Mr. Tower to Mr. Hay.

No. 12.]

Sir: I have the honor to acknowledge the receipt on the 27th of December of your telegram containing the reply of the President to the invitation extended to him by the powers to accept the duty of arbitrator in the matters now pending in Venezuela.

Immediately upon the receipt of this telegram I proceeded to the foreign office, where I met the Baron von Richthofen, Imperial secretary of state for foreign affairs, to whom I communicated it. Baron von Richthofen received with evident disappointment the announcement of the President’s decision not to act as arbitrator, and he requested me at once to convey to him the earnest thanks of the Imperial Government for the part he has taken in bringing the controversy to an amicable settlement. I communicated this to you in my telegram of the 27th of December.

In this last message I said: “I think it would expedite proceedings if a statement were made by Venezuela as to her acceptance of the preliminary conditions announced by Germany,” because Baron von Richthofen expressed to me very strongly his desire to know what Venezuela intends to do in that regard, and, although he did not wish me to inquire formally of you, he intimated that he should be much obliged if I would obtain that information for him.

I received on the 28th of December your telegram in reply, saying:

I have telegraphed in full to Minister Bowen the German preliminary conditions received from you and await Venezuelan response, of which you will be promptly advised.

Very great disappointment has been felt throughout Germany at the decision of the President not to act as arbitrator * * * It was believed to be almost certain that the difficulties with Venezuela would be finally submitted to him for adjustment, and the personal [Page 433] character of the President, as well as his breadth of view and unquestioned integrity, gave to the German people a sense of relief, in view of the assurance of speedy and complete justice which his acceptance would have meant to them.

The general opinion now appears to be one of fear that the negotiations before the court of arbitration are likely to be voluminous and probably long in duration.

I have, etc.,

Charlemagne Tower.