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 United 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.. HENRY WHITE. Mr. White to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (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 most 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. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (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. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (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. Hay to Mr. White. [Telegram.-Paraphrase.] DEPARTMENT OF STATE. Washington, December 18, 1902. (Mr. Hay 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. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, (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.) No. 1005.] Mr. White to Mr. Hay. 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" relative to the nature of the proposed blockade, and of my reply 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., Mr. White to Mr. Hay. [Telegram.-Paraphrase.] HENRY WHITE. 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. Hay 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.) a Printed ante. Mr. White to Mr. Hay. [Telegram.-Paraphrase.] EMBASSY OF THE UNITED STATES, London, December 20, 1902. (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.) Mr. White to Mr. Hay. No. 1007.] a 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 negotiations 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. LANSDOWNE. [Telegram.-Paraphrase.] 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 |