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Nr. 12945. GROSSBRITANNIEN. Derselbe Denselben. Schiedsgericht der Präsidenten.

Foreign Office, February 4, 1903. (Telegraphic.). || A settlement on the lines of my telegram of the 1st instant being now presumably unattainable, you should proceed, with rerard to the points reserved for arbitration, in accordance with my telegram of the 3rd. || A separate telegram is being send to you which contains the draft of a Protocol embodying the conditions which have already been accepted by Mr. Bowen.

Nr. 12946. GROSSBRITANNIEN. — Der Botschafter in Washing

ton an den Minister des Ausw. Neuer Vorschlag Bowens.

Washington, February 5, 1903. (February 5.) (Telegraphic.) || With regard to the inquiry contained in your telegram of the 4th instant, I am informed by German Chargé d'Affaires that it is Mr. Bowen's intention that the first-rank claims should be met out of the total 30 per cent. receipts for the first three months.

Nr. 12947. GROSSBRITANNIEN. Der Minister des Ausw. an

den Botschafter in Washington. Entwurf einer Konvention.

Foreign Office, February 5, 1903. (Telegraphic.) || My telegram of the 4th instant. || Following is text of Protocol in the form proposed by His Majesty's Government:

Whereas certain differences have arisen between Great Britain and the United States of Venezuela in connection with the claims of British subjects against the Venezuelan Government, the Undersigned, his Excellency the Right Honourable Sir Michael Henry Herbert, K. C.M.G., C. B., His Britannic Majesty's Ambassador Extraordinary and Plenipotentiary to the United States of America, and Mr. Herbert W. Bowen, duly authorized thereto by the Government of Venezuela, have agreed as follows:

Article I. The Venezuelan Government declare that they recognize in principle the justice of the claims which have been preferred by His Majesty's Government on behalf of British subjects.

Article II. The Venezuelan Government will satisfy at once, by payment in cash or its equivalent, the claims of British subjects, which amount to about 55001., arising out of the seizure and plundering of British vessels and the outrages on their crews, and the maltreatment and false imprisonment of British subjects.

Article III. The British and Venezuelan Governments agree that the other British claims, including claims by British subjects other than those dealt with in Article VI hereof, and including those preferred by the Railway Companies, shall, unless otherwise satisfied, be referred to a Mixed Commission constituted in the manner defined in Article IV of this Protocol, and which shall examine the claims and decide upon the amount to be awarded in satisfaction of each claim. The Venezuelan Government admit their liability in cases where the claim is for injury to, or wrongful seizure of, property, and consequently the questions which the Mixed Commission will have to decide in such cases will only be || (a.) Whether the injury took place, and whether the seizure was wrongful; and I (6.) If so, what amount of compensation is due. || In other cases the claims shall be referred to the Mixed Commission without reserve.

Article IV.

The Mixed Commission shall consist of one British and one Venezuelan Member. In each case where they come to an agreement, their decision shall be final. In cases of disagreement, the claims shall be referred to the decision of an Umpire nominated by the President of the United States of America.

Article V. The Venezuelan Government being willing to provide a sum sufficient for the payment within a reasonable time of the claims specified in Article III and similar claims preferred by other Governments, undertake to assign A B. by the day of

190, for this purpose, and to alienate to no other purpose, 30 per cent. in monthly payments of the customs revenues of La Guayra and Puerto Cabello. In the case of failure to carry out this undertaking, Belgian officials shall be placed in charge of the customs of the two ports, and shall administer them until the liabilities of the Venezuelan Government, in respect of the above-mentioned claims, shall have been discharped. || Any question as to the distribution of the customs revenues so to be assigned, and as to the

right of Great Britain, Germany, and Italy to a separate settlement of their claims, shall be determined, in default of arrangement, by the Tribunal at the Hague, by arbitration to which any other Power interested may make itself a Party.

Article VI. The Venezuelan Government further undertake to enter into a fresh arrangement respecting the external debt of Venezuela, with a view to the satisfaction of the claims of the bondholders. This arrangement shall include a definition of the sources from which the necessary payments are to be provided.

Article VII. The British and Venezuelan Governments agree that, inasmuch as it may be contended that the establishment of a blockade of Venezuelan ports by the British naval forces has, ipso facto, created a state of war between Great Britain and Venezuela, and that any Treaty existing between the two countries has been thereby abrogated, it shall be recorded in an exchange of notes between the Undersigned that the Convention between Great Britain and Venezuela of the 29th October, 1834, which adopted and confirmed, mutatis mutandis, the Treaty of the 18th April, 1825, between Great Britain and the State of Colombia, shall be deemed to be renewed and confirmed, or provisonally renewed and confirmed, pending the conclusion of a new Treaty of Amity and Commerce.

Article VIII.

Immediately upon the signature of this Protocol arrangements will be made by His Majesty's Government, in concert with the Governments of Germany and Italy, to raise the blockade of the Venezuelan ports. || His Majesty's Government will be prepared to restore the vessels of the Venezuelan navy which have been seized, and further to release any other vessels captured under the Venezuelan flag, on receipt of a guarantee from the Venezuelan Government that they will hold His Majesty's Government indemnified in respect of any proceedings which might be taken against them by the owners of such ships or of goods on board them.

Article IX.

The Treaty of Amity and Commerce of the 29th October, 1834, having been confirmed in accordance with te terms of Article VII of this Protocol, His Majesty's Government will be happy to renew diplomatic relations with the Government of Venezuela.

Nr. 12948. GROSSBRITANNIEN. Der Minister des Ausw. an

den Botschafter in Washington. Antwort auf Nr. 12946.

Foreign Office, February 5, 1903. (Telegraphic.) || With reference to your telegram of the 5th instant, you were authorized to negotiate with Mr. Bowen only on the basis that the first - rank claims of Great Britain and Germany, amounting to about 720001., should be excluded from arbitration and settled immediately. | President Castro has formally agreed to this arrangement. || We are now, as I understand, asked to accept, in satisfaction of the first-rank claims, about 53 000 t., which sum would be receivable some months hence, while, as regards our other claims, we should have to take our chance with other Powers in a common settlement. || This offer is one which we consider it unadvisable to accept, and we should prefer to adhere to the procedure described in my telegram of the 2nd instant. :ou should explain this to your colleagues.

Nr. 12949. GROSSBRITANNIEN. Der Minister des Ausw. an

den Botschafter in Washington. Deutschland lehnt den Vorschlag in Nr. 12943 ab.

Foreign Office, February 6, 1903. (Extract.) || Count Metternich being indisposed, Count Bernstorff called at this Office on behalf of his Excellency, and informed me that the German Government considered quite inadmissible the proposal put forward by Mr. Bowen, that the three Powers should accept the total of 30 per cent of the Venezuelan customs for three months in satisfaction of their first-rank claims, and had instructed Baron Sternburg to join Sir M. Herbert in refusing it.

Nr. 12950. GROSSBRITANNIEN. – Der Botschafter in Washing

ton an den Minister des Ausw. Roosevelt empfiehlt das Haager Schiedsgericht.

Washington, February 7, 1903. (February 7.) (Telegraphic.) | With reference to my telegram of yesterday, I have to report that this inorning I received a note from the Secretary of State, asking whether, if it were finally decided to refer the question of preferential treatment to the Hague, the blockade would come to an end when the Protocol embodying the terms of reference was signed. H Subsequently Mr. Hay called at this Embassy for a reply, and I informed him, having consulted my colleagues previously, that I assumed this would be the case. || Mr. Hay then dictated to me the following statement: – || „The President is extremely anxious to be of all possible service in the amicable settlement of pending questions, but he sees no reason to change his views hitherto expressed that a reference to the Hague of the question referred to would be in many respects a more judicious and satisfactory conclusion of the matter than for him to accept the invitation of the Powers, the honour and compliment of which he fully appreciates, and for which he is deeply grateful." || Please telegraph at once whether I am right in assuming that I should now submit draft Protocol immediately to Mr. Bowen.

Nr. 12951. GROSSBRITANNIEN. - Der Minister des Ausw. an

den Botschafter in Washington. Antwort auf das vorige.

Foreign Office, February 7, 1903. (Telegraphic.) The President's inability to adjudicate is regretted by His Majesty's Government. Their intentions with regard to the cessation of the blockade are correctly expressed by your language. || I should wish you now to submit to Mr. Bowen the draft Protocol.

Nr. 12952. GROSSBRITANNIEN. —- Der Botschafter in Washing

ton an den Minister des Ausw. Unterzeichnung des Protokolles.

Washington, February 13, 1903. (February 14.) (Telegraphic.) || The three Protocols were signed at half-past 11 to- night.

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