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Show VE1EIWELA S1BMIT ARBITRATION WENS financial Interests of the Country Vrge President Ca.stro to Yield Minister Bowen Undoubtedly Undoubt-edly Will Be Oive of the Arbitrators Britain Admits State of Warfare The Sinking of the Venezuelan Battleships. represent Germany as the propelling power in the coercion of Venezuela and as being responsible for all the harsh measures. For instance, they say, the bom- in the British house of commons Premier Balfour said there was no such thing as a "pacific blockade." A state of war actually existed with Venezuela and an intimation of the blockade would be given to the powers. pow-ers. Mr. Balfour added that the blockade block-ade would be carried out with as little lit-tle inconvenience to neutrals as possible. pos-sible. t The premier also said the operations opera-tions were reluctantly undertaken, not to recover debts, but, after a long and patient delay, to recover compensation com-pensation for assaults on British subjects sub-jects and the seizure of British vessels. ves-sels. He believed that the Germans also had claims besides the financial ones. Mr. Balfour's statement was made in reply to the desire of the liberal leader, Sir Henry Campbell-Banner-man, for information on the Venezuelan Vene-zuelan situation. After reiterating Lord Lansdowne's brief statement in the house of lords, the premier continued: con-tinued: "The blockade will be carried out It Is now more than probable that the difficulty between Venezuela and the powers will be arbitrated. Although Al-though no definite conclusion has been reached, it is generally conceded con-ceded that Minister Bowen will be one of the arbitrators. This action was the result of a demand de-mand made upon President Castro by ' large financial interests in Caracas, urging him to bow to the superior . force and yield to the power of the allies, receding as gracefully as possible pos-sible from the position he has taken. Strong pressure was brought to bear upon him to influence him to take this action. A large number of the merchants of Caracas presented the matter to the president and urged him to this course. They submitted that Venezuela was powerless against the mighty strength of England and Germany, assisted through the ultimatum ultima-tum of Italy and the withdrawal of the Italian minister, by the strength of that country. It is reported that President Castro Cas-tro has decided to yield to the wishes of the delegation and sue for peace through Minister Bowen. He is reported re-ported to be willing to accept the terms of the British and German ultimatums. ulti-matums. From the beginning of the trouble President Castro has acted with ex- I 1 " I fffpp HEKbEPl BOWEff 7HeAnepiCAN niNisTEff ro remm . 1 by Great Britain and Germany along different portions of the coast, and though the two fleets will have the same objects they will not act as one force. We never had any .v Intention of landing troops in Venezuela or of bardment of the forts at Porto Cabello Ca-bello is ascribed to German initiative, whereas the officials say without res- ) ,.5' V eryation that the bombardment was at the British commander's suggestion, sugges-tion, the Topaze being the British ship. -a The German commander participated partici-pated in the firing as a loyai ally. The German government is not Insisting In-sisting on more severe measures than the original plan contemplated, and regards the sinking of the "two diminutive, dim-inutive, wholly unseaworthy craft," as an "insignificant incident' The Berlin newspapers print from Kiel a statement that the German cruisers Ariadne, Amazon and Niobe are again being equipped for departure depart-ure to Venezuela, but the correspondent correspond-ent of the Associated Press is informed inform-ed officially that no such orders have been given and that it will depend later upon the demands of the blockade block-ade whether additional vessels will be sent. German Officer WaP" Killed". ' It "ias been learned tlr t an officer of the German -cruiser Vineta was killed during, the bombardment by a rifle bullet 'fired from the shore. The Vineta left Porto Cabello suddenly for. Willemstad, Curacos. where she arrived with her flag at half-mast. It is believed she went to Willemstad for the purpose of burying the body of the dead officer. American Vice-Consul Volkmar, Showinq Relative Distances of England, "Germany and Points in North America Amer-ica from Venezuela, and Don A. F. Pulido, Venezuelan Charge d'Affaires at Washington. x traordinary energy. He has transformed trans-formed the entire country into a vast camp, having raised more than 40,000 men whom he has well armed, equipped equip-ped and transported from every direction direc-tion to La Guayra and Porto Cabello, occupying territory even temporarily. We do not think it desirable on either military or other grounds. AH the conditions governing such a blockade have been carefully considered and will be published In due time for the information of neutrals. . . "The government i& most anxious that these operations, the necessity for which we deeply regret, should be as little inconvenient to neutrals as they can possibly be made. No difference dif-ference will be made between the vessels of the various neutral powers. I think it is quite likely that the United Uni-ted States will think that there cannot can-not be such a thing as a 'pacific blockade,' and I, personally, take the same view. Evidently a blockade Involves In-volves a state of war." German Consul Tiede and British Consul Kolster have prevailed upon the German and British commodores . to desist from their plan to disembark disem-bark marines, seize the cannon in -Fort Solano and ask for the capitulation capitula-tion of Porto CabeRo, " - The allies have released Gen. Bello, who was made a prisoner In Castle Libertador, and have promised to release re-lease the - other j prisoners in a few hours.- Fort Solano and C&tle LlD ertador are not to be garrisoned by Venezuela as long as the present difficulties dif-ficulties continue. This is agreed upon to avoid another bombardment. ; " Argentina Not to Interfere. It is denied officially that Argentina intends "to intervene in the Venezuelan Vene-zuelan affair, although the press pro- GERMAN POSITION IS STATED. No Occupation of Venezuelan Territory Terri-tory to Be Considered. "' The German foreign office denies explicitly that the German squadron In Venezuelan waters has orders to seize Margarita island, adding that no occupation of the ' territory of Venezuela will occur. The officials allege that a systematic systemat-ic effort is apparently being made to test against the actions of the Anglo German fleets. In the chamber Deputy Dep-uty Martinez protested against what he termed the brutality of the powers against weak nations and invited the Argentine government to initiate a policy aimed frankly at securing the solidarity of South America by means of an agreement of mutual defense and independence among all South American nations. M. Martinez's res-I res-I olution was referred to committee. President Castro. in the expectation that the allies would attempt to land at one or both . - of these points. But there has been a change of feeling, and the prominent men of Venezuela who were at one time ready to lead the people in defense of their country now consider that justification to take the men of the renublic away from their families and till work does not exist. They have resolved to discover a means to bring about arbitration, or at least treat with the allies. The means sought is Thought to He through the United Stages legation, and satisfactory re- ulta are on every hand expected to follow. V : . r SAYS STATE OF WAR EXISTS. British Premier Makes Explicit Statement State-ment in House of Commons. In the course of a lone: statement |