Washixoton, Aug. 18.- ïhe cable rejort from Lunilon that Lord Salisbury has vielded to Secretary Olney on the crucial oint of the Venezuela n negotiatlons, that of ineluding the settled portioii9 of the lisputed tract in the proposed arbitratiou, is regarded as an important development by those interested in the subject. This inclusión of the "settled districts" las been the chief obtacle in the way of irbitration, so that if the report of lts renoval is confirmed the two governments appear to be nearer to an amlcable agreenent than at any timo since the trouble legan, Lord Salisbury has insisced from the first that this was sbvereign British ■OU, which could not be subjected to the udgmeut of arbitrators Woull Defeat Arbitration. Seeretary Olney has urged that tl0 imissiou of this settled portion froni arbitratlon would defeat the whola scope of he arb tration, as the unsettled or worthess sections were not what Venezuela lontended lor. The latest view of this }hase was prosented in a brief by Mr. Storrow, a lawyer of Boston, of whose ibility Mr. Üluey has a high opinión. The Storrow brief was laid before the Venezuelan coniuiission as a part of the Venezuela case, but aside from this it is known that its line of argument was similar to that taken by the secretary of state. Mr. Storrow pointed out that the "settled district" was in fact but little settled; that the number.of British colonists there was comparatively insigniflcant; that their "improvements," on which Lord Salisbury had laid much stress, were of the most meager and primitive kind, and that the whole money value of existing British settlemeuts, houses, improvements, etc, would be a comparatively small suin. The Point Is Couceded. From this the conclusión was drawn thut these so-called settled districts should not stand in the way of the adjustment of so large a question. There has been no intimation that this view was shared by the British authorities uutil the cable dispatches stiting that on what is believed to be the inspired authority of the Bradford Obs -rver that the point was conceded byLoid Salisbury. The further suggestion is made that cash payment will be made for the iniDrovements of the British settlers. in case Venezuela is awarded the territory, bat no reference is made as to who will pay the indemnity, although it is construed here to mean that Great Britain will mollify those of her subjects who are dispossessed.