serve to fill up this void and to insure the definite reëstablishment of peace between them;

Whereas, on the one hand, the warlike operations of the three great European powers against Venezuela ceased before they had received satisfaction on all their claims, and, on the other hand, the question of preferential treatment was submitted to arbitration, the tribunal must recognize in these facts precious evidence in favor of the great principle of arbitration in all phases of international disputes;

Whereas the blockading powers, in admitting the adhesion to the stipulations of the protocols of February 13, 1903, of the other powers which had claims against Venezuela, could evidently not have the intention of renouncing either their acquired rights or their actual privileged position;

Whereas the Government of Venezuela in the protocols of February 13, 1903 (Article I), itself recognizes "in principle the justice of the claims" presented to it by the Governments of Germany, Great Britain, and Italy;

While in the protocol signed between Venezuela and the so-called neutral or pacific powers the justice of the claims of these latter was not recognized in principle;

Whereas the Government of Venezuela until the end of January, 1903, in no way protested against the pretensions of the blockading powers to insist on special securities for the settlement of their claims;

Whereas Venezuela itself during the diplomatic negotiations always made a formal distinction between "the allied powers" and "the neutral or pacific powers;"

Whereas the neutral powers, who now claim before the Tribunal of Arbitration equality in the distribution of the 30 per cent of the customs receipts of La Guayra and Puerto Cabello, did not protest against the pretensions of the blockading powers to a preferential treatment either at the moment of the cessation of the war against Venezuela or immediately after the signature of the protocols of February 13, 1903;

Whereas it appears from the negotiations which resulted in the signature of the protocols of February 13 and May 7, 1903, that the

German and British Governments constantly insisted on their being given guarantees for "a sufficient and punctual discharge of the obligations" (British memorandum of December 23, 1902, communicated to the Government of the United States of America);

Whereas the plenipotentiary of the Government of Venezuela accepted this reservation on the part of the allied powers without the least protest;

Whereas the Government of Venezuela engaged, with respect to the allied powers alone, to offer special guarantees for the accomplishment of its engagements;

Whereas the good faith which ought to govern international relations imposes the duty of stating that the words "all claims" used by the representative of the Government of Venezuela in his conferences with the representatives of the allied powers (statement left in the hands of Sir Michael Herbert by Mr. H. Bowen of January 23, 1903) could only mean the claims of these latter and could only refer to them;

Whereas the neutral powers, having taken no part in the warlike operations against Venezuela, could in some respects profit by the circumstances created by those operations, but without acquiring any new rights;

Whereas the rights acquired by the neutral or pacific powers with regard to Venezuela remain in the future absolutely intact and guaranteed by respective international arrangements;

Whereas in virtue of Article V of the protocols of May 7, 1903, signed at Washington, the tribunal "shall also decide, subject to the general provisions laid down in Article LVII of the international convention of July 29, 1899, how, when, and by whom the costs of this arbitration shall be paid;"

For these reasons, the Tribunal of Arbitration decides and pronounces unanimously that:

(1) Germany, Great Britain, and Italy have a right to preferential treatment for the payment of their claims against Venezuela;

(2) Venezuela having consented to put aside 30 per cent of the revenues of the customs of La Guaira and Puerto Cabello for the payment of the claims of all nations against Venezuela, the three above-named powers have a right to preference in the payment of

their claims by means of these 30 per cent of the receipts of the two Venezuelan ports above mentioned;

(3) Each party to the litigation shall bear its own costs and an equal share of the costs of the tribunal.

The Government of the United States of America is charged with seeing to the execution of this latter clause within a term of three months.1

Done at The Hague, in the Permanent Court of Arbitration, February 22, 1904.

(Signed)

(Signed)

(Signed)

N. MOURAWIEFF
H. LAMMASCH
MARTENS

In a note of instruction to the American Minister at The Hague, March 9, 1904, Secretary Hay declined to assume this duty, saying, “The action of the United States in respect to the payment of the costs must, therefore, be limited to the payment of its own costs and its share of the costs of the tribunal."

III

GERMANY, FRANCE AND GREAT BRITAIN,

AND JAPAN

JAPANESE HOUSE TAX

COMPROMIS, AUGUST 28, 1902

SESSIONS, NOVEMBER 21, 1904-MAY 15, 1905, THE HAGUE
AWARD, MAY 22, 1905

ARBITRATORS, GRAM, RENAULT, MOTONO

PROTOCOL BETWEEN GREAT BRITAIN AND JAPAN1

Whereas, a dispute has arisen between the Government of Japan on the one side and the Governments of Great Britain, France and Germany on the other, respecting the true intent and meaning of the following provisions of the Treaties and other engagements respectively existing between them, that is to say:

Paragraph 4, Article XVIII, of the Treaty of Commerce and Navigation of April 4, 1896, between Japan and Germany: "Sobald diese Einverleibung erfolgt," [that is to say: when the several foreign Settlements in Japan shall have been incorporated with the respective Japanese Communes], "sollen die bestehenden, zeitlich unbegrenzten Ueberlassungsverträge, unter welchen jetzt in den gedachten Niederlassungen Grundstücke besessen werden, bestätigt und hinsichtlich dieser Grundstücke sollen keine Bedingungen irgend einer anderen Art auferlegt werden, als sie in den bestehenden Ueberlassungsverträgen enthalten sind"; and § 3 of the complementary communication of the same date from the German Secretary for Foreign Affairs to the Japanese Minister at Berlin: "3, dass, da das Eigenthum an den im Artikel XVIII des Vertrages 1 Similar protocols were signed by Japan with Germany and with France.

erwähnten Niederlassungsgrundstücken dem Japanischen Staate verbleibt, die Besitzer oder deren Rechtsnachfolger für ihre Grundstücke ausser dem kontraktmässigen Grundzins Abgaben oder Steuern irgend welcher Art nicht zu entrichten haben werden"; and the clause in the reply of the Japanese Minister of the same date, to the foregoing communication: "dass die darin unter Nummer 1 bis 4 zum Ausdruck gebrachten Voraussetzungen, welche den Erwerb dinglicher Rechte an Grundstücken, die Errichtung von Waarenhäusern, die Steuerfreiheit der Grundstücke, die in den Fremdenniederlassungen und die Erhaltung wohlerworbener Rechte nach Ablauf des Vertrages zum Gegenstande haben, in allen Punkten zutreffend sind";

Paragraph 4, Article XXI, of the revised Treaty of August 4, 1896, between Japan and France: "Lorsque les changements ci-dessus indiqués auront été effectués," [that is to say: when the several foreign Settlements in Japan shall have been incorporated with the respective Japanese Communes and made a part of the municipal system of Japan; and when the competent Japanese Authorities shall have assumed all municipal obligations and duties, and the municipal funds and property belonging to such Settlements shall have been transferred to said Japanese Authorities], “les baux à perpétuité en vertu desquels les étrangers possèdent actuellement des propriétés dans les quartiers seront confirmés, et les propriétés de cette nature ne donneront lieu à aucuns impôts, taxes, charges, contributions ou conditions quelconques autres que ceux expressément stipulés dans les baux en question"; and

Paragraph 4, Article XVIII, of the revised Treaty of July 16, 1894, between Japan and Great Britain: "When such incorporation takes place," [that is to say: when the several foreign Settlements in Japan shall have been incorporated with the respective Japanese Communes], "existing leases in perpetuity under which property is now held in the said Settlements shall be confirmed, and no conditions whatsoever other than those contained in such existing leases shall be imposed in respect of such property"; and

Whereas, the controversy is not amenable to ordinary diplomatic methods; and

Whereas, the Powers at variance, co-Signatories of the Convention