Mr. Tower to Mr. Hay.

[Telegram—Paraphrase.]

(Mr. Tower reports that he has been informed by the German minister for foreign affairs that although it is not intended to make a formal declaration of war a state of war actually exists, and the warlike blockade will be accompanied by all the conditions of such a measure and with the same effect as if war had been formally declared.

The German minister for foreign affairs further declares that the present blockade will follow the rules laid down by Capt. Charles H. Stockton, of the United States Navy, in section 7, page 22, of his Naval War Code, published at the Government Printing Office in Washington in 1901.

The German minister for foreign affairs declares that the question of arbitration is now being considered jointly by Germany and Great Britain, but that no decision has yet-been reached, though the British cabinet is to meet for that purpose Thursday afternoon, and an answer to the request of Venezuela may possibly be formulated Thursday evening or Friday morning. In the meantime Mr. Tower is authorized to say that Germany is not disinclined in principle to an arbitration.)