The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-24
Venezuela Rcpudiates Aw ards OF
Arbitrator.

II will be recalled that the L..Jposal
made the other day by Mr.. CHoATE at
the peace conference differed from the
so-called Drago doctrine in that while
he would substitute a reference to the
Hague permanent tribunal for the fore
ible collection of Contractual debts he
would AT the same time authorize the
ultimate application of force should the
adjudicated debtor refuse TO comply
with the award of the arbitrator. A
representative of Venezuela offered an
amendment forbidding the use of force
wen in the last resort. Light is thrown
upon the latter's motives by a telegram
from Washington, according TO which
President CASTRO, who has sufficiently
recovered his health 10 become trouble
some again, has announced an intention
Of d~isregardinG the decisions of the
Hague arbitration in the case Of
claims made by Belgium and Mexico
against Venezuela.
II, is a we'll known fact that in pursu-
ance Of the Venezuelan Claims treaty,
signed on February 20, 1908, the prelim-
mary question was presented to the
Hague arbitration court whether the
three Powers which in 1902 had taken
part in the blockade Of Venezuelan sea-
ports should be regarded al preferred
creditors and take precedence of other
claimants who had not had recourse TO
force. This question the tribunal an
swsred in the affirmative, and conse-
quently Great Britain, Germany and
Italy have hitherto shared bet ween them
the third part Of the customs
of La Guayra and Puerto Cabello, which
in conformity to the treaty mentioned
was set apart for the liquidation of
debts pronounced valid by the Hague
court. Now it appears that on the first
Of the present month the Caracas Cow
rnmen paid the last instalment of the
Judgments assessed by the Hague tri-
aiding Powers.
Under the terms of the treaty Of Feb
ruary, 1903, the income sequest rated for
the payment Of creditors should now be
applied TO the gradual discharge Of the
claims of the other parties to the treaty,
namely, France, Spain, the United States,
Belgium, the Netherlands, Sweden and
Norway, and Mexico, so far as these
claims should have been declared just
by the Hague arbitrators. We are told,
however, that President CASTRO insists
upon repudiating the awards of the arbi-
traitors in the case of a Belgian corpora
ton operating The waterworks of Caracas
and in that of the Martinez claim pre-
ferred by Mexico. The plea put forward
is that the awards of the arbitration
court were in these instances excessive.
II, however, the adjudicated debtor is to
be permitted On this plea to override the
decision of the Hague tribunal in two
cases il is probable that a similar course
will be pursued with reference to other
Judgment creditors. The expectancy Of
Mr.. CHoATE's proposal has thus received
an early demonstration. 1t was bad
enough that tho Hague tribunal should
cot a premium on wnrlike az against
peaceful measures by giving a prefer
enoe to Powers which had coerced a
debtor by means OF a blockade. The
Powers which refrained from employing
coercion will now be in a still worse posi-
ton II 1t be held that so far a. their
claims are concerned the awards Of arbi-
traitors are not enforcible.
The probable effect Of the position
taken by President CASTRO At this time
will DO tbs adoption OF Mr.. cRoArI's