File No. 2491/83.

The Acting Secretary of State to the Minister of Panama.

Sir: I have the honor now to reply to your note of July 30, in which you submit for my consideration an accompanying memorandum regarding boundaries between the Republics of Panama and Costa Rica with the object of terminating the existing controversy between the two Republics. Regretting the delay which has occurred in the consideration of the memorandum by the department, and in making due reply to your note, I desire to express my great satisfaction at the cordial attitude of Panama in accepting the good offices of this Government and in submitting to the Chief Justice of the United States, as sole arbitrator, the final decision of the question as to which of the two boundary lines between Panama and Costa Rica is the correct one.

I have informed the special minister of Costa Rica at this capital of the readiness of Panama to submit this question to arbitration, provided that Costa Rica formally agrees with the United States Government that the decision, whatever it be, shall be accepted by her as final, to which condition I thus necessarily understand that Panama on her part will also agree.

Mr. Anderson is about to sail for Costa Rica for a temporary absence, intending to return early in November, having engaged to sail from Boston on Thursday next, but is prepared to return to Washington at once, fully empowered, I understand, to carry out the cordial willingness which he also expresses on behalf of his Government to submit to the arbitration of Mr. Chief Justice Fuller by entering into the necessary agreements with the Government of Panama and with this Government.

If, then, you are empowered on behalf of the Government of Panama to complete and execute the necessary agreements at this time, I will so advise Mr. Anderson by telegraph to-day, and the matter may doubtless then proceed to this fortunate and happy conclusion within the next two days. If, however, it is the case that your present powers do not embrace full power to act in this [Page 797] matter, I shall await due advices from you as to when the negotiation may proceed to this final result, and venture to express the hope and the confidence that the formal and final attitude of Panama now will merely carry out her promptness and readiness heretofore.

I take this opportunity, sir, to express my admiration of the unequivocal proof which the Republic of Panama has furnished in this negotiation, of the spirit of justice which animates it, and of the respect which it has for the equitable principle of arbitration.

Accept, etc.,

Huntington Wilson.