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Mr. Hay to Mr. Bowen.
(Telegram.-Paraphrase.)

DEPARTMENT OF STATE,

Washington, December 20, 1902. (Mr. Hay states that Great Britain and Germany are in accord in inviting the President of the United States to act as arbitrator, and instructs Mr. Bowen to ascertain if that would also be the wish of the Venezuelan Government.)

Mr. Bowen to Mr. Hay.

[Telegram.—Paraphrase.)
LEGATION OF THE UNITED STATES,

Caracas, December 20, 1902. (Mr. Bowen reports that arbitration at The Hague is considered objectionable by Venezuela, because it is very slow and expensive; also, in the present case, prejudicial to the interests of the Venezuelan Government, which wishes its warships returned at once, and the control of its rivers and ports, so as to prevent arms and ammunition from being imported by the revolutionists, who are so numerous that if they receive a good supply of arms and ammunition it will be much more difficult to completely reestablish peace.

In Mr. Bowen's opinion, Venezuela would be willing to pay a good sum in cash at once to the three powers, and would agree that a mixed commission should settle the amounts to be paid on claims, and would furnish ample guarantee that payments of such amounts will be promptly made.

As full powers have been given to Mr. Bowen, he states that he may decide that in the interests of Venezuela it is better to accept at once and in full the ultimatums of the three powers than to leave the matter to the tribunal at The Hague. Mr. Bowen prefers, of course, a modifiation of the ultimatums, if possible, about amounts of cash payments.

If arbitration at The Hague is desired, Mr. Bowen inquires what favorable proposition can be made to Venezuela by the powers; if they would release warships immediately and stop the blockade, and states that he is bound to act in the interests of Venezuela.)

Mr. Bowen to Mr. Hay.

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

Caracas, December 21, 1902. (Mr. Bowen states that he is happy to be able to communicate the following answer from the President of Venezuela:

The Venezuelan Government accepts with pleasure the President of the United States as arbitrator in the pending conflict between Venezuela and Germany and Great Britain.

Mr. Bowen requests that he be advised at once of the answer of the President of the United States.)

Mr. Bowen to Mr. Hlay.

[Telegram.- Paraphrase.)

LEGATION OF THE UNITED STATES,

Caracas, December 22, 1902. (Mr. Bowen reports that the British blockade of La Guaira and eastern ports began December 20; German blockade of Puerto Cabello began December 20, and that of Maracaibo will begin on December 27. Days of grace for steamers from United States Atlantic ports ten days; for sailing ships thirty days. British allow landing of mails.)

Mr. Bowen to Mr. Ilay.

[Telegram.--Paraphrase.)

LEGATION OF THE UNITED STATES,

Caracas, December 23, 1902. (Mr. Bowen reports that he has received from the minister for foreign affairs an official note confirming the acceptance of the President of the United States as arbitrator in the pending difficulty between Venezuela and Germany and Great Britain, and stating that the President of Venezuela suggests that Italy be included in the arbitration.)

Mr. Hay to Mr. Bowen.

[Telegram.--Paraphrase.)

DEPARTMENT OF STATE,

Washington, December 23, 1902. (Mr. Hay states that the formal request of the powers that the President of the United State: act as arbitrator has not yet been received, and that Mr. Bowen will be advised when it is received.)

Mr. Ilay to Mr. Bowen.

[Telegram.- Paraphrase.)

DEPARTMENT OF STATE,

Washington, December 24, 1902. (Mr. Hay states that the inquiry as to the disposition of the Government of Venezuela about inviting the President of the United States to act as arbitrator was conditioned upon the action of the powers on the President's suggestion of The Hague; and as it now seems probable that the powers may be willing to accept that suggestion if renewed by the President, instructs Mr. Bowen to urge with special earnestness that the Venezuelan Government inform the Government of the United States of their willingness to accept in principle The Hague tribunal. If they do so accept, the Department will at once cable to Mr. Bowen the terms of the propositions of Great Britain and Germany.)

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Mr. Bowen to Mr. Hay.

[Telegram.--Paraphrase.]

LEGATION OF THE UNITED STATES,

Caracas, December 25, 1902. (Mr. Bowen states that he has been authorized by President Castro to communicate the following:

“The Government of Venezuela declares itself in favor in principle of arbitration by The Hague tribunal.")

Mr. llay to Mr. Bowen.

[Telegram.-Paraphrase.)

DEPARTMENT OF STATE,

Washington, December 27, 1902. (Mr. Hay communicates to Mr. Bowen the German and British propositions in regard to preliminary conditions of arbitration.)

Mr. Bowen to Mr. Hay.

No. 145.]

LEGATION OF THE UNITED STATES,

Caracas, December 27, 1902. Sir: I have the honor to inclose a translation of a petition to President Castro from the leading men of Caracas asking that I be authorized to arrange the pending difficulty between Venezuela and Great Britain, Germany, and Italy. I am, etc.,

HERBERT W. BOWEN.

[Inclosure.-Translation.)

CARACAS, December 16, 1902. To the Citizen President of the United States of Venezuela:

The undersigned having assembled for the purpose of trying to aid the Government in the present conflict caused by the aggressive attitude of Germany and Eng. land, and having been asked by you to submit our opinion in writing, we do so as follows:

In view of the aggressive acts committed; of the absolute helplessness of Venezuela to oppose with force the combined action of Germany and England; and of the absolute lack of resources which civilization and diplomacy would advise to put an end to the conflict; and in view further of the fact that the Government and people of Venezuela have done all that the national decorum and dignity demand; we consider that the time has arrived to yield to force, with the proper protests; and in virtue of the foregoing we respectfully suggest that full powers be given to the envoy extraordinary and minister plenipotentiary of the United States of North America to take the necessary steps to arrange this difficulty in the manner least prejudicial to the country:

With all consideration and respect, etc., (This was passed about for signatures. About one hundred and fifty were obtained from the principal men of Caracas irrespective of party.)

a Printed under Germany, page 427. Printed under Great Britain, page 161.

Mr. Borden to Mr. Ilay.

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

Caracas, Deccember 31, 1902. (Mr. Bowen reports that he has received the following answer from the President of Venezuela: a

I recognize in principle the claims which the allied powers have presented to Venezuela. They woull 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 Goverument 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 setttement of all the claims or the preliminaries for a 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. In view of the foregoing Mr. Bowen respectfully urges Mr. Hay to request the powers to immediately raise the blockade.)

Mr. Bowen to Mr. Ilay.

[Telegram.- Paraphrase.
LEGATION OF THE UNITED STATES,

Caracas, January 7, 1903. (Mr. Bowen reports that he has just received the following from the President of Venezuela:

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 immediate settlement of said claims or the preliminaries for submitting them to arbitration.

CIPRIANO Castro,

('onstitutional President. Mr. Bowen requests that if, as he understands, Great Britain and Germany want to know what guaranty they will have, Mr. Hay will inform them that it will be the custom-houses; consequently, Mr. Bowen begs that the blockade be raised at once.)

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

DEPARTMENT OF STATE,

Washington, January 10, 1903. (Mr. Hay states that Mr. Bowen's arrival at Washington as Venezuela's plenipotentiary must be awaited before any preliminaries can be adjusted, including the raising of the blockade, which may depend upon sufficiency of guaranty.)

a For replies of the powers to the answer of the President of Venezuela contained in Mr. Bowen's telegram of December 31, 1902, supra, see under Germany, page 434, Great Britain, page 467, and Italy, page 609. These replies were communicated to Mr. Bowen.

Protocol of am Agreement between the Secretary of State of the United

States of America and the Plenipotentiary of the Republic of Venezuela for submission to arbitration of all unsettled claims of citizens of the United States of America against the Republic of Venezuela.

Signed at Washington, February 17, 1903. The United States of America and the Republic of Venezuela, through their representatives, John Hay, Secretary of State of the United States of America, and Herbert W. Bowen, the Plenipotentiary of the Republic of Venezuela, have agreed upon and signed the following protocol.

ARTICLE I.

All claims owned by citizens of the United States of America against the Republic of Venezuela which have not been settled by diplomatic agreement or by arbitration between the two Governments, and which shall have been presented to the commission hereinafter named by the Department of State of the United States or its Legation at Caracas, shall be examined and decided by a mixed commission, which shall sit at Caracas, and which shall consist of two members, one of whom is to be appointed by the President of the United States and the other by the President of Venezuela.

It is agreed that an umpire may be named by the Queen of the Netherlands. If either of said commissioners or the umpire should fail or cease to act, his successor shall be appointed forthwith in the same manner as his predecessor. Said commissioners and umpire are to be appointed before the first day of May, 1903.

The commissioners and the umpire shall meet in the city of Caracas on the first day of June, 1903. The umpire shall preside over their deliberations, and shall be competent to decide any question on wbich the commissioners disagree. Before assuming the functions of their office the commissioners and the umpire shall take solemn oath carefully to examine and impartially decide, according to justice and the provisions of this convention, all claims submitted to them, and such oaths shall be entered on the record of their proceedings. The commissioners, or in case of their disagreement, the umpire, shall decide all claims upon a basis of absolute equity, without regard to objections of a technical nature, or of the provisions of local legislation.

The decisions of the commission, and in the event of their disagreement, those of the umpire, shall be final and conclusive. They shall be in writing. All awards shall be made payable in United States gold, or its equivalent in silver.

ARTICLE II.

The commissioners, or umpire, as the case may be, shall investigate and decide said claims upon such evidence or information only as shall be furnished by or on behalf of the respective Governments. They shall be bound to receive and consider all written documents or statements which may be presented to them by or on behalf of the respective Governments in support of or in answer to any claim, and to hear oral or written arguments made by the Agent of each Government on every claim. In case of their failure to agree in opinion upon any individual claim, the umpire shall decide.

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