Minister Russell to
the Secretary of State.
American Legation,
Caracas, September 28,
1907.
No. 236.]
Sir: Referring to your cable of the 14th
instant, which is confirmed in a separate dispatch, I have the honor to
inform you that I have accepted the sum of 33,771.10 bolivars, the first
installment of money due from the Venezuelan Government on account of
the awards of the mixed commission of 1903.
The minister for foreign affairs advised me that the rate of exchange to
be applied for gold dollars was 5.55 bolivars, but this means a New York
draft at 60 days’ sight for $6,084.88, whereas a sight draft at 5.65
bolivars is equal to $5,977.18, a difference in our favor of $107.70 I
determined at first to purchase a sight draft, not knowing whether our
Government is disposed to accept drafts at 60 days in payment of those
awards, but as I had cabled for instructions I have concluded to await
your answer.
On the 20th instant, after having received your cable instructions, I
wrote to the foreign office accepting the first payment, with the
reserve in regard to the award to the Orinoco Steamship Co On the 21st
instant the foreign minister answered my note.
The situation here is becoming more strained, and a few days ago the
Government commenced to publish in the local press, in English and
Spanish, all of the correspondence between this legation and the foreign
office since the issue of the yellow book which contained my memorandum
of March 30 and Venezuela’s counter-memorandum of April 23 The position
of our Government, as outlined in my note of July 9, is not published,
but only Venezuela’s answer to that note; thus the public in general
only gets the one side of the affair.
My note in accepting the first payment of the American awards and the
reply thereto are also published The Constitutional, referring to the
publication of these documents, says:
From the notes which we begin to publish to-day the country and
the people who are following the affair between Venezuela and
the United States will be made aware of the powerful reasons
which have induced the chief executive in not agreeing to a
revision of the awards of the mixed commissions that met
[Page 814]
in Caracas as
international tribunals, as well as his reasons for not
disregarding the verdict of our tribunals in matters exclusively
of their jurisdiction, as claimed by the Government of the
United States.
I would respectfully suggest to the department that some means of cable
communication with Curacao be afforded me I am entirely dependent on
steamship communication, either with Curacao or Trinidad, and can
receive no answers to my cables under a week or ten days, and am
compelled to wait three or four days before I can get a cable to
Curacao.
In regard to the five pending cases in which American citizens claim
redress from this Government, as presented in the memorandum of March 30
and in subsequent notes, I would like to be informed as to whether our
Government insists upon its position in regard to each and every case I
have so construed my instructions, and have so been governed in my
interviews with the foreign minister I bring this matter up in case
there should be a possibility of arranging two or three of the cases to
the satisfaction of our Government The possibility is very remote,
however, that the Venezuelan Government will ever consent to an opening
of the award to the Orinoco Steamship Co: or to an arbitration of the
case of the New York & Bermudez Co.
I have, etc.,
[Inclosure 1.]
Minister Russell to the Minister for
Foreign Affairs.
American Legation,
Caracas, September 20,
1907.
Mr. Minister: Referring to my communication
of the 16th instant, I have the honor to inform your excellency that
I have collected from the Bank of Venezuela the sum of 33,771.10
bolivars, a payment for the month of August, 1907, on account of the
sum due the United States under the awards of the mixed commission
of 1903.
In accepting this first installment of money due from the Venezuelan
Government on account of the awards of the mixed commission of 1903,
my Government instructs me to say that it insists upon a revision of
the award in the case of the Orinoco Steamship Co., and that pending
final settlement of this question no portion of any moneys which may
be paid by Venezuela will be considered as paid on account of or
applicable to that award.
As to the case of the Orinoco Co (Ltd.), however, my Government does
not share the view of the Government of Venezuela that the
acceptance of the sum awarded in this case is inconsistent with the
position of the United States as set forth in my memorandum of March
30, and my notes of July 9 and August 13.
I take, etc.,
[Inclosure
2.—Translation.]
The Minister for Foreign
Affairs to Minister Russell.
Caracas, September 21,
1907.
Mr. Minister: I am in receipt of your
excellency’s communication of yesterday in which you inform me that
you have collected from the Bank of Venezuela the sum of bolivars
33,771.10 (thirty-three thousand seven hundred and seventy-one
bolivars and ten centimos), payment for the month of August, 1907,
on account of the sum due the United States under the awards of the
mixed commission of 1903.
[Page 815]
Your excellency further adds that in accepting this first sum of
money due by the Venezuelan Government by reason of the awards of
the mixed commission of 1903 your Government instructs you to say
that it insists on a revision of the award in the case of the
“Orinoco Steamship Co.,” and that pending a final settlement of this
question no portion of any moneys paid by Venezuela will be
considered as paid on account of or applicable to that award.
Your excellency concludes the note to which I refer by stating that
in the case of the Orinoco Co (Ltd.) your Government does not share
the view of the Government of Venezuela that the acceptance of the
sum awarded in this case is inconsistent with the position of the
United States as set forth in your memorandum of March 30, and your
notes of July 9 and August 13.
The Government of Venezuela is constrained to answer categorically
your excellency’s note by quoting the following statements which
your excellency makes: “That you have collected from the Bank of
Venezuela the sum of bolivars 33,771.10 (thirty-three thousand seven
hundred and seventy-one bolivars and ten centimos), on account of the sum clue the United States under
the awards of the mixed commission of 1903,” and, further
on, “that in accepting this first sum of money due by the Venezuelan
Government by reason of the awards of the mixed
commission of 1903 you are instructed by your Government to
say,” etc.
The receipt which your excellency gives for the sum of bolivars
33,771.10 (thirty-three thousand seven hundred and seventy-one
bolivars and ten centimos) which you collected from the Bank of
Venezuela, means for this Government as follows: That your
excellency, acting in your character as representative of the
Government of the United States, which is a creditor of the
Government of Venezuela, by reason of the awards of the
Venezuelan-American Mixed Commission, created by the Washington
protocol of February 17, 1903, have received from the Bank of
Venezuela the sum of bolivars 33,771.10 (thirty-three thousand seven
hundred and seventy-one bolivars and ten centimos), which is the
first sum of money due by the Venezuelan Government by reason of
said award, said sum amounting to 10.752 per cent of the 30 per cent
of the proceeds of the custom-houses of La Guaira and Puerto Cabsllo
for the month of August last, said 30 per cent being set aside for
the payment of all the awards of the Venezuelan-American Mixed
Commission and of those of the other commissions, in strict
compliance with the terms of the above-mentioned protocol of
February 17, 1903, and of the additional verdict of The Hague
Tribunal of February 22, 1904.
The Government of Venezuela must take due notice of your excellency’s
communication referring to the total of the sum received from the
Bank of Venezuela as the first sum on account of the amount which
this Government owes under the awards of the Venezuelan-American
Mixed Commission, said sum and the further sums which it will
continue to deliver monthly for the same purpose being set aside
solely and exclusively for the definitive payment of all the awards
of the above-mentioned commission.
The Venezuelan Government is not concerned with the way in which the
Government of the United States disposes of the amount already
received, nor of those sums which it may continue to receive, after
said amounts are in possession of your excellency’s Government For
its discharge the Government of Venezuela merely has to deliver to
your excellency the sums it is obliged to pay in execution of the
protocol signed at Washington on February 17, 1903, in accordance
with the awards of the Venezuelan-American Mixed Commission, created
by that protocol, and also in accordance with the verdict of The
Hague Tribunal on February 22, 1904, which decreed that the
Government of Venezuela should pay the claims of the nonblockading
nations, as awarded by the mixed commissions of 1903, after the
awards to Germany, England, and Italy were satisfied.
The receipt from your excellency is a proof that the Government of
Venezuela is fulfilling its obligation to distribute among the
creditor nations, under the awards of the mixed commissions, the
monthly 30 per cent of the receipts of the customhouses of La Guaira
and Puerto Cabello in the proportion which the sums due each bear to
the sum total of the awards of the several commissions Your
excellency was duly notified of that proportion in a note from this
ministry, dated August 27, No 924, fixing at 10.752 per cent said
proportion, which corresponds to $436,441.90, the total of all the
awards of the Venezuelan-American Mixed Commission, and your
excellency acknowledged the receipt of my note on the 29th of the
same month.
[Page 816]
Your excellency states that your Government insists on a revision of
the award in the case of the Orinoco Steamship Co., and considers as
pending a definite settlement of that question The Government of
Venezuela has given no motive for the Government of your excellency
to think that a definite settlement of that question is pending, as
in its memorandum of April 23, 1907, and in its notes of July 24 and
August 20, in answer to the memorandum and notes from your
excellency of March 30, July 9, and August 13, it did not accede to
the pretensions of your excellency’s Government as to revising the
arbitral awards in the cases of the Orinoco Steamship Co., Manoa Co
(Ltd.), and Oronoco Co (Ltd.), for the reasons therein expressed,
thus closing definitely discussion on this matter.
The Government of Venezuela deems it opportune, in view of the
insistence of the Government of the United States, to present for
the high consideration of your excellency’s Government the text of
the two notes of March 24 and 26, 1903, from his excellency Mr. John
Hay, then Secretary of State, to his excellency Don Rafael S. Lopez,
minister of Salvador, in answer to the memorandum in which said
minister requested a revision or reopening of the award made by Sir
Henry Strong and Hon N. Dickinson in the case of the Salvador
Commercial Co and others against the Government of Salvador.
Said notes are as follows:
“State Department,
“March 24, 1903.
“The undersigned, Secretary of State, has the honor to inform
the minister of Salvador, after a due consideration of the
memorandum from the minister of March 4, 1903, that the
Government of the United States does not find in it any
reason for altering the opinion before expressed, that it is
in no way empowered to revise or reopen the award made in
the case of Salvador Commercial Co and others against the
Government of Salvador A failure to carry out the award
would imply in addition a grave discourtesy for the eminent
arbitrators who examined this case and a serious offense
against the cause of arbitration The Government of the
United States expects, consequently, that the Government of
Salvador will comply with the terms of the protocol of
arbitration signed by its executive and ratified by the
National Assembly.
“John Hay.
“Don Rafael S. Lopez, Minister of Salvador.”
“Department of
State,
“March 26, 1903.
“Sir: I have the honor to
acknowledge the receipt of your communication of the present
month, which has been taken into consideration The
department considers in no way applicable to the case the
principles and authorities you invoke in support of your
contention that the award made by the arbiters in the case
of the Salvador Commercial Co and others against the
Government of Salvador is illegal and null I do not see any
reason for changing the view as expressed in my note of the
24th of the present month As indicated in that note this
Government expects that the Government of Salvador will
comply with the terms of the protocol of arbitration.
“Accept, sir, etc.,
“John Hay.
“Don Rafael S. Lopez, etc.”
These laconic and decisive answers from his excellency, Mr. Hay,
denying absolutely to revise the Strong-Dickinson award, are
presented by the Government of Venezuela to the Government of your
excellency, with all the significance with which they are invested,
as bearing the signature of that eminent statesman, who by a rare
coincidence also signed the protocol of February 17, 1903, by which
the claims of the Orinoco Steamship Co and the Orinoco Co (Ltd.)
were submitted to the decisions of the commissioners, and in case of
the disagreement of the latter to the umpire chosen by the Queen of
the Netherlands, with the stipulation that those awards should be
definite and conclusive.
I avail myself of this opportunity, etc.,
