Minister Bowen to the Secretary of State.

No. 385.]

Sir: I have the honor to inclose herewith copies of my correspondence with the minister of foreign affairs and of the cablegrams that have passed between Washington and this legation since the 23d of January last and to acknowledge the receipt of your instructions No. 234, of the 20th ultimo. I am holding the said instructions until I receive an answer from you to my cablegram of the 3d instant, asking whether or not you desire me to decline the request of President Castro for a general treaty of arbitration. I am decidedly of the opinion that we should not make a treaty with him of that kind until he settles all pending questions in conformity with our repeated requests and consents to accept our definition of what are diplomatic questions. His evident purpose is to maintain the Calvo doctrine in its entirety, and he has no doubt he can do so if he can persuade the Government of the United States to agree to make with Venezuela a general treaty of arbitration for settling questions that may become diplomatic in accordance with the rules of international law.

* * * * * * *

I am, etc.,

Herbert W. Bowen.

P. S.—I have just had a talk with General Ybarra, the minister of foreign affairs. He told me that he has cabled to Washington in the hope of securing your assent to the making of a general arbitration treaty. I expressed the opinion that he would not succeed, unless he is willing to submit to arbitration the asphalt case and all other pending cases that can not be settled by mutual consent. He replied [Page 1024] that President Castro is anxious to make only one treaty and to have that cover everything. “That might be possible,” I remarked, “if he really would let it cover everything; but so far he has excluded everything. Send for me the moment he consents to submit the asphalt case and all other questions to arbitration, and we will then see what we can do.”

H. W. B
[Inclosure 1.]

Minister Bowen to the Minister of Foreign Affairs.

Mr. Minister: I have the honor, in compliance with instructions I have received from Washington, to request your excellency to inform me whether the Government of Venezuela is willing to agree to the principle of an impartial arbitration of the asphalt case, the Critchfield and Jaurett cases, and the revision of the Olcott award and of the trial of all those cases absolutely on their merits before arbitrators appointed to hear and to decide them.

A favorable answer to that question would, in my opinion, be indisputably creditable to the Government of Venezuela and surely acceptable and gratifying to the Government of the United States.

The only reason, if I understand clearly the views of the Venezuelan Government, why it has hesitated to submit the asphalt case and similar cases to arbitration is because it is inclined to hold that while cases are before the Venezuelan courts they can not be considered diplomatic questions, and that they can only become such after the courts have rendered their final decision in such a way or in such terms as to constitute a denial of justice.

If the Venezuelan Government is deterred by those views from submitting to arbitration the aforesaid cases or any of them, I suggest that it propose to the Government of the United States that an arbitration tribunal be selected and authorized to declare whether or not the aforesaid cases or any of them may be properly regarded as diplomatic questions, and to hear and to decide such of them as are diplomatic questions.

It would not be practical nor is it necessary to submit to arbitration the general principle of international law that a case pending in a national court is not a diplomatic question. We are not discussing a general principle, but specific cases, and these specific cases can, in my opinion, be shown to be wrongfully referred to the aforesaid general principle.

Furthermore, I suggest that Venezuela at the same time propose that the same arbitration tribunal be authorized to hear and decide such cases of the other creditor nations as it may declare are diplomatic questions, and may decide what sum should be paid yearly to the creditor nations out of the customs revenues of La Guaira and Puerto Cabello.

I have made these suggestions in order that I may never be reproached with having failed to put forth every effort possible to induce the Government of Venezuela to settle in a fair and honorable way her disputes with foreign nations. Your excellency will appreciate my friendly motives, and will, I know, give to every view I have expressed very careful and conscientious consideration.

I gladly avail, etc.,

Herbert W. Bowen.
[Inclosure 2.—Translation.]

The Minister of Foreign Affairs to Minister Bowen.

Mr. Minister: I acknowledge the receipt of your excellency’s note of the 30th of January last, and I have received instructions from the Provisional President of the Republic to answer in order the points which it contains in the following terms:

The asphalt cases have been fully answered in previous notes to your excellency from this office by it being stipulated in such contracts between the interested parties and the government of the Republic that doubts and controversies which may arise in the execution and fulfillment should be decided by the tribunals of justice of the Republic, there not being able to be in any case grounds for international claims, and now your excellency, who is a jurist, will understand that it would not be creditable for the Venezuelan Government to violate the said proviso agreed upon with American citizens or companies.

[Page 1025]

The Jaurett matter is a mere police question, and as to the revision of the award of Mr. Olcott, although it is not known that any protest about the matter has been made by him, the case, in the opinion of the Federal Executive, would be of such gravity if it were made that in his judgment all the protocols would be annulled which your excellency signed in Washington in the name and as the representative of Venezuela.

Nothing creditable would then result to the government of the Republic from its acceptance.

If a judicial question can be taken away from the competent tribunals which have cognizance thereof in order to be submitted to a diplomatic decision, as your excellency has affirmed already in your various notes, the Venezuelan Government would not be indisposed to accede to your repeated request, provided always, this principle were thus sustained, maintained, and embodied in international law.

The government of the Republic has not been able, even remotely, to foresee the denial of justice, because the cases in court are of such a character that they are not susceptible to it, nor much less would it be acceptable to the Federal Executive if the honor and dignity of the nation were involved.

Your excellency knows by the contents of previous notes from this office that the Venezuelan Government has proposed in every way to the Government of the United States a general arbitration treaty for all the questions which in due international form can be thus decided; and as regards this paragraph of the note of your excellency which I am answering, the President observes, moreover, that the very fact of submitting to an arbiter the decision as to whether a question is diplomatic or not would be not only a proof that it was not, but even prejudicial to the exact investigation of the questions by the chancelleries that discuss them; nor is it understood that the special cases to which your excellency refers can be governed by other principles or other rules than the general ones.

The next paragraph of your excellency’s note is of such magnitude and gravity that, dealing with your excellency, I have to say that the Federal Executive hardly can understand it or explain it, as your excellency, as former representative of Venezuela, ought to know what sum is the one which from the date of the protocols is being paid to all the creditor nations or to all the nations which signed with her diplomatic agreements. The point which the government of the Republic could not settle—that is to say, preferential treatment—your excellency knows the award of The Hague tribunal decided it clearly and categorically, and thus it has been observed and fulfilled by the Government of Venezuela.

If any new rule or agreement in the form of payment, but not as to the amount, could be obtained by the Government of the United States with the other nations for the Government of Venezuela, said payment would be equally acceptable. I have to inform your excellency anew that the Venezuelan Government has no pending questions of any kind in relation to what your excellency embodies in the paragraph to which I have just alluded.

I have special instructions from the Provisional President of the Republic to give to your excellency at all events the most cordial thanks for your good offices and desires, and avail myself of the opportunity, etc.

Alejandro Ybarra.