The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-13
CAsTRO's EFFORTS TO SETTLE.
Consul SchetbOrgh's Statement of
Financial Negotiations.

LONDON, Dec. 12.-As a result of the an
nouncement that Venezuela has asked
United States Minister Bowen to act as
arbitrator in the controversy with Great
Britain and Germany, Senior Schetborgh,
Venezuelan consul here, tonight made a
statement. He is the only representative
of the Venezuelan government in London
and he has been acting in concert with the
members of President Castro's secret dele
cations whose actions in Rome, Paris, Am
sterdam and London would form, in the
event of arbitration an important part in
Venezuela's case.
Senior Schetborgh said: There being no
longer any necessity of secrecy with re-
gard to the methods adopted by Venezuela
to effect a settlement of all foreign claims
against that country, the following facts
may be published: About six months ago
President Castro sent special ENJOYS TO
different European cities intrusted with a
confidential mission having for its object to
ascertain the state of feeling of the foreign
creditors of the Venezuelan Republic and
to try and arrive at a basis of agreement
foe the consolidation and unificati of all
Venezuela'S foreign debt, including the
diplomatic claims. The envoy who came to
London was instructed to associate HIM
self with me; the other ENJOYS were en-
gagged in connection with other claims
against Venezuela, especially those of SPAIN
gotiating in London and on the continent
a suggested plan of settlement was ar
rived at Subsequently the firm of j. and
w. Seligman d Co., of New York and one
of the leading French banking concerns.
promised tentatively to support the plan
In brief, these documents provided, as the
executive is inspired by an earnest desire
of coming to a final settlement with all
Venezuela's foreign creditors; for this con-
solidation of all debts and claims into a.
unifcation. not exceeding $1,000. coo, to be
known as the Venezuelan unified per
cent. loan or 19O2.
"In conjunction with this plan. an in
ternational bank under European control
was to be established and interest on the
loan was TO be guaranteed by the customs
Fiscal agents appointed by this bank were
to be installed in all custom houses and
were themselves TO collect the interest on
the loan. If at any time the customs re-
ceipts proved insufficient to meet this in
terest the government undertook to make
good deficiency out of other revenues.
lit was considered essential 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
slight extension of time The final ar
rangements were cabled from London to
President Castro and were ready for pre-
sentation to the Foreign Office pending
President CaStro'S reply, when the news
of the presentation Of the ultimatum was
received.
up, although, of course, all negotiations to
this end at present at a standstill. I'm
less matters go to further extremes in
Venezuela a settlement upon some such
basis as the foregoing is still possible
The British and German creditors of Ven
eZuela must eventually rely upon some
financial arrangement as the only method
OF getting their money"