Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-21
Specific Instructions From
State Department.
WOULD AVOID FORCE
SEEKING FRIENDLY SETTLEMENT
WITH VENEZUELA.
Minister Bowen Acts Under Instruc-
tions in Seeking to Obtain Arbi-
tration of Controversy.

In calling upon President Castro for an
answer to his proposition to submit to arbi-
tration the issues between the United States
and Venezuela, Mr.. Bowen is acting in ac-
cordance with specific instructions from
the State Department which have recently
been placed in his hands. Mr.. Bowen made
a proposition of that kind to the Venezuelan
foreign office several months ago and there
was an exchange of notes on the subject,
but its further consideration was cut off by
the departure from the capital of President
Castro at moment when his own decision
was required
The Venezuelan government at that stage
made counter proposition to Mr.. Bowen
looking to the arbitration of the dispute by
The Hague tribunal, but with the important
qualification that the tribunal should arbi-
trate as a preliminary, the question as to
whether or not the United States govern
ment had the right under international law
to intervene at all as between the venezue-
Ian government and it's concessionaires,
Americans or Others That was regarded
here as nothing more or less than an at
tempt to bring into play the old Calvo doc
trlne which the United States has reso-
iutely and repeatedly refused to accept in
its negotiations with the southern repub-
lies.
So Mr.. Bowen reported to the State De-
Dartment the fact of President Castro's de-
parture and asked fog instructions. These
were prepared with great care and after
Attorney General Moody had upon call
from the President, the highest legal au-
thorlty in the executive branch of the gov
eminent, furnished an opinion to the effect
that the proceedings in the Venezuelan
courts involving the asphalt company's
properties were so irregular as to amount
practically to denial of justice. Therefore
Mr.. Bowen was told to renew his PROPOSE
ton for a free arbitration of the> issues be-
tween Verezuela and the United States at
the first opportune moment and that it APP
pears he has now done
Besides :he New York and Bermudaz
asphalt case there are threa other matters
which are suggested as proper subjects for
arbitration, namely, the Critchfield claim
(also based on an asphalt concess on, the
claim of the Orinoco Steam Navigation
Company, based on an alleged violated
franchise, and the claim of the newspaper
correspondent Jaurett for damages arising
from his summary expulsion from Eene-
zuela.
Not an Actual Ultimatum.
If President Castro rejects the latest Of
fer of Mr.. Bowen to arbitrate these cases,
it is expected that he will promptly report
that fact 70 the State Department, and it
will then be determined what course to pur-
sue. Therefore the minister's presentment
Of the matter is not an actual ultimatum,
for the way is still open for further nego
tiations if the department decides that the
time has lot yet arrived to withdraw its
minister and adopt coercive measures.
There is the greatest reluctance on the plrt
of the officials to the adoption of the lat
ter course. but the situation is felt to be
such that unless the department is willing
to submit to the practical effacement of
the American claims some radical action
must be taken very soon.
The reported arrangement whereby Presi-
dent Castro. through his agent Senior velu-
tina, has agreed to set apart so per cent
of all of the Venezuelan customs receipts
outside of the ports of La Guaira and Porto
Cabello &c satisfy British and German bond
holders will. If consummated, it is said.
make 1t difficult to obtain a single cent
from Venezuela for the payment of any
just American claims, for there may be no
surplus, the remaining so per cent of the
revenues being required for the support of
the Venezuelan government The attempt
of President Castro to separate the inter
estS Of the foreign creditors and even to
antagoniZe them, is regarded here as a
rather clever diplomatic move. but it IS not
certain that that arrangement will be sane
toned by the United States. especially in
view of statements that have been made
to the effect that these German and Brit
ish bonds. all issued in revolutionary times.
are of doubtful soundness.
Independent of Judicial Proceedings.
Mr.. Bowen's arbitration proposition is
not, it is said here. dependent in any way
upon the proceedings in the Venezuelan
courts in the future relative to the asphalt
case. and it is believed here that he has
moved quickly, as reported. and without
waiting for the courts, in order to forestall
a ratification of the foreign bond agree
ment and conserve the rights of the Ameri-
can claimants SO that they will not suffer
therefrom.
Meanwhile the diplomats of the various
embassies are closely watching the press
reports from tie south, and in order 10
keep their governments well informed re-
sardlng public opinion here are cabling
over extracts from the American papers in
the effort to show that this government will
not interfere so long the Monroe doctrine
IN It's original and unrevised sense is not in
fringed.
Reports have been arriving here for some
time that many of the people of Venezuela
were penniless and in need of food. One
foreign diplomat there recently reported
that the conditions were indescriba Bile and
that the strict censorship upon everything
sent out prevented the world from knowing
the actual condition of affairs. All for.
eisners are closely watched and their mail
opened at will
No official information has reached here
regarding the alleged seizure of the Italian
coal mines. nor has the French embassy
been advised further regarding the affairs
OF the French cable company.
PLANNING TO HOLD LINE.