Mr. Tower to Mr.
Hay.
Embassy
of the United States,
Berlin, December 24,
1902.
No. 6.]Sir: I have the honor to inclose to you
herewith a copy and a translation into English of a memorandum which was
handed to me by Baron von Richthofen, Imperial secretary of state for
foreign affairs, on Tuesday afternoon, the 23d of December, setting
forth the attitude of Germany and Great Britain in regard to the
acceptance by those powers of the proposition made by the Government of
Venezuela, and
[Page 427]
conveyed
through the Government of the United States, that the present
difficulties be submitted to an arbitration for settlement.
The memorandum contains the definitive announcement that Germany and
Great Britain have jointly agreed to submit to arbitration the questions
now at issue, with the exception, on the part of Germany, of certain
claims of German subjects arising out of injuries and breach of contract
in the civil war in Venezuela during the period from 1898 to 1900. The
German Government declares that these claims have long since been
presented to the Government of Venezuela; that they have been carefully
examined by the German Government and assessed at an aggregate of
$325,000. These claims are held by Germany not to be subject to
arbitration, and the Imperial Government insists that they must either
be paid forthwith or amply secured. Aside from this the German
Government agrees to submit to arbitration all its claims set forth in
the ultimatums, both for injury and those arising out of the illegal
seizure of property or breach of contract, as well heretofore as during
the present civil war in Venezuela, though it is to be understood that
the responsibility of the Government of Venezuela for such illegal
seizure and breach of contract is not to become a subject of
arbitration, but must be admitted at the outset.
Upon these terms, the Government of Germany and that of Great Britain
unite in expressing the earnest hope that the President of the United
States will accept the invitation which they extend to him to act as
arbitrator. In the event, however, that the President of the United
States should, to the great regret of the two powers, decline to act as
arbitrator, then they are prepared to submit the case for adjustment to
the tribunal at The Hague.
This memorandum was presented to me at the foreign office by Baron von
Richthofen about 6 o’clock in the afternoon and I sent to you during the
evening a dispatch embodying the substance of it.
I have, etc.,
[Inclosure.—Translation.]
Memorandum.
The Imperial Government expresses to the Government of the United
States of America its most earnest thanks for its efforts to adjust
in a peaceful manner the unsought conflict with Venezuela. The
proposition transmitted by the United States regarding the
establishment of a court of arbitration appears to Germany as well
as to England to be a suitable basis upon which to arrive at a just
decision of their claims. As to this, however, the two powers think
it proper to make certain reservations as follows:
- 1.
- Amongst their claims are certain demands which can not
properly be submitted to decision by arbitration. Such
claims are, so far as Germany is concerned, her demands
growing out of the civil wars from 1898 to 1900, which are
stated more particularly in a memorandum submitted to the
Reichstag on December 8, a copy of which is hereto attached.
This relates to claims arising out of acts of violence
committed by the Venezuelan Government and its officials,
for which that Government, after attempts at delay lasting
for years, has refused in an almost insulting manner to make
a suitable indemnity, notwithstanding repeated
representations on the part of the Imperial Government.
These claims which, according to a careful examination by
the Imperial Government, amount to 1,700,000 bolivars in
round numbers ($325,000) must therefore be immediately
recognized by the Venezuelan Government. In the event that
their immediate payment is impossible, then ample security
will be required for their prompt settlement.
- 2.
- All further claims which are set forth in the two
ultimatums shall be investigated by the proposed court of
arbitration. This will, therefore, not only examine claims
arising out of the present Venezuelan civil war, but also,
so far as Germany is concerned, the claims of German
contractors set forth in the above-mentioned memorandum on
account of the nonfulfillment by the Venezuelan Government
of its treaty obligation.
- 3.
- The court of arbitration shall decide upon the legality of
the several claims as well as upon the manner of settlement
and the security to be given. In the cases of claims on
account of injury or on account of illegal acts against
property the responsibility of the Government of Venezuela
must furthermore be recognized in principle; that is to say
that this responsibility is not the object of the court of
arbitration, but that the court of arbitration shall decide
only as to injuries committed or the illegal seizure of
property and as to the amount of the damages.
The Government of the United States would place the Imperial and the
British Governments under especial obligations if it will use its
good offices to induce the Venezuelan Government to accept these
propositions. The two Governments would be grateful if the President
of the United States would accept the office of arbitrator under the
foregoing conditions. If, however, the President of the United
States, to the great regret of the two Governments, should not
accept this invitation then they are prepared to submit the case to
the tribunal of arbitration at The Hague.
Berlin, December 22,
1902.
