr. Hay.
[Telegram.- Paraphrase]
EMBASSY OF THE UNITED STATES,

London, December 15, 1902. (Mr. White reports that he has just had an interview with the minister for foreign affairs; that members of the Government are scattered in the country, and no reply to Venezuelan proposal is possible to-day'; that there will be a meeting of the cabinet on the 16th instant, after wbich Mr. White expects to see the minister for foreign affairs.)

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

London, December 16, 1902. (Mr. White reports that he has just heard Lord Lansdowne make the following statement in the House of Lords, in reply to a question by Lord Spencer, leader of the opposition:

In the event which the noble Lord supposes, further measures of coercion will no• doubt be inevitable. The question has been considered by His Majesty's Government, in consultation with the German Government, and it has been decided, as I think will be evident from the general tenor of the blue book, to resort to a blockade of the Venezuelan ports, some of which will be blockaded by British and some by German ships of war. It is not intended to land a British force, and still less to occupy Venezuelan territory.)

Mr. Hay to Mr. White.
[Telegram.-Paraphrase.]

DEPARTMENT OF STATE,

Washington, December 16, 1902. (Mr. Hay states that Ambassador Tower telegraphs from Germany that Great Britain insists on warlike blockade, and inquires if this report is accurate. If so, Mr. White is directed to try to get a definition of what is intended thereby, and to represent the great desirability of arbitration, which is now earnestly wished by Venezuela.)

Mr. White to Jr. Tay.

[Telegram.- Paraphrase.)

EMBASSY OF THE UNITED STATES,

London, December 17, 1902. (Mr. White reports that he has just had an interview with the minister for foreign affairs, to whom he communicated his instructions to represent the desirability of arbitration. The minister for foreign affairs is not yet able to make a reply, but hopes to do so after the meeting of the cabinet, when Mr. White is to see him.)

Mr. White to Mr. Ilay.
[Telegram. – Paraphrase.]
EMBASSY OF THE UNITED STATES,

London, December 17, 1902. (Mr. White reports that he has just asked the minister for foreign affairs about the German ambassador's statement relative to blockade term “warlike blockade.” It was used, probably, in contradistinction to so-called pacific blockade, to which Germany wanted Great Britain to agree, chiefly because blockade jure gentium is an act of war, upon which Germany can not enter without consent of the Bundesrath. The British Government absolutely declined this proposition, and Germany consented two days ago to a regular blockade jure gentium. Owing to delay caused by necessity to convoke Bundesrath, formal notice of blockade of Venezuelan coast will be delayed a few days.)

Mr. White to Mr. llay. No. 1002.]

AMERICAN EMBASSY,

London, December 17, 1902. Sir: I have the honor to acknowledge the receipt of your telegraphic instructions of the 12th instant, and to inclose a copy of the note which I thereupon addressed to His Majesty's secretary of state for foreign affairs, setting forth the position assumed by our Government with respect to the “pacific” blockade proposed by Germany.

I have not yet received a reply to this note, but I have ascertained that this Government declined some time ago to assent to Germany's proposal for a “pacific” blockade on the ground that they have always maintained a blockade jure gentium to be the only form of blockade admissible. I have, etc.,

HENRY WHITE.

[Inclosure.]

Mr. White to the Marquis of Lansdoune.

AMERICAN EMBASSY, London, December 13, 1902. My Lord: A memorandum was communicated by the German embassy at Washington to the Department of State on the 20th of December, 1901, in which it is stated that the proposed pacific blockade of the Venezuelan harbors for some time “ would touch likewise the ships of neutral powers, inasmuch as such ships, although a confiscation of them would not have to be considered, would have to be turned away and prohibited until the blockade should be raised."

I have the honor, with reference to this statement, to acquaint your lordship that I am instructed by Mr. Secretary Hay to inform His Majesty's Government that my Government adheres to the position taken by it in relation to the Cretan blockade, as explained in the note addressed on March 26, 1897, by Mr. Sherman, at that time Secretary of State, to His Majesty's ambassador at Washington, wherein it is set forth that the United States does not concede “the right to make such a blockade as that referred to," and reserves “the consideration of all international rights and of any question which may in any way affect the commerce or interests of the C'nited States."

The United States therefore does not acquiesce in any extending of the doctrine of pacific blockade which may adversely affect the rights of states not parties to the controversy or discriminate against the commerce of neutral nations, and my Government reserves all of its rights in the premises. I have, etc..

ILENRY WHITE.

Mr. White to Mr. Tlay.

[Telegram.- Paraphrase.]

EMBASSY OF THE UNITED STATES,

London, December 18, 1902. (Mr. White reports that the prime minister stated yesterday in the House of Commons that he agrees with the United States in thinking “there can be no such thing as a pacific blockade," and that “evidently a blockade does involve a state of war," and added that “all the conditions governing such a blockade have been drawn up and will be published in due time for the information of neutrals;" also, that “the Government are níost anxious that these operations shall be as little inconvenient to neutral powers as they can possibly be made.” He furthermore said, in reply to a question, “Has war been declared ?” “Does the honorable and learned gentleman suppose that without a state of war you can take the ships of another power and blockade its ports?")

Mr. White to Mr. Ilay.

[Telegram.- Paraphrase.]

EMBASSY OF THE UNITED STATES,

London, December 18, 1902. (Mr. White reports that he has just been informed by the British minister for foreign affairs, upon the termination of the council, that the cabinet gladly accept the principle of arbitration for the purpose of settling the dispute with Venezuela, and would be disposed to approach the President of the United States and ask if he would act as abitrator. Certain claims would, however, be excluded from arbitration, and His Majesty's Government will be able at an early date to explain what categories, the nature of which Mr. Hay can surmise, will form the excluded claims, with respect to which immediate cash settlement will be required. Meanwhile it is not proposed for the present to desist from the measures of coercion now in progress.)

Mr. White to Mr. llay.

[Telegram.-Paraphrase.)
EMBASSY OF THE UNITED STATES,

London, December 18, 1902. (Mr. White reports that immediate cash payment need not necessarily be large, recognition of the principle rather than amount of payment being the question.)

Mr. Tay to Mr. White.

[Telegram.–Paraphrase.)

DEPARTMENT OF STATE.

Washington, December 18, 1902. (Mr. Ilay states that the United States minister to Venezuela telegraphs to the Department that the Government of Venezuela has conferred upon him full powers to enter into negotiations on the part of Venezuela to settle the present difficulties with Great Britain, Germany, and Italy.

Mr. White is directed to communicate the Venezuelan proposition to the Government of Great Britian and ascertain if it is disposed to assent thereto.)

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

London, December 19, 1902. (Mr. White reports that he has had an interview with the minister for foreign affairs and handed him a note containing the Venezuelan proposal embodied in Department's telegram received this date. The minister for foreign affairs said he would confer with the prime minister and send an immediate reply, which Mr. White has received. It refers to acceptance of arbitration proposal; expresses hope that the President of the United States will consent to act as arbitrator; states that conditions under which such arbitration might take place have been fully considered and will be communicated to Mr. White within a few hours, and concludes as follows: "In these circumstances His Majesty's Government prefer not to abandon the proposals which they have already made, proposals which seem to them to afford every hope of satisfactory settlement, in order to adopt the alternative procedure which the Venezuelan Government have apparently suggested.")

Mr. Hay to Mr. White.
[Telegram.- Paraphrase.]

DEPARTMENT OF STATE,

Washington, December 19, 1902. (Mr. Hay acknowledges the receipt of Mr. White's telegram mentioning the President's name as possible arbitrator, and states that while the President would not decline any service which was desired by the powers interested for the settlement of pending claims he would like Mr. White to intimate, discreetly and unofficially, to the British minister for foreign affairs that he would regard it as altogether desirable that the matter should be referred to The Hague.)

Mr. White to Mr. Ilay.

No. 1005.]

AMERICAN EMBASSY,

London, December 19, 1902. Sir: Referring to my dispatch No. 1002, I have the honor to inclose herewith copies of your telegraphic instructions a relative to the nature of the proposed blockade, and of my reply a to the same, from which you will see that the term “warlike blockade" must have been used by Germany in contradistinction to the so-called "pacific blockade," to which that country wanted Great Britain to assent, but the latter declined to do so. You will also observe from the telegram I sent you on the 18th instant that His Majesty's Government agree with ours in thinking that “there can be no such thing as a pacific blockade,” and that a blockade does involve a state of war, but that “it is hoped that these operations shall be as little inconvenient to neutral powers as they can possibly be made.” I have, etc.,

HENRY WHITE.

Mr. White to Mr. Flay.

[Telegram.- Paraphrase.)

EMBASSY OF THE UNITED STATES,

London, December 20, 1902. (Mr. White reports that in accordance with the Department's instruction he has conveyed intimation in connection with suggestion as to arbitration at The Hague, in the manner therein directed to the under secretary of state for foreign affairs, who has telegraphed it to Lord Lansdowne. The latter will be absent from London until Monday, when Mr. White will see him.)

Mr. Ilay to Mr. White.
[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 has inquired if it is also the wish of Venezuela that he so act.

Pending 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.)

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