No. 747.
Mr. Morton to Mr. Blaine.

No. 15.]

Sir: In compliance with instructions of your dispatch No. 402, of date July 23, 1881, in relation to the Venezuelan debts, I sought the proper opportunity for a conference with Mr. B. St. Hilaire, and explained fully to him the views of the President and of yourself with reference to a settlement of these debts. He listened to me with much attention, and apparently with interest, and inquired if the Venezuelan Government would assent to such a mode of settlement.

I replied that, though the dispatch conveying to me your instructions made no mention of this point, the correspondence on the subject did not convey the idea that any difficulty with the Venezuelan Government was anticipated. I added that in order that he might better understand the intention of my government and the position it had taken, I would leave him, if he so desired, a copy of the instructions upon which I was acting. He said he would be glad to have it, and after due consideration of its contents he would make known his views. I accordingly sent him a copy on the same day.

In the course of this conversation Mr. B. St. Hilaire did not express himself either for or against the proposed scheme of settlement. His inquiry as to the consent of the Venezuelan Government, and a discreet intimation that the seizure of the custom-houses at Laguayra and Puerto Cabello would have to be resorted to, would seem to indicate [Page 1224] that he is not at present opposed to the plan. I fear, however, that he may be unwilling to place the French claim upon the same footing as the others.

I have, &c.,

L. P. MORTON.