Mr. Tower to Mr. Hay.
Berlin, December 23, 1902.
(Mr. Tower reports that the German minister for foreign affairs has made the following communication to him:
The German Government expresses to the Government of the United States its earnest thanks for the efforts of the latter Government to adjust the troubles with Venezuela. The proposition made by the United States to establish an arbitration appears to Germany, as well as to England, a suitable means by which to arrive at a just decision in regard to their claims. It is to be noted, however, that there are certain claims of Germany which can not be submitted to arbitration, namely, such claims as had arisen out of the civil war from 1898 to [Page 426] 1900, which were set forth in the memorandum addressed by the chancellor to the Reichstag on December 8, 1902. These claims have been assessed by Germany at an aggregate of $325,000, which must be paid immediately or sufficiently guaranteed by Venezuela. All other claims set forth in the ultimatums will be submitted to arbitration; that is to say, not only those arising out of the present civil war in Venezuela, but, also, as far as Germany is concerned, the claims referred to in the above-mentioned memorandum, which are based on the failure of the Government of Venezuela to fulfill its obligation toward German contractors under treaty engagements. The arbitrator shall decide upon the claims submitted as well as on the mode of satisfying them and the security to be given in the case of claims arising from damage to or illegal seizure of property. The Government of Venezuela also will be required to admit in principle its responsibility; that is to say, that this responsibility does not form the basis of the present arbitration, but that the arbitrator shall decide solely as to the injury to or illegal seizure of property and shall assess the damages therefor. The Government of the United States will place Germany and Great Britain under profound obligations if it will use its good offices to induce the Government of Venezuela to accept these propositions. The two governments would be grateful to the President of the United States if he would accept the position of arbitrator under the foregoing conditions. If, however, the President of the United States should, to the great regret of the two governments, decline their invitation, they are prepared to submit the case to The Hague tribunal.)