Mr. White to Mr.
Hay.
American Embassy,
London, December 24,
1902.
No. 1012.]
Sir: I have had the honor to keep you so fully
informed by telegraph during the past few days of every step which I
have taken under your instructions with respect to the Venezuelan
question and of the interviews which I have had with His Majesty’s
secretary of state for foreign affairs that there is little for me to
add by the dispatch leaving to-day.
It was not possible, as I have already informed you, for this Government
to communicate to me until yesterday the proposals and reservations with
respect to arbitration which, I have reason to believe, have been
practically completed for several days past, owing to the necessity of
communicating with Germany twice on the subject and of awaiting the
latter’s reply.
Yesterday, however, I was requested by Lord Lansdowne to call at the
foreign office at 3 o’clock, when he handed me the memorandum which I
had the honor to cable you yesterday, and of which I inclose a copy
herewith.
In doing so, his lordship again expressed to me the earnest desire of His
Majesty’s Government that the President would consent to act as
arbitrator, and added that they will be “greatly disappointed” should he
be unable to see his way to do so. Lord Lansdowne also intimated, in the
course of my brief conversation with him, that if there should be
anything which our Government would like altered or modified in the
memorandum, His Majesty’s Government would be happy to consider any
suggestion from us to that effect, provided no modification of any
principle laid down therein were involved. Having omitted to mention
this in my lengthy cablegrams of yesterday, I have sent you to-day a
telegram on the subject.
I may add that the press of this country appears to be practically
unanimous in its desire that the President should act as arbitrator. For
several days past there has been a leading article on the subject in
most of the principal newspapers.
I have, etc.,
[Inclosure.]
Memorandum.
His Majesty’s Government have, in consultation with the German
Government, taken into their careful consideration the proposal
communicated by the United States Government at the instance of that
of Venezuela.
The proposal is as follows:
That the present difficulty respecting the manner of settling claims
for injuries to British and German subjects during the insurrection
be submitted to arbitration.
The scope and intention of this proposal would obviously require
further explanation. Its effect would apparently be to refer to
arbitration only such claims as had reference to injuries resulting
from the recent insurrection. This formula would evidently include a
part only of the claims put forward by the two Governments, and we
are left in doubt as to the manner in which the remaining claims are
to be dealt with.
Apart, however, from this, some of the claims are of a kind which no
Government could agree to refer to arbitration. The claims for
injuries to the person and property of British subjects owing to the
confiscation of British vessels, the plundering
[Page 462]
of their contents, and the
maltreatment of their crews, as well as some claims for the
ill-usage and false imprisonment of British subjects, are of this
description.
The amount of these claims is no doubt comparatively insignificant,
but the principle at stake is of the first importance, and His
Majesty’s Government could not admit that there was any doubt as to
the liabitity of the Venezuelan Government in respect of them.
His Majesty’s Government desire, moreover, to draw attention to the
circumstances under which arbitration is now proposed to them.
The Venezuelan Government have during the last six months had ample
opportunities for submitting such a proposal. On July 29, and again
on November 11, it was intimated to them in the clearest language
that unless His Majesty’s Government received satisfactory
assurances from them, and unless some steps were taken to compensate
the parties injured by their conduct, it would become necessary for
His Majesty’s Government to enforce their just demands. No attention
was paid to these solemn warnings, and in consequence of the manner
in which they were disregarded His Majesty’s Government found
themselves reluctantly compelled to have recourse to the measures of
coercion which are now in progress.
His Majesty’s Government have, moreover, already agreed that in the
event of the Venezuelan Government making a declaration that they
will recognize the principle of the justice of the British claims,
and that they will at once pay compensation in the shipping cases
and in the cases where British subjects have been falsely imprisoned
or maltreated, His Majesty’s Government will be ready, so far as the
remaining claims are concerned, to accept the decision of a mixed
commission which will determine the amount to be paid and the
security to be given for payment. A corresponding intimation has
been made by the German Government.
This mode of procedure seemed to both Governments to provide a
reasonable and adequate mode of disposing of their claims. They
have, however, no objection to substitute for the special commission
a reference to arbitrate, with certain essential reservations. These
reservations are, so far as the British claims are concerned, as
follows:
- (1)
- The claims—small, as has already been pointed out, in
pecuniary amount, arising but of the seizure and plundering
of British vessels and outrages on their crews and the
maltreatment and false imprisonment of British subjects—are
not to be referred to arbitration.
- (2)
- In cases where the claim is for injury to or wrongful
seizure of property the questions which the arbitrators will
have to decide will only be (a)
whether the injury took place and whether the seizure was
wrongful, and (b) if so, what amount
of compensation is due. That in such cases a liability
exists must be admitted in principle.
- (3)
- In the case of claims other than the above we are ready to
accept arbitration without any reserve. It would, in the
opinion of both Governments, be necessary that the arbitral
tribunal should not only determine the amount of
compensation payable by Venezuela, but should also define
the security to be given by the Venezuelan Government and
the means to be resorted to for the purpose of guaranteeing
a sufficient and punctual discharge of the
obligation.
Should the President of the United States be willing to undertake the
task of arbitrator the British and German Governments would avail
themselves of his good offices with the highest satisfaction.
If it should unfortunately prove impossible for the President to
render this important service to the two Governments they are
prepared to refer the questions at issue to arbitration by The Hague
tribunal.
