The Montgomery advertiser., 1905-03-22
BowEN's INSTRUCTIONS.
Ministers Action Was Directed by
 State Department.


 Washington, March 21.--In calling upon President Castro for answer to his proposition to submit to arbitra- tion the issues between the United States and Venezuela MT. Bowen Is acting in accordance with specific in- structions from the State Department which have recently been placed in his hands. Mir. Bowen made a proposi- ton of this kind to Venezuela foreign office several months ago and there was an exchange of notes on the sub- ject but its further consideration was cut off by the abrupt departure from the capital of. President Castro at a moment when his own decision was needed. ..'
 The Venezuela government at that stage had made counter -propisition to Mir. Bowen looking to the arbitration of the dispute by The Hague tribunal, but with the important qualification that the tribunal should arbitrate as a preliminary the question as to whether or not the United States had the right under international law to intervcIc at all us between the Vene- - zuelan government and American con- cessionaries for their protection. .
 This was construed here as an att tempt to bring into play the old Cal vo doctrine, which the United States has resolutely and repeatedly refused to accept in it's negotiations with the southern republic, so MT. Bowen re- ported to the State Department the fact of President Castro's departure and asked for instructions.
 These were prepared with great care and after Attorney General Moody had furnished an opinion to the effect that the proceedings in the Venezuelan courts involving the asphalt compa- ny's properties were so irregular as to amount to practically deniar of AGr told to renew his proposition for a free arbitration of the issues between Venezuela and the United States at the first opportunity, which he has now done Besides the New York and Bermudez asphalt cases there are oth- CT matters which are suggested as proper subjects for arbitration, name Iy the Critchfie1d claim (als0 based on an asphalt concession;) the claim of the Crino Steam Navigation Steamship Company, based on violated fran chise, and the claim of <he newspaper correspondent, Jaurret, for damages arising from his summary expuls.on from Venezuela.
 should President Castro reject this last offer of MT. Bowen to arbitrate these cases 1t is expected he will promptly report that fact to the State department and it will be determined what course to pursue. The ministers presentment of this matter therefore is not an actual ultimatum. for the way is still open for further negotia- tions if the department decides that the time has not yet arrived to withdraw its ministers and adopt some coercive measures. There is great reluctance on the part of this government to the adoption of the latter course, but the situation is believed to be such that unless the department is willing to submit to the complete effacement of the American claims some actions must be taken very soon.
 The reported arrangement whereby President Castro, through his agent. Senor Velutina, has agreed to set apart fifty per cent of all the Venezuelan custom receipts outside of the ports of La Guaira and Port Cabello to satisfy British and German bondholders, will if consummated. 1t is feared. make it impossible to secure a single cent from Venezuela for the payment of any just American claims, for there will be no surplus, the remaining fifty per cent of the revenues being required for the support of the Venezuelan government
 MT. Bowen's arbitration proposition is not, it is said here. dependent in any way upon the proceedings in the Vene- zuelan courts in the future relative to the asphalt case and it is believed he has moved quickly as reported and without waiting for the courts in order to forestall a ratification of the foreign bond agreement and conserve the rights of the American claimants, so that they will rot suffer therefrom.