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Rh held by a ninety-nine years' lease; and that I did not intend to have another Kiauchau, held by similar tenure, on the approach to the Isthmian Canal. The Ambassador repeated that his government would not agree to arbitrate. I then asked him to inform his government that if no notification for arbitration came within a certain specified number of days I should be obliged to order Dewey to take his fleet to the Venezuelan coast and see that the German forces did not take possession of any territory. He expressed very grave concern, and asked me if I realized the serious consequences that would follow such action; consequences so serious to both countries that he dreaded to give them a name. I answered that I had thoroughly counted the cost before I decided on the step, and asked him to look at the map, as a glance would show him that there was no spot in the world where Germany in the event of a conflict with the United States would be at a greater disadvantage than in the Caribbean Sea.