Mr. Meyer to Mr. Hay.

[Telegram.—Paraphrase.]

(Mr. Meyer reports that he has just received an official note from the minister for foreign affairs expressing appreciation at the prospect of settling Venezuela difficulties by arbitration of President Koosevelt. The note continues, however, to state that if the President is unwilling to act Italy has no objection to the submission of the claims to the permanent court at The Hague. Italy proposes only two conditions as to arbitration: First, that the arbitration shall include all her claims against Venezuela so as to leave nothing for further dispute; second, that her claim shall receive precisely the same treatment and guaranties as the claims of other countries receive.)