No. 203.
Mr. Sargent to Mr. Frelinghuysen.

No. 163.]

Sir: Referring to your instruction No. 102½, of the 31st March last, concerning the adjustment of the Venezuela debts, I have now the honor to inclose a copy of a note in accordance with the same, addressed by me to Count Hatzfeldt on the 30th April, and also a copy, with translation, of his excellency’s reply of the 14th instant.

I have, &c.,

A. A. SARGENT.
[Inclosure 1 in No. 163.]

Mr. Sargent to Count Hatzfeldt.

The undersigned, envoy extraordinary and minister plenipotentiary of the United States of America, has the honor, acting under instructions from his Government, to lay before his excellency Count Hatzfeldt, imperial secretary of state for foreign affairs, a copy of a document received from the honorable Secretary of State at Washington, No. 102½, containing an ample showing of the existing liabilities of Venezuela to various Governments, including the imperial Government and those of France and the United States, and of the present condition of negotiations relating thereto; the efforts of the United States by mediation to produce a just and satisfactory solution; their views upon the present aspect of the matter, and the course which the United States would adopt with the concurrence of the imperial Government, whose views are requested in the hope of a proper settlement being secured.

This document is so ample in its statements that the undersigned will only call to his excellency’s attention the facts emphasized by the Secretary of State, that “the failure to attain a peaceful settlement as between France and Venezuela, and a resort to force by the former to collect her debt, could not but disastrously affect the [Page 387] ability of Venezuela to meet her just obligations towards the other creditor Governments; that the common interest of all is concerned in reaching an amicable solution of the complex problem presented, and that the United States, themselves creditors, will nevertheless subserve their interests in the matter to the common good.”

While respectfully requesting early attention to this subject, the undersigned avails, &c.,

A. A. SARGENT.
[Inclosure 2 in No. 163.—Translation.]

Count Hatzfeldt to Mr. Sargent.

The undersigned had the honor to receive the note of the 1st ultimo, in which the envoy extraordinary and minister plenipotentiary of the United States of America, Mr. Aaron A. Sargent, has informed him of the proposals which the American Government intends to make in order to bring about an adjustment of the differences existing between France and Venezuela, and at the same time to further regulate for the future the modality of the distribution of the claims to be paid by Venezuela to the various states who are her creditors. The minister has asked the question if the imperial Government would eventually assent to the propositions made by the United States Government.

In answer thereto the undersigned has the honor to inform the minister that if all the other interested Governments announce their adherence to the American propositions to bring about a generally satisfactory solution, the imperial Government is quite ready on its side to join in, and to empower its representative in Washington to put himself in communication with the representatives of the participating states, to fix the amount owing from Venezuela to the individual states, which would serve as a basis for the future contribution of the fund allotted by Venezuela for this purpose. It is understood in this connection, however, that Germany shall suffer no diminution of its rights under its agreement with Venezuela of the 27th January, 1877, through the proposed arrangement of the United States.

The undersigned avails, &c.,

HATZFELDT.