Mr. Tower to Mr. Hay.

[Telegram.—Paraphrase.]

(Mr. Tower reports that he has been informed by the German minister for foreign affairs that the German and British governments [Page 424] are agreed in principle to an arbitration in order to adjust their claims against Venezuela, and to invite the President of the United States to act as arbitrator. They reserve for the present certain of their claims, in regard to which they will make a further communication. The German minister for foreign affairs announces that the two governments had already arrived at the agreement mentioned above before the receipt of the second communication made by the United States Government.)