Mr. Tower to Mr. Hay.
Berlin, January 6, 1903.
(Mr. Tower reports the receipt from the German minister for foreign affairs of the following memorandum:
The German Government has learned with satisfaction that the Venezuelan Government has accepted its demands in principle. Before further negotiations can be undertaken with Venezuela, however, it seems necessary that the President of Venezuela should make a definite statement as to the unconditional acceptance of the three preliminary conditions set forth in the German memorandum of December 22, 1902. He will also have especially to declare how he intends either to pay or to secure the claims set forth in paragraph 1. On receipt of a satisfactory assurance from the Government of Venezuela the German Government will be prepared to instruct its ambassador in Washington to open negotiations with Mr. Bowen as representative of Venezuela, and to consider his proposition in regard to an adjustment. These propositions may relate to an immediate settlement or to a reference to The Hague tribunal of all claims, except, of course, those mentioned in paragraph 1. The German Government makes the condition, however, that the discussion of any proposition for immediate payment shall not prejudice the right of reference to The Hague tribunal.
The German Government will be very greatly obliged to the Government of the United States if it will transmit the foregoing reply to President Castro.)