Gesellschaft of the 9th October last, were submitted at the same time by the English Council of Foreign bondholders to the British Government, who promised the Council that they should be carefully examined. || The German Government is of opinion that these proposals are just, and may therefore be considered as a suitable basis for a settlement of the Venezuelan External Debt. || Among the above-named proposals is contemplated the floating of a new loan limited to 15 000 000 bolivares, with the same securities as the loans of 1881 and 1896. The object of this loan would be to enable the Venezuelan Government to guarantee a settlement of the foreign claims, especially the German and English ones, the payment of which would otherwise be attended with difficulties. || It is understood that in the event of the joint adoption of the proposals made by the Anglo-German creditors, the British Government will also make itself responsible for as much of the loan of 1881 as is in English hands.

Nr. 12890. GROSSBRITANNIEN. Der Botschafter in Washington an den Minister des Ausw. Antwort auf Nr. 12786.

Washington, November 13, 1902. (November 13.) (Telegraphic.) || I communicated to Mr. Hay this morning the substance of jour Lordship's telegram of the 11th instant. || His Excellency stated, in reply, that the United States' Government, although they regretted that European Powers should use force against Central and South American countries, could not object to their taking steps to obtain redress for injuries suffered by their subjects, provided that no acquisition of territory was contemplated.

Nr. 12891. GROSSBRITANNIEN.

Der Minister des Ausw. an

die Botschaft in Berlin. Unterredung mit dem deutschen Geschäftsträger über die beiderseitigen Ansprüche an Venezuela und das Vorgehen.

Foreign Office, November 17, 1902.

(Extract.) || The German Ambassador being absent from London in attendance upon His Majesty the German Emperor, Count Bernstorff called here to-day at my request and was informed that His Majesty's Government quite concur in the view that, if joint action against Venezuela is undertaken, it should be maintained until the demands of both Governments, as finally agreed upon, are satisfied. | In the first place,

however, it was necessary to arrive at an unterstanding with regard to the form in which the British and German claims should be put forward, and alo with regard to the manner in which the demands made upon Venezuela should be enforced. || The British claims, as Count Metternich presumed, were capable of classification. Those on account of the recent cases of unjustifiable interference with the liberty and property of British subjects, including the shipping claims, would rank first. Claims for injury to British property during the late revolution, and that which placed President Castro in power, would come next; and in the third place the claims of the bondholders. || His Majesty's Government did not, however, desire, in their demands upon Venezuela, to draw a distinction between the various categories. Their object was to obtain a general settlement, and they were of opinion that to advance one class of claims, or at this stage to specify any particular amount, would diminish the chance of securing in all cases the reparation which they considered to be justly due. || If, therefore, the answer of the Venezuelan Government to the communication recently addressed to them should prove unsatisfactory, or if, after a reasonable interval, it should appear that no answer at all would be returned, His Majesty's Government would propose to proceed to measures of coercion and to seize the gun-boats. || If the seizure of the gun-boats should not produce the desired effect, it would, of course, be necessary to decide what should be the next step. This point would be carefully considered. || On receiving the submission of the Venezuelan Government, and on learning that they were prepared to admit their liability on every count, His Majesty's Government would for their part exact immediate payment of the pressing claims in the first category, according to estimates approved by His Majesty's Legation at Carácas, or by the British Colonial authorities. They would then consent to the heavier claims being referred to a small Mixed Commission of three members in case the Venezuelan Government should have any considerations to urge in mitigation of the damages claimed. An arrangement of this nature would be equitable as regards the Venezuelan Government and would, moreover, prevent pressure being exercised in cases, such as might possibly occur, where the Venezuelan member of the Commission could prove a claim to be unfounded or excessive. | Count Bernstorff promised to report these suggestions to his Government at once.

Nr. 12892. GROSSBRITANNIEN. - Der Gesandte in Caracas an den Minister des Ausw. Antwort Venezuelas auf

Nr. 12887.

Caracas, November 17, 1902. (November 18.) (Telegraphic.) || In reply to my note sent in accordance with the instructions contained in your Lordship's telegram of the 11th instant, the Venezuelan Government express their regret that it might be inferred that the Venezuelan complaints with regard to the „Ban Righ" and to the attitude taken up by the authorities of the Colony of Trinidad had not been examined by His Majesty's Government, as if this had been the case those complaints would not have been attributed to caprice on the part of Venezuela. || Attention is called to the eagerness of His Majesty's Government or of His Majesty's Legation to discuss matters of comparatively secondary importance", when contrasted with the paramount interest felt by Venezuela in obtaining due recognition and respect for her claims, which arise from the grave injuries caused by the „Ban Righ" and the facilities afforded to the revolutionaries by the Colonial authorities in Trinidad. They add that Venezuela has done nothing contrary to courtesy or international law, and that she cannot, therefore, justly be held responsible for the present situation. || The Venezuelan Government would be much gratified if His Majesty's Government would express some desire to come to an understanding by which the injuries caused by the „Ban Righ" and by the authorities of Trinidad would be remedied, and they maintain that their claims in connection with those two subjects have hitherto been met by,,the most unfair refusal of His Majesty's Government to consider the matter". || The note continues with a statement that the Venezuelan Government have gravely considered the serious nature of the injuries which have resulted from the treatment of the „Ban Righ“ and the action of the Trinidad authorities, and that they ask nothing from Great Britain which is not a legitimate consequence of the situation thereby created. They therefore appeal to the sense of fairness of His Majesty's Government to effect a settlement of the present abnormal and regrettable situation by placing matters on a basis of mutual agreement. Nr. 12893. GROSSBRITANNIEN.

Der Minister des Ausw. an den Botschafter in Washington. Die Vereinigten Staaten sollen bei Abbruch der Beziehungen die englischen Interessen in Caracas vertreten.

Foreign Office, November 25, 1902.

(Telegraphic.) || Ask Secretary of State whether, if it becomes necessary to withdraw His Majesty's Minister from Carácas, which may

happen at any moment, the United States' Minister will be allowed to take charge of British interests.

Nr. 12894. GROSSBRITANNIEN. - Der Botschafter in Washington an den Minister des Ausw. Antwort auf das vorige.

Washington, November 26, 1902. (November 26.) (Telegraphic.) || Charge of British interests in Venezuela. || Mr. Hay has informed me that in the event of the withdrawal of His Majesty's Minister at Carácas, he will be pleased to allow the United States' Representative to take charge of British interests in Venezuela, provided that no objection to this arrangement is raised by the Venezuelan Government.

Nr. 12895. GROSSBRITANNIEN. Der Minister des Ausw. an die Botschaft in Berlin. Unterredung mit dem Deutschen Botschafter. Ansprüche Deutschlands. Gemeinsames Vorgehen.

Foreign Office, November 26, 1902.

(Extract.) The German Ambassador called upon me on the 21st instant, and stated that he had received further instructions from his Government with regard to the action which they were prepared to take in Venezuela. The following is the substance of the communication which his Excellency made to me: The Imperial Government are prepared generally to accept the counter-proposals of His Majesty's Government respecting joint action against Venezuela, but they desire on certain points to offer the following observations: || 1. The Imperial Government are willing to intervene jointly in support of the collective German and English claims, without discriminating between the various classes of claims, it being understood that joint action will be maintained unless terminated by mutual agreement. In consequence, the Imperial Government will at once put forward the following demands: || (a.) Payment of the German claims arising out of the civil wars of the years 1898-1900, amounting to about 1700 000 bolivars. || (b.) Settlement of the claims arising out of the present civil war in Venezuela. || (c.) Guarantee for the claims of German firms on account of the building of the slaughterhouse in Caracas, amounting to a round sum of 800 000 bolivars. || d.) Guarantee for the payment of the claims of the German Great Vene

zuela Railway Company for interest and sinking fund of the Venezuelan Loan of 1896. The Imperial Government also concur in the further proposal of His Majesty's Government to demand at once from the Venezuelan Government the acceptance in principle of all the German and English claims, and to reserve the separate settlement of claims for a Mixed Commission to be appointed later. The Imperial Government, however, attach importance to the following point, viz., that the German war claims, under paragraph (a), which have already been thoroughly investigated, and have been presented to the Venezuelan Government for the amounts declared, shall not be subjected to fresh examination at the hands of this Commission. || 2. The Imperial Government agree that the measures of coercion against Venezuela shall be undertaken as soon as possible. It must, however, be taken into consideration that the last notes between the German and Venezuelan Governments were exchanged more than six months ago, and were not couched in a tone which would justify an immediate resort to measures of coercion. The Imperial Government, therefore, consider that they should make one last representation to the Venezuelan Government, and, therefore, propose that Germany and Great Britain should each simultaneously present an ultimatum, in which each Power should embody its own collective demands, referring at the same time to the demands of the other Power. The Imperial Government do not consider that this course would result in a postponement of active measures, as the communications might be presented at once, a period of twenty-four hours being granted for compliance. 3. As regards the coercive measures to be adopted, the Imperial Government are prepared, first, in conjunction with Great Britain, to proceed to the seizure of the Venezuelan ships of war.

(Extract.) || I had a lengthy conversation to-day with the German Ambassador on the subject of the Venezuelan question. || I told his Excellency that, if I correctly understood the views of the German Government, the points as to which we had not arrived at an agreement were few in number, and not of first-rate importance. || They were, I believed, as follows: || 1. We did not like the German proposal to inform the Venezuelans that we shall require an answer to our ultimatum within twenty-four hours.

We had no objection to lay down this limit of