The sun., 1906-01-13
TROUBLE AHEAD FOR CASTRO
TRiNCE 7O BREAK orr RELA-
TIONS WITH JENE/t Ella.
Has NarshipS Near II, In Case OF Need
Government. Also Tired OF Evasion.
Decides to Press Two Pending Claims
Gable to Venezuela Int crrupt ed.

of the situation with regard to the re-
laLions between Venezuela and the United
States and also between Venezuela and
France, is increasing with great rapidity.
1t is understood here that France
has decided at last to deal with President
Castro no longer and will soon break off
diplomatic relations with Venezuela by
Withdrawing the French diplomatio mission
at Caracas
In the meantime Mr. Russell, the American
Minister at Caracas, has been instructed
to tako up the Critchteld asphalt claim.
which has lain dormant for some months.
and push 1t with the Venezuelan Govern
ment making every effort to secure quick
settlement.
On top Of these facts, which became
known to-day news was received at the
State Department late this afternoon that
cable communication with Venezuela had
been severed. Whether there is any sig
nifcance in this cannot be determined.
When the allied fleets consisting Of war
ships from Great Britain, Germany and
Italy bombarded ports Of Venezeula four
years ago Castro interrupted cable COM
munication. He is now, by virtue Of his
action OF last fall, when he annulled the
concession Of the French Cable Company,
in control of the cables, and it is quite likely
that the interruption is due TO some action
on the part OF the Venezuelan Executive.
Since the middle of last September Pres!-
dent Castro has temporized with France.
He has refused to deal with Nj. Taigny,
the French Charge d'Afaires at Caracas,
and the negotiations between France and
Venezuela SO far have been toward seeking
an adjustment of the difficulty between M.
1aigny and President Castro The latter,
however, has shown no disposition to meet
the French view, although two weeks ago
it was thought that he had accepted the
demands of France by Withdrawing the
note written on September Is last, in which
he broke with the French Government.
While he withdrew the note. President
Castro did not actually agree to the French
demands for he did not resume his re-
lations with NJ Taigny. France has refused
to supplant NJ. Taigny In the interim and
has steadfastly refrained from returning
the regular French Minister to Caracas.
As the matter now stands France pro-
poses to take a hand at breaking off diplo-
matte relations. What this will lead to ia
a matter of conjecture, but in ordinary
circumstances when such things happen
between nations, especially when one is a
Power. the results are serious.
MIR. Russell will look after French In
terests in Venezuela when NJ Taigny and
the others connected with the French Lega-
ton at Caracas are gone. Mr.. Russell was
active on behalf Of France during the recent
troubles, and, under instructions from the
State Department, he has endeavored to
secure n adjustment of the difficulties.
The State Department action in taking
up the Critchfeld claim, together with
the SNAP Of the jaw" manner with which
It is proposed to deal with the report of
Judge Calhoun, who investi gated the claim
of he New York and Bermudez Asphalt
Company against Venezuela, makes it
seem that the United States will soon show
President Castro very plainly that it will
not tolerate further delays, evasion or
diplomatic sdcstepping.
The Critchfeld claim amounts to about
$500 600, and is due to what the claimants
maintain was the broken agreement of
the concession of the company concerning
taxes When the company was formed it
received the right to construct a railway
line from its asphalt beds to Venezuelan
port. There were to te no taxes, hut
heavy taxes and duties that the company
was forced to abandon its work in Nene-
2uela. Mr. Russell has been instructed
to lay he claim before the Venezuelan
Government.
When the report Of Judge W J. Calhoun,
which has been suddenly called for by the
State Department, is in there will un-
doubtedly be Instructions to Mr.. Russell
to demand a settlement OF the New York
and Bermudez case. The status of that
difficulty is that the concession of the COM
pany has been annulled, and Castro is in
control and is supposed to be ceiling the
asphalt from the lakes formerly under
the control of the company, 1t has been
reported that President Castro had plan
to sell the asphalt lakes to the highest bid
der. The State Department was moved
to take up the Bernudea case again by
the failure of negotiations for a settlement
bet tween officers of The company and Pros-
dent Castro which were carried on in
Caracas.
The difficulty between France and Von-
ezuela concerns the French Gable Com
pany's concession from the Venezuelan
Government. Two years ago Castro ST rted
proceedings in the courts of Venezuela
to annul the concession on the ground that
the company had not fulfilled its contract
concerning certain cable lines and i'm
provements. Finally, as in the matter of the
Rermudez asphalt case, the courts cancelled
the concession.
NJ. TaiGny, Charga d'Afaires for France,
took the matter up The matter dragged.
and finally NJ. Taigny demanded a settle
merit Then President Castro wrote a note
to the French Government refusing to
have anything more 10 do with NJ. Taigny.
There was an immediate protest from
France, accompanied by Voiled threats.
This was months ago. but France has takpn
no more definite action than ordering a
number of warships to Martinique. These
vessels are still in the West Indie,
France demanded that TaiEny he recoE-
niYed Pres dent Castro asserted that me
was offended with NJ, TaiGny personally
and that the matter should not be taken
as an aIront TO France. The Governmcnt
al Paris refused to Gcccpt this view, and
an ultma,urn WIS about to hc ,Cnt from
= ria to tHIaCaS a. ore tiTc, hut it was