Mr. Tower to Mr. Hay.

No. 17.]

Sir: I have the honor to inclose to you herewith a copy and a translation into English of the reply of the German Government to President Castro, which was sent to me in a memorandum from the Imperial foreign office on the 6th of January, 1903.

Immediately upon receipt of this memorandum I communicated it to you in a telegram.

I received on the 6th of January your telegram announcing the fact that you had then received the reply of Great Britain which appointed the British ambassador in Washington to treat with Mr. Bowen.

I have, etc.,

Charlemagne Tower.
[Inclosure.—Translation.]

Memorandum sent to Mr. Tower by the Imperial German foreign office, January 6, 1903.

memorandum.

The German Government has learned with satisfaction that the Venezuelan Government has accepted its demands in principle. But, before further negotiations [Page 435] upon this basis can take place with Venezuela, it seems necessary that President Castro should make a definite statement as to the unconditional acceptance of the three preliminary conditions set forth in the German memorandum of December 22, 1902. He will have also to declare especially in what manner he intends either to pay or to secure the claims set forth in paragraph 1.

Upon receipt of a satisfactory statement from the Government of Venezuela, the German Government will be prepared to instruct its ambassador in Washington to open negotiations with Mr. Bowen as representative of Venezuela and to consider his propositions for an adjustment. These propositions, except in the case of the claims made in the preliminary condition No. 1, which are to be met at once, may relate to an immediate settlement, or to a reference to the tribunal of The Hague. The German Government wishes it to be understood, however, that a discussion of any proposition for an immediate payment shall not prejudice the right of reference to The Hague tribunal.

The German Government will be greatly obliged to the Government of the United States if it will transmit the foregoing reply to President Castro.