The Secretary of State to Minister Bowen.


(Mr. Hay states that the President approves acceptance 5,000,000 bolivars annually to be paid to all creditor powers from customs revenues provided said powers assent. The President could not interfere in any way in relation to German and British bondholders, that being a question in which this government is not concerned.

The President approves the suggestion of an arbitration treaty with the United States for settlement of all questions which being of a diplomatic character can not be settled by mutual consent. Also of the provision to settle by arbitration unsettled claims of all the powers except contractual claims and bonds held by citizens of other governments.

The Department will cable Mr. Bowen bases of protocol for arbitration of all disputed claims of the United States and other nations excepting bonds and all claims of a contractual nature.

The Department will take under advisement the question of a permanent treaty of arbitration.)