826 



VENEZUELA. 



indemnification of losses incurred during the civil 

 wars, amounting to 1,500,000 marks. These 

 claims, analogous to the French, the President 

 appointed a commission to examine, and also 

 similar claims of Americans, Frenchmen, and 

 Italians. There were other claims for goods sup- 

 plied by German merchants. Lastly, there was 

 the defaulted interest on the loan of 50,000,000 

 francs, two-thirds of it held by a German banking 

 institution, while the remaining third was divided 

 about equally between French and British capi- 

 talists. The loan could not be placed on the 

 market because in 1897 Venezuela failed to meet 

 her obligations. The interest and sinking-fund in 

 arrears amounted to over 9,000,000 francs. Ger- 

 many and the other countries interested declined 

 to recognize the jurisdiction of President Castro's 

 commission. The German Government recog- 

 nized as valid about 40 claims for losses in the 

 revolution of 1898, amounting to 1,700,000 francs. 

 The damage arose from the failure of the Venez- 

 uelan Government to pay for goods supplied to 

 the troops, from requisitions made in war time, 

 from looting, and from forced loans. On Jan. 

 24, 1901, the Venezuelan Government ordered the 

 claims to be submitted to a commission, from 

 which appeal could be taken to the Venezuelan 

 Supreme Court. This commission rejected some 

 of the claims and reduced others. Damages suf- 

 fered previous to May, 1899, it refused to recog- 

 nize on the ground that the party of President 

 Castro had committed them and the present 

 Government was not responsible. It also pro- 

 posed payment in a revolutionary loan. Ger- 

 many refused to accept the decision. Early in 

 1902 the Venezuelan Government passed another 

 law, but it was open to the same objection. The 

 Venezuelan Government took the ground that 

 money claims of foreigners must be decided by 

 Venezuelan laws on the same basis as claims of 

 Venezuelan citizens. The German Government 

 declared that if a diplomatic settlement was pre- 

 cluded it would examine the claims of Germans 

 for itself and demand payment of those that it 

 found just. President Castro said that a special 

 act of Congress would solve the difficulty and 

 offered to lay the claims before Congress. The 

 German Government declined to submit them to 

 the Venezuelan Congress, and after having inves- 

 tigated them demanded payment of the total 

 amount. In the disturbances of 1901 and 1902 

 damages have been suffered to the amount of 

 3,000,000 francs falling on Germans. Great Brit- 

 ain, Italy, the Netherlands, Spain, and the Uni- 

 ted States united with Germany in finally re- 

 jecting the decree of January, 1901. While Ger- 

 many was pressing the claims of her citizens in 

 the spring of 1902 several German war-ships were 

 sent to the coast of Venezuela. At the approach 

 of summer they went to more salubrious sta- 

 tions. 



Quarrel with England. President Castro 

 has hud chronic difficulties with the British au- 

 thorities of Trinidad growing out of the smug- 

 gling trade that is rendered profitable by the hiiili 

 import duties and the still more profitable trade 

 in contraband of war and transport for revolu- 

 tionists. The low island of Patos, between Trin- 

 idad and the Venezuelan shore, a convenient base 

 for smuggling, was claimed by Venezuela, but 

 Great Britain disputed the claim. In January, 

 1901. the Venezuelan revenue officers seized a 

 boat-load of goods from a Trinidad fisherman who 

 ran in there to escape capture in Venezuelan 

 .vnters. A sloop was seized and burned. An- 

 other sloop loaded with valuable goods took 

 refuge in Patos in August, 1901, and the crew 



buried the goods, but the revenue officers landed 

 and seized them and arrested the crew. In Jan- 

 uary, 1902, a British sloop was seized and de- 

 tained in the Barima river. In May a British 

 vessel suspected of filibustering was destroyed by 

 a Venezuelan gunboat in the harbor of Peder- 

 nales. Later a vessel believed to have landed a 

 cargo of arms was chased and captured on the 

 high sea, taken into port, and confiscated. In 

 each case the British Government demanded ex- 

 planations, and would not accept such as were 

 offered nor acknowledge that the islet of Patos 

 was Venezuelan territory. In cases where the 

 Venezuelan Government could not defend its offi- 

 cers it put off discussion till a more convenient 

 opportunity. On July 27 the British minister to 

 Venezuela recited all the incidents complained of 

 and intimated that unless Venezuela gave assur- 

 ances that no such unwarrantable acts would 

 recur and promptly paid compensation his Gov- 

 ernment would take steps to obtain reparation. 

 The Venezuelan minister on Aug. 2 replied that 

 the incidents on the island of Patos were already 

 disposed of, Venezuela having established her 

 right to the island without opposition from 

 Great Britain based on legal grounds, and that 

 the rest were settled or on the way to a settle- 

 ment, but when the Ban High committed her in- 

 jurious acts and the authorities of Trinidad 

 showed open partiality in a sense hostile to the 

 peace of Venezuela the President decided to post- 

 pone dealing with these matters until he should 

 receive an answer to complaints and remon- 

 strances he had laid before Great Britain in con- 

 sequence of the attitude of the British authori- 

 ties in connection with that vessel. These re- 

 monstrances were contained in notes presented 

 on Feb. 28, March 8, March 13, and April 5. 

 The British note complained of conduct of the 

 Venezuelan consul in Trinidad, and this the 

 Venezuelan minister said should be considered in 

 connection with the partiality of the colonial au- 

 thorities. On Nov. 11 the Venezuelan Govern- 

 ment was informed that if it persisted in its re- 

 fusal to discuss the complaints the British Gov- 

 ernment would be obliged to consider what steps 

 should be taken for the protection of British 

 interests. The Venezuelan reply, dated Nov. 18, 

 expressed regret that the complaints with regard 

 to the Ban Righ and the attitude of the Trinidad 

 authorities had not been examined and called 

 attention to the eagerness of the British Govern- 

 ment to discuss matters that were of secondary 

 importance when contrasted with the paramount 

 interest felt by Venezuela in obtaining recogni- 

 tion and respect for claims arising from the grave 

 injuries caused by the Ban Righ and the facilitio 

 afforded to the revolutionaries by the colonial au- 

 thorities in Trinidad, which clams have been 

 met by a most unfair refusal of the British Gov- 

 ernment to consider the matter. The British Hair 

 was raised in September over the island of Pain-. 

 which is about a mile long and a third of a mile 

 broad and is uninhabited, but has been a resort 

 for smugglers and fishermen. The Vene/iielan 

 Government protested against this, reiterating its 

 claim by sovereignty over the island. On Dec. - 

 the British minister at Caracas presented a 

 peremptory demand for the satisfaction of British 

 claims. The Venezuelan acting Minister of For- 

 eign Affairs, Dr. Lopez Baralt, in his reply again 

 complained that reparation was not made foi 

 the injury inflicted by the Ban Righ and stated 

 that, the Venezuelan treasury being exhausted, it 

 was impossible for the moment for the Govern- 

 ment to meet its debts, but as soon as peace was 

 reestablished in the country it would not be nee- 



