The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-16

of funds II was impossible for the Govern
ment TO meet its debts for the moment. but
directly peace was declared it would not be
necessary 10 remind the Venezuelan Gov
eminent of its obligations.
NOW CONSIDERING ARBITRATION.
Lord Lansdowne added that this was
probably the reply Of the Venezuelan Gov
eminent to the ultimatum presented by
the British Minister and he German Charge
dAfiaires His Majestys Government had
since received a proposal 10 refer part OF
the complaint they had made 10 arbitration.
The proposal is that the present difficulty
respecting the manner Of settling the claims
Of British and German subjects arising from
the instruction be submitted to arbitration.
This proposal had just been received and
was now under consideration by the Gov
eminent.
ISDEB.-" TO OUR MINISTER
Lord Iansdowne referred to the action
of the United states in obtaining the re-
lease Of British and German sub jects who
had been arrested. The British Govern
ment he said was indebted to MIR Bowen,
the United States Minister at Caracas.
for securing the release of these British
prisoners.
AS To SINKING or THE SHIPS.
In reference to the sinking of the Ven
ezuelan war-hips. Lord Lansdowne said
that the facts a. reported to his Majesty's
Government were that the boats were
seized partly by British and partly by
German war-hps Thy were told that
of the gunboa,s seized the German ships
found ii necessary to sink two.
- LaJ
ceived any official nformatio ion in regard to
the cirCumst anceS. and II was impossible
for him To take upon himself the task Of ex-
planning under what stress or necessity the
act was resorted TO.
Lord Lahsdowne said the Government
had received no information as to the re-
ported bombardment at Puerto Cabello.
GERMANS DID 1T. SAYS CRASBoRNE.
Replying to a question in the House of
Commons this afternoon. Niscount Gran.
borne. Under Secretary for Foreign Affairs
denied that the British commander was
responsible for the sinking of Venezuelan
ships of La Guayra He said the German
Commodore found il necessary to sink two
gunboats
THE SrN's correspondent at Berlin tele-
graphs thar despatch from kiel says First
Officer Won T.angerke of the German cruiser
Vincia is to b. recalled. presumably be-
cause Of the sinking of Venezuelan war
vessels
A GERMAN EXPLANATION
On the her hand, "a news gency DIES patch
from Berlin saws a semi-official despatch
from la Glnvra states that Of the three YES
sells captured 10y the Germans one was the
Restaurador, formerly George Gould's Ata-
lan,a and the other two were quite small
the Tutomo and Gen, Crespo. each OF 1871
tons.
II was not considered that these two
boats were sufficiently seaworthy TO under
take the voyage To Trinidad alone. and the
conditions were such that IL was impossible
to tow them thither. II was deemed i'm
practicable to let them drift. as they would
probably have again fallen into the hands
Of the Venezueans Consequently the
only course left to the German officers was
TO sink the two ships, which are described
as having been absolutely worthless
TO oBsEHvr RIGHTS or NEUrRArs
Niscount Cranborne, in the course OF his
statement. remarked upon the very reason.
able and sensible view Of the Venezuelan
difficulty taken by the United States. No
'ouIlIN Iilbi' IMAM ''ltdl fpf NdlH Hdu
striven to help the observance of the Monroe
Doctrine.
Lord Cranborne added that, now the
Venezuelan fleet had been seized. there
would he a boct ade Of the whole coast.
due consideration being observed Ct tie
interests Of neutrals and as far as possible
Of Venezuelans.
LIBERAL CRITICISM.
Sir Henry Campbell Bannerman criti-
cised Great Briains connection with Ger
many. He declared that England was
bound hand and foot TO Germany, with
out the House q Commons having
a ghost Of an idea whether Germany's
claims were reasonable or unreasonable
Moreover. she had undertaken not 10 ac-
cept a solution which did not include a
complete settlement of the German claims.
Such an agreement was almost unpre-
cedented, and was contrary to the best in
terests Of Great Britain, The whole diff
Guilty was somewhat squalid. II ought to
he settled by arbitration.
OFFENCE BY BALrouR
Prime Minister Balfour denied the inn
putation that the Government had gone to
war on behalf Of Venezuelan bondholders
The crux Of the matter, lie declared, was
the outrageous manner in which the Vene-
zuelans had repeatedly treated British
seamen and shpowners They had at
lacked the liberty and property of British
subjects, They not only refused com
pensation, but refused 10 reply to protests.
Mr., Balfour defended tirea, Britains
cooperation with Germany, which CIR
curnstances made desirable II was es-
sential that such an alliance should be
based on an understanding binding tho
allies together until the common object
VAS attained, lie did not admit Sir Henry
l-Bannerman's interpret alton of the
operations is mere debt collecting expe-
dition, That was not the main justifica-
ton or the main origin Of the difficulty.
The B ue Book showed that Great Britain
was prepared TO agree to tribunal by
which the financial claims might be
assessed.
II was a mistake, the Prime Minister
added, to suppose that the United States
had suggested arbitration. The suggestion
came from Venezuela through the United
States. II was unfortunate that Vene-
zuela had not though, Of the advantages
.fa ~, Ii, ~ A.