Venezuela Claims. In 1902, due to civil strife and to gross mismanagement during the administration of Cipriano Castro, Venezuelan finances were chaotic. Great Britain, Germany, and Italy were determined to seek redress for unpaid loans and sent a joint naval expedition to the Venezuelan coast; seaports were blockaded and shelled by German and British vessels, and Venezuelan gunboats were captured. The matter was embarrassing to the United States because of the Monroe Doctrine. The powers, taking a conciliatory step, disclaimed territorial ambitions. Germany in particular had already brought its claims to U.S. attention. Theodore Roosevelt refused a request to act as arbitrator, but the United States worked toward an amicable settlement.

The claims were adjusted at Caracas in 1903, but further complications arose as to whether Venezuela should pay off the debts owed to the blockading powers before settling the claims of neutral nations; in 1904 the Hague Tribunal decided in favor of the blockading powers. The dispute became significant in international law because the scope of the Monroe Doctrine was not extended to include such cases as this; further, the heated resentment of other Spanish American nations over violation of the sovereignty of one of them resulted in the Drago Doctrine (see under Drago, Luis María).

Alabama claims, claims made by the U.S. government against Great Britain for the damage inflicted on Northern merchant ships during the American Civil War by the Alabama and other Confederate cruisers that had been built, fitted out, and otherwise aided by British interests. William H. Seward failed to reach a settlement while he was Secretary of State. However, his successor, Hamilton Fish, brought about the Treaty of Washington (1871), which provided for arbitration. Charles Francis Adams for the United States, Alexander J. E. Cockburn for Great Britain, and three members from neutral countries constituted the tribunal, which met at Geneva in 1871-72. The arbitrators threw out American claims for indirect losses, but they awarded the United States $15.5 million for all the direct damage done by the Alabama and the Florida and for most of the damage caused by the Shenandoah. The British were absolved of blame in the cases of several less important cruisers.

U.S. maritime grievances against Britain in the American Civil War. Although Britain had declared official neutrality in the war, it allowed the Confederate cruiser Alabama, which later destroyed 68 Union ships, to be constructed in England. U.S. ambassador Charles Francis Adams demanded that the British take responsibility for these damages, and he advocated arbitration to settle the matter. In May 1871 the parties signed the Treaty of Washington, which established certain wartime obligations of neutrals. The tribunal also held Britain liable for losses and awarded the U.S. damages of $15.5 million.

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