The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1903-01-10
REPLY OF THE ALLIES
Note Sent in Answer to Castro's
Qualified Acceptance.
IL IL Said 10 Further smooth che Way
for settlement Of the vene-
xueIan Dispute Outside of
AN The Hague Court.

Berlin. Jan. THE joint reply of
the powers 10 Castro's qualified ac-
ceptance of arbitration was handed TO
the United States ambassadors at Ber-
| lin and London Tuesday. The note
aims TO further smooth the way for
settlement which may possibly be
reached without arbitration. The
powers, however, do not abandon any
of the reservations contained in their
original proposal.
The question of raising the block
ade will only be opened after Pres
ident Castro's complete acceptance of
the powers reservations. The state
OF war is not modified by Tuesdays
note.
= The German Foreign Office takes
cognizance of the statement emanat-
] ing from Washington that group of
German financiers is forming to pay
Germany's claims against Venezuela,
| the ultimate purpose being TO prevent
| the United States from building the
isthmian canal The foreign Office
says this is quite untrue and further
asserts that the German government
hopes the United States will build the
canal as quickly as possible. So far
from interposing any obstacle, Ger
many regards that her own trade in
terests will be subserved by the open
| ing of an inter-oceanic route.
DrItIsh Answer Received.
Washington, Jan. 7.-Secretary
Hay has received the British answer
10 President Castro's last proposal
relative TO arbitration. 1t is assumed
that the British note reflects the views
OF the German government, as the
allies have been acting in harmony so
far. The note is interlocutory, but in
substance states that IL Venezuela
wishes conference with view 10
submitting the difference between the
two countries TO arbitration, Great
Britain will accede. The conditions
attached vary slightly from the orig
inal British proposition, but in the
| judgment Of officials here the differ
ence between the allies and Venezuela
in respect to arbitration are much di-
minished and there is warrant for the
expectation that the case will now
surely 90 to The Hague. The next
step will be a reply from President
| Castro.
Later in the day separate re.
spouse TO President Castro's last pro-
posal came from Germany. In many
respects il was similar to that from
Great Britain and like that il named
certain conditions regarding the mat
| f.lar inn vol
an understanding will have to be
reached before the case is submitted
TO arbitration.
Rebels Driven Back.
Caracas, Jan. 6.-Fourteen hundred
revolutionists under Gems. Ramos and
Penalosa attacked 500 government
troops under the command Of Gen.
Acosta Sunday morning at point near
Guatire. After four hours fighting
the revolutionists abandoned the field
and the town OF Guatire. They had
81 men killed and many wounded. One
of their guns was captured. A pris-
oner captured by the government
forces is authority for the statement
that the reyolutionists still lack am
munition. The activity and energy
displayed by President Castro con-
tinue to surprise the foreign residents
of this city. 1t is reported here that
the leaders of the Matos movement
are treating with the government.
Had Outlook for casaro.
New York, Jan. 6.--According 10
the Herald's correspondent in Will
lemstad the revolutionists are adj
vancing in three columns on Gen
Castro's army.
A desperate fight occurred Satur-
day night within eight miles of the
city OF Caracas resulting favorably to
the revolutionists They are cutting
all the telegraph lines, tearing up the
railroad tracks and are hourly ex.
pected in the immediate neighbor-
hood Of the city. A condition of ex-
treme panic prevails among those
who have heretofore believed that
Castro was invincible.
Custom House seized.
La Guayra, Jan. 5.-One hundred
and fifty German marines were land
ed at Puerto Cabello at daybreak
Saturday morning. They took pos
session OF the custom house and the
wharves.
A Compliment to Roosevelt
Caracas, Jan. IA high official OF
the Venezuelan government said
Tuesday: ~ am greatly surprised at
the press cablegram saying that inn
portance has been given to the last OF
the several propositions contained in
President Castro's answer TO the pow
ers IN the matter of referring the
Venezuelan difficulty 10 the arbtra-
ton Of The Hague tribunal. This prop
osition was intended simply as a COM