The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-22
SHARP TALK TO VENEZUELA.
CASTRO TOLD THAT HE MUST Ar
NITRATE ASPHALT CASE.
his Plan 10 Set Germany and England
Against other Foreign Claimants
Headed on by Our Prompt Action
Castro Anxious for Bowers Recall.

Ian situation II more badly muddled than
ever, but there Is still plenty Of reason to
hope that the difficulties In which Prasi-
dent Castro has become involved with the
United States and other nations will b
adjusted without resort to measures OF =
radical character.
At the same time there has been no indi-
cation from Castro that he intends to chango
his policy toward more powerful govern
ments, and the conditions are such that
q clash may come unless they are aoon
remedied.
II. W. Bowen, the United States Minister
at Caracas. who Is at swords points per-
sonally and officially with Castro, has
notified the State Department that in
accordance with instructions mailed TO him
ten days ago he has informed the VeneSue-
Ian Government that unless II will consent
to arbitate the asphalt lake controversy
in which the Department represents tbs
New York and Bsrmudez Company, the
United States will feel Obliged 10 take ia
own course in bringing the issue TO =
settlement.
This is pretty stih language, from =
diplomatic standpoint, but it is asserted
by officials that il must not be regarded a.
in the light Of an ultimatum. The Presi-
dent, 1t is declared, Is anxious TO avoid
trouble with Castro If this can be done
with honor, and it Is said, also, that he re-
, CARDS the present time as inopportune for
| any foreign complications, even with a
nation as Insignificant as Venezuela, with
/ Secretary hay out Of the country and
| MIR Roosevelt himself about to leave WASH
/ ington for almost il not quite two months.
The instructions upon which Mr.. Bowen
based his very significant notification TO
| the Venezuelan Government were the
/ immediate outcome Of an opinion by Attor-
| ney-General Moody that the circumstances
! attending the decision Of the Venezuelan
| High Court against the New York and
| Bermudez company amounted to a denial
Of justice.
The Government learned to-day that
| Castro had made move which prominent
officials interpret as part OF plan TO escape
possible punitive measures by playing
one group Of his national creditors against
| the other. This move was the perfection
of an arrangement by which Castro agreed
| TO legalize bonds issued by previous Vene-
zuelan administrations and to secure their
! payment through setting aside so per cent
! Of the customs revenues Of all Venezuelan
ports except La Quay a and Puerto Cabelo.
The..e bonds we're issued by the Vene-
| zuelan Government in times Of political
! troubles and were Of the wildcat srder.
| Most Of them fell into the hands Of
/ British and German capitalists, who have
been pressing through their governments
| for redemption. Heretofore Castro has
declined TO recognize the validity OF these
/ obligations That he has now done 40,
through his agent, Senior VelutinI, and
provided means Of re leeming them by
pledging one-half the revenues OF nearly
every Venezuelan port is regarded as .
shrewd move.
Under the terms OF the protocols arranged
in Washington by Minister Bowen and
! representatives Of nations having claims
against Venezuela, 80 per cent of the reve-
nuei OF the ports Of La GuayTa and Puerto
Cabelll were TO be set aside for the purpose
Of lduidating these claims With so per
cent Of all the other customs revenues OF
the country pledged, barely enough income
would he obtained TO pay the running sX-
penses OF the Government.
And therein lies the adroitness Of Castros
scheme. a. it il interpreted here. Should
France, Holland and other nations which
have outs anding claims against Venezuela
attempt to secure payment by selling
Venezuelan customs houses they would
run counter to the arrangement by which
one-hilf Of the revenues Of, these customs
houses we're pledged TO redeem, the bonds
held by British and German. 'ubjects.
Naturally, &C ording t, '::wa, tina
thing may have been vie N.su by Castro.
the Governments OF Great Britain and
Germany would insist that their creditor
subjects had prior claim. The bonds
legalizsd by astro amo mt in American
gold to about 500 900 OCO and could not be
redee ed under he so per cent. agreement
for many We r..
IL is obvious. [, erefore tina. with England
and Germany Interested in preventing
the seizure Of lenezuel n Gus ON houses.
France determined that the concession OF
the French Cable Company shall not b
annulled, Italy angry over TIE seizure
OF the mines unde- lease 20 Italian sub
jects, the United States irritated at Cas-
tro's attitude in the asphalt case and Hol-
land and Belgium pressing for the payment
Of claims the Venezuelan situation h COM
plicated. embarrassing and fJl Of danger.
Qualification Is expressed here over
Minister Bowen's prompt action In carry
ing out his instructions 10 notify the Vene-
zuelan Government that unless arbitration
Of the asphalt and other cases was agreed
to the United States would pursue its
own course, BY making this declaration
before official announcement Of the British
German bond deal the American Govern
ment has preserved its right to object to
that arrangement II IL should be regarded
as a means Of preventing the United States
from taking measures TO secure aatisfao-
ton against Venezuela.
just what the State Department meant
by it's declaration has not been disclosed;
indeed, there Ia a suspicion that no plan
Of future action has been agreed upon.
The probable course followed should
Castro ignore the American warning would
he the withdrawal Of Minister Bowen and
the severance Of diplomatic relations,
which, however, would not necessarily
mean the beginning Of hoshlities.
In Withdrawing Mr.. Bowen under these
circumstances the Government would save
itself and Mr.. Bowen the embarrassment
Of acknowledging that the latter had been
forced out by Castro.
At the present time the relations between
Castro and Bowpu are 40 gtrainad and thu