On Friday, July 17th, the correspondence between Lord Salisbury, Mr.
Olney, and our Ambassador at Washington was laid before Parliament. We have dealt elsewhere with the arbitration proposals, but must notice here that part of the correspondence which deals with the Venezuelan boundary dispute. On May 22nd Lord Salisbury wrote to Sir Julian• Pauncefote making certain suggestions for a settlement.. These were :—(1) A Joint Commission of four members, two American and two English, to be appointed to investigate and report on the facts which affect the rights of Holland and Spain up to the British acquisition of Guiana; (2) whatever are found to be facts to be regarded as binding upon both Governments; (3) on the facts being reported, Great Britain and Venezuela to use them as a base for negotiating a boundary line ; if they fail two arbitrators and an umpire to be appointed in the usual way to fix a line binding on both. Powers, "provided always that in fixing such line the tribunal shall not have power to include as the territory of- Venezuela any territory which was bond fide occupied by. subjects of Great Britain on January 1st, 1887, or as the territory of Great Britain any territory bond fide occupied by Venezuelans at the same date;" (4) the territory excluded by reason of settlement to be, however, subject to recom- mendations on the part of the Commission for equitable. treatment. Lord Salisbury adds that these proposals make the decision of the Commission binding everywhere except in the small area of the settled districts, and even there a. decision is to be given which it will in fact be very difficult for either Power to refuse.