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Joint Commission (2)

In 1874, the U.S. chargé d'affaires pressured the government to resume payments that had been suspended the previous year. Guzmán Blanco responded that the suspension would remain in effect until the true creditors of the debts were clearly identified. For two years, the claims and pressure against Venezuela continued. In 1876, everything changed. David Talmage testified before the U.S. Congressional Committee on Foreign Relations about the influence peddling between the Legation Secretary, Murray, and the arbitrator, Nepomuceno Machado, to obtain favorable rulings. Thus, the Springer Committee was established to review the judgments detrimental to Venezuela. This committee petitioned Congress to annul the Joint Commission due to its fraudulent nature.

The U.S. government then decided not to distribute the funds deposited by Venezuela with the legation in Caracas until the claim was resolved. In 1877, Linares Alcántara assumed the presidency of Venezuela. The new government refused to recognize Russell, who had been expelled by Guzmán the previous year, as ambassador. The State Department replaced him with John Baker, and relations between the two countries were resumed. Regarding the claims, the U.S. Congress repealed the provision it had made in 1873 authorizing President Grant to use force to enforce payments. However, the State Department announced that the funds held at the legation would be distributed; Venezuela protested.

By 1880, with Guzmán Blanco back in power, the diplomatic struggle to overturn the rulings of the 1868 Commission continued. Simón Camacho was sent to Washington as chargé d'affaires and worked tirelessly to achieve the definitive annulment of the judgments. In 1882, a decisive result was achieved: the United States Congress declared the 1868 Commission null and void and proposed the creation of a new one to review the claims. This new commission was established in September 1889 and concluded its work at the end of 1890. During this time, the sum of Bs 980.570,60 was recognized, compared to the Bs 1.253.310 established by the previous commission. However, despite this legal and diplomatic victory, Venezuela lost the amounts paid to the fraudulent creditors between 68 and 1873.

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