The Sun.
London, England, 1857-06-04 00:00:00

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The fol'o .ins decal-yeti's were received on
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day by the-Committee of Spanish American Bowl-
holders from Mr. Mocetta, viz. e— •
"From the Minieter of Finance to Mr. Mocatta.
" (Translation.)
" Caracas, May 5, 1857.
"Sir,--The executive power has directed me to
inform you, in answer to the various despatches
which you have addressed to me in relation to the
agreement, signed on the 30th January last, be-
tween the Venezuelan Commissioners and J.. 110
Powles,. Esq., as Chairman of the Committee of
Spanish American Bondholders, that the Govern-
ment, after mature deliberation, being- fully con-
vinced that the republic could not carry- it out in
its entirety and with due punctuality, could not
give its assent thereto. Nevertheless the Govern-
ment has, at the same time, resolved to submit the
said agreement to Congress, along with a decree
containing the terms of arrangement which it
deems adequate, and an ample memorial demon-
ating the grounds of that decree, in order that
one or the other proposition may be adopted.
This resolution has not been taken without his
Excellency the President having carefully con-
sidered all the points of this matter, especially
the fiscal condition of Venezuela, of its probable
future revenue, and the bounden duty to fulfil the
engagements of the republic, not only with the
bondholders of the foreign debt, but also in respect
of all which weighs upon the treasury, since it .is
not just to disregard any of those obligations.
The Government has deemed it advisable to
consult the true interest of debtor and creditor,
offering to the •latter an arrangement of gelid and
permanent results, and maintaining the credit of
Venezuela, inasmuch as it is clear that by agreeing
to conditions which cannot be fulfilled, not even at
the cost of the greatest sacrifices, the country's
situation would be infinitely worse than what it is
at present ; it would lose the benefit of a long and
painful experience, racriacing its honour, its glOry,
and perhaps everything else: -NevertheleiN as it..
is the province of Congress to provide for the re-
venue and to fix the expenditure, the executive
power has submitted to them the agreement, in
order that they may, if they think proper, 4prove.
the same, and provide the means to carry it out
ace rding to their powers and means of action. I
that case, the Government will merely have to
carry out the resolution of Congress, and if they
provide the necessary funds, there will not be the
least difficulty in it. In the meantime, however,
Government could but submit to Congress the state
of the republic, indicating two ways, in order that
they may choose the most expe tient one, or reject
both, provided the difficulty is somehow settled.
It this course has not been earlier adopted, and that
that I have held various conferences with you, it
was in the hope of convincing you of the Govern-
ment's correct views of the matter, and because you
stated that you had power to treat in this business ;
but as you-have done nothing more than agreeing
to postpone the commencement of the carrying out
of that agreement until the 30th of September
next, and that here should be returnable the
excess of the fourth part of the customs dues
above the amount of the dividends, which
alterations do not affect the bases of the agreement,
the Government could only recur to those measures
the preparation of which had engaged its attention
since the Bth of February. Then it was that the
news arrived of the complete breaking off of the
negotiations upon which the Venezuelan commis-
sioners were engaged in London, in consequence of
the resolutions unanimously adopted by the bend-
holders in a meeting held on the 13th of January
last, and this decisive and peremptory act of theirs
eerie to the negotiation an entire new feature.
When it became known that the negotiation ha t
terminated, and that the bases of the agreement
had been fixed, your coming to Caracas was au-
nounced, which put a stop on the part of the exe-
cutive power to its endeavours to act as long as
possible in eonourrency with the bondholders.
" I have the honour to be, &c.,
" (Signed) JACINTO GUTIERREZ.
" Elias Mocatta, Esq., Commissioner of the
Committee."

DEBT OF VENEZUELA.

The following is a copy of Mr. Mocatta's repil
to the foregoing letter :
" Caracas, May 7, 1857.
" His Excellency Jacinto Gutierrez, Minister
of Finance.

"Excellent Sir,—Your communication of the
sth inst. has just been placed into my hands. I do
not for the present enter into many observations
as to its contents, inasmuch as you 514te that the
government rejects 'the agreement effected by its
own commissioners as an arrangement for the
foreign debt of the republic, and that the same has
been transmitted to congress for its decision, or
ultimate rejection, but reserve to myself the right
to do so when the resolve of the congress is made
known to me ; but I hasten to address you in
reply, and to place in your hands this my strong
protest against the right which the government
assumes of giving a decree containing the terms it
thinks fit to establish for a settlement of the debt,
and I have to request, as the commissioner of the
British bondholders, and in their name, that this
my solemn protest be laid before the congress prior
to any decision 'being come to by that body. I
must also state for the information of the congress
that I only consented to cede the six months'
ex-
tension for the commencement of the said agree-
ment, as a means to meet the offer made to me
by MM. Giuseppi and M. Urbaueja, on your
part, namely, that the government would at once
ratify the agreement, if I would agree to its cam-
, mencing on the Ist of April, 1857, which I did not
deem it right to do, acting for the best interest of
my constituents.
" I have the honour to be, Am,
(Signed) "E. MOCATTA."