known; but I believe that the Secretary of the Navy, and Admiral Dewey, and perhaps his Chief of Staff, and the Secretary of State, John Hay, were the only persons who knew about the order for the fleet to be ready to sail at an hour's notice. I told John Hay that I would now see the German Ambassador, Herr von Holleben, myself, and that I intended to bring matters to an early conclusion. Our navy was in very efficient condition, being superior to the German navy.
"I saw the Ambassador, and explained that in view of the presence of the German squadron on the Venezuelan coast I could not permit longer delay in answering my request for an arbitration, and that I could not acquiesce in any seizure of Venezuelan territory. The Ambassador responded that his Government could not agree to arbitrate, and that there was no intention to take "permanent" possession of Venezuelan territory. I answered that Kiau- chau was not a "permanent" possession of Germany's—that I understood that it was merely
