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 pretension 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 Powers"; Whereas the neutral Powers, who now claim before the tribunal of arbitration equality in the distribution of the thirty per cent of the customs receipts of La Guaira 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 13th, 1903; Whereas it appears from the negotiations which resulted in the signature of the protocols of February 13th and May 7th, 1903, that the German and British Governments constantly insisted on their being given guaranties for "a sufficient and punctual discharge of the obligations" (British memorandum of December 23d, 1902, communicated to the Government of the United States of America1); 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 guaranties 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 1 Not printed. January 23rd, 19031) 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 5 of the protocols of May 7th, 1903, signed at Washington, the tribunal "shall also decide, subject to the general provisions laid down in Article 57 of the international Convention of July 29th, 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 thirty 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 thirty 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. Done at The Hague, in the Permanent Court of Arbitration, February 22nd, 1904. (Signed) N. MOURAWIEFF 1MR. BOWEN'S STATEMENT: Mr. Bowen proposes that all claims against Venezuela shall be paid out of the customs receipts of the two ports of La Guaira and Puerto Cabello, the percentage to be 30 per cent each month of the receipts, In case of failure on the part of Venezuela to pay the said 30 per cent, the creditor nations will be authorized to put, with the consent and without any opposition on the part of Venezuela, Belgian custom officials in charge of the said two custom houses, and to administer them until the entire foreign debt is paid. Official report, p. 159. AGREEMENT FOR ARBITRATION Protocol of Agreement between Germany and Venezuela respecting the reference of the question of the preferential treatment of claims to the tribunal at The Hague.-Signed at Washington, May 7, 1903.1 Whereas protocols have been signed between Germany, Great Britain, Italy, the United States of America, France, Spain, Belgium, the Netherlands, Sweden and Norway, and Mexico on the one hand, and Venezuela on the other hand, containing certain conditions agreed upon for the settlement of claims against the Venezuelan Government2; And whereas certain further questions arising out of the action taken by the Governments of Germany, Great Britain and Italy, in connection with the settlement of their claims, have not proved to be susceptible of settlement by ordinary diplomatic methods; And whereas the Powers interested are resolved to determine these questions by reference to arbitration in accordance with the provisions of the Convention for the pacific settlement of international disputes, signed at The Hague on the 29th July, 1899; Venezuela and Germany have, with a view to carry out that resolution, authorized their representatives, that is to say: Mr. Herbert W. Bowen as plenipotentiary of the Government of Venezuela, and The Imperial German Minister, Baron Speck von Sternburg, as representative of the Imperial German Government to conclude the following agreement: ARTICLE 1 The question as to whether or not Germany, Great Britain, and Italy are entitled to preferential or separate treatment in the payment of their claims against Venezuela shall be submitted for final decision to the tribunal at The Hague. Venezuela having agreed to set aside thirty per cent of the customs revenues of La Guaira and Puerto Cabello for the payment of the claims of all nations against Venezuela, the tribunal at The Hague shall decide how the said revenues shall be divided between the blockading 1Official report, p. 17. For the German text, see Appendix, p. 445. Identical protocols were signed on the same date by Venezuela with Great Britain and Italy respectively, both of which were done in the English language. Belgium, Mexico, the Netherlands, Sweden and Norway, and the United States signed as adherents (post, p. 64). Spain, though not a signatory, also adhered and was represented by counsel before the tribunal. 2Post, pp. 65, 67, 70, 74. Powers, on the one hand, and the other creditor Powers, on the other hand, and its decision shall be final. If preferential or separate treatment is not given to the blockading Powers, the tribunal shall decide how the said revenues shall be distributed among all the creditor Powers, and the parties hereto agree that the tribunal, in that case, shall consider, in connection with the payment of the claims out of the thirty per cent, any preference or pledges of revenue enjoyed by any of the creditor Powers, and shall accordingly decide the question of distribution so that no Power shall obtain preferential treatment, and its decision shall be final. ARTICLE 2 The facts on which shall depend the decision of the questions stated in Article 1 shall be ascertained in such manner as the tribunal may determine. ARTICLE 3 The Emperor of Russia shall be invited to name and appoint from the members of the Permanent Court of The Hague three arbitrators to constitute the tribunal which is to determine and settle the questions submitted to it under and by virtue of this agreement. None of the arbitrators so appointed shall be a subject or citizen of any of the signatory or creditor Powers. This tribunal shall meet on the first day of September 1903, and shall render its decision within six months thereafter. ARTICLE 4 The proceedings shall be carried on in the English language but arguments may, with the permission of the tribunal, be made in any other language also. Except as herein otherwise stipulated, the procedure shall be regulated by the Convention of The Hague of July 29th, 1899. ARTICLE 5 The tribunal shall, subject to the general provision laid down in Article 57 of the international Convention of July 29th, 1899, also decide how, when and by whom the costs of this arbitration shall be paid. ARTICLE 6 Any nation having claims against Venezuela may join as a party in the arbitration provided for by this agreement. Done in duplicate at Washington this seventh day of May, one thousand nine hundred and three. (Signed) HERBERT W. BOWEN The undersigned nations having claims against Venezuela hereby join with her as parties in the arbitration provided for in the foregoing protocol.1 L'Ambassadeur de France, dûment autorisé et agissant au nom de son Gouvernement, adhère au protocole ci-dessus, sous réserve qu'il est bien entendu que l'article 4 du dit protocole ne fera pas obstacle à l'application de la disposition de l'article 38 de l'acte de La Haye, aux termes de laquelle c'est le tribunal arbitral qui décide du choix des langues dont il fera usage et dont l'emploi sera autorisé devant lui. 1er Juin 1903. [SEAL] JUSSERAND Le Ministre de Belgique, dûment autorisé et agissant au nom de son Gouvernement adhère au protocole ci-dessus. 12 Juin 1903. [SEAL] BN. MONCHEUR Le Ministre des Pays-Bas, dûment autorisé et agissant au nom de son Gouvernement adhère au protocole ci-dessus. Washington, le 13 Juin 1903. [SEAL] GEVERS 1Malloy, Treaties, Conventions, etc., between the United States and Other Powers, vol. 2, p. 1876. |