Mr. White to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (Mr. White states that the supplement to the London Gazette of December 20, 1902, contains the following notice only: It is hereby notified that as the United States of Venezuela have failed to comply with the demands of His Majesty's Government, a blockade by His Majesty's naval forces on the ports of La Guayra, Carenero, Guanta, Cumana, Carupano, and the mouths of the Orinoco is declared, and such blockade will be effectively maintained from and after the 25th day of December, subject to an allowance of the following days of grace for vessels sailing before the date of this notification. From West Indian ports and from ports on the east coast of the continent of America, ten days for steamers and twenty days for sailing vessels; from all other points, twenty days for steamers and forty days for sailing vessels; for vessels lying in ports now declared to be blockaded, fifteen days. Vessels which attempt to violate the blockade will render themselves liable to all measures authorized by the law of nations and the respective treaties between His Majesty's Government and the different neutral powers.) No. 1007.] Mr. White to Mr. Hay. AMERICAN EMBASSY, London, December 20, 1902. SIR: I have the honor to inclose herewith copies of a cablegram which I received from you early yesterday morning; of a note which I thereupon addressed and handed myself to the Marquis of Lansdowne at the foreign office in the afternoon; of his lordship's reply, which reached me very shortly afterwards, and of a cablegram which, upon the receipt of Lord Lansdowne's note, I sent you, relative to the proposed submission of the claims of Great Britain and Germany to arbitration, and more particularly to the action of the Venezuelan Government in conferring upon our minister at Caracas full powers to enter into negotiations with regard to the present difficulties of Great Britain and Germany with Venezuela. You will observe from Lord Lansdowne's note that this Government, having already accepted the proposal of the Venezuelan Government to refer to arbitration the matters in controversy between the two governments, and having expressed the hope that the President of the United States would act as arbitrator, prefer to adhere to that decision rather than to adopt an alternative proceeding. I may add that the moment he read my note Lord Lansdowne said that he felt sure that such would be the view of His Majesty's Government, but that before giving me a definite answer he would consult the prime minister and communicate in writing immediately the Government's reply, which he did within an hour. I have, etc., HENRY WHITE. [Inclosure No. 1.] Mr. White to Lord Lansdowne. AMERICAN EMBASSY, London, December 19, 1902. MY LORD: I have the honor to inform your lordship that Mr. Bowen, the American minister to Venezuela, has informed my Government by telegraph that the a Printed ante. Venezuelan Government has conferred upon him full powers to enter into negotia tions on the part of Venezuela to settle the present difficulties with Great Britain, Germany, and Italy. I am instructed by Mr. Secretary Hay to communicate the Venezuelan proposition to your lordship, and to ascertain whether His Majesty's Government be disposed to assent thereto. I have, etc., [Inclosure No. 2.] HENRY WHITE. Lord Lansdowne to Mr. White. FOREIGN OFFICE, December 19, 1902. SIR: I have had the honor to receive your note of this day's date, stating that Mr. Bowen, the American minister at Caracas, has informed the United States Government that the Venezuelan Government have conferred upon him full powers to enter into negotiations with regard to the present difficulties with Great Britain, Germany, and Italy. His Majesty's Government have, as you are aware, already accepted the proposal of the Venezuelan Government to refer to arbitration the matters in controversy between the two governments and have expressed their hope that the President of the United States will consent to act as arbitrator. The conditions under which such arbitration might take place have been fully considered, and I hope to make you aware of them in the course of a few hours. 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 now suggested. I have, etc., LANSDOWNE. Mr. White to Mr. Hay. No. 1008.] AMERICAN EMBASSY, London, December 20, 1902. SIR: Referring to my dispatch, No. 1005, of yesterday's date, I have the honor to inclose herewith the copy of a note which I received yesterday from His Majesty's secretary of state for foreign affairs, in reply to mine of the 13th instant, of which a copy has already been forwarded to you. I have, etc., HENRY WHITE. [Inclosure.] Lord Lansdowne to Mr. White. FOREIGN OFFICE, December 17, 1902. SIR: I have the honor to acknowledge the receipt of your note of the 13th instant, stating, with reference to the proposal of the German Government for a pacific blockade of the Venezuelan harbors, that the United States Government do not acquiesce in any extension of the doctrine of pacific blockade which may adversely affect the right of States not parties to the controversy or discriminate against the commerce of neutral nations. You add that the United States Government reserve all their rights in connection with the matter. I have, etc., Mr. White to Mr. Hay. [Telegram.-Paraphrase.] LANSDOWNE. EMBASSY OF THE UNITED STATES, London, December 22, 1902. (Mr. White reports that Lord Lansdowne, with whom he has just had an interview, says that his Government does not feel disposed to modify in any way the suggestion already made that the President of the United States should act as arbitrator, as they are very desirous that he should do so. Lord Lansdowne pointed out that according to the newspapers the proposal had been received with marked approval on both sides of the ocean, and seemed to think that if accepted it would inspire an amount of confidence which would be the case with no other arbitrator. Mr. White then asked Lord Lansdowne whether, if the President should be unable to see his way to act, the British Government would consent to The Hague tribunal, to which Lord Lansdowne replied that they would, but that he hoped very much the President would not decline. Mr. White has not yet received the arbitration conditions and reservations. Lord Lansdowne said the delay was caused by necessity for further reference to Germany, whose reply is awaited hourly, and that he hoped to be able to communicate them to Mr. White in time for them to be communicated to the Department to-night. Lord Lansdowne also said that the British and German notes will not be identic.) Mr. White to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (Mr. White reports that Lord Lansdowne has just handed him the expected memorandum," a lengthy document, which he will cable as soon as possible. Claims for outrages to British vessels and subjects are entirely reserved. With respect to injury or wrongful seizure of property, the arbitrator is limited to three points. All other claims will be submitted without reservation, the arbitrator to determine not only compensation, but to define security and the means of obtaining execution of the award. The President of the United States is invited to arbitrate, but, if impossible, both Governments are prepared to refer the questions at issue to The Hague tribunal of arbitration. Lord Lansdowne said that the British Government will be greatly disappointed if the President can not consent to act as arbitrator.) Mr. White to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNTED STATES, (Mr. White reports that Lord Lansdowne intimated to him yesterday that if the Government of the United States should desire alterations or modifications in the arbitration proposals, His Majesty's Government would be happy to consider any such, provided they did not involve any question of principle.) a Printed page 461. No. 1012.] Mr. White to Mr. Hay. AMERICAN EMBASSY, London, December 24, 1902. SIR: I have had the honor to keep you so fully informed by telegraph during the past few days of every step which I have taken under your instructions with respect to the Venezuelan question and of the interviews which I have had with His Majesty's secretary of state for foreign affairs that there is little for me to add by the dispatch leaving to-day. It was not possible, as I have already informed you, for this Government to communicate to me until yesterday the proposals and reservations with respect to arbitration which, I have reason to believe, have been practically completed for several days past, owing to the necessity of communicating with Germany twice on the subject and of awaiting the latter's reply. Yesterday, however, I was requested by Lord Lansdowne to call at the foreign office at 3 o'clock, when he handed me the memorandum which I had the honor to cable you yesterday, and of which I inclose a copy herewith. In doing so, his lordship again expressed to me the earnest desire of His Majesty's Government that the President would consent to act as arbitrator, and added that they will be "greatly disappointed" should he be unable to see his way to do so. Lord Lansdowne also intimated, in the course of my brief conversation with him, that if there should be anything which our Government would like altered or modified in the memorandum, His Majesty's Government would be happy to consider any suggestion from us to that effect, provided no modification of any principle laid down therein were involved. Having omitted to mention this in my lengthy cablegrams of yesterday, I have sent you to-day a telegram on the subject. I may add that the press of this country appears to be practically unanimous in its desire that the President should act as arbitrator. For several days past there has been a leading article on the subject in most of the principal newspapers. I have, etc., HENRY WHITE. [Inclosure.] Memorandum. DECEMBER 23, 1902. His Majesty's Government have, in consultation with the German Government, taken into their careful consideration the proposal communicated by the United States Government at the instance of that of Venezuela. The proposal is as follows: That the present difficulty respecting the manner of settling claims for injuries to British and German subjects during the insurrection be submitted to arbitration. The scope and intention of this proposal would obviously require further explanation. Its effect would apparently be to refer to arbitration only such claims as had reference to injuries resulting from the recent insurrection. This formula would evidently include a part only of the claims put forward by the two Governments, and we are left in doubt as to the manner in which the remaining claims are to be dealt with. Apart, however, from this, some of the claims are of a kind which no Government could agree to refer to arbitration. The claims for injuries to the person and property of British subjects owing to the confiscation of British vessels, the plunder ing of their contents, and the maltreatment of their crews, as well as some claims for the ill-usage and false imprisonment of British subjects, are of this description. The amount of these claims is no doubt comparatively insignificant, but the principle at stake is of the first importance, and His Majesty's Government could not admit that there was any doubt as to the liabitity of the Venezuelan Government in respect of them. His Majesty's Government desire, moreover, to draw attention to the circumstances under which arbitration is now proposed to them. The Venezuelan Government have during the last six months had ample opportunities for submitting such a proposal. On July 29, and again on November 11, it was intimated to them in the clearest language that unless His Majesty's Government received satisfactory assurances from them, and unless some steps were taken to compensate the parties injured by their conduct, it would become necessary for His Majesty's Government to enforce their just demands. No attention was paid to these solemn warnings, and in consequence of the manner in which they were disre garded His Majesty's Government found themselves reluctantly compelled to have recourse to the measures of coercion which are now in progress. His Majesty's Government have, moreover, already agreed that in the event of the Venezuelan Government making a declaration that they will recognize the principle of the justice of the British claims, and that they will at once pay compensation in the shipping cases and in the cases where British subjects have been falsely imprisoned or maltreated, His Majesty's Government will be ready, so far as the remaining claims are concerned, to accept the decision of a mixed commission which will determine the amount to be paid and the security to be given for payment. A corresponding intimation has been made by the German Government. This mode of procedure seemed to both Governments to provide a reasonable and adequate mode of disposing of their claims. They have, however, no objection to substitute for the special commission a reference to arbitrate, with certain essential reservations. These reservations are, so far as the British claims are concerned, as follows: (1) The claims-small, as has already been pointed out, in pecuniary amount, arising out of the seizure and plundering of British vessels and outrages on their crews and the maltreatment and false imprisonment of British subjects—are not to be referred to arbitration. (2) In cases where the claim is for injury to or wrongful seizure of property the questions which the arbitrators will have to decide will only be (a) whether the injury took place and whether the seizure was wrongful, and (b) if so, what amount of compensation is due. That in such cases a liability exists must be admitted in principle. (3) In the case of claims other than the above we are ready to accept arbitration without any reserve. It would, in the opinion of both Governments, be necessary that the arbitral tribunal should not only determine the amount of compensation payable by Venezuela, but should also define the security to be given by the Venezuelan Government and the means to be resorted to for the purpose of guaranteeing a sufficient and punctual discharge of the obligation. Should the President of the United States be willing to undertake the task of arbitrator the British and German Governments would avail themselves of his good offices with the highest satisfaction. If it should unfortunately prove impossible for the President to render this important service to the two Governments they are prepared to refer the questions at issue to arbitration by The Hague tribunal. Mr. Hay to Mr. White. [Telegram.-Paraphrase.] DEPARTMENT OF STATE, Washington, December 26, 1902. (Mr. Hay directs Mr. White to inquire of Lord Lansdowne, in view of Venezuela's acceptance in principle of arbitration by The Hague tribunal, if Mr. Hay is at liberty to communicate the propositions to the Government of Venezuela.) |