Mr. Barrett to Mr.
Hay.
American Legation,
Panama, September 6,
1904.
No. 31.]
Sir: I have much pleasure in reporting that the
Government of Panama has finally accepted the suggestion submitted by me
to the minister for foreign affairs on August 9 (see my No. 14 of August
9) for the purposes of settling the differences which have arisen over
the port question, that negotiations should be begun for the protection
of the revenues of Panama, regulation of customs duties, and perfection
of reciprocal trade relations between Panama and the zone, as outlined
in sections 8 and 9 of the President’s order of June 24, 1904. * * *
I have, etc.,
[Inclosure 1.]
Mr. Barrett to
Mr. Arias.
American Legation,
Panama, August 31,
1904.
Mr. Minister: In your excellency’s esteemed
note of the 23d instant replying to my letter of the 16th, in which
I had the honor to cite a letter of Minister Bunau-Varilla to Mr.
Hay as practically clearing up the disputed question of the ports
and to suggest that we should proceed to negotiate an agreement
covering the revenues, customs laws, and trade relations of Panama
and the canal zone, as outlined in sections 8 and 9 of the
President’s order of June 24, you stated that you deemed it best to
await discussion of the main question in Washington before
continuing further the discussion in Panama.
Acting in accordance with this intimation, in due deference to the
desire of your excellency, and having in mind the import of our
informal conference, I cabled my Government the position taken by
the Panama Government.
I now have the honor to communicate to your excellency that I
received a telegram from my Government to the effect that it had
informed the minister of Panama in Washington that it was the wish
of the President of the United States that the discussion of the
question should take place in Panama. This telegram further states
that the minister of Panama was requested also to inform the Panama
Government that I had been instructed accordingly.
While my Government fully respects the suggestion made by your
excellency [Page 613] about
consideration of the question in Washington, and while it has, in a
spirit of perfect fairness, given careful heed to the
representations of Panama’s diplomatic representative in Washington,
it frankly believes that the best place for discussion is on the
ground where the actual interests of both Panama and the zone are
constantly before our eyes and where all the commission, except one,
are now present and ready to take whatever action is best, without
the long delay and consequent depletion of Panama’s revenues
incident to the discussion in Washington and the approaching
departure of the commission, which must pass upon any laws for the
zone.
I await your excellency’s pleasure, as suggested in my informal note
of this morning, in designating an hour when we can meet in
interview for the purpose of exchanging preliminary views along
lines intimated in my communication.
Accept, etc.,
[Inclosure 2.]
Mr. Arias to
Mr. Barrett.
Second Section,
Department of Foreign
Relations,
Panama, September 3,
1904.
Mr. Minister: I have received your
excellency’s esteemed note of the 31st of August, in which you
inform me that on the 30th of that month you received a telegram
from your Government in which the wish was expressed that the
discussion which has arisen regarding the application of some of the
stipulations of the Isthmian Ship Canal treaty may be settled in
this capital, as being the most suitable place on account of the
facilities here for arriving at a prompt solution. My Government
readily accepts the desire expressed by your excellency, and
prepares for the discussion.
I hope that your excellency will fix a convenient time and place to
talk over the matter and to exchange ideas respecting the subject
referred to in your excellency’s communication relating to customs
duties and the regulation of the same, and commercial relations
between the canal zone and Panama.
I should prefer that the exchange of these ideas, because of the
importance of the subject, be carried on in writing, and so I beg to
suggest to your excellency with the request that you favor me with
your views.
Etc.,
