Mr. Barrett to Mr.
Hay.
American Legation,
Panama, August 9,
1904.
No. 14.]
Sir: There has been no particular change in the
situation here since my No. 10 of August 2 was written.
The pursuance of a sincerely friendly attitude toward the Panama
Government on my part, coupled with the transmission of your cabled
instructions of August 2, has tended to allay official and public
excitement, until now there is general confidence in a settlement
acceptable to both countries.
* * * * * * *
I have to-day made my first direct proposal looking to a basis of
settlement and inclose a copy of my communication thereon to the
minister for foreign affairs. It would seem to me that we can make
concessions in accordance with sections 8 and 9 of the President’s order
of June 24, that will offset what Panama contends she is losing in the
establishment of the Port of Ancon.
On account of the hope of an early understanding the Panama minister for
foreign affairs has asked that there be no formal signing of a “modus
Vivendi” as written in my No. 9 of August 2, but that I accept his oral
assurance that Panama will not interfere with the existing status
pending final settlement. To avoid further discussion of a secondary
point I have agreed to this intimation.
As a matter of record I beg to inclose copies, respectively, of my
letters to the minister for foreign affairs and his reply thereto in
regard to your cabled instructions of August 2.
I have, etc.,
[Inclosure 1.]
Mr. Barrett to
Mr. Arias.
American Legation,
Panama, August 3,
1904.
Mr. Minister: I have the honor to inform
your excellency that I have received cabled directions from my
Government to assure your excellency’s Government that the United
States will do nothing inconsistent with the honor and true
interests of both republics, and that it desires to assist and
uphold Panama in every proper way. My Government further desires me
to state that no permanent policy will be adopted at this time
without the fullest consultation with Panama.
As my Government also telegraphs me that this assurance was given
Monday to the minister of Panama in Washington, it is probable that
your excellency’s Government has already been acquainted by him with
the purport of what I have communicated to you above.
In informing your excellency of this instruction, it gives me
profound pleasure
[Page 596]
to
remind you that, no matter how certain acts of the canal zone
authorities may have been construed by the Panama Government, there
has never been the slightest intention of my Government to swerve
from an honorable and just interpretation of the treaty. I desire
also to call your excellency’s esteemed attention to the fact that
the spirit and thought of these instructions are in absolute accord
with the methods and words I have had and shall have the honor to
employ in discussing with your excellency all questions at issue
between the two governments. At the same time I have impartially
imparted to my Government the representations you have submitted to
me.
In conclusion I beg to express the hope that your excellency will
early communicate to me your readiness to sign the “modus Vivendi”
now under consideration on the port question, so that the way be
entirely cleared for calm and thorough consideration of the main
issue.
I, etc.,
[Inclosure
2.—Translation.]
Mr. Arias to
Mr. Barrett.
Department of Foreign Relations,
Panama, August 5, 1904.
Mr. Minister: I have before me the
important note of the 3d instant, in which your excellency informs
me that cabled instructions have been received from your Government
with the assurance to my Government that the United States will do
nothing incompatible with the honor and true interests of both
republics, and the desire of the United States to help and sustain
Panama by all possible correct means.
Your excellency, besides communicating the above, makes other
manifestations, all converging to bring to the understanding of my
Government the intimate persuasion of the sincere offers of your
excellency in connection with the honorable and just interpretation
of the treaty of November 18, 1903, which offers serve to make
stronger the high conception of the United States held by the
undersigned.
Welcome in the highest degree to my Government are the clear
manifestations of your excellency, inasmuch as they foretell the
facile settlement of the difficulties which have arisen, and they
augur conciliation of the interests of both states.
I take this opportunity to express to your excellency that a
cablegram has been received from the diplomatic functionary of the
Republic at Washington, in which it is communicated that his
excellency the President of the United States will send instructions
to your excellency and to Rear-Admiral Walker to bring about the
solution, in this capital, of the questions arising over the
application of article 2 of the treaty. I beg, then, that your
excellency will kindly inform me if, subsequent to your note which I
now acknowledge, your excellency has received these instructions, so
as to begin and to finish as soon as possible the discussion of an
affair of such great and transcendental importance to the interests
of the republics.
Very soon I shall have the pleasure to treat with your excellency
with respect to the projected “modus vivendi.”
[Inclosure 3.]
Mr. Barrett to
Señor Arias.
American Legation,
Panama, August 9,
1904.
Mr. Minister: I have the honor to
acknowledge the receipt, yesterday, of your excellency’s esteemed
note bearing date of August 5, in which you courteously discuss
certain points in my note which you consider to need rectification
in order to fix their true meaning.
[Page 597]
As I think I understand your lucid exposition of these points, and as
there is no reason therefore for further comment thereon, I will
simply express the hope that we may soon be able to reach an
interpretation of the treaty that will be mutually acceptable.
In this connection I first beg to call your excellency’s kind and
thoughtful attention to two sections of the original order of the
President of the United States, dated June 24, 1904, as follows:
- Sec. 8. The governor of the
Canal Zone is authorized to enter and carry out an agreement
with the President of the Republic of Panama for cooperation
between the customs service of the Canal Zone and that of
the Republic of Panama to protect the customs revenues of
both governments and to prevent fraud and smuggling.
- Sec. 9. The governor of the
Canal Zone is hereby authorized to enter upon negotiations
and make a tentative agreement with the President of the
Republic of Panama respecting reciprocal trade relations
between the territory and inhabitants of the Canal Zone and
appurtenant territory and the Republic of Panama; also a
readjustment of customs duties and tariff regulations so as
to secure uniformity of rates and privileges and avoid the
disadvantages resulting from different schedules, duties,
and administrative measures in limited territory subject to
the same conditions and not separated by natural obstacles.
The governor shall report as to such negotiation and
proposed agreement to the chairman of the Isthmian Canal
Commission, for submission and consideration by the
Commission and such action by competent authority as may be
necessary to render said agreement effective in the Canal
Zone.
These two sections were not embodied in the President’s order as
published in Panama by Governor Davis, because he thought it best
that they should not be made public until their purport and
possibilities were fully discussed with the Panama Government.
Various conditions and the difference of opinion as to the
establishment and administration of the Port of Ancon interfered to
prevent his taking up these provisions with your excellency.
By considering them carefully your excellency will at once note that
they are most liberal in suggestion and scope. They show clearly
that the United States Government desires to respect the true
interests of Panama and to assist and uphold it in every proper way.
They provide for a protection of the fiscal and economic system of
your excellency’s government which may open the way to a
satisfactory adjustment of the main issue between the two
governments.
Now that the distinguished chairman of the Canal Commission and a
majority of his colleagues are in Panama, it should be possible to
reach an agreement mutually agreeable to all concerned. And I may
add, Mr. Minister, that you will find me always ready to do
everything in my power to assist in bringing about such an agreement
and understanding.
I take, etc.,
