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I then proposed the health of the Emperor and the Empress, the Crown Prince, and the other members of the Emperor's family, to which the Emperor replied:

In responding to your excellency's warm and sympathetic toast, I offer a cordial welcome to the American squadron, Admiral Cotton, and his officers, in the name of the German people. We look upon them as the bearers of friendly sentiments of the citizens of the United States, to which, I can assure your excellency, the whole of Germany heartily responds. I am happy that my hopes for a better mutual understanding between our two countries, through the personal intercourse which my brother, Prince Henry, was able to hold with your excellency's countrymen, have been fully realized and have strengthened the bonds of friendship between Germany and America. That my gift of the casts of medieval German architecture has been received in so gracious a manner by the Harvard University gives me the greatest satisfaction. I hope that the samples relating to our old history will induce many of the young students to come over to Germany to study the originals and the people who live around them. My sincerest wish is that our two peoples may become yet closer acquainted. No serious citizen in America or Germany, I trust, believes that the harmony and continuance of our mutual interest could be disturbed by permanent factors in our relationship. We are knit too closely together in our material interests. Rivalries of trade and commerce will always exist, but the power which draws us together is too strong to allow the development of any antagonism. It is my firmest conviction that the fact of so many hundreds of thousands of Germans living and thriving in the United States, with their hearts still warm with their love of their old Fatherland, will render the task more easy for smoothing the path of undisturbed and progressive relations which are of vital importance to our countries. It is now my duty to beg your excellency to thank His Excellency the President of the United States for the joyous occasion for which we are. indebted to his kindness. We all over here admire his firmness of character, his iron will, his devotion to his country, and his indomitable energy, and we readily grasp the hand proffered to us across the sea in cordial friendship, feeling at the same time that blood is thicker than water.

Gentlemen, I propose the toast of His Excellency the President of the United States. God bless him and the United States.

On Saturday, the 27th of June, Admiral Cotton gave a luncheon on board the flagship Kearsarge, which was attended by the Emperor and Prince Henry. There were also present the Chancellor of the Empire, Count Eulenburg, Vice-Admiral von Tirpitz, and all the other German admirals then at Kiel, as well as other high officers of the German service and the captains of the American squadron. I was also present at table, accompanied by Captain Potts, Mr. Hitt, and Mr. Richardson. At the close of the luncheon the Emperor arose and, thanking Admiral Cotton for the reception which had been accorded to him on board the Kearsarge, presented to the captain and officers of the Kearsarge a fine piece of silver in the form of a large bowl with a cover and handles, which he asked them to accept as a souvenir of their visit to Kiel.

On Tuesday afternoon, the 30th of June, the American squadron left Kiel. Before leaving, Admiral Cotton wrote me the following letter:

KIEL, June 29, 1903.

SIR: I have the honor to inform you that, in accordance with the order of the honorable Secretary of the Navy, the United States European Squadron, under my command, will sail from this port to-morrow afternoon at 6 o'clock.

May I ask that you will take such steps as may be necessary to convey the information to His Majesty the Emperor, and to express to him for myself and the captains and officers under my command our sincere and cordial thanks for, and our deep appreciation of, the boundless courtesy and cordial and charming hospitality extended to us by His Majesty, by his Roval and Imperial Highness, Admiral Prince Henry of Prussia, and by all the other admirals, captains, and officers of his splendid fleet present in this harbor, and also by those officers who are on duty on shore.

We depart with profound regret, and shall ever bear in memory the delightful week passed by the United States squadron in the harbor of Kiel, as the guests of His Majesty the Emperor.

I have, etc.,

C. S. COTTON.

I have communicated this message from Admiral Cotton to the Imperial minister for foreign affairs with the request that it may be presented to the Emperor.

I am happy to report to you that the whole of the visit of this squadron was eminently successful in every respect. I believe that it has drawn the two nations together in a way which will do lasting good, and I am convinced that it will have the happiest results in the intercourse between Germany and the United States.

I have, etc.,

CHARLEMAGNE TOWER

GREAT BRITAIN.

DIFFICULTY WITH VENEZUELA GROWING OUT OF NONPAYMENT OF CLAIMS AGAINST THE GOVERNMENT OF THAT COUNTRY OF NATIONALS OF GREAT BRITAIN AND OTHER COUNTRIES. «

Mr. Hay to Mr. White.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE, Washington, December 5, 1902.

(Mr. Hay states that, at the request of J. and W. Seligman & Co., bankers, New York, who are trying to make an arrangement to effect a settlement of the Venezuelan debt, it gives him pleasure to say that the President would be glad if such an arrangement could be made as might obviate the necessity of any exhibition of force on the part of Germany and Great Britain. Mr. White will understand, however, that the United States Government assumes no obligation whatever in the nature either of a material or moral guaranty of any liabilities created by the transaction.

This instruction is sent for Mr. White's information in case anyone in interest makes inquiry of him.)

Mr. Hay to Mr. White.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE, Washington, December 12, 1902.

(Mr. Hay, referring to the pro-memoria' of the Imperial German embassy of December 20, 1901, stating that the proposed pacific blockade of Venezuelan harbors "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," directs Mr. White to say to the British Government that the United States adheres to the position taken by it in relation to the Cretan blockade in 1897 [see Foreign Relations, 1897, p. 255], and therefore does not acquiesce in any extension 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 that the Government of the United States reserves all of its rights in the premises.)

a For other correspondence on this subject, see under Germany, page 417; Italy, page 601; and Venezuela, page 788.

Printed Foreign Relations, 1901, p. 196.

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 which Mr. White expects to see the minister for foreign affairs.)

Mr. White to Mr. Hay.

[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 Mr. Hay.

[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. Hay.

[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.)

No. 1002.]

Mr. White to Mr. Hay.

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 Lansdowne.

AMERICAN EMBASSY, London, December 13, 1902. MY LORD: Amemorandum 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

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