File No. 5747/6–7.

Minister Squiers to the Secretary of State.

No. 220.]

Sir: I have the honor to inform the department that in a conversation this morning with Mr. Arias, secretary of state for foreign affairs, he requested me to suggest to the department that I be instructed [Page 671] to take up with him the question of the appointment of the fifth person, or umpire, of the commission, according to the provisions of Articles VI and XV of the treaty of November 18, 1903, between the United States and the Republic of Panama.

He stated in support of his suggestion that the lands of Panamans have been expropriated in the construction of the canal, but that claims for compensation still remain unpaid. The effort made last year by the commission to settle the claims had failed, as at that time the fifth member, or umpire, had not been appointed. He also said that the claimants in certain cases were much in need of the money, and he hoped that the American Government would take action according to the provisions of Article XV, with a view to a speedy settlement.

He further said that his Government was willing to accept an American citizen residing on the Isthmus, but gave me no information of just who he had in mind.

I have, etc.,

H. G. Squiers.