Mr. White to Mr. Hay.
London, January 30, 1903.
(Mr. White reports that he has had an interview with the minister for foreign affairs, the prime minister and the first lord of the Admiralty [Page 472] being present. They informed him that to their very great regret the deadlock had been created by Mr. Bowen’s demands, of which the British Government first heard on January 24, that all powers having claims against Venezuela be placed on an equal footing with respect to the customs. It appears that Germany has reduced her demand for cash payment on first-rank claims to the same sum as England obtained, viz, £5,500, the remainder, £61,000, of these claims to have, by agreement with Great Britain, priority of treatment over the latter’s second-class claims, and but for Mr. Bowen’s demand the blockade would already have been raised. The ministers further explained that the blockading powers would probably have agreed to be content with a sum less than the £213,000, which represents the 30 per cent of the customs of the two ports, provided that sum were sufficient to extinguish their claims within, say, six years. This would, it is estimated, leave about £50,000 each year for claims of other powers, with prospect of the whole 30 per cent at their disposal a few years hence. The prime minister said that the British Government can not assent to Mr. Bowen’s demand without submitting it to some tribunal of arbitration, and read Mr. White instructions to be cabled the British ambassador at Washington setting forth the situation, and stating that if Mr. Bowen’s demand be not withdrawn they must insist on the whole case going to The Hague tribunal. The ministers suggested, however, that the President of the United States might possibly be prepared, in the interest of a speedy settlement, to decide the single point at issue, and they expressed the pleasure it would afford them were this course to be adopted. Mr. White is given to understand that the moment reference to either of the foregoing authorities is agreed upon, or Mr. Bowen’s demand withdrawn, the blockade will be raised.
The ministers expressed themselves most anxious to terminate the situation, and asked Mr. White to invoke Mr. Hay’s good office, with the President toward that end. They hope the unfairness of expecting powers, through whose action eventual settlement will be effected of all claims which otherwise would have been ignored, to place themselves on the same footing with other powers who have done nothing to effect settlement, will strike the President and Mr. Hay.)