Referring to my dispatch No. 2154 of the 3d instant, I have the honor to
report that in the course of a general conversation at the usual
diplomatic reception at the foreign office yesterday, Doctor von
Muehlberg, who received instead of Baron von Richthofen, spoke of the
events in Venezuela, saying substantially that negotiations were now
pending between the British and German Governments, but that nothing had
so far been decided as to what form any armed intervention would take.
Germany had presented her claims in her ultimatum and had offered to
refer to a mixed commission all those of the correctness of which she
had not already assured herself. No satisfactory answer had been
received to this offer. Doctor von Muehlberg made no mention of Messrs.
Seligman & Co.’s efforts to make an arrangement to effect a
settlement of the Venezuelan debts, and upon my referring to the rumors
current in the newspapers, he said that he knew nothing of these efforts
except what he had read in the newspapers. I did not mention your
instruction which was “for my information in case inquiry was made of me
by anyone in interest.” No one has made as yet any inquiry of me
regarding this matter.
On the overleaf is also a clipping from the London Times of the 9th
instant, giving in translation the material part of a memorandum
presented by the Imperial chancellor to the Reichstag on the 8th instant
on the subject of Germany’s claim against Venezuela.
[Inclosure.]
Clipping from the London Times.
Berlin, December 8,
1902.
ultimatum to venezuela.
Owing to t.he evasive attitude of General Castro, President of
Venezuela, the British and German Governments presented formal
ultimatums at Caracas at 3 o’clock yesterday afternoon. If the
demands of the two Governments are not satisfied, joint military
action will immediately be undertaken.
The notes are identical in form, only the demands being
different.
A memorandum by the Imperial chancellor on the subject of Germany’s
claims against Venezuela was presented to the Reichstag to-day. It
says:
“Venezuela, by her treatment of German representations, has given the
Imperial Government cause for serious complaint. The questions at
issue relate to demands from Germans living in Venezuela, and claims
of German contractors on account of the nonfulfillment by the
Venezuelan Government of obligations entered into by contract.
During the last civil war the Germans settled in Venezuela had, up
to 1900 suffered, through forced loans, the seizure of cattle, and
the pillage of their houses and estates, a loss of about 1,700,000
bolivars, and during the last civil war that amount has been
increased by about 3,000,000 bolivars. As the result of numerous
applications the Venezuelan Government, on January 24, 1901, issued
a decree by which a commission consisting solely of Venezuelan
officials was to decide upon all claims. That decree appeared to be
unsatisfactory because, in the first place, all claims originating
before the presidency of Señor Castro were ignored; in the second
place, any diplomatic protest was precluded; and in the third place,
payments were only to be made with bonds of a new revolutionary
loan, which in the light of previous experiences, would evidently be
almost worthless. After every attempt on the part of the minister
resident at Caracas to get the decree altered on those three points
had failed, the minister declared plainly that the Imperial
Government now felt compelled to refuse to recognize the decree
altogether.
“Similar declarations were made by Great Britain, the United States,
Italy, Spain, and the Netherlands. But, as Venezuela insisted that
foreigners could not be treated differently from Venezuelan subjects
and that the claims must be considered as coming within the scope of
internal affairs, the Imperial Government examined the German claims
itself, and, so far as they appeared well founded, made the
Venezuelan
[Page 420]
Government
responsible for them. Venezuela thereupon held out the prospects of
a satisfastory solution through Congress, but the latter simply
again took up the same unsatisfactory decree. Venezuela declined
further discussion, maintaining that the settlement of foreign war
claims by diplomatic means was out of the question. That is not in
accordance with international law.
“Consequently, as the whole attitude of the Venezuelan Government up
to the present indicates only an endeavor to deny foreign claims the
settlement that is due to them according to international law, and
as, moreover, in the last civil war Germans have been treated by the
Venezuelan Government troops with especial violence, which if it
remains unpunished might give rise to the impression that Germans in
Venezuela are to be left unprotected to the mercy of foreign
tyranny, the Imperial chargé d’affaires at Caracas on December 7
handed to the Venezuelan Government an ultimatum demanding the
immediate payment of the war claims up to 1900, and a satisfactory
statement regarding the fixing and guaranteeing of the amount of the
claims arising out of the recent civil war. At the same time the
claims of German firms for the building of a slaughterhouse at
Caracas and those of the German Great Venezuelan Railway Company for
the guaranteed interests due to them are to be settled. It was
finally stated in the ultimatum that should a satisfactory reply not
be immediately forthcoming the Imperial Government would, to its
regret, be compelled itself to take measures for the satisfaction of
the German claims.”
