File No. 15778/75.

Minister Squiers to the Secretary of State.

[Telegram—Paraphrase.]

Referring to instruction No. 189, of June 24, Mr. Squiers says he has received from the foreign office a reply to his note No. 233, copy of which he forwarded to the department with his No. 517, of July 10, in which the Government of Panama expresses a desire to postpone further consideration and investigation of the case of May 10 last, as the person charged with the murder of Abbott is awaiting trial in the Zone courts. Mr. Squiers says the note contains a general reiteration of the previous denial of facts as presented by the United States, offers no new facts or evidence of any kind, declines to apologize or pay an indemnity, offers no assurance as to police reform or guarantee against a recurrence of like incidents, and suggests “that the mixed commission created by Article VI, of the Hay-Bunau Varilla treaty, composed of two American citizens and two Panama citizens, whose patriotism can not be doubted, can at their next meeting decide the two incidents of the Buffalo and the Columbia, availing themselves only in rendering their decision of the respective records made up to the present time by both Governments. If a tribunal of the character mentioned decides that the Republic of Panama shall pay the indemnities mentioned by your excellency my Government will comply with pleasure with whatever is set forth in the judgment.” Mr. Squiers says the note further states that “if through the means suggested by your excellency, or by reason of pressure, Panama satisfies the wishes of your excellency as set forth in your excellency’s above-mentioned note the material triumph thus gained by the American Government will be prejudicial to the great interests which bind you to this Continent and with the Latin race.”

Mr. Squiers says if the United States insists upon its demands he requests explicit instructions as to the amount of indemnity to be demanded in each case, and suggests that all members of the national police who were present on either occasion be dismissed by presidential decree, setting forth fully the reason for said dismissal. Says he is verbally advised by the minister for foreign affairs that at a cabinet meeting the day before it was decided to request that an officer of the United States Army be detailed for duty as inspector and instructor of the national police.