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Gouvernement juge opportun de faire connaître au Gouvernement de Sa Majesté Britannique que les intérêts Belges, comme ceux de la France, sont garantis par les Douanes Vénézuéliennes. || Je suis chargé en conséquence de faire valoir auprès de votre Seigneurie le droit primordial, sur une partie des revenus de ces douanes, qui appartiendrait à la Belgique, dans cette éventualité. Albéric Grénier.

Nr. 12914. GROSSBRITANNIEN. - Der Minister des Ausw. an die Botschaft in Berlin. Besprechung mit Metternich über den Vorschlag Venezuelas. Einwände dagegen.

Foreign Office, December 15, 1902. (Extract.) The German Ambassador called on me to-day at my request, and I discussed with him the proposal made to His Majesty's Government by that of Venezuela through the Government of the United States in regard to the possibility of settling by arbitration the claims which had been preferred by the British and German Governments against that of Venezuela for injuries to British and German subjects. I told Count Metternich that the proposal which had, I understood, also been made to the German Government, had not yet been considered by the Cabinet, but that as the American Chargé d'Affaires was to call upon me later in the afternoon, I had thought it desirable that his Excellency and I should at all events have a preliminary conversation on the subject. Count Metternich told me that he had not yet received any instruction; from the German Government. Speaking, however, for himself, he observed that while we should, no doubt, all of us desire to meet such. a proposal in a manner agreeable to the United States' Government, there seemed to him to be considerable objections to encouraging the idea of arbiration. He observed, moreover, that the proposal was merely passed on to us, and not in any way supported by the United States' Government. His Excellency further pointed out that it was apparently one which would apply only to claims for injuries sustained ,,during the insurrection", a limitation which might exclude many of our claims. It was again to be borne in mind that the German claim for injuries sustained between 898 and 1900 had already been carefully examined by the German Govenment, and would therefore probably not be considered by them to be „aritrable". Besides this, both the German and British. Governments had aready agreed that the bulk of their claims should be examined by a Mixd Commission. This ought to afford a sufficient

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guarantee that Venezuela would not be unfairly treated. || I promised his Excellency that I would communicate with him further upon the subject as soon as possible.

Nr. 12915. GROSSBRITANNIEN. Der Minister des Ausw. an die Botschaft in Berlin. Dasselbe.

Foreign Office, December 16, 1902.

(Extract.) The German Ambassador informed me to-day that he had received instructions from the German Government with regard to the Venezuelan proposal for arbitration. His instructions agreed with the views which he had expressed to me yesterday as those which he himself entertained, and which are recorded in my despatch to you of yesterday's date. || I informed his Excellency that the Venezuelan proposal, as it stood, was unacceptable. Our reasons for holding this opinion corresponded in the main with those which the German Government had advanced. We were, however, inclined to admit that, whilst it was impossible for us to accept arbitration in regard to our claims for compensation in cases where injury had been done to the person and property of British subjects by the misconduct of the Venezuelan Government, it was not necessary to exclude the idea of arbitration in reference to daims of a different kind. We had already provided for the reference of such claims to a Mixed Commission. It seemed to us, in these circumstances, worthy of consideration whether we might not admit the prinaple of arbitration in regard to these claims, and perhaps invite the United States to arbitrate upon them. || I told his Excellency that, in my opinion, it would be desirable that, whatever might be decided, we should send separate replies to the Venezuela proposal, although I thought that we should endeavour to make them as similar as possible in substance.

Nr. 12916. GROSSBRITANNIEN. Der Minister des Ausw. an die Botschaft in Berlin. Vorbehalt Deutschlands bei Annahme des Schiedsgerichtsvorschlags.

Foreign Office, Deember 18, 1902. (Extract.) || The German Ambassador informed me to-day that the German Government were in entire agreement with us is to the manner in which the Venezuelan proposal for arbitration shuld be treated. They proposed to thank the United States' Governmet for their good offices in communicating the Venezuelan proposal, nd to say that it

seemed to offer a sufficient basis for a just settlement of the dispute. They desired, however, to make certain reservations, which his Excellency subsequently embodied in a written Memorandum running as follows:

1. The claims, which rank first, are not in their present shape suited for settlement by arbitration. These claims, which, as far as Germany is concerned, represent the demands of German subjects in connection with the Venezuelan civil wars of 1898 to 1900, and which are specified in the Memorandum presented to the Reichstag, must therefore be immediately recognized by the Venezuelan Government. In case the latter should be unable to meet these demands immediately, reliable guarantees must at least be given for a speedy payment. || 2. All further demands contained in the two ultimatums shall be submitted to the proposed Court of Arbitration. The latter will therefore have to consider not only the claims in connection with the present Venezuelan civil war, but also, as far as Germany is concerned, the demands mentioned in the Memorandum laid before the Reichstag of German subjects arising from the non-fulfilment of liabilities incurred by contract by the Venezuelan Government. The Court of Arbitration will have to decide both on the material justification of the demands and on the ways and means of their settlement and security. || 3. We should be thankful if the President of the United States of America would be prepared to accept the office of Arbitrator.

Should, however, the United States' Government not be inclined to hold themselves responsible for the fulfilment of the Award by Venezuela, which, in the present circumstances, and considering President Castro's disposition, it may be rather difficult to guarantee, there will be no other course open but to intrust the Hague Court of Arbitration with the settlement of the matter. The Government of the United States of America would be conferring an obligation on us if, by exerting their influence over the Venezuelan Government, they could succeed in persuading the latter to accept these proposals. || Count Metternich was instructed to inquire whether an answer on the above lines would meet with our approval. If so, the German Government would at once inform the United States' Ambassador at Berlin. It was, however, to be clearly understood that the consideration of these proposals would not oblige the two Powers to desist from the coercive measures now in progress. || His Excellency added that, since these instructions had been issued, the German Government had received a communication identical with that which had been addressed yesterday evening to His Majesty's Government by the United States' Chargé d'Affaires, intimating the hope of the

United States' Government that the two Powers would resort to arbitration. This communication did not, in the view of the German Government, affect the proposals above described. || I told his Excellency that I would commnnicate his statement to the Cabinet, which was to meet in the afternoon, and that I had little doubt that, in principle, the two Governments would be found to entertain similar views. I was able, later in the afternoon, to inform his Excellency that the Cabinet agreed to arbitration as a means of settling the dispute, subject to the following reservations, which he undertook to communicate to the German Government:

1. The shipping claims 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.

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Nr. 12917. FRANKREICH. Der Minister des Ausw. an den Botschafter in London. Frankreichs Anspruch auf die meistbegünstigte Nation in Venezuela.

Paris, le 18 Décembre, 1902, (Communicated by M. Cambon, December 19.)

Affaires du Venezuela. || Les Gouvernements des États-Unis, d'Espagne, et de Belgique, ayant décidé de réclamer la clause de la nation la plus favorisée pour le réglement de toutes les demandes d'indemnités de leurs ressortissants, le Gouvernement de la République a cru devoir également assurer toutes garanties aux intérêts de ses nationaux. || Le Représentant Français à Carácas a, en conséquence, été invité à réclamer pour la liquidation de nos réclamations fondées sur des faits postérieurs au 23 Mai, 1899, un mode de réglement et de paiement aussi favorable que celui obtenu par toute autre Puissance. || Quant à nos réclamations pour faits antérieurs au 23 Mai, 1899 (c'est-à-dire, l'élection du Président Castro), leur mode de réglement a été prévu par le Traité de 1885 et le Protocole de 1902; mais comme il y a lieu de veiller à ce que nos avantages sur ce point ne soient pas diminués, le Représentant Français a également reçu pour instruction, au cas où l'une des autres Puissances créancières obtiendrait pour ses réclamations remontant à la même époque un

mode de réglement plus avantageux, d'en réclamer aussitôt le bénéfice. Comme nous tenons en ces circonstances à tenir le Gouvernement Britannique au courant de nos résolutions, je vous prie de lui faire connaître verbalement le sens des instructions envoyées à notre Agent.

Nr. 12918. VEREINIGTE STAATEN. - Der Botschafter in London an den englischen Minister des Ausw. Der amerikanische Gesandte in Caracas hat Vollmacht von Venezuela für die Verhandlungen erhalten.

American Embassy, London, December 19, 1902. (December 19.) My Lord, I have the honour to inform your Lordship that Mr. Bowen, the American Minister to Venezuela, has informed my Government by telegraph that the 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. Henry White.

Nr. 12919. GROSSBRITANNIEN. Der Minister des Ausw. an den Botschafter der Vereinigten Staaten. Antwort auf das vorige.

Foreign Office, December 19, 1902. Sir, I have had the honour to receive your note of to-day's date, informing me that Mr. Bowen, the American Minister at Carácas, had informed the United States' Government that the Venezuelan Government had 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. || 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 very shortly to make you aware of them. || 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 a satisfac

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