1. law, govt and politics
2. government

VICS XX
VENEZUELA CRISIS 1902 – VENEZUELA
Dear Delegates,
Welcome to Virginia International Crisis Simulation XX! We hope you all are just as excited to
be part of VICS XX as we are! Our committee is called Cipriano Castro’s Advisory Council. This
is a joint crisis committee along with Roosevelt’s Cabinet and the German Imperial
Summoning within the Venezuelan Crisis simulation, so prepare for the unexpected.
My name is Michael Treves. I will be your Chair. I am a third year in the College of Arts and
Sciences at the University of Virginia. I double major in history and government with
aspirations of one day attending law school. When I am not trying to remember every fact there
is about a country’s history or political system, I am very involved in different forms of
advocacy on Grounds. I am a Senior Support Officer with the Honor Committee, member of
the University Democrats, volunteer tutor with Madison House, and part of UVA’s MUN team.
I have done MUN since my freshman year of high school, attending numerous conferences
around the country and making it a big part of my life ever since. I love everything from the
engaging debates to the chaos of a crisis in committee.
My name is Nojan Rostami. I will be your Crisis Director. I am a first year in the College of Arts
and Sciences at the University of Virginia. I double major in media studies and government
and am currently torn between pursuing a doctorate and attending law school. When I’m not
trying to fix my perpetually broken sleep pattern you can find me coping with insomnia by
being involved with pretty much anything I can on Grounds. I am a research assistant in the
media studies department, editor of The Oculus publication, member of the Undergraduate
Research Network, executive officer of the Alexander Hamilton Debating Society, and part of
UVA’s MUN team. I, too, have done MUN since my freshman year of high school and by force
of habit I’ve kept at it ever since.
Starting in December 1902, this committee will seek to identify a plan for the Venezuelan
response to German demands for debt repayment. While keeping in mind the numerous
factors impacting Venezuela at the time, debate will principally revolve around events and
crises brought to the attention of the committee. Although we encourage delegates to be versed
and knowledgeable in the history of the Venezuelan Crisis and the Venezuelan Revolution, we
ask delegates to avoid consciously following the established course of history. Debate will be far
more enjoyable and stimulating if decisions and their impacts are featured in real-time. You
never know, Venezuela might never repay Germany! We are looking forward to meeting all of
you and hearing your ideas for this pressing time in South American history. If you have any
questions, feel free to email us or our Director General, Gary DePalo, at
[email protected].
Sincerely,
Michael Treves
Chair
[email protected]
Nojan Rostami
Crisis Director
[email protected]
Timeline of Important Dates
1888
Friedrich Krupp AG contracts with Venezuelan government to build
Great Venezuelan Railway
1892
La Revolución Legalista
1894
Great Venezuelan Railway completed
1896
Venezuela receives loan from Disconto Gelleschaft of Berlin
1899
La Revolución Liberal Restauradora
Oct 1899
Start of Thousand Days’ War in Colombia
Oct 1899
Cipriano Castro victoriously enters Caracas
Dec 1899
To solve the economic crisis, Castro calls Manuel Antonio Matos to
apply for a loan in the amount of one million Bolívars
Jan 1900
Matos and Bank of Venezuela deny request for the loan. Castro orders
the arrest of Matos and the directors of the Bank of Caracas and the
Bank of Venezuela. After being paraded around in chains, the bankers
grant the loan and are released
Oct 1900
Castro calls for a National Constitutional Assembly to draft a new
Constitution
Feb 1901
The National Constitutional Assembly appoints Cipriano Castro
Provisional President of Venezuela
July 1901
It is reported that the Government of Colombia plans to invade
Venezuela and overthrow la Restauración
July 1901
Germany proposes to Venezuela mediation by the Permanent Court of
Arbitration in The Hague in regards to debt payment
July 1901
The Battle of San Cristóbal
Aug 1901
Colombia and Venezuela break diplomatic relations. Castro begins
preparations to invade Colombia in response to raid in Táchira and
desire to restore la Gran Colombia
Nov 1901
Castro receives news of Matos’ revolutionary plot
Dec 1901
Kaiser Wilhelm II sends message to President Theodore Roosevelt
about his intentions to exert pressure on Venezuela for cancellation
of debts
Dec 1901
Start of la Revolución Libertadora
Jan 1902
Matos, aboard Ban Righ, lands in Coro and distributes European
firearms to revolutionary army
Jan 1902
Ban Righ declared a pirate ship by the Venezuelan government;
Venezuela offers a $10,000 reward for her seizure
Jan 1902
Castro creates Junta for the Examination and Qualification of Credits;
Commission rejects over 80% of the 16 million Bolívars in claims
Feb 1902
Ban Righ sinks Venezuelan man-of-war General Joaquín Crespo
March 1902
Nicolas Rolando joins the rebellion against the government and
lands in Carúpano
April 1902
Ban Righ docks at Port of Spain, Trinidad
May 1902
Matos lands at Guiria and is pleased with rebel successes
July 1902
British Resident Minister in Venezuela, William Henry Doverton
Haggard, delivers a note to Castro imposing an ultimatum by the
British Government for the repayment of debts
Nov 1902
Government troops launch a final attack to San Mateo, destroying
the center of the revolutionary army, ending the Battle of La Victoria
Nov 1902
End of Thousand Days’ War in Colombia
Nov 1902
Kaiser Wilhelm II meets with King Edward VII; decide to implement a
naval blockade of Venezuela’s coast
Dec 7 1902
Germany and the United Kingdom send a final ultimatum; British and
German ships are positioned off coast; Castro rejects the ultimatum
and the British and German Ambassadors to Venezuela leave the
country
Dec 9 1902
15 ships of the Royal Navy and Kaiserliche Marine begin blockade and
attack port of La Guaira; a combined force of British and German
troops land and occupy the docks
Dec 10 1902
British and German naval vessels capture Venezuelan warships;
Margarita dismantled in Puerto Cabello; only Miranda escapes
Committee Overview
Over the course of this conference, this committee will be asked to respond to
some of the same challenging questions that faced political officials in Venezuela during
the Venezuelan Crisis. In doing so, this committee will be interacting with the delegates
in Roosevelt’s Cabinet, chaired by Sean Rumage as President Theodore Roosevelt, and
the German Imperial Summoning, chaired by Zach Diamond as Kaiser Wilhelm II. As a
result, delegates will not only be reacting to domestic crises and the concerns the crisis
brought on, but also to the actions taken by the other committees in real time. The other
committees will be doing the same.
Cipriano Castro’s Advisory Council can be seen as an enlargement of Cipriano
Castro’s original cabinet. Each delegate’s vote will count the same and the committee
will be run by standard parliamentary procedure with the appropriate alterations
sometimes needed in committees that use military tactics, such as the suspension of
debate to vote on immediate reaction to crises. The committee will be composed of
cabinet members, military generals, Governors of Venezuela’s states, financial leaders,
and other potentially influential governmental officials. During debate, delegates will be
asked to consider the responsibilities and the interests they represent, keeping in mind
that some level of disagreement is a necessary and real condition for political debate.
Faced with different situations over the course of the conference, delegates will need to
react cogently and swiftly. As a whole, the committee has the authority to pass
legislation that will impact and be executed by the Venezuelan government. However, I
encourage delegates to recognize the presence of Cipriano Castro and what he would
consider the best course of action for Venezuela. Each delegate will also be afforded the
portfolio powers appropriate for their role. I ask delegates to deftly use their roles in
seeking particular actions and to remember that the committee may not be able to take
certain actions without the approval of other individuals in the committee. For example,
agreement between the Minister of War and Navy and different military officials is
suggested, but is by no means required.
By the end of the conference, the goal of this committee is to seek an ultimate end
to the Venezuelan Crisis on Venezuelan terms. The parameters of this end though are
for the committee to decide. There was more than one definition for what success meant
to Venezuela. While there are no specific topics for this committee to discuss, in
identifying a particular course for Venezuelan action during the crisis, delegates will be
forced to consider a number of other relevant issues. Among these are the
aforementioned conditions for success, Venezuela’s relationship with her neighboring
countries, the desired extent of United States’ influence in South America, domestic
conditions in Venezuela, and most importantly, the status of Manuel Antonio Matos’
revolution against the Castro regime. Delegates will not be able to answer all of these
questions within the short time at VICS, but all should be considered. Written as if it
was 1902, this background guide is meant to give a brief introduction to the themes and
problems impacting Venezuela that will need to be remembered when crafting policy in
this committee.
Lastly, it must be remembered that this committee will begin on December
10, 1902, just as the German gunboat SMS Gazelle has boarded the Venezuelan warship
Restaurador. This seizure marked the first official action of the blockade that had begun
on December 9. At this time, Matos’ revolution is well underway already and the
blockade of Venezuela’s coast is beginning to vex its strength. Faced with conflict both
domestically and internationally, it is unclear how Castro’s regime should react.
Venezuela in the Nineteenth Century
The Venezuelan Crisis of 1895
1902 is not the first time that Venezuela challenged European powers; in 1895, there
was a conflict over a territory dispute in Essequibo and Guayana Esequiba. In this case,
Great Britain seized Venezuelan ships and even went as far as to capture ports of
strategic and economic value.1 Lacking the military power to unilaterally bring the crisis
to a close, Venezuela turned to the United States through a former ambassador-turnedlobbyist and appealed for an invocation of the Monroe Doctrine. Lobbying proved
effective, and the United States enforced the Monroe Doctrine on Venezuelan interests.
The conflict itself was later resolved through arbitration, though it is important to note
that the United States negotiated on behalf of Venezuela. Furthermore, the tribunal that
drafted the treaty that resolved the conflict contained only two spots reserved for
Venezuelans, both of whom would be nominated by the United States Supreme Court.
Ultimately, the court of arbitration granted over 90% of the disputed territory to the
British in an almost unanimous decision, and ever since the American presence in South
America has been more strongly felt.2 The 1895 crisis demonstrated the American
readiness to invoke the Monroe Doctrine, albeit at the cost of Venezuelan influence
during the arbitration process.
The Rise of Cipriano Castro
Centralized executive power and economic institutions are a relatively new concept
in the Venezuelan government. Prior to Cipriano Castro, President Antonio Guzman
Blanco sought to consolidate economic power in the hands of the executive through the
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
1 Humphreys, Anglo-American Rivalries and the Venezuela Crisis of 1895, 131.
2 Schoenrich, The Venezuela-British Guiana Boundary Dispute, 526.
creation of institutions. He did this mainly by privatizing customs collection at
Venezuelan ports as well as establishing the Compania de Credito to pay off government
debt.3 By placing control of the Compania in the hands of trading houses, Blanco created
a direct system of credit from the trading houses to the executive. It is important to note
that these institutions served as guarantors to Venezuela’s numerous international
loans. Consolidating economic power gave the government substantially more revenue
and the ability to wield economic power when needed.4 Largely due to Blanco’s failure to
centralize military power and his expansion of the executive office, Blanco’s departure
from the presidency prompted regional caudillo powers to fight for power.
Twelve years of instability and a drop in coffee prices allowed Cipriano Castro to rally
the rural Andean regions of Venezuela to revolution. Over the course of 153 days and 42
armed engagements, Castro’s armies cut a path from the Andes to Caracas where he was
able to secure the presidency.5 His program of “new men, new ideals, new methods” led
him to incorporate members of all political factions into his new government. The
diversity he surrounded himself with allowed him to rule for some time without major
political opposition.
Colombia’s Thousand Days’ War
The liberal-conservative civil war in Colombia may be an indicator of things to come
in Venezuela should the Castro administration fail to quickly resolve the challenges to its
authority. When, in 1899, President Sanclemente was too ill to rule Colombia, a power
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Rodriguez, Anarchy, State, and Dystopia: Venezuelan Economic Institutions
Before Oil, 105.
4 Rodriguez, Anarchy, State, and Dystopia: Venezuelan Economic Institutions
Before Oil, 107.
5 Ewell, Venezuela: A Century of Change, 39.
3
vacuum allowed for armed conflict to begin. Soon after the liberal rebels began their
insurgency in the region of Santander the conservative government responded with
proportional force, propelling the conflict into a bloody and devastating war that ended
in November 1902. Venezuela itself was almost dragged into the war as well. Many of
the liberals pursued by the Colombian government sought refuge in Venezuela,
prompting the Colombian government to begin planning an expedition into Venezuelan
territory. The battle of San Cristóbal, in Venezuela, was a moral boost for the liberals
and an explicit violation of Venezuelan sovereignty, as President Castro had asked the
Colombian government to not send an expeditionary force across Venezuelan borders.6
After Castro’s limited campaign of punishment in Colombia, Venezuela withdrew from
armed hostilities.
The United States, believing its Colombian interests were at risk, dispatched its
navy, forcing the liberals to lay down their arms. In addition to establishing a naval
presence in the area, the United States also had a significant role in negotiating the
peace. The ultimate peace treaty was signed onboard an American battleship.
The conservative government’s victory in the Thousand Days’ War has several
implications for the Venezuelan government. Given past hostilities and the United
States’ heavy investment in Colombia, there is a possibility that bad blood between
Venezuela and Colombia may cause further problems should Venezuela call on the
United States to intervene in the present conflict with Germany. Furthermore, the
United States’ readiness to intervene in Colombia and her continued presence postconflict could indicate a more active imperialist approach to American foreign policy in
South America.
6
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Azcarate, Psychological Dynamics of the Armed Conflict in Colombia
Matos’ Revolution
In 1902, Manuel Antonio Matos, a prominent banker and Venezuelan politician,
levied his considerable foreign connections and military experience to openly rebel
against the Castro government. His domestic support came from a wide range of
regional caudillos, or political-military leaders with authoritarian power, the most
important of whom were Domingo Monagas and Luciano Mendoza, who were placed in
charge of the military operations of the rebellion. Most important among his domestic
supporters was Luciano Mendoza, the current president of the state of Aragua.7 When
the revolution was openly declared, Castro seized the family and assets of both Mendoza
and Matos, and acted quickly in appointing Juan Vicente Gomez as Chief of Staff of the
Army to crush the rebellion. In due time, Gomez had defeated Mendoza and the older
caudillos. With the government only in control of the Andean states and Caracas, and
with Matos’ continued overseas support from American companies, the victories over
the regional caudillos failed to suppress the rebellion in its early stages. After the battle
of La Victoria in November, the rebels have been routed despite still holding a
temporary numerical advantage near the city. Government forces, though surrounded
by rebel armies in most of the Venezuelan states, have an advantage given to them by,
quite ironically, superior German technology. Krupp artillery and repeating Mauser
rifles as well as superior military strategy have worked significantly in favor of the
government forces.
Matos’ revolution is still active despite its western army being in shambles.
Matos’ armies still maintain a presence and pose a strong threat to the governments of
7
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
McBeth, Gunboats, Corruption, and Claims, 64.
Guárico, Aragua, and Carabobo. However, there are some positive outcomes to this
ongoing conflict. With the defeat of the regional caudillos, the Venezuelan government
is in a position to consolidate and centralize power in the hands of the executive both
economically, as President Guzman Blanco once did, and militarily. Furthermore, it is
important to consider the influence the American companies that are supporting Matos
may have in deciding whether or not the United States intervenes in the current conflict
with the Germans. More importantly, it is imperative that the United States, should it
decide to intervene, enter on the side of the Castro government. It may even be that, in
light of Matos’ revolution and the extensive American support he has received, the
Venezuelan government could consider alternatives to American intervention for
resolving the conflict with Germany.
The Blockade
Note: This section provides a brief overview of why Germany and Great Britain
ultimately blockaded Venezuela. Germany and Great Britain had their own motives
for the blockade but for all intents and purposes, the Venezuelan Crisis began as a
result of Venezuelan action. To better understand the crisis, it is imperative to
comprehend why it began.
The dispute between the various blockading countries and Venezuela had been
simmering for years before 1902. Germany is the most aggrieved party in these quarrels,
and it is she who initiated the action to recover her loans. At the root of the worsening
relations between Berlin and Caracas lies Venezuela’s inability (or unwillingness) to
honor mostly guaranteed interest and loan payments on several major industrial
undertakings financed by German entrepreneurs at hefty rates. Venezuela had also
dilatorily handled in her local courts claims submitted by German nationals as a result
of years of domestic revolts that featured countless cases of ravages and requisitions.8
The major claimant is the Great Venezuelan Railway. In 1888, Friedrich Krupp AG
contracted with the Venezuelan government to build a railway in exchange for 12,800
British Pounds per kilometer to be repaid at 7 percent interest. However, when the
Venezuelan government failed to meet its payments, the German company pressed its
own government to assist it in the recovery of its capital. In pursuing the claim,
Germany was at one point willing to send gunboats to settle the dispute. But, the crisis
was averted when President Joaquín Crespo secured a loan of 33 million Bolívars with 5
percent interest from the Disconto Gessellschaft of Berlin in 1896, managing to repay
part of the debt.9 Yet by 1901, Venezuela was 6 million Bolívars behind in interest debt
alone. In December 1902, German government has again demanded that Venezuela
repay these outstanding loans.
By the turn of the century, Venezuela was in a full-blown financial crisis. The Great
Venezuelan Railway is owed over one-half million Bolívars in transport costs for
government troops; no payments have been made on the 1896 loan since April 1898;
and Caracas has also halted payment on the reclamations stemming from the civil war of
1892. In total, Venezuela owes about 208 million Bolívars on foreign loans,
revolutionary damage claims, and internal obligations. In addition, the business climate
is so depressed that financiers prefer either to invest their monies abroad or to squander
them on luxury goods.10
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Herwig, Germany’s Vision of Empire in Venezuela, 1871-1914, 83.
9 McBeth, Gunboats, Corruption, and Claims Foreign Intervention in Venezuela,
1899-1908, 81.
10 Herwig, Germany’s Vision of Empire in Venezuela, 1871-1914, 85.
8
Moreover, the new government of Cipriano Castro does not recognize the monetary
claims made by Germany against Venezuelan nationals. Instead, in January 1902,
Castro proposed that a Venezuelan Commission be set up to decide on the claims.
Castro argued that foreigners should not be treated differently than locals and that the
problem in question was a domestic one that did not call for foreign involvement
because Article 149 of the Venezuelan constitution stated that any dispute arising from a
stated contract between Venezuela and a foreign entity had to be settled in Venezuelan
courts.11 Such a clause, however, had been omitted from the Disconto Gessellschaft loan
agreement.
The Germans rejected the Venezuelan solution because they had little faith in
Venezuelan justice. They also did not accept the principle that the claims could not be
made into a diplomatic matter. Although the Venezuelan government admitted that the
Supreme Court would hear any appeal against the Commission, the Germans had little
faith in the incorruptibility of the Venezuelan courts. They argued that the courts
depended ultimately on President Castro’s decision. The previous experience of
Disconto Gelleschaft was sufficient proof to Germany that the Venezuelan government
was incapable of honoring the debts owed to her.
At the time of the blockade, Venezuela also owes money to Great Britain. The
Venezuelan government is in a deficit on interest payments on British loans as well,
such as the 5 million Bolívars loan on the Puerto Cabello & Valencia Railway, the loans
on the Bolivar, Central, and Barquisimeto railways, and the debt on the Caracas & La
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
McBeth, Gunboats, Corruption, and Claims Foreign Intervention in Venezuela,
1899-1908, 82.
11
Guaira Railway Company.12 In addition, there is a request by Great Britain to abolish the
30 percent surtax on goods imported from Trinidad. Trinidad is willing to ban
completely the imports of arms, “which has proved so fruitful a source of complaint on
the part of the Venezuelan Government,” as long as the illegal tax was abolished. But,
Venezuela refuses.13 Lastly, Great Britain has some minor but extremely irritating small
claims stemming from the trading activity between Trinidad and Venezuela. In 1902,
there are approximately eight thousand foreigners living in Ciudad Bolivar, of which five
thousand are British citizens. The total turnover of the port is about 16,250,000
Bolívars, of which 60 percent is with Great Britain or her colonies.14 A large number of
small traders move between the West Indies and the mainland, and the Venezuelan
Navy harasses most of them.
Ultimately, adding to her heavy external debt is a growing accumulation of claims
against Venezuela stemming from the numerous insurgencies and civil wars. These
claims involve an alleged injury suffered by the claimants to their persons or property
during the violence, or for alleged illegal seizure of, or damage to, foreign trading or
fishing vessels operating in Venezuelan waters.15 Of significance is the DeutschVenezolanische Schwelfelgruben A.G., which operates sulfur pits near Carúpano, with a
capitalization of 2 million German Mark. Based at Cologne, the firm started work in
1899, and, with the financial support of the Schaffhausen’scher Bankverein, is building a
seventeen-kilometer aerial cable system to transport the sulfur from the pits to the port.
But, the Venezuelan civil war interrupted its semi-monthly shipments of materials from
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ibid, 82.
13 Ibid, 82.
14 Ibid, 82.
15 Singh, Big Power Pressure on Venezuela During the Presidency of Cipriano
Castro, 125.
12
Germany, and the German-Venezuelan Sulfur Company in January and February 1901
appealed to Berlin for naval protection and the need to “show the flag.” In this case,
Berlin concurred and the SMS Vineta arrived in the port by mid-March 1901.16
During the early period of the civil war, Venezuelan troops also treated a number
of German subjects and their property poorly. For example, the civil war was brought to
the doorstep of the Germans of Barquisimeto in the summer of 1902 when Venezuelan
troops seized their homes and stores, collected “protection” monies, and requisitioned
their food and wine. German Minister von Pilgrim-Baltazzi demanded that Castro
immediately pay a restitution of 200,000 Bolívars and Count Oriola of the SMS Gazelle
suggested to Kaiser Wilhelm II that the Venezuelan fleet be seized, that a “pacific”
blockade of the Venezuelan coast be undertaken, and that the custom houses at La
Guaira and Puerto Cabello be occupied.17 Yet, Kaiser Wilhelm II was not immediately
convinced of the need for force. In July 1902, Wilhelm II ruled only that a diplomatic
protest be lodged with Castro in the case of the Barquisimeto Germans. However, the
Emperor did state that he would be willing to contemplate a larger naval action in the
fall.
The Imposition of the “Peaceful” Blockade
The Venezuelan people first learned of the impeding blockade through the Caracas
press in early November 1902. Rumors soon spread that Germany and Great Britain
would invade with “more than a million of fighting men under arms and more than 700
ships at sea.”18 President Cipriano Castro tried unsuccessfully to win over Germany by
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Herwig, Germany’s Vision of Empire in Venezuela, 1871-1914, 96.
17 Ibid, 97-98.
18 Herwig, Alemania y el Bloqueo Internacional de Venezuela, 1902-1903, 28
16
offering to settle its claims if it desisted in supporting Britain’s action. To gain time,
Castro sought a loan from the Seligman Financial House of New York. Castro also asked
the United States to guarantee to protect Venezuela from European powers, but the
United States refused. As time started to run out, H.G. & L.F. Blohm, the largest trading
house in Venezuela, offered Castro “a private loan of 2 million Bolívars in case he opted
to pay off the most pressing German claims.”19 Ultimately, however, Castro was
convinced that the blockade would not take place. To Castro, it is unimaginable that
nations with friendly relations with Venezuela should try to force their claims on the
country when “the alleged difference is comfortably covered within the jurisdiction of
our laws which are guaranteed by our justice principles.”20 Moreover, a foreign
blockade, although undesirable, could have a potentially positive political impact on
behalf of the Castro government against Matos and his revolutionaries.
However, on December 7, the “peaceful blockade” was officially imposed when
“by order of our Sovereigns, we the Commanding Officers of the German and British
naval forces, co-operating in West Indian waters hereby declare a blockade of the
Venezuelan ports of Maracaybo (sic) (including San Carlos), Puerto Cabello, La Guaira,
(sic) and…any other harbours on the east coast of Venezuela.”21 President Castro took
advantage of the opportunity to rally his country behind him- not only against the
foreigners but also the Matos rebels. On December 9, Castro ordered the arrest of all
British and German “nationals.” Railroad lines, telephone, telegraph, and electric
companies owned by Germany and Great Britain were also seized or closed. In addition,
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
McBeth, Gunboats, Corruption, and Claims Foreign Intervention in Venezuela,
1899-1908, 88.
20 Ibid, 88.
21 Ibid, 88.
19
Castro opened Venezuela’s jails, released all political prisoners, and called upon them to
rally to the defense of the country, which most of them agreed to do. On the evening of
December 9, President Castro addressed the nation, repudiating “the insolent foreign
foot” and calling for Venezuelans to unite against the foreign aggressors.22
The threat of foreign intervention is too great for most Venezuelans to ignore.
Many Venezuelans have rallied around the government, lending it money for the
forthcoming conflict. Even Manuel Antonio Matos lent the government 200,000
Bolívars. An estimated 100,000 volunteers were equally persuaded by Castro’s speech
and have rushed to join the federal militia. Women have donated their jewelry for
defense, and bands of university students and laborers have hastily formed battalions.
Castro has vowed to carry out guerrilla warfare on the plains of Venezuela should the
blockading countries decide to invade the nation. As a final act of defiance, Castro has
ordered all property belonging to British and German “nationals” to be seized and
denied United States Minister Herbert W. Bowen permission to represent German and
British interests in the capital.23
If Venezuela thought the ultimatum and flotilla of German and British ships
stationed off her coast was a bluff, she was soon proven wrong. The naval
demonstration, which had started peacefully, quickly turned nasty. At 4:45 pm on
December 9, the German warship SMS Vineta seized the Venezuelan gunboat General
Crespo and the SMS Panther captured the Totumo. The Kaiserliche Marine scuttled the
two Venezuelan ships. The British likewise caught the destroyer Margarita and the
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Herwig, Alemania y el Bloqueo Internacional de Venezuela, 1902-1903, 29.
23 Ibid, 29.
22
freighter Ossun.24 To the total surprise of their Venezuelan crews, the blockading
countries had taken these Venezuelan warships in La Guaira within a matter of ten
minutes. Later that evening, a small landing force of German corps rescued the German
consul in La Guaira without firing a shot; the HMS Retribution landed marines that
same night and again on December 10 to evacuate British subjects. British warships also
captured the gunboat Bolívar at Port of Spain, Trinidad.
The end came quickly for the Venezuelan navy. On December 10, the British
sloop Alert seized the troopship Zamora and the armed freighter 23 de Mayo in the Gulf
of Paria, while the SMS Gazelle seized the gunboat Restaurador in Guanta. The
Restaurador was quickly refitted in Trinidad and pressed into service as a
communications vessel for German Commodore Georg Scheder’s force.25 In the
immediate days of the blockade, only the gunboat Miranda remains free. As of
December 10, nearly all of the Venezuelan Navy has been lost. This stands to be a
significant blow to Venezuela as it deprives her of the means to intercept rebel arms
shipments, transport troops and arms quickly, blockade rebel-held ports, and launch sea
and land operations against enemy coastal positions.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ibid, 29-30.
25 Ibid, 30.
24
Questions to Consider
1. What needs to occur for Venezuela to be victorious against the revolution led by
Manuel Antonio Matos?
2. What impact will the blockade have on the Venezuelan economy? Will Venezuela
need to take a strong stand against the blockade?
3. Is there such a thing as a “pacific blockade”? Does a blockade innately involve a state
of war?
4. What are the advantages and disadvantages of engaging Germany militarily? Should
Venezuela adopt a different strategy in the years ahead?
5. What involvement should the United States have in settling the disputes between
Venezuela and Europe?
Guide to Research
This background guide should serve as a starting point for your research. It is important
to come prepared so that your time in committee will be more productive- and more
fun! Although there is a fair amount of literature on the Venezuelan Crisis, few
specifically address Venezuela’s participation. Delegates will need to be creative in their
research. I encourage delegates to look at the background guides of the other
committees and both primary and secondary sources. Here is a list of some resources I
recommend:
•
Gilmore, Robert. Caudillism and Militarism in Venezuela, 1810-1910. 1964.
•
Graham-Yooll, Andrew. Imperial Skirmishes: War and Gunboat Diplomacy in
Latin America. 2002.
•
Hill, Howard. Roosevelt and the Caribbean. 1927.
•
Hogan, Albert Edmond. Pacific Blockade. 1908.
•
Hood, Miriam. Gunboat Diplomacy 1895-1905: Great Power Pressure in
Venezuela. London: Allen & Unwin, 1975.
•
Mitchell, Nancy. The Height of the German Challenge: The Venezuela Blockade,
1902-1903. 1996.
•
Penfield, W.L. The Angl0-German Blockade of Venezuela. 1903.
Dossiers
Dear Delegates,
As you will notice in the following descriptions, many of the positions in
this committee lack extensive backgrounds. It simply the consequence of the
nature of our topic; few historians have written in-depth about early twentieth
century Venezuelan politics, so it is on us to write the history. Since little is
known about most of the positions in Cipriano Castro’s Advisory Council, we
request that you produce the background to your position. We ask that you
submit to Michael Treves ([email protected]) a 300-word background to
your position including information about your position’s upbringing, expertise,
connections in committee (if any), etc., at least one week before the first
committee session (March 19, 2014 by 5:00 pm).
Ramón Guerra – Minister of War and Navy
Ramón Guerra rose to prominence fighting alongside Joaquin Crespo in la
Revolución Queipa. When Crespo died in the Battle of Mata Carmelera, Guerra
replaced him as Commander of the First Military District and eventually defeated
the revolutionary leader José Manuel “Mocho” Hernandez. After putting down
the rebellion of Hernandez, Guerra ran for president of Miranda, but his desires
were thwarted when President Ignacio Andrade decided to reorganize
Venezuela’s larger states like Miranda. Defeated, Guerra fled to Colombia and
then to Curacao, but returned to Venezuela with the arrival of Cipriano Castro to
power. Under Castro, Guerra was appointed national delegate in Aragua,
Guarico, and Apure (in December 1899), commander of the First Military District
(August 1900) and deputy for the Guárico state (January 1901). Guerra has
served as Castro’s Minister of War and Navy since 1902.
Rafael López Barait – Minister of Home Affairs
Rafael López Barait has served as Cipriano Castro’s Minister of Home Affairs
since 1902. As Minister of Home Affairs, Barait is responsible for ensuring the
security of the state by protecting the stability and functionality of her
institutions. Barait also has promoted legal security of the population through the
bodies of the administration of justice and encouraged the efficient functioning of
resources by states.
Diego Bautista Ferrer – Minister of Outer Relations
Diego Bautista Ferrer has served as Cipriano Castro’s Minister of Outer Relations
since 1902. As Minister of Outer Relations, Ferrer is responsible for promoting,
organizing and planning policies outside of Venezuela.
Ramón Tello Mendoza – Minister of Finance
Ramón Tello Mendoza has been Cipriano Castro’s Minister of Finance since 1899.
As Minister of Finance, Mendoza is responsible for the economic stability of
Venezuela.
Rafael María Carabaño – Minister of Public Works
Rafael María Carabaño has served as Cipriano Castro’s Minister of Public Works
since 1902. As Minister of Public Works, Carabaño is responsible for basic
infrastructure throughout Venezuela.
Arnaldo Morales – Minister of Development
Arnaldo Morales has been Cipriano Castro’s Minister of Development since 1902.
As Minister of Development, Morales is responsible for scientific and
technological research.
Víctor Barret de Nazaris – Minister to the United States
Víctor Barret de Nazaris will be representing Venezuelan interests in
Washington, D.C., at the beginning of the Venezuelan Crisis. In an attempt to
avoid the subsequent blockade, Cipriano Castro requested that de Nazaris
arrange a loan with the Seligman Financial House of New York; however, Castro
did not succeed in getting the loan.
José Antonio Velutini Ron – Plenipotentiary Minister for Debt
Negotiation
Under the regime of Joaquin Crespo, José Antonio Velutini Ron was appointed
Commander in Chief of the Armies of the Republic. With the rise of Cipriano
Castro, Velutini Ron became the Minister of Home Affairs and Commander of
Government Forces in the early stages of la Revolución Libertadora. After the
victorious campaign of the Castro government against the rebels, Velutini Ron
became Plenipotentiary Minister for Debt Negotiations with various European
nations and a Venezuelan Ambassador in France and Britain.
Juan Vicente Gómez – Chief of Staff of the Army
Juan Vicente Gómez fought alongside Cipriano Castro during his rise to power.
In 1901, when National Constituent Assembly named Cipriano Castro the
Provisional President of Venezuela, the Assembly also named General Juan
Vicente Gómez Second Vice President. Gómez was Commander of the
Government Forces during la Revolución Libertadora. In this role, Gómez
defeated various regional warlords, including Luciano Mendoza, Antonio
Fernández, Luis Loreto Lima, and Nicolas Rolando.
Román Delgado Chalbaud – Commander-in-Chief of Venezuelan Navy
Román Delgado Chalbaud entered the Venezuelan Naval Academy at Puerto
Cabello, and by 1901 had obtained the rank of Captain. Delgado was Commander
in Chief of the Venezuelan Navy during la Revolución Libertadora, engaging with
the revolutionary ships fitted in Europe.
Rafael Ravard – Chairman of Municipal Council of Vargas
A state with a history of natural disasters, Vargas has suffered economically for
quite some time. Rafael Ravard, the most powerful executive in the state, has
spent his career building Vargas up as one of the most successful seaports in
South America.
Santiago Briscena – Governor of Sucre
One of the larger and more powerful coastal states in Venezuela, Sucre has always
been an economic powerhouse in Venezuela. Santiago Briscena, the governor
during the crisis, has built a reputation by putting himself and his state’s interest
first as far as his political objectives were concerned. Briscena has so far able to
successfully keep Sucre safe from any foreign incursion during the Crisis.
General Manuel Sarmiento – Governor of Guarico
An older Caudillo with a strong military background, Gen. Sarmiento is one of the
most outspoken hawks in Cipriano Castro’s government. He has struck
tremendous defeats to the Matos Revolution in eastern Venezuela, and at the
time of the crisis is mostly focused on finishing off the revolution to secure his
state’s borders.
General Guillermo Aranguren – Governor of Zulia
Amongst the closest of Cipriano Castro’s friends and allies, General Aranguren
received his post as Governor of Zulia following Castro’s ascension to the
presidency. During Matos’ revolution, his forces played a critical role in defeating
the western portion of Matos’ armies. Known for his hot-headed militaristic
attitude, the General, as he styles himself, is quick to anger and favors bold action
to put a decisive end to Matos’ revolution. He is tasked with the military
protection and economic expansion of Zulia.
Fernando López Vaquero – District Governor of Maracaibo City
A seasoned politician and diplomat, Vaquero ascended to power through the
favor of his mentor, the General Aranguren. Vaquero is charged with the
governance of the city of Maracaibo. A crucial economic port and a point of
entrance for foreign investment and culture, the port city finds itself at the center
of this unfolding crisis.
José Rafael Luque – Governor of Cojedes
José Rafael Luque is a career politician who has been in power as Governor of
Cojedes for many years. He strategically maintained neutrality throughout the
majority of Castro’s revolution and kept the violence in his state at a minimum.
Ever resourceful, when Castro’s victory seemed imminent, he was quick to
declare his loyalty to the new President.
HW Dean – New York and Bermudez
The Venezuelan representative of the New York and Bermudez banking company,
HW Dean has been with the company his whole life. The company sent him to
report on the state of Venezuelan affairs and to lobby on behalf of the American
company’s business interests in the region. His main task is to maintain an
independent Venezuela that is able to continue foreign investment and financial
interaction with the United States. Castro has asked him to serve on the council
because the President sees in him potential to become another American voice
defending Venezuela.
Ellis Grell – Orinoco Steam
The largest shipping company in the region, Orinoco’s interests have been
jeopardized by the blockade. The company sent Ellis Grell as a representative to
protect the Venezuelan interests of the Orinoco Steam company. Due to the
country’s economic importance and partnerships with the government’s
expanding efforts to consolidate economic and trade power, Castro has asked him
to sit on his advisory council.
Aquiles Iturbe – General
An experienced general, Iturbe loyally served Castro during his revolution.
Hailing from the coffee growing rural region from which Castro himself hails,
Iturbe specializes in land-based military operations in mountain regions.
Rafael González Pacheco – General
A young general anxious to prove himself, Pacheco has been given command of a
contingent of forces in Guarico. With Matos’ revolution still in full swing in that
particular region, Pacheco must work closely with the Governor of Guarico to
finish Matos once and for all.
Leopoldo Baptista – General
A general hailing from Aragua, Baptista is fighting the small reserve of troops left
from Matos’ revolution in the west. Concerned with a potential invasion, Baptista
is keen to solve the domestic crisis at hand and focus on the German crisis.
Pedro Araujo – General
Araujo is a seasoned general who participated in Castro’s limited campaign of
revenge against Colombia during the 1000 days war. Having been severely
injured and losing his arm in the conflict, Araujo is a cynical leader who leads
with a powerful cult of personality.
Eustoquio Gómez – General
Gomez is a young ambitious general recently assigned to a garrison in Carabobo.
Tasked with the defense of the region, Gomez must wage war against the vastly
more experienced Caudillo generals commanding Matos’ army in the region.
Federico Carmona – Owner of El Impulso
Venezuela’s oldest and most popular newspaper, El Impulso has in recent years
been working very closely with the Castro regime. The President himself invited
Carmona to serve on the council in hopes that he can be of help in dealing with
domestic issues that require a distinct need for political and journalistic tact.
Rafael Monserrate – Minister of Public Instruction
In light of Matos’ revolution, Castro created this position to assist in propaganda
and controlling political dissent amongst the caudillos and educated masses in
the cities.
Julio Torres Cárdenas – Secretary of Presidency
Castro’s longtime aide and political advisor, Julio Cardenas has loyally served
Castro for many years. Though he possesses no real executive power, Cardenas is
an expert on Venezuelan legislative matters.
Appendices
Appendix A: German Warships in Venezuela (1902)
Appendix B: Venezuelan Warships (1902)
Appendix C: American Cruisers and Gunboats
Appendix D: Major German Ships
Appendix E: Major American ships
Appendix F: World Manufacturing Production, 1880-1900
Great Britain
France
Germany
United States
1880 (%)
22.9
7.8
8.5
14.7
1900 (%)
18.5
6.8
13.2
23.6
Appendix G: Total Industrial Potential in Relative Perspective (Great Britain in 1900 =
100)
1880
73.3
25.1
27.4
46.9
Great Britain
France
Germany
United States
!
1900
100
36.8
71.2
127.8
Appendix H: German Trade with South America (1897) (in millions of Mark)
Country
Colombia
Venezuela
Chile
Argentina
Brazil
Uruguay/Paraguay
Peru
Ecuador
Mexico
Commerce and
Banking
Capital
Credits
20
50-60
114
200
180
42
25
3
70
60
50-60
80-90
160+?
50-60
50
50
6
20+?
Industry
12
67
20-30
6-7
40+
1-2
Land and
Plantations
2-3
10-12
45
200+?
30
13
Total
5.5
ca.25
100-120
28
28
over 200
100
ca.200
270-300
570-600
ca.350
ca.110
Guatemala/Nicaragua/Costa
Rica
35
60-70
45-50
100
240
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!
Virginia International Crisis Simulation
Hosted at the University of Virginia
March 26 to 29, 2015
International Relations Organization
P.O. Box 400435
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If you have any questions, please email VICS XX Secretary General Emma Myers at [email protected].