Mr. Loomis to Mr. Russell.
Washington , May 18, 1904 .
You will immediately communicate the following to the Panaman Government and energetically urge prompt withdrawal of the request set forth in your cablegram of yesterday. Quote this to the Government:
Upon the faith of your agreement constituting J. P. Morgan & Co. fiscal agents of the Panaman Government to receive the entire consideration payable to the Panaman Government under the treaty, this Government has recognized such fiscal agents for such purpose, and has paid to them $1,000,000 on account. This Government can not see how, as between it and such fiscal agents, having recognized their authority, it can now repudiate that authority and refuse to pay the balance of the consideration. This Government does not intend to become involved in any question as between such fiscal agents and a commission appointed by the Panaman Government subsequent to the appointment and authorization of such fiscal agents, and for that reason and the foregoing ones desires at once to close the matter by payment to such fiscal agents here of the balance due, leaving the commission to deal directly with such fiscal agents upon its arrival.