Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-12-15
vENEzUELA's CASE.
SonsuI Schotborgh at London Tells
His Country's Story.

London, Dec. 14.-As result of the
announcement that Venezuela has ask
ed United States Minister Bower to act
as arbitrator in the controversy with
Great Britain and Germany, Senior
Schotborgh, Venezuelan consul here.
Friday night, made an important state
ment to representative of The Assoc
ciated Press.
Senior Schotborgh is the only repre-
sentative of the Venezuelan govern
ment in London. and he has been act
ing in concert with the members of
PRESIDENT Castro's secret delegation
previously referred to in these dis
patches. whose actions in Rome, Paris,
Amsterdam and London would form,
In the event of arbitration. an impor-
tant part in Venezuela's case. Senior
Schotoorsh said: There being no
longer any necessity of secrecy with
regard to the methods adopted by Ven
ezcela to effect a settlement of all the
foreign claims against the country, the
following facts can be published:
| About six months ago, President
castro sent special ENJOYS to different
European cities entrusted with conf
dental mission having for it's object to
ascertain the state Of feeling of the for
elgn creditors of the Venezuelan re-
public and to try and arrive at basis
of agreement for the consolidation and
unification of all of Venezuela's for
elgn debts. including the, diplomatic
claims. The envoy who came to Lon
don was instructed to associate him.
self with me. The other ENJOYS were
engaged in connection with other
claims against Venezuela, especially
those of Spain, France and Italy.
After considerable negotiation in
London and on the continent, sug-
gested plan of settlement was arrived
at. Subsequently the firm of ]. & w.
Seligman & Co. of New York, and one
of the leading French banking con-
Icerns. promised. tentatively, to support
the plan. In brief, these documents
provided as the executive is inspired by
an earnest desire for coming to a final
settlement with all VeneZuela's foreign
lcreditors. for the consolidation of all
ldebts and claims into a unified loan,
not exceeding $4,000, 900, to be known as
the Venezuelan unified 4 per cent. loan
of 1902.
In conjunction with this plan an in
lternational bank under European con-
ltrol was to be established and interest
ION the loan was to be guaranteed by
the customs. Fiscal agents appointed
by this bank were to be installed in all
lcustom houses and were themselves to
IcOllect the interest on the loan. If at
lany time the customs receipts proved
insufficient to meet this interest, the
government undertook to make good
lany difficulty out of other revenues.
1T was considered essentian to learn
the attitude of the United States. While
final steps were being taken the crisis
became acute. An unofficial effort was
then made to gain the good offices OF
the United States in order to procure
for Venezuela a slight extension OF
time. The final arrangements were ca
bled from London to President Castro
and were ready for presentation to the
foreign office, pending President Cas-
ltro's reply, when news Of the presenta-
ton of the ultimatum was received.
This plan has by no means been
lgiven up. although, of course, all negO-
tiations to this end are at present at a
Istandstill. Unless matters go to fur
Their extremities in Venezuela, settle
ment upon such basis as the foregoing
lis still possible. The British and Ger
Imam creditors of Venezuela must
Eventually, rely upon some financial
arrangement as the only method of
Igetting back their money"