United Kingdom–Venezuela relations

United Kingdom–Venezuela relations are the bilateral relations between the United Kingdom and Venezuela since 1821 when so-called "British Legions" of former British soldiers fought to defend the Second Republic of Venezuela against Spanish royalists in the Venezuelan War of Independence.

Background
Early contact with the area known today as Venezuela began in the 16th century with the limited expeditionary forces of Elizabeth I's privateers, most famously in the search for the mythical city of El Dorado. Until the early modern period British maritime activity, exploration and trade was limited to these skirmishes in the Caribbean such as the Battle of San Juan de Ulúa (1568), which would lead to the Anglo-Spanish War (1585–1604) and other successive Anglo-Spanish wars in the area.

Throughout colonial period, British naval vessels in times of war, occasional privateers – and in times of peace British and colonial pirates, outlaws, at risk of execution by neutral parties – harassed the wealthy Spanish authorities in Venezuela by plundering their ships, cities and ports. In times of peace private trade ships from both empires brought mutually needed goods or slaves.

In 1728, the Royal Guipuzcoan Company of Caracas was founded and boosted commerce with the Province of Venezuela thru the harbours facilities of La Guaira and Puerto Cabello. Thanks to the profit the company generated, the Basque provinces underwent some urban reforms and improvements in the trade and manufacture of cocoa. This period of wealth and development was to last up to the end of 18th century.

By the 18th century the British began to become interested in the South American continent due to these trade and naval rivalries with Spain, with the British fighting Spain over a War of the Austrian Succession. La Guaira was the first military scene in the War of Jenkins' Ear on October 22, 1739, when it was attacked by 3 ships from the Royal navy expedition of Admiral Edward Vernon. At the orders of Captain Thomas Waterhouse bombarded the defenses and tried to take the three ships of the Royal Guipuzcoan Company, but the warned people on land launched close fire. After three hours of heavy shelling, Waterhouse ordered a withdrawal. The battered British squadron sailed to Jamaica to undertake emergency repairs. Trying later to explain his actions, Waterhouse argued that the capture of a few small Spanish vessels would not have justified the loss of his men.

The Royal Gipuzkoan Company, whose ships had rendered great assistance to the Spanish navy during the failed siege of Cartagena de Indias in carrying troops, arms, stores and ammunition from Spain to her colonies, and its destruction would be a severe blow both to the Company and the Spanish Government. In 1743 a Royal Navy fleet under Sir Charles Knowles was defeated at La Guaira where 600 men were killed by the defenders, among whom was the captain of HMS Burford (1722), and many of the ships were badly damaged or lost. Knowles was therefore unable to proceed to Borburata until he had refitted at Curacao before attempting an assault on Puerto Cabello on 15 April, and again on 24 April, but both assaults were again beaten back. Knowles called off the expedition and returned to Jamaica.

The expedition ended in failure resulting in their defeat in the War of Jenkins' Ear (1739 to 1748), lead to the British withdrawing to focus naval efforts on their North American wars (1775–1783) and resulting in the Anglo-Spanish War in the Americas (1779–1783).

In 1777 the provinces of Venezuela were separated from the Viceroyalty of New Granada by King Charles III and assigned to the Captaincy General of Venezuela as part of the Bourbon reforms. In addition to these core areas, the territory included parts of the Viceroyalty as Guyana, Trinidad and Tobago, Maracaibo, southwestern Suriname, parts of northwestern Brazil. It opened Venezuelan ports to foreign commerce of cocoa, sugar, indigo and tobacco, but this recognized a fait accompli. Like no other Spanish American dependency, Venezuela had more contacts with Europe through the British, Dutch and French islands in the Caribbean. In an almost surreptitious, though legal, manner, Caracas had become an intellectual powerhouse. From 1721, it had its own university, which taught Latin, medicine, and engineering, apart from the humanities. Its most illustrious graduate, Andrés Bello, became the greatest Spanish American polymath of his time. In Chacao, a town to the east of Caracas, there flourished a school of music whose director José Ángel Lamas produced a few but impressive compositions according with the strictest 18th-century European canons. Later on, the development of the education system is one of the reasons why distribution began to improve.

British maritime activity in the late XVIII century became more aggressive and began actively gaining Trinidad island a province of Captain General of Venezuela Spanish until 1797, to enable greater British mercantile trade in the area. At the time, they also furthered their interest against Spain, (see the Black Legend).

At that time London and British West Indies being a prime choice for exiled individuals to temporarily reside in is that Britain was quite happy to support them and see the Spanish Empire weaken as the British Empire continued to grow across the world. General Francisco de Miranda a Venezuelan-born, spent fourteen years of his life as a political exile in the British capitol. Originally a member of the Spanish Navy, he made a decision to help free Latin America after witnessing the American War of Independence and French Revolution. De Miranda was a close ally of British Prime Minister William Pitt, and after several meetings between the two Pitt pledged money from the British government to help Latin America in their wars of independence.

19th century
The Treaty of Amiens temporarily ended hostilities between France, the Spanish Empire, and the United Kingdom at the end of the War of the Second Coalition. It marked the end of the French Revolutionary Wars; after a short peace it set the stage for the Napoleonic Wars.

In the treat of Amiens signed in 1802 was established in the Article III that the Britannic majesty restores to the French republic and its allies his Catholic majesty of Spain and the Batavian republic, all the possessions and colonies which respectively belonged to them, and which have been either occupied or conquered by the British forces, during the course of the present war, with the exception of the island of Trinidad, and of the Dutch possessions on the island of Ceylon. Article IV. His Catholic majesty of Spain cedes and guarantees, in full property and sovereignty, the island of Trinidad to his Britannic majesty.

After Napoleonic Invasion of Spain in 1808 looking to gain independence, the Venezuelan Junta formed in Caracas by 1810 was the first Junta to engage in diplomacy to gain ties to Great Britain. In June 1810 Simon Bolivar travelled to London with Luis Lopez Mendez and Andrés Bello to explain why the Junta of Caracas broke relations with the Spanish Monarchy; to the British Foreign Office undersecretary Richard Wellesley; seeking British naval and diplomatic protection, however the Spanish ambassador on the grounds Bolivar had at the time no diplomatic capacity to demand self-rule, engaged the British Foreign Office to turn Bolivar away. Bolivar instead returned to Venezuela and his entourage stayed behind in Somers Town, London, and in the following years did not gain further in their activities due to the fluctuation and instability of the parties and states they represented. Their case was also not helped by how in-flux the first statehoods of Venezuela were also viewed by the British as being too unstable to consider offering support to.

War of Independence
By 1814, the United Provinces of New Granada and Venezuela sent José Maria del Real as an envoy to London for British support against Spanish military intervention, but as part of a long delay tactics on Britains part due to the defeat of Napoleon at Waterloo and the return of Fernando VII's restoration, Britain did not immediately recognise the new states representatives, denying requests for British assistance against Spanish attack by the Spanish General Pablo Morillo in 1815. Cartagena de Indias, under siege of Spanish fleet, even declared itself a British dominion, but was denied the request eventually falling back under Spanish control by 1816. However Bolivar, exiled in Jamaica in 1815, wrote from Kingston to Richard Wellesley, asking for military support against Spain, yet this was ignored based on the foreign policy of the British Foreign secretary Viscount Castlereagh who was aiming to keep the peace amongst the French, Spanish and European powers following a fine tightrope which British foreign policy makers walked in regards to South America after the close of the Napoleonic wars, culminating in the 1814–1815 Grand Alliance at Congress of Vienna, under which France supported Spain keeping its American colonies, and thus Britain supporting Spanish rule in the Americas. However around this time Lopez Mendez had begun recruiting what became the British Legions, over 7,000 ex-military Irish and Englishmen who had been dismissed after the Napoleonic wars ended; who went on to fight for Venezuelan and Colombian Independence from Spanish rule.

The British Government on paper however were still in support of Spain in official channels, apart from a number of liberal politicians, but British public favour went with Colombian and Venezuelan patriots and favored pressuring government to open new trade markets with these newly formed Spanish American countries in 1817 and 1818 as United Provinces of River Plate and Chile and the Gran Colombia proclaimed through the Fundamental Law of the Republic of Colombia, issued in 1819 during the Congress of Angostura, but did not come into being until the Congress of Cúcuta (1821) promulgated the Constitution of Cúcuta.

Of Bolívar's force in the Battle of Carabobo, of 6,500 or 8,000, between 340 or 350 were men of the British Rangers battalion, the great majority of them of Irish origin, commanded by Colonel Thomas Ilderton Ferrier and including many former members of the King's German Legion. Though greatly outnumbered and low on supplies, the legion soldiers managed to maintain control of tactically critical hills. By the battle's end, the legionary force had suffered 119 deaths, of which 11 were officers. Col. Ferrier was among the dead. Bolívar later praised the Legion troops and called them the "Saviors of my Fatherland", noting that they had distinguished themselves among other armies. In October 1821, Francisco Antonio Zea was appointed by Bolivar as special diplomatic agent of Colombia to Europe and United States. In London he negotiated loans of financial creditors Herring & Richardson and gained recognition of his new country only from the United States. A year later he ambassador Zea dies in Bath, and a large amount of British private investment is made in the new state of Colombia. Jose Rafael Revenga as substitute of Zea as Minister Plenipotentiary of Colombia in London, negotiated Great Britain's recognition of Colombia as an independent country. With the independence of several Spanish colonies such as Mexico and Peru between 1817 – 1821 by 1822 at the Congress of Verona, the Foreign Secretary Castlereagh shifted position to favour Colombian independence, after the accession of British interest to the Western Question, due to the fluctuating relations with regards to the French Empire and its interests and power relations with the Spanish Empire.

In August 1822, Castlereagh committed suicide. Instead of going to India, George Canning succeeded him as both Foreign Secretary and Leader of the House of Commons. He continued many of Castlereagh's foreign policies, such as the view that the powers of Europe should not be allowed to meddle in the affairs of other states. He also prevented the United States from opening trade with the British West Indies.

In his second term of office, he sought to prevent South America from coming into the French sphere of influence, and in this he was successful. He helped guarantee the independence of Brazil and the Spanish colonies, thereby acting in support of the Monroe Doctrine.

The Latin Americans received a certain amount of unofficial aid – arms and volunteers – from outside, but no outside official help at any stage from Britain or any other power. Britain refused to aid Spain and opposed any outside intervention on behalf of Spain by other powers. Royal Navy veterans were a decisive factor in the struggle for independence of certain Latin American countries.

Formal diplomatic relations
After he success of Bolivarian diplomacy with the signing of the United States-Colombia Trade agreement in 1822 formal relations were established with the Treaty of Friendship, Commerce and Navigation Between Colombia and the United Kingdom. The two countries established diplomatic relations on March 1823 and John Potter Hamilton ESP was appointed as Secretary of Legation in Santafe de Bogota. In September the Bolivar army invaded Peru at request of Lima authorities to defeat the rests of the Spanish forces located in the Andean mountains under Viceroy Laserna. Thomas Edward Rowcroft the first British diplomatic representative in Peru arrived in Lima as consul general in 1824, At this time, Lima was temporarily in the hands of the royalists after the order of evacuation dictated by Bolivar who fled to North. Conditions in the city were awful. However, shortly after Rowcroft's arrival, Bolívar returned to Lima from the interior after the Battle of Junin and the Spanish retreated to Castle of Real Felipe under siege of Bolivar army. Rowcroft decided to go to Callao, the port of Lima, to deliver letters to HMS Cambridge (1815) under Captain Thomas James Maling and arranged for a safe pass through the royalist lines. On the return from his visit he handed in his safe pass but, as his coach left the outpost, it was struck by a hail of bullets. Rowcroft was wounded in the hand and the torso and died on 7 December 1824 at the home of a British merchant. There is now little doubt that Rowcroft was accidentally shot by the Independents under Simon Bolivar. It is said that the royalist officer who gave him the safe pass had, unbeknownst to Rowcroft, written a death sentence on it.

After the victory of General Sucre at battle of Ayacucho on 9 December 1824, the Gran Colombia was recognised formally by United Kingdom in 1 of January of 1825 when Jose Rafael Revenga the first minister from a Latin American state, Colombia, was officially received in London. "Spanish America is free," Canning declared, "and if we do not mismanage our affairs she is English ... the New World established and if we do not throw it away, ours." In 1825 the London stock market crashes the reinstatement of the gold standard entailed a contraction of the money supply and a tightening of bank lending which made it difficult for merchants to raise capital. Bankruptcies increased significantly during the remainder of 1825 and nearly doubled in 1826. reducing the already small number of private brokers willing to invest in what is now considered as a risky financial investment.

By granting recognition to Argentina, Colombia, Mexico and Brazil Canning brought these new states into the European system of trade and diplomacy, while blocking further colonization. Recognition was greeted with enthusiasm throughout Latin America. Canning was the first British Foreign Secretary to devote a large proportion of his time and energies to the affairs of Latin America (as well as to those of Spain and Portugal) and to foresee the important political and economic role the Latin American states would one day play in the world.

Congress of Panama
The Congress of Panama (also referred to as the Amphictyonic Congress, in homage to the Amphictyonic League of Ancient Greece) was a congress organized by Simón Bolívar in 1826 with the goal of bringing together the new republics of Latin America to develop a unified policy towards the repudiated mother country Spain. Held in Panama City from 22 June to 15 July, it proposed creating a league of American republics, with a common military, a mutual defense pact, and a supranational parliamentary assembly.

Simón Bolívar agreed to invite two European countries as observers, because of the commercial interests they had in Latin America: the United Kingdom and the Netherlands. The invitation to the British government sought to stimulate assistance from Argentina and Chile, which had their main trading partner in that country. The United Kingdom accepted the proposal and sent an observer, Edward James Dawkins, but with precise orders from Minister George Canning: limit themselves to seeking trade agreements and dissuade Greater Colombia and Mexico from supporting expeditions to the islands of Cuba or Puerto Rico to make them independent of Spain.

José Fernández Madrid was named ambassador to the United Kingdom by Bolívar on November 23, 1826 He was still in Paris when the government urged him to move to London as fast as possible. On 12 December 1826, in the House of Commons, Canning was given an opportunity to defend the policies he had adopted towards France, Spain and Spanish America, and declared: "I resolved that if France had Spain it should not be Spain with the Indies. I called the New World into existence to redress the balance of the Old." The ambassador Fernández Madrid arrived on April 30, 1827.

Assassination attempt
On the night of September 25, 1827 about twelve civilians and twenty-five soldiers led by Pedro Carujo broke into the Presidential Palace (Palacio de San Carlos) and killed the guards. They then searched for the president Bolívar's room. Manuela Sáenz, who was with Bolívar that night, woke him up. Upon learning of the attack, Bolívar grabbed his pistol and sword and tried to open the door, but Manuela convinced him to escape through the window.

Bolívar sent to find out the situation in the barracks while he was under a bridge all night. Bolívar managed to jump out of the window while Manuela entertained and engaged the conspirators. The result of this conspiracy was the death of Colonel William Ferguson, an English aide-de-camp of Bolivar army, the injury of young Andrés Ibarra, and a concussion from a blow to the forehead received by the rescuer of the illustrious Caracas native. The freed slave José Palacios (butler) carried the newly saved from death to a safe place. Vargas's battalion led by Colonel Whittle contributed to the failure of the conspiracy. Finally, it was up to Generals Rafael Urdaneta and José María Córdova to put an end to the plot, control the situation in the capital and imprison those involved in this sinister attack.

In 1831 the Gran Colombia was dissolved due to the political differences that existed between supporters of federalism and centralism, as well as regional tensions among the peoples that made up the republic. It broke into the successor states of Colombia, Ecuador, and Venezuela. Since Gran Colombia's territory corresponded more or less to the original jurisdiction of the former Viceroyalty of New Granada, it also claimed the Caribbean coast of Nicaragua, the Mosquito Coast, as well as most of Esequibo river. The Republic of Venezuela began to outline a foreign policy favouring relations with Britain, which became one of the main buyers of Venezuela raw materials and one of the major sources of investment in the country. By mid century, London bankers were sending in capital, to invest in railways, docks, cattle farms, mines and utilities. London sent in 800 agents to handle shipping, insurance, and banking. In 1830, economic ties between Britain and Venezuela increased substantially. Britain’s textile exports to Venezuela grew by 9.4% yearly between 1817 and 1874. Nearly 8 percent of Britain’s capital outflows between 1865 and 1914 went to Venezuela; this was similar to the British capital outflow to India.

Copper mines of Aroa
In 1824 Bolivar leased his copper mines of Aroa to British entrepreneurs. According to some sources his aim was to help finance the struggle for independence from Spain. Captain Joseph Malachy sailed from Plymouth in March 1825 to take up his position as agent and resident director of the Bolivar Mining Association at the Aroa copper mines. Malachy was given the huge salary of £1,200, compared to the typical salary of about £300 for a mine manager in Cornwall. The British employed about 1,200 workers in the mines, including British and Venezuelans. They used the Aroa River to carry the ore by barge to the coast, where it was loaded onto ships.

In 1832 Bolivar's sisters Juana and Maria Antonia sold the mines to Robert Dent, an Englishman who owned the Bolívar Mining Association. In the 1830s Cornishmen in the reduction department of the Aroa mines made significant advances in methods of calcinating the copper ore. However, the company closed the mines in 1836 due to high mortality among the European workers and tensions with the native workers. The Bolívar Mining Association was succeeded by companies such as the Quebrada Land Mining Company, Quebrada Railway Land and Copper Company Limited, Aroa Mines Limited and Bolívar Railway Company Limited.

Attempt of Annex territory to British Empire
In 1841, Venezuela denounced an incursion by the Royal Navy into its territory. In October 1846, information arrived that the British Empire intended to annex Cumaná and Barcelona provinces and form a Republic with the Island of Trinidad and British Guiana.

Wait and Quit Law affair
The president José Tadeo Monagas modified the Wait and Quit Law, affecting foreign investments in Venezuela. In 1850, warships from the British West Indies fleet arrived in the country, accompanied by a Dutch frigate demanding that the damage caused to their countrymen be repaired as a result of the law, under the threat of blocking the ports of La Guaira and Puerto Cabello if said grievances were not paid. After 6 months of naval blockade, the government agreed to sign an agreement where the State agreed to assume responsibility for the debts.

The Urrutia Protocol Crisis
The Urrutia Protocol was an official document signed on March 26, 1858 at the Government House of Venezuela, located in the city of Caracas. It was signed by the Secretary of Foreign Affairs of Venezuela Wenceslao Urrutia and the diplomatic representatives to the Venezuelan government of United Kingdom, France, United States, Brazil, the Netherlands and Spain, in order to agree on measures for the peaceful departure from the country of the overthrown president José Tadeo Monagas, who was asylum in the French Legation and requested to be exiled, but feared for his life. The signing of the document meant the beginning of serious diplomatic conflicts between the signatory countries, especially France and the United Kingdom that threatened to carry out a naval blockade on the Venezuelan coasts until the stipulations were fulfilled. Fermín Toro, who occupied the position left by Urrutia, was in charge of ensuring that the agreement was fulfilled. The conflict generated with the signing of that agreement is also known as the Urrutia Protocol.

El Callao gold rush
The gold mine at El Callao started in 1871 located at West of the Essequibo River, was for a time one of the richest in the world, and the goldfields as a whole saw over a million ounces exported between 1860 and 1883. The gold mining was dominated by immigrants from the British Isles and the British West Indies, giving an appearance of almost creating an English colony on Venezuelan territory. The real number of inhabitants may be five times higher than the official one, which is around 25.000. This is due to gold mines in the area and diamonds in nearby rivers. Guasipati was decreed capital of the newly formed Federal Territory of Yuruary, and during the 30 years that followed the discovery of the gold veins of El Callao, the area of waterlogged gold prospectors that came to Guayana to request the granting of solid rock concessions.

One of the most outstanding facts was that in 1876, this population prepared and witnessed the first soccer game in Venezuela. El Callao and some neighboring towns such as Guasipati, Tumeremo, El Dorado, Kavanayen and Santa Elena de Uairen are the areas with more foreign languages in Venezuela, due to the great migration of foreigners who settled in search of gold. The strongest established languages were the English, the French and the Portuguese, with the lowest influence being Dutch.

Venezuelan crisis of 1895
Following the establishment of Gran Colombia in 1819, territorial disputes at west or Essequibo river began between Gran Colombia, later Venezuela, and the British. In 1822 José Rafael Revenga, Minister Plenipotentiary of Gran Colombia to Britain, complained to the British government at the direction of Simón Bolívar about the presence of British settlers in territory claimed by Venezuela: "The colonists of Demerara and Berbice have usurped a large portion of land, which according to recent treaties between Spain and Holland, belongs to our country at the west of Essequibo River. It is absolutely essential that these settlers be put under the jurisdiction and obedience to our laws, or be withdrawn to their former possessions."

In 1825 the Colombian ambassador José Manuel Hurtado in London officially presented to the British government a claim to the border at the Essequibo River, which was not objected to by Britain. However, the British government continued to promote colonisation of territory west of the Essequibo River in succeeding years. In 1831, Britain merged the former Dutch territories of Berbice, Demerara, and Essequibo into a single colony, British Guiana.

During the late 19th century, Britain refused to include in the proposed international arbitration the disputed territory with Venezuela east of the "Schomburgk Line", which a surveyor had drawn half-a-century earlier as a boundary between Venezuela and the former Dutch territory of British Guiana. In October 1886, Britain declared the line to be the provisional frontier of British Guiana, and in February 1887 Venezuela severed diplomatic relations. Proposals for a renewal of relations and settlement of the dispute failed repeatedly, and by summer 1894, diplomatic relations had been severed for seven years. In addition, both sides had established police or military stations at key points in the area, partly to defend claims to the Caratal and Omai goldfields of the region's Yuruani river basin, which was within Venezuelan territory but claimed by the British. The mine at El Callao, started in 1871, was dominated by immigrants from the British Isles and the British West Indies, giving an appearance of almost creating a British colony on Venezuelan territory. The dispute ultimately saw Britain accept the United States mediation to force arbitration of the entire dispute territory, and tacitly accept the US right to intervene under the Monroe Doctrine. A tribunal convened in Paris in 1898 to decide the matter, and in 1899 awarded the bulk of the disputed territory to British Guiana.

Restorative Liberal Revolution
In 1899 Cipriano Castro had come to power after winning another civil war, the Restorative Liberal Revolution, in which he overthrew the constitutional president Ignacio Andrade, establishing a government called the Restaurador. Since then, the new government dedicated itself to initiating a centralist project, canceling the external debt, modernizing the armed forces and allied itself with the most influential caudillos in the country, but thereby weakening many others. To do this, he used the system of alliances created by Antonio Guzmán Blanco to impose central government officials in each of the country's regions. Given this, many caudillos found themselves in the dilemma of, on the one hand, supporting the uprising or risking being isolated and without power for these reforms.

The Asphalt war
The Liberating Revolution was a civil war in Venezuela between 1901 and 1903 in which a coalition of regional caudillos led by the banker Manuel Antonio Matos tried to overthrow the government of president Cipriano Castro.

The revolutionaries were financed by Caracas bankers such as the Matos, Boulton, Lobo and Velutini who had been harassed by President Castro, who forced them under threat of imprisonment to lend money to the government. Previously in 1899 the government had put higher taxes on the asphalt revenues by exports of the New York & Bermudez Company; in response the company supported politically the opposing side under Matos Revolution. Throughout 1901 Castro managed to put down insurrections produced in the states of Bermúdez and Bolívar led by Pablo Guzmán, Horacio and Alejandro Dúcharne, Zoilo Vidal and others. The political crisis escalated and culminated in the "Asphalt War" as called by the press in the world. The conflict becomes internationalized with the invasion of Táchira state by a Colombian offensive in San Cristóbal led by Venezuelan General Carlos Rangel Garbiras, in retaliation for Castro's support for the liberal rebels of Rafael Uribe Uribe in the context of the War of the Thousand Days.

In October 1901 the General Rafael Montilla (El Tigre de Guaitó) rebels in Lara State, but it will finally be in December that the armed revolution breaks out throughout the country. First, it is the veteran Liberal General Luciano Mendoza who raises Aragua and Carabobo baptizing the movement as the Liberating Revolution that was formed by the various regional caudillos, each with the ability to mobilize and arm masses of peasants in montoneras. Castro reacted immediately and increased the number of troops of the so-called Active Army, also buying modern weapons and a large number of warships and transport.

The main leader of the uprising, the banker Manuel Antonio Matos, planned and directed the initial operations from Port Of Spain capital of the island of Trinidad under British rule, managing to convince several local warlords dissatisfied with the government to join the fight. In addition, several foreign-owned companies operating in Venezuela were dissatisfied and had been engaged in litigation with different governments dating back almost to the beginning of their activities in Venezuela. The French Cable Company, the German Rail, the British Rail, the New York & Bermúdez Company, and the Orinoco Shipping, among others, had given Matos $150,000 to buy the ship Ban Righ in London. In December 1901, the international intrigue against President Castro had begun when the German Chancellor Theodor Von Holleben sent a detailed report to the US Secretary of State, John Hay, detailing a debt of Venezuela with the bank "Disconto Gesellschaft" for 33 million bolívares, which the Venezuelan government refuses to recognize. For his part, Matos had armed the ship "Ban Righ" in London, which he renamed "The Libertador", as well bought weapons and ammunition. Finally, in January 1902, he set sail from the Port of Spain (Trinidad) and, circumventing the surveillance of the national army, Matos landed near Coro, at which time the civil war spread throughout the country.

Matos also had a large, heavily armed rebel army with which he was able to seize large territories. By July 1902, only the Miranda, Aragua, and Carabobo states in the center of the country remained in the power of the Castro government; and those of Trujillo, Zulia, Mérida and Táchira in the west. Many battles were fought, the most important was the siege of La Victoria in November 1902, Castro with 9,500 men tried to stop the advance of 14,000 of the revolutionaries who tried to take Caracas by force. Despite the disadvantage, Castro had extremely important military resources, Mauser repeating rifles and rapid-fire Krupp cannons, the first in the country, with which his men obtained greater firepower to break the siege. After a month of combat, the rebels defeated by Castro divided due to internal differences, which in the long run were the cause of their failure because the Castro government took advantage of their division to defeat each caudillo separately, reconquering the territory they had won. Even so, some active rebel pockets remained, mainly General Nicolás Rolando in central and eastern Venezuela. The remaining rebel forces were hunted down and progressively dismantled by Juan Vicente Gómez, disarming the revolution.

Naval blockade of the Venezuelan ports 1902–1903
With the defeat of the Revolution in La Victoria, international capital decided to move from opposing operations to direct intervention, and in this way they began to strangle the national economy. The culminating point was the naval blockade of the Venezuelan ports, on 9 December 1902., by German, English and Italian warships, under the pretext of forcing the government to fulfill debt commitments, especially that contracted for the construction of the railway network by German and British companies. Faced with the violence of the military actions that plunged the country into a serious international crisis, the rebels took advantage of the precarious situation of the government and on 29 December 1902, Amábilis Solagnie and Luciano Mendoza attacked the government positions in Caja de Agua, near Barquisimeto, where they expelled the troops of Leopoldo Baptista and González Pacheco. President Castro requests the intervention of President Roosevelt of the United States as a mediator in compliance with the Monroe Doctrine forcing the withdrawal of European ships according to the Washington Protocol signed on 13 February 1903.

Britain was involved in the Venezuelan crisis on 7 December 1902, both London and Berlin issued ultimatums to Venezuelan government of Cipriano Castro, even though there was still disagreement about whether to impose a pacific blockade (as the Germans wanted) or a war blockade (as the British wanted). Germany ultimately agreed to a war blockade, and after receiving no reply to their ultimatums, an unofficial naval blockade was imposed on 9 December with SMS Panther, SMS Falke, SMS Gazelle and SMS Vineta as major Kaiserliche Marine warships in Caribbean Sea. On 11 December, Italy offered its own ultimatum, which Venezuela also rejected. Venezuela maintained that its national laws were final,and said "the so-named foreign debt ought not to be and never had been a matter of discussion beyond the legal guaranties found in the law of Venezuela on the public debt". The German naval contingent followed the Royal Navy lead in operational terms with eight warships to block the Venezuelan coast. The British ships of the Particular Service Squadron under Commodore Robert Montgomerie included the sloop HMS Alert and the protected cruiser HMS Charybdis. An Italian naval contingent arrived in support of the blockade on 16 December. On 21 January the German cruiser SMS Vineta bombarded the fort San Carlos de La Barra, destroying it with the death of 25 civilians in the nearby town]. The action had not been approved by the British commander, who had been told by Admiralty after the incident of 13 December not to engage in such action without consulting London; the message was not passed to the German commander, who had been told previously to follow the British commander's lead. The incident caused "considerable negative reaction in the United States against Germany"; the Germans said that the Venezuelans fired first, which the British concurred with but declared the bombardment "unfortunate and inopportune" nonetheless.

After agreeing to arbitration under pressure of US Navy and Roosevelt administration, Britain, Germany, and Italy reached a settlement with Venezuela on 13 February 1903 resulting in the Washington Protocols. Venezuela was represented by the U.S. Ambassador to Caracas Herbert W. Bowen. Venezuela's debts had been very large relative to its income. The agreement reduced the outstanding claims by Bs150m, and created a payment plan taking into account the country's income. However, the blockading nations argued for preferential treatment for their claims, which Venezuela rejected, and on 7 May 1903 a total of ten powers with grievances against Venezuela, including the United States, signed protocols referring the issue to the Permanent Court of Arbitration in The Hague.

The Asphat War epilogue
In March 1903, President Castro sent a strong naval and land contingent under the command of the Vicepresident Juan Vicente Gómez to subdue Rolando's forces entrenched in Ciudad Bolívar on the right bank of the Orinoco River. After a long naval siege that led to the landing of troops and the bloody battle of Ciudad Bolívar, General Rolando surrendered along with his staff on 21 July 1903. signaling the official end of the civil war. With most of the caudillos defeated and his revolution practically extinct, Matos decided to go abroad, leaving for Curaçao, establishing himself in Paris.

The defeat of the Liberating Revolution marked the end of the Venezuelan XIX century characterized by political instability and fights between caudillos, where the method of coming to power was through armed rebellion, and the end of the time of the great Venezuelan civil wars, giving way to a stage of consolidation of the central government under the hegemony of the Andeans, but not before confronting, as never before a Venezuelan president had done, with modern foreign powers.

The Hague International Court held on 22 February 1904 that the blockading powers of Venezuela were entitled to preferential treatment in the payment of their claims. The Theodore Roosevelt administration disagreed with the decision in principle,and feared it would encourage future European intervention to gain such advantage.

The crisis produced the Roosevelt Corollary to the Monroe Doctrine, described in president Roosevelt's 1904 message to Congress.The Corollary asserted a right of the United States to intervene to "stabilize" the economic affairs of small states in the Caribbean and Central America if they were unable to pay their international debts, in order to preclude European intervention to do so. The Venezuela crisis, and in particular the arbitral award, were key in the development of the Corollary.

The so-called Liberal Restoration Army was institutionalized, becoming an effective and professional National Army in charge of the security of the entire Venezuelan territory. The Navy, so devastated by the naval blockade of 1902, began a long process of modernization and incorporation of units into the fleet.

The conflict even led to a temporary interruption in the diplomatic relations with France in 1907 and the United States in 1908, after president Castro had expropriated the French Cable Company and the New York & Bermudez Company.

Venezuela oil boom
Despite the knowledge of the existence of oil reserves in Venezuela for centuries, the first oil wells of significance were not drilled until the early 1910s. In 1908, Juan Vicente Gómez replaced his ailing predecessor, Cipriano Castro, as the president of Venezuela. Over the next few years, Gómez granted several concessions to explore, produce, and refine oil. Most of these oil concessions were granted to his closest friends, and they in turn passed them on to foreign oil companies that could actually develop them. One such concession was granted to Rafael Max Valladares who hired Caribbean Petroleum Company (later acquired by Royal Dutch Shell) to carry out his oil exploration project. On 15 April 1914, upon the completion of the Zumaque-I (now called MG-I) oil well, the first Venezuelan oilfield of importance, Mene Grande, was discovered by Caribbean Petroleum in the Maracaibo Basin. This major discovery encouraged a massive wave of foreign oil companies to Venezuela in an attempt to gain a foothold in the burgeoning market.

From 1914 to 1917, several more oil fields were discovered across the country including the emblematic Bolivar Coastal Field; however World War I slowed significant development of the industry. Due to the difficulty in purchasing and transporting the necessary tools and machinery, some oil companies were forced to forego drilling until after the war. By the end of 1917, the first refining operations began at the San Lorenzo refinery to process the Mene Grande field production, and the first significant exports of Venezuelan oil by Caribbean Petroleum left from the San Lorenzo terminal. By the end of 1918, petroleum appeared for the first time on the Venezuelan export statistics at 21,194 metric tons.

It was the blowout of the Barroso No. 2 well drilled by Venezuela Oil Concessions in Cabimas in 1922 that marked the beginning of Venezuela's modern history as a major producer. This discovery captured the attention of the nation and the world. Soon dozens of foreign companies acquired vast tracts of territory in the hope of striking it rich as British Controlled Oil Fields, Colon Development Company, Equatorial Fields and the Americans Exxon, Chevron, Texaco, Gulf, Sinclair and others. By 1928 Venezuela became the world's leading oil exporter and the second producer after United States. Oil ended Venezuela's relative anonymity in the eyes of world powers, making it a linchpin of an ever-expanding international oil industry and a new consideration in global policymaking. By the end of the 1930s, Venezuela had become the third-leading oil producer in the world, behind the United States and the Soviet Union, as well as the leading exporter.

Geneva Agreement of 1966
The status of the Essequibo territory became subject to the Geneva Agreement, which was signed by the United Kingdom, Venezuela and British Guiana on 17 February 1966. This treaty stipulates that the parties will agree to find a practical, peaceful and satisfactory solution to the dispute. Disputes over the territory have continued since, even after Guyana was granted independence the same year.

Falklands War
Although in the 20th century both countries were mostly on good terms, Venezuela expressed its support to Argentina over the Falklands Islands dispute that eventually led to the Falklands War between the United Kingdom and Argentina in 1982.

Venezuelan presidential crisis
As of August 2017, the British Government advised against 'all but essential travel' to Venezuela, and withdrew dependents of British Embassy staff, due to the 'ongoing unrest and instability', citing the protests and crime in the country.

In January 2019 during a visit to the United States, UK Foreign Secretary Jeremy Hunt stated that "Nicolás Maduro is not the legitimate leader of Venezuela" and Venezuelan opposition leader Juan Guaidó should become President of Venezuela. On 4 February 2019, Hunt stated that the UK officially recognised Guaidó as president. However the United Kingdom continued to maintain consular and diplomatic relations with the Maduro controlled government, suggesting some ambiguity. This policy is a partial exception to the UK's long held policy of recognising states rather than specific governments.

In Autumn 2019 the Foreign and Commonwealth Office created the 'Venezuela Reconstruction Unit' led by John Saville, formerly UK ambassador to Venezuela, to coordinate a UK effort to support Venezuela. After this became public in May 2020, Venezuelan Foreign Minister Jorge Arreaza summoned the UK's Chargé d'Affaires "to present a formal protest and demand explanations", and in a Twitter post wrote "We demand that the United Kingdom of Great Britain and Northern Ireland withdraw from Washington's coup plans and from any destabilizing initiative". Venezuela characterised the Venezuela Reconstruction Unit as an attempt to give future preferred status to British companies in Venezuela.

Control of gold in London
Since 2018, the Bank of England has delayed releasing 31 tonnes of Venezuelan gold to the Maduro government. UK foreign office minister Alan Duncan said in January 2019 that while the disposition of the gold was a Bank of England decision, "they will take into account there are now a large number of countries across the world questioning the legitimacy of Nicolás Maduro and recognising that of Juan Guaidó.".

On 14 May 2020, the Central Bank of Venezuela filed a legal action against the Bank of England, to force Britain to release the €930m worth of gold to the United Nations Development Programme to buy healthcare equipment, medicine, and food for the COVID-19 pandemic in Venezuela. Guaidó has appointed a parallel Venezuelan central bank board of directors, so the court will have to decide which board of directors legally controls the gold. In July 2020 the High Court ruled that Guaidó was interim president, but the Court of Appeal ruled in October 2020 that the British Foreign Secretary's statement on recognition was ambiguous, clarified the legal importance of the distinction between de jure president and de facto president, and returned the case to the High Court for reconsideration.

Resident diplomatic missions

 * United Kingdom has an embassy in Caracas.
 * Venezuela has an embassy and a consulate-general in London.