Lord Salisbury to Mr. Bayard.

Your Excellency: The note which you handed to me at our interview on the 27th ultimo has received the careful consideration of Her Majesty’s Government.

The communications which have already passed between Her Majesty’s Government and that of the United States have made you acquainted with the desire of Her Majesty’s Government to bring the difference between themselves and the Republic of Venezuela to an equitable settlement. They therefore readily concur in the suggestion that negotiations for this purpose should be opened at Washington without unnecessary delay. I have accordingly empowered Sir Julian Pauncefote to discuss the question either with the representative of Venezuela or with the Government of the United States acting as the friend of Venezuela.

I will communicate to the secretary of state of the colonies Mr. Olney’s desire to be informed of the precise meaning attached by Her Majesty’s Government to the word “settlements” in the territory in dispute. The limitations or conditions to be applied to the arbitral jurisdiction of any tribunal that may be created for the purpose of deciding questions in dispute will be a proper subject for the negotiation to which the United States Government have invited us. I ventured, however, at our interview already mentioned to suggest a course of proceeding which would not only have the effect of saving time—which I agree with you in thinking to be an object of importance—but would go far to abridge the difficulties of the question, and even to remove them altogether. The two Governments are, I believe, quite agreed that the determination of facts is a suitable matter to be considered and finally decided by a properly constituted tribunal. It may be more difficult to arrive at a further agreement as to the law which [Page 242] should in all cases govern the decision to be founded on those facts or the method of determining that law. But the possibility of our being compelled to argue this question at a later stage should not prevent us from setting in motion that portion of the procedure on which we are agreed. It will at all events save time to enter upon it at once, and it may be well that when we have the facts before us, duly and finally ascertained, we shall see that in many respects they exclude the possibility of disagreement upon the main questions at issue.

I have, etc.,

Salisbury.