Mr. Russell to Mr. Hay.

No. 88.]

Sir: I have the honor to inclose the translation of a note from the secretary of government to General Davis, in which note is set forth the views of the Panama Government in regard to the jurisdiction of the United States in the canal zone. This note came from the foreign office the day after the departure of the mail steamer and was suggested by General Davis in an interview he had with Mr. Arias, secretary of government.

I am, etc.,

William W. Russell.
[Inclosure.—Translation.]

Mr. Arias to General Davis.

General: In compliance with instructions from his excellency the President of the Republic I hasten to make to you the following statement: The Government of the Republic of Panama considers that upon the exchange of ratifications of the treaty for opening an interoceanic canal across the Isthmus of Panama its jurisdiction ceased over the zone and other lands necessary for the work and preservation of the same, more particularly described in Article II of said treaty; but it also thinks that the Government of the United States of America can not exercise real and effective jurisdiction over said lands until they have actually been delivered to it, for which purpose a previous delimitation of them is necessary. After the delimitation and delivery of said lands in any manner which may be agreed upon the jurisdiction of both countries is clearly bounded, thus preventing all sorts of difficulties which surely would arise if such a proceeding were not adopted. But in order not to interfere with the plans of the United States with regard to its jurisdiction over said, lands, the Government of Panama is willing to turn them over provisionally until commissioners are named to carry out the work of delimitation for a final delivery. Consequently the Government of Panama proposes to appoint the governors of the provinces of Panama and Colon, who, on the 1st day of June, for example, shall deliver to the representative of the Government of the United States the canal zone and other lands mentioned in Article II of the treaty; all this to be arranged and to be embodied in a formal public document to be signed by the representatives of both parties. And on the date agreed upon all the authorities and public employees in the service of the Republic in the canal zone shall cease to act, and they shall deliver up in accordance with a strict inventory to the governors the public archives and other documents pertaining to each office in order that these may be safely held until it be decided what shall be done with them. The delivery to be made in the following manner: To the governor of Panama, the archives, fixtures, etc., of the districts of Emperador and Gorgona; and those of the districts of Buena Vista and Gatun, to the governor of Colon. This succinct statement, I think, is made with due regard to the interests of both Governments, and I promise you that the suggestions contained therein shall be carried out with all the promptness and care which the case demands.

I offer you the assurance, etc.,

Thomas Arias.