United States Government that the two Powers would resort to aime tion. This communication did not, in the view of the German Gover ment, affect the proposals above described. I told his Excellency ins I would communicate his statement to the Cabinet, which was 3: Theet in the afternoon, and that I had little doubt that, in principle, the TWS Governments would be found to entertain similar views. I was Liit. later in the afternoon, to inform his Excellency that the Cabinet agreed to arbitration as a means of settling the dispute, subject to the inleving reservations, which he undertook to communicate to the GarmaL & vernment: 1. The shipping claims are not to be referred to arbitration | E cases where the claim is for injury to, or wrongful seizure of property. the questions which the Arbitrators will have to decide will only ber 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 artdratie without any reserve. 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 19.1 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 lears ressortissants, le Gouvernement de la République a cru devoir également assurer toutes garanties aux intérêts de ses nationaux. Le Représentant Français à Caracas 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 tory settlement, in order to adopt the alternative procedure which the Venezuelan Government have apparently now suggested. Lansdowne. Nr. 12920. DEUTSCHES REICH. Das Ausw. Amt an den Botschafter der Vereinigten Staaten. Annahme des Schiedsgerichts unter Vorbehalten. (Translation.) || The Imperial Government wish to express to that of the United States their best thanks for the efforts of the latter to settle in a satisfactory manner the undesired controversy with Venezuela. The proposal made by the United States that an Arbitrator should be appointed seems both to Germany and England to be a satisfactory basis for arriving at a fair settlement of their claims. But the two Powers consider it necessary to make certain reservations: - || 1. Among their claims are some which in their present stage are not suited for submission to arbitration. Claims of this nature, so far as Germany is concerned, are those which originated in the Venezuelan civil wars from 1898 to 1900, and of which details are given in the inclosed Memorandum of the 8th December, which was communicated to the Reichstag. It will be seen that they consist of claims on account of acts of violence on the part of the Venezuelan Government or their agents, and that after years of procrastination, and in spite of the repeated representations made by the Imperial Government, satisfactory compensation has been refused in a well-nigh insulting manner. This class of claims, which after careful examination by the Imperial Government amount to a total of 1 700 000 bolivares (325 000 dollars), will therefore have to be admitted by the Venezuelan Government without delay; and the latter must, if they are unable to pay at once, give at least a safe guarantee for prompt payment. ! 2. All other claims which have been put forward in the two ultimata could be submitted to the Arbitrator, and the latter will therefore have to deal not only with the claims arising out of the present civil war in Venezuela, but also, so far as Germany is concerned, with the claims of German subjects in connection with the non-fulfilment of the engagements alluded to in the above-mentioned Memorandum, which the Venezuelan Government have undertaken under contracts made with those Germans. ' 3. The Arbitrator will have to decide both about the intrinsic justification of each separate claim and about the manner in which they are to be satisfied and guaranteed. In the case of claims in connection with damage done to, or unjustifiable seizure of, property, the Venezuelan Government will have to recognize their liability in principle, so that the question of liability will not form the subject of arbitration, but the Arbitrator will be concerned solely in the questions of the illegality of the damage or seizure, and also of the amount of compensation to be awarded. The Government of the United States of America would be conferring an obligation on the Imperial and British Governments if, by exerting their influence over the Venezuelan Government, they could succeed in persuading the latter to accept these proposals. The two Governments would also be grateful if the President of the United States were disposed to undertake the office of Arbitrator under the above conditions. Should the President of the United States not be inclined to do so, which would be to the regret of the two Governments, they are also prepared to submit the matter to the Arbitration Tribunal at the Hague. Nr. 12921. GROSSBRITANNIEN. Der Minister des Ausw. an den Botschafter der Vereinigten Staaten. Annahme des Schiedsgerichts unter Vorbehalten. December 23, 1902. His Majesty's Government have in consultation with the German Government taken into their careful consideration the proposal communicated by the United States' Government at the instance of that of Venezuela. || The proposal is as follows: That the present difficulty respecting the manner of settling claims for injuries to British and German subjects during the insurrection be submitted to arbitration. || The scope and intention of this proposal would obviously require further explanation. Its effect would apparently be to refer to arbitration only such claims as had reference to injuries resulting from the recent insurrection. This formula would evidently include a part only of the claims put forward by the two Governments, and we are left in doubt as to the manner in which the remaining claims are to be dealt with. || Apart, however, from this, some of the claims are of a kind which no Government could agree to refer to arbitration. The claims for injuries to the person and property of British subjects owing to the confiscation of British vessels, the plundering of their contents, and the maltreatment of their crews, as well as some claims for the ill-usage and false imprisonment of British subjects, are of this description. The amount of these claims is comparatively insignificant, but the principle at stake is of the first importance, and His Majesty's Government could not admit that there was any doubt as to te liability of the Venezuelan Government in respect of them. His Majesty's Government desire, moreover, to draw attention to the circumstances under which arbitration is now proposed to them. The Venezuelan Government have during the last six months had ample opportunities for submitting such a proposal. On the 29th July and again on the 11th November, it was intimated to them in the clearest language that unless His Majesty's Government received satisfactory assurances from them, and unless some steps were taken to compensate the parties injured by their conduct, it would become necessary for His Majesty's Government to enforce their just demands. No attention was paid to these solemn warnings, and, in consequence of the manner in which they were disregarded, His Majesty's Government found themselves reluctantly compelled to have recourse to the measures of coercion which are now in progress. His Majesty's Government have, moreover, already agreed that in the event of the Venezuelan Government making a Declaration that they will recognize the principle of the justice of the British claims, and that they will at once pay compensation in the shipping cases, and in the cases where British subjects have been falsely imprisoned or maltreated, His Majesty's Government will be ready so far as the remaining claims are concerned, to accept the decision of a Mixed Commission, which will determine the amount to be paid and the security to be given for payment. A corresponding intimation has been made by the German Government. || This mode of procedure seemed to both Governments to provide a reasonable and adequate mode of disposing of their claims. They have, however, no objection to substitute for the Special Commission a reference to arbitration, with certain essential reservations. These reservations are, so far as the British claims are concerned, as follows: - || 1. The claims (small, as has already been pointed out, in pecuniary amount) arising out of the seizure and plundering of British vessels and outrages on their crews, and the maltreatment and false imprisonment of British subjects, 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. || It would, in the opinion of both Governments, be necessary that the Arbitral Tribunal should not only determine the amount of compensation payable by Venezuela, but should also define the security to be given by the Venezuelan Government, and the means to |