Having no wish to flout their huge neighbor to the northward, the Hispanic nations at large hastened to acknowledge the independence of the new republic, despite the indignation that prevailed in press and public over what was regarded as an act of despoilment. In view of the resentful attitude of Colombia and mindful also of the opinion of many Americans that a gross injustice had been committed, the United States eventually offered terms of settlement. It agreed to express regret for the ill feeling between the two countries which had arisen out of the Panama incident, provided that such expression were made mutual; and, as a species of indemnity, it agreed to pay for canal rights to be acquired in Colombian territory and for the lease of certain islands as naval stations. But neither the terms nor the amount of the compensation proved acceptable. Instead, Colombia urged that the whole matter be referred to the judgment of the tribunal at The Hague. Alluding to the use made of the liberties won in the struggle for emancipation from Spain by the native land of Miranda, Bolivar, and Sucre, on the part of the country which had been in the vanguard of the fight for freedom from a foreign yoke, a writer of Venezuela once declared that it had not elected legally a single President; had not put democratic ideas or institutions into practice; had lived wholly under dictatorships; had neglected public instruction; and had set up a large number of oppressive commercial monopolies, including the navigation of rivers, the coastwise trade, the pearl fisheries, and the sale of tobacco, salt, sugar, liquor, matches, explosives, butter, grease, cement, shoes, meat, and flour. Exaggerated as the indictment is and applicable also, though in less degree, to some of the other backward countries of Hispanic America, it contains unfortunately a large measure of truth. Indeed, so far as Venezuela itself is concerned, this critic might have added that every time a "restorer," "regenerator," or "liberator" succumbed there, the old craze for federalism again broke out and menaced the nation with piecemeal destruction. Obedient, furthermore, to the whims of a presidential despot, Venezuela perpetrated more outrages on foreigners and created more international friction after 1899 than any other land in Spanish America had ever done. While the formidable Guzman Blanco was still alive, the various Presidents acted cautiously. No sooner had he passed away than disorder broke out afresh. Since a new dictator thought he needed a longer term of office and divers other administrative advantages, a constitution incorporating them was framed and published in the due and customary manner. This had hardly gone into operation when, in 1895, a contest arose with Great Britain about the boundaries between Venezuela and British Guiana. Under pressure from the United States, however, the matter was referred to arbitration, and Venezuela came out substantially the loser.