The Birmingham age-herald., 1903-02-06
Vexed at His Firm Position They Will Appeal to
 the President
CONTROVERSY MAY YET
 BE TAKEN ID THE HAGUE
Venezuela May Protest, However, at Breaking Negotiations With Bowen. Whole Affair Is Now In Worse
 MuddIe Than Ever.

WdoiiiiElOil, tDtdaiJ of-iiAAAeeSN "
 the note of Minister Bowen, Venezuela s
 representative, addressed to the British
 ambassador on Monday last, refusing to
 accept the allies proposal for a scheme
 of preferential payments by which Great l Britain, Germany and Itaiy were to re-
 ceive 20 per cent and the remaining cred
 itors 10 per cent of the customs receipts
 at LaGuayra and Puerto Cabello the al-
 lied powers have instructed their repre-
 sentatives here to submit the question of
 preferential treatment for settlement to
 President Roosevelt and in the event that
 he declines to act as arbitrator to take
 this and possibly the entire controversy
 to The Hague for settlement, thereby
 breaking off negotiations with MT.
 Bowen.
 l At 10 o'clock tomorrow at the British
 embassy there will be a conference of 1 the representatives here of the allies. In
 view of the fact that the London gov
 ernment is now taking the lead in the ne- gotiatons the British ambassador will | preside at the conference.
 Will Interview Hay.
 l In the meantime he expects to have an l interview with the secretary of state,
 who he will sound as to the probability
 of the Presidents acceptance of the al- l lies request. If it Is found that President
 Roosevelt is not disposed to allow him
 self to be dragged into the negotiations,
 the instructions of the allies are such
 as to permit them to forego the embar- I rassment of a rejection at the hands of
 MT. Roosevelt, and instead of making
 known their wishes to him steps will I be taken to draw up a protocol with Min l ister Bowen for Q conference of the case ' to The Hague, as suggested by him in his note of last Monday. The British ambas- sador was the first of the representatives
 to receive instructions to this effect, and the matter was discussed at the noon- day conference between the three repre-
 sentatives of the allies.
 1 Announcement of the decision of the | allies to abandon further negotiations with MT. Bowen has not been received with surprise by the few officials of the Washington government who have been | advised of it. "The Hague tribunal ' l said an official of the administration to- night "has long been kept in sight of as port of safety in case the negotia- | tions here were not productive of final | settlement, and as for the suggestion that the President act as arbitrator that was the favorite idea of the allies sincs the begnning Of the trouble.'
 Roosevelt's Position Unknown. l Whether President Roosevelt will ac- | cept this invitation of the allies is not | known. An official of the administration expressed his surprise tonight that the allies would be willing to submit this question to the President, in view of the fact that. their representatives within the last few days have informed them by cable that the President views with dis favor the contention of the allies for preferential treatment.
 There Is the best authority for the statement that neither Great Britain nor Germany Is desirious of submitting their case to The Hague.
 The instructions received by the Brit ish ambassador are not quite clear as to the alternative to be pursued in the event that the President declines to act as arbitrator of the question of priority payments. It Is not known whether ffle protocol which has been drawn up with MT. Bowen will provide for a reference of the entire case to The Hague or whether the allies are willing to stick by what they have secured here, and will consent to have The Hague arbf- trate the one question of preferential treatment. The drafting of a protocol will, 1t is expected. occupy some time. but is the understanding that upon the submission of the matter, either to the President or The Hague, the block ade Is to be raised at once.
 Bowen Agreed to Pay $27,ooo. If developed today that during a call of Count Quadt. the first secretary of the German embassy, upon MT. Bowen this morning, the latter stated to him his willingness to make to Germany and Italy cash payment of a50000, or 1000. naa hQcqTIap of MT. Bowens action in the early part of the l negotiations in conceding to Great Brit ain similar amount for satisfaction of the alleged indignities which the British government claimed it's citizen have suf- fered in Venezuela. This amount was named by the British ambassador It was intimated today that France might now come forward and ask for the same cash payment for herself as that given the allies.
 Various intmations have leaked out here regarding certain details of the plans proposed by MT. Bowen and already ac- cepted by the allies for the settlement of their claims against Venezuela after the vexed question of preferential treatment shall have been decided.
 The Associated Press is enabled to state in it's entirety the plan agreed up- on. After the preferential question has been settled, the adjudication of the claims of each of the creditor nations Is to be taken up by a separate commission
 one for each claimant power. The com missions will insist upon report of the creditor nation, and a report for Ven ezuela.
 Spain to Appoint Arbiter. In case of disagreement the King of Spain Is in each instance to appoint an arbiter. It Is expected that each claimant
 power will appoint It's envoy at Caracas to represent 1t on it's commission, and President Castro will delegate the Venez- uelan minister for foreign anairs or some other official of the foreign office as Venezuelas representative.
 Where the service of an arbiter Is need ed the king of Spain will, in all proba- bility. select for this mission the Spanish minister to Caracas, who is recognized as an able diplomat,
 After the commission claims have been