The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-12-20
ALLIES IN FAVOR
OF ARBITRATION
The Principle is Accepted
With Some Qualifications
---Safeguards and Ad-
justments Wished.
REPLIES To SECRETARY Hay
QUESTION OF GUARANTEES IN
IMPORTANT ONE.

No LoophoIe to be Left for Venezuela to
Crawl Out of If Powers Can Help 1t
United States, However, VIII Not be
Drawn Imto Assuming the Responsi-
bIIity of a Guarantor.
Berlin, Dec. 19.-The answer of Ger
many to the arbitration proposal in be-
half of Venezuela received through the
United States government, is its accept
ance.s The delivery of the reply to the
United States for transmission to Min
lister Bowen is delayed for day or two
for the reasons, probably the expecta-
tion that another solution may be found
possibly by President Castro yielding.
Four days ago the idea of the German
government was in favor of rejecting
arbitration and that, it is understood
here, was the temper of the British for
eign office. While it is impossible to
trace the steps that led to a reversal of
this view, it appears that the state of
public opinion in the United States so
far as Germany is concerned, produced
revision of the first ideas.
London, Dec 19.-Great Britain has
sent reply to the United States in re-
gard to the suggestion that the Vene-
zuelan question should be submitted to
arbitration. The tenor of the reply, it
is expected here, will tend to bring
about some arrangement for satisfac-
tory solution, while thoroughly safe
guarding the interests of the powers
concerned.
Washington, Dec. 19.-Secretary Hay
has received partial responses from the
governments of Great Britain, Germany
and Italy respecting the proposal to ar
-. .hitrate-tha -Yenezuelane~-~d difficulties;
Great Britain is favorable to arbitra-
tion with proper safeguards; Germany
accepts arbitration in principle, but
finds a multitude of small adjustments
to be made before entering into the
agreement; Italy, as the junior partner
of the allies, declares that she is favor
able to arbitration, but will be bound
probably by the action of the senior
partners.
AS far as England is concerned the
safeguards referred to are believed to
relate to the question of guarantee,
which is full of difficulties. In this con-
nection some consideration is again be-
ing given to the feasibility of the as
sumption of responsibility for any
award assessed against Venezuela by
responsible private agencies, but the
United States government is determin-
ed not to allow itself to be drawn into
the position of a guarantor in this case
for the precedent once established,
might require the United States to be-
come the financial hacker of all South
and Central America. However if pri-
vate concerns can be induced to enter
the field the United States government
will do what it can to reduce their
risks.
The German position presents the
greatest difficulties, for not only does
it involve demand for apologies which
are extremely repugnant to Venezue-
Ians, but also presents SO many points
requiring adjustment that it is evident
that many days, or perhaps weeks,
must elapse before this adjustment can
be effected and the case prepared for
arbitration. And the danger of delay,
ously cripples neutral commerce and
invites hostile collisions with the Ven
ezuelans, cannot be overestimated. The
efforts of the United States, therefore,
must be directed towards fastening
Ger1nany's action on the arbitration
proposal.
The Italian position is, of course, of
less concern than that of the other al
lies. The italian ambassador here, in
, his intercourse with the state depart
ment, has been extremely moderate and
considerate, giving Secretary Hay the
impression that he is we'll disposed to
second any effort of the United States
to terminate the present dangerous sit
uation.
The French government has served
notice that without abating her claims,
the payment for which has been ar
ranged, she also claims the right to
have the claims of French citizens
which have arisen since the adjust
ment above spoken of considered by the
joint tribunal which will adjust the
Venezuelan debts, on a basis of equal
ity with those of the other nations.
This contention is strongly resisted by
some of the allied powers, and is one
of the points which is likely to lead to
the consumption of much time, and
which must be disposed of before final
arrangement can be made to arbitrate
the case.
London, Dec. IA note to Reuters
Telegram company, announcing the
above intelligence, adds:
1.-THE statements issuing from Cara
cas- to the effect that President Castro
has empowered Minister Bowen to act
as the representative of Venezuela are
regarded in London as open to uestion.
Any such action on the part of Presi-
dent Castro would be considered wholly
beside the mark. The powers concern
ed will deal solely with the United
States in the matter of arbitration.
The government of President Castro
Continued on Seventh Page.)