Mr. Pruyn to Mr. Seward.

No. 38.]

Sir: In dispatch No. 19 I forwarded to you a certain financial proposition of the Venezuelan government, and in dispatch No. 31 the same question was again treated of. I now submit for your consideration (see inclosure No. 1) a copy of a dispatch I to-day sent to the minister of foreign relations, in reply to his note of September 12, 1868, a translation of which was given in inclosure No. 4 of dispatch No. 31. As far as I can judge, the views you were pleased to express in dispatch No. 18 have [Page 978] been borne out by subsequent events. This government have just appointed a minister to France, who will endeavor to induce the French government to give up their especial treaty-privileges, which of course they will not do.

I will report in due course any further information that I may be able to obtain on this question. Meanwhile I have the honor to remain, with great respect, your obedient servant,

ERASTUS C. PRUYN.

Hon. William H. Seward, Secretary of State, Washington, D. C.

Mr. Pruyn to Señor Villégas.

The undersigned, commercial agent in charge of the legation of the United States, has the honor to acknowledge the receipt of your dispatch No. 181, dated September 12, 1868, in which you are pleased to reply to the collective note addressed to you by the representatives of several foreign powers accredited to the government of Venezuela, (including the undersigned,) dated August 12, 1868, in regard to the bases of settlement of foreign claims proposed in the circular of the Venezuelan government, dated August 4, 1868. Your excellency has stated that the government of Venezuela has found it necessary to prepare to recommence giving seventeen per cent, of the import duties of La Guayra and Puerto Cabello towards the payment of the French claims.

You are also pleased to state that you cannot give a definite response to the collective note above mentioned until the result is known of the negotiations in this financial question which have been begun with the government of France.

The undersigned is gratified to observe, as the cardinal basis of the propositions of the Venezuelan government, the declared intention of satisfying those sacred national obligations which the former rulers had so entirely neglected to consider. In your propositions the undersigned has not been able to find any condition in which is declared that they must be accepted by the chargé d’affaires of France before they can become effective. The earnest and persistent efforts of the representative of France for the re-establishment of the payment of the seventeen per cent. aforementioned were well known to the public before August 4th. So it is reasonable to suppose that your excellency had considered the financial relations of Venezuela towards France previously to dispatching the propositions addressed that day to several foreign agents, including the undersigned. If the undersigned rightly apprehends this financial question, it appears that the government of Venezuela proposed a basis of settlement on the 4th of August, omitting in its communication on this subject of that date addressed to foreign agents the statement subsequently made that it was bound by certain solemn treaty obligations with France, and that unless these were given up by the government of that country, the propositions in question could not be carried into effect. The undersigned, in reporting these matters to his government, has made particular mention of the great desire manifested by the government of Venezuela for the prompt payment of the just claims due foreigners.

The undersigned has, however, up to this date, been unable to recommend to his government the abandonment on their part of the terms of the treaty of April 25, 1868.

The undersigned begs to renew to Señor Villégas the assurances of his distinguished consideration.

ERASTUS C. PRUYN.

Hon. Guillermo Tell Villégas, Minister of Foreign Affairs, &c., &c., &c.