The San Francisco call., 1905-03-23
Germany Displeased at the
Note Presented by Bowen
on Behalf of the United
States to the Dictator
AMERICA DISLIKES
LATEST DEBT PLAN
Believes There Is Nothing
to Warrant the Action
Taken by the German and
the English Bondholders
Special Dispatch to The Call.

"
zuelan Government has not given sat-
isfaction here. 1t is regarded as an at
tempt to go behind the agreement of
England and Germany with Venezuela.
WASHINGTON, March 22-The
State Department has heard nothing
from Minister Bowen to indicate that
the Venezuelan Government has made
answer to his last proposition to arbi-
trate the American claims, and 1t lis
supposed that the answer, when it does
come, will be to the effect that the
Venezuelan Government insists on
awaiting the final account Of its courts
then remain for the State Department
to determine how long it is prepared to
await this judicial action.
The difficulty is that the Venezuelan
Government has refused the appIica-
ton of the asphalt company, supported
by Minister Bowen, to revert to the
status existing before the appointment
of receiver in the asphalt case and al
low the company to repossess itself Of
its property. AS it is, the receiver is
taking out large quantities of asphalt
from Bermudez Lake, the proceeds of
which are going into the Venezuelan
treasury, to the great financial loss of
the company, which is making daily
representations on the subject to the
State Department.
The President is concluding arrange
ments for his Southeastern trip. on
which he expects to start on Monday
April 8, and no apprehension exists that
the trip will be either abandoned or
postponed on account of the Venezue-
Ian imbroglio. The President expects
in his absence from Washington to
keep in close touch with the situation
as 1t may develop and will be in a posi-
/. ton constantly to issue such instruc-
tions from his train as may be neces-
sary.
SITUATION DISCUSSED.
Senator Cullom, chairman of the For
eign Relations Committee, and Senator
Lodge, member of that committee
discussed the Venezuelan situation
with the President to-day. 1t is the
belief here in weil-informed quarters
that although the Italian warship Gala
bria is making cruise around the
world and stopped incidentally in DOM
inican waters, the situation in Vene-
zuela will cause the Rome Govern
ment to detain the ship in Caribbean
waters for the present.
While the turn of events has dimin-
ished at once the strain upon the re-
lations between France and Venezuela.
1t is pointed out here that by reason
Of the exclusion of the French claims
from the Velutini arrangement, to be
concluded tomorrow between the Ger
man and British bondholders on the
one side. and Venezuela on the other,
the French Government probably still
will retain a lively interest in that
projected settlement.
Notwithstanding the statement from
London that the bondholders contend
that this settlement is entirely in ac-
cord with the Washington protocol of
1903, the officials here fail to find in
that protocol any warrant for this
agreement. which they regard as likely
to seriously affect the claims of all ma
tions other than Great Britain and
Germany against Venezuela and some
of the foreign representatives here
have cabled this view of the matter
to their Governments.
SURPRISE IN LONDON.
LONDON, March 22.-At the Office
of the counsel of foreign bondholders
it was stated to-day that an agree
ment between the Venezuelan Govern
ment and the British and German
bondholders adjusting and consolidat-
ing the exterior debt-$2S, 500, OO0-wilI
be signed tomorrow, the details hay-
! ing been concluded to the satisfaction
of both parties. 1t was added that the
guarantees comprise considerably more
than 80 per cent Of the customs duties
Of all ports except La Guayra and
Puerto Cabello, but the officials de-
clined to give the exact figures.
Surprise was expressed at the dis
patches from Washington intimating
that the American Minister at Caracas
was seeking to prevent the ratification
of the agreement, which the foreign
bondholders contend is entirely in ac-
cord with the Washington protocol.
The British and German Foreign Of
fees have been consulted and agree
that the bonds are entirely within
their rights and the provisions of the
protocol.
The foreign bondholders have been
working for guaranteed payment
since the PRONUNCIATION of the protocol.
first on a scheme which provides for a
settlement of the Venezuelan indebted
ness to all countries, but this plan was
abandoned by the withdrawal of
France last october. Thereafter the
British and German bondholders united
and secured President Castro's agree
ment to allocate a portion of the reve-
nues of La Guayra and Puerto Ca
bello, to which Minister Bowen OBJ
jected. Since this Illustration in Jan
y
work on the present agreement, which
provides for the issue Of new three
per cent bonds to cover the debt
of the Anglo German bondholders.
amounting, including arrears, to about
$22 soc, 900.
CABLE CASE DROPPED.
PARIS, March 22-The Matin saws
Embassador Jusserand will confer with
President Roosevelt relative to Ven
zuela, and adds: An ultimatum has
not been sent. President Castro hav-
ing taken the case of the French Cable
Company to the courts, France intends
to leave it there until decision Is
given. when she will be prepared to
adopt all the measures necessary to
secure respect for the rights of French
citizens"
The French Cable Company has re-
ceived a further dispatch from Brun.
its representative at Caracas, confirm
ing the postponement of the decision
of the court relative to the company's
concession. He says the postpone
ment was sine die. The company's
officials here say the postponement re-
suited from the representations of the
French Minister. It is understood that