Show NO RESPONSE RECEIVED State Department Eas Not Heard From Foreign Offices Washington Dec 17Tho State department depart-ment ban received no rcsponao thus far to tho meaaagca sent to tho European Foreign offices rulullvo to tho orbltnitlon propoaltlon It Is not known hero whether Pre = ldont Castro will nonetnt to ajwlonlRo aa a condition precedent to arbltrntkm but it IH hoped that Mliilntor Hovou cnn Induce him to do GO if this will bo auffl 61cnt to moot tho demands uf the allies It In polnlcd out hOro however that the further prosecution of ntlnckn on Vcn czuMim fortH will nmko an adjuntment P0 Just that much moro difficult it apologies ore tendered and acccpicd thon tho criti cal phaao of time situation will be removed j I and somo time may bo opent in au ar I I rangement uf the basis uuOU which arbl tnitliii flhould bu conducted Tills will be it m difficult poUlom for It is anticipated that tho nil I us will IMSO their acceptance of the arbitration on un asrt < > mciit by Venezuela 10 inslrurt thn aibitratora lo accept certain prlnoiples In advance which will commit Venezuela to a recognition of au Indebtedness of about S 15000 WO Still tin < State department depart-ment IB hopeful that arbitration will prevail pre-vail for limo alternative la I now realised to be actual war between tho alllen and tnezueia 0 > t Isj > olivcd hero that Germany at least In not anxMouB to enter upon this state A declaration of war would at onr clothe tho Venezuelans with tbe full rights of belligerency nod this might greatly protract the efforts of the allies to oubduo 1roeldont Caotro 0 |