Memorandum.

[Translation.]

The chargé d’affaires had the honor, on December 18 last, to inform the honorable Secretary of State that—

  • First. At the time when Germany and England appeared determined to exercise a material pressure on Venezuela in order to obtain the payment of the claims that both have to enforce against that country, the Government of the French Republic thought it ought to make some reservations near the cabinets of Berlin and London and remind them that, in pursuance of the treaty of November 26, 1885, and of the protocol of the 19th of February, 1902, signed between France and Venezuela, the custom-houses of that country constitute the principal guarantee granted to France for the payment of its debts.
  • Second. That it resulted from the acknowledgment of that step that Germany and England admitted the priority of the right of France.

The same day Mr. de Margerie also had the honor to communicate to the Hon. John Hay the meaning of the instructions addressed by His Excellency Mr. Delcasse to the chargé d’affaires of France at Caracas.

So far as concerns the demands of the indemnities posterior to May 23, 1899, the settlement of which should in principle be effected by direct negotiations between the French minister at Caracas and the Venezuelan Government, the Government of the French Republic claimed expressly a mode of settlement and payment in all points as favorable as the one which might be obtained by any of the powers having claims against Venezuela analogous to those of French citizens.

As regards the claims anterior to May 23, 1899, and for which the agreements before mentioned of 1885 and 1902 have instituted a special procedure of settlement and payment, should it happen that one of the powers obtained for its demands of indemnity prior to that same date a method of liquidation more advantageous than that assured to France by the two agreements before mentioned, the French Government claimed in advance the benefit of it.

The chargé d’affaires has to-day the honor to inform the honorable Secretary of State that the Venezuelan Government has admitted fully the views of the French Government and that the chargé d’affaires of France at Caracas has taken note of the engagements contained in the answer of the Government of President Castro.

Here, thanking the Hon. John Hay for the kindness with which he has received his previous declarations, Mr. de Margerie is anxious to indicate again the friendly character of the views which have determined the Government of the Republic to make known, from the beginning, to the Federal Government, the intentions to-day consecrated by the engagements of the Venezuelan Government.