No. 691.
Mr. Russell to Mr. Fish.

No. 87.]

Sir: I have the honor to inclose a copy of a note received July 17, from Dr. Blanco, with a translation. It places at my disposal the funds deposited for United States claimants under the awards of the mixed commission, and offers monthly payments in future. On the same day I had the funds transferred to my account as minister, and I send bills on London for the full amount, 64,308 venezolanos, £12,366 18s. 6d., by this mail. No. 88 contains, with the bills, a full account of them.

My reply to Dr. Blanco’s note was as follows:

Legation of the United States, July 21, 1875.

Sir: I have the honor to acknowledge the receipt of your excellency’s note of the 17th, answering my note of the 7th, placing at my disposal the funds deposited with the Company of Credit, on account of United States claimants under the awards of the joint commission, and promising months payments in future. I received this decision with pleasure, and am confident that such right action on the part of the enlightened government of Venezuela will have due effect in preserving the proper relations between the two countries.

To prevent all misunderstanding, permit me to state that I regard this as the unconditional payment which I was instructed to ask. The United States receiving these amounts on account of the awards is perfectly free to dispose of the money received, in any way and at any time that seems right to that government, subject only to its own sense of justice. This statement is not necessary for your excellency, nor for his excellency the President of the United States of Venezuela. But it is made from abundant caution, to prevent misapprehension by others at any future time. I have further to say, that on July 15 I received a dispatch from the honorable Secretary of State of the United States of America, in which I am directed to make it distinctly known, when occasion arises, that the Government of the United States of America will never consent to any revision of the proceedings of the joint commission, with a view to set aside their decisions, believing that such a concession would be not only unprecedented, but unwise in itself, and of bad omen and influence for all governments, including that of Venezuela.

I take pleasure in renewing to your excellency my assurances, &c., &c.

THOMAS RUSSELL.

His Excellency Hon. Dr. Jesus Ma. Blanco,
Minister of Foreign Relations.

I have, &c., &c.,

THOMAS RUSSELL.
[Inclosure 1 in No. 87.—Translation.]

Dr. Blanco to Mr. Russell.

The undersigned, minister of foreign relations, has had the honor of receiving the note dated the 7th of this month, in which Hon. Mr. Russell, minister resident of the United States of North America, repeats his demand that the amount may be delivered to the legation which is deposited with the company of credit on account of what the republic owes to North American citizens. The honorable minister is pleased to express as the foundation of his demand that the Executive of the United States of North America is bound to consider as binding the awards of the mixed commission while the law of February 25, 1873, remains in force, which recognizes and declares them valid and subsisting, and that therefore he only performs a simple duty in demanding the money that is on deposit on account of said awards, adding that the act of agreeing to the payment neither adds to nor takes from the rights which the two nations respectively have. His Excellency the President of the union, being possessed [Page 1384] of the contents of said note, has ordered the undersigned to answer the honorable minister as follows: In compliance with a decree of the Congress of Venezuela, and convinced, morally and legally, that the most scandalous corruption was the moving power of the commissioners and of the umpire who formed the tribunal created by the treaty of April 25, 1866, the national executive has claimed and will continue to claim the nullity of its acts, and cannot but hope that the enlightened North American Government, in view of the mass of proofs which show the fraud of the judges, will agree that their decisions are not binding, and [consequently] on the consequent revision of the claims. As the justice of the demand of Venezuela is evident, and founded thereon her confidence in obtaining it, His Excellency the President has judged and judges that the anticipated distribution of the whole sum applied to the payment of legitimate dues of North American citizens will favor, with injury to them, the false claimants leagued against the treasury of the republic, and the very swindlers who shared more than half of the awards made. For this reason, in announcing to the respective legations their quota of the customs-revenue set apart for foreign claims, he established the condition that the amount coming to the North American legation on account of what Venezuela should turn out to owe finally to citizens of that republic should not be distributed, and said condition not having been accepted, the government ordered the deposit, on which it has insisted with many solid reasons. But official communications from the minister plenipotentiary of Venezuela in Washington, of the dates of May 30 and June 21, just received, have persuaded His Excellency the President that through wrong understanding of the true causes, the non-delivery of the money deposited influences, to a certain point, the North American Government not to give attention to the chief matter submitted to its consideration, and as His Excellency desires that every motive may disappear which in any way can paralyze the comprehension and decision of the question of right, and His Excellency wishes, moreover, to give a new proof that it is not the magnitude of the awards, still less the wish to elude the performance of any agreement, but the honor and dignity of the republic, which is the consideration that has operated on the mind of his government in asking the nullity of the tribunal which made the decisions, has resolved to place at the disposition of the North American legation the amount which the company of credit holds on deposit, as also that there shall be delivered monthly, through the treasury of the public service, the amount which the note of July 29, 1873, sets forth, in which is made known to the legation the share which belongs to it, in the prorata of i3 per hundred applied to foreign claims. The undersigned must add that his government agrees to make, and will continue making, said payments without giving up its rights, which it expressly reserves, to continue its efforts for the nullity of the tribunal guilty of fraud, and under formal protest against the distribution of the funds, His Excellency the President does not doubt, but rather hopes, that the honorable minister, penetrated by the right action and sincerity of the government of Venezuela, will use his merited influence to effect that his Government will please to undertake to consider the proofs on which the republic founds its unquestionable right to ask, as it has asked, that the nullity of the tribunal and the revision of its decrees may be ordered.

The undersigned takes occasion, &c.

JESUS MABLANCO.