Mr. Barrett to Mr. Hay.
Panama , August 2, 1904 .
Sir: I have the honor to report good progress in my efforts to relieve the tension of the port question and to calm both official and public opinion in Panama. To-night the situation is very different from one week ago. As a result of the arrangement or a modus vivendi between the minister for foreign affairs on the one hand and Governor Davis and myself on the other, and of my assurance to the former that the United States would deal in entire fairness and justice with Panama, together with the changed tone of the local press, due to frank talks I have held with the editors, there is a readiness to await the final settlement of the issue that was lacking a few days ago.[Page 595]
When I communicate to-morrow to the minister for foreign affairs the sentiments expressed in the Department’s telegram received this afternoon, I am confident that the returning good feeling will be further strengthened.
I have, etc,