File No. 819.77/69.

The American Chargé d’Affaires to the Secretary of State .

No. 169.]

Sir: Referring to the Department’s telegraphic instruction of September 2, 8 p.m.,1 on the subject of the extension desired by Mr. Dziuk, the concessionary for the Darien Railroad, I have the honor to enclose herewith a copy of my note to the Panaman Foreign Office, of August 8, together with a copy and translation of the reply received from the Foreign Office of the same date.

It may throw some light upon the tone of this reply to say that I have ascertained that the Secretary of Foreign Relations was unaware of the fact that the Secretary of Fomento had taken up the [Page 1168] matter with Colonel Goethals; that he had made proposals to him for transmittal to the Secretary of War, and had given him to understand that he desired a definite answer to the question at issue.

There is no doubt that Mr. Dziuk has been extremely active in pressing not only the permission to extend the concession, but that the matter be definitely settled without further delay.

I am informed that the supposed reason for Mr. Dziuk urging the extension of the concession is that the German and English capitalists back of the Balboa and Pacific Estates Company declined to furnish him with sufficient funds to carry on the enterprise unless he would secure these extensions covering the entire eastern half of the Republic of Panama.

I have [etc.]

Wm. W. Andrews.
[Inclosure 1.]

The American Chargé d’Affaires to the Minister for Foreign Affairs .

No. 90.]

Excellency: Referring to previous correspondence with your excellency’s Government on the subject of railways in the Republic of Panama, I desire to bring to your excellency’s attention the subject of railway concessions in general in the Republic, and in particular, the proposed extension of the Dziuk railway concession from the headwaters of the Chucunaque River via Chepo to the Sandías River, which the American Government understands it to be the desire of the Panaman Government to grant.

These questions are of such importance as will make it unavoidable that a considerable further time be devoted to their investigation and consideration by the Government of the United States. The new ramifications of the railway plans under consideration introduce many new and important elements, creating a situtation materially different from that of last year.

All railway development in the Republic of Panama bears, potentially where not actually, a relation to the immensely important American interests created by the construction of the canal; and it is in order to properly safeguard these interests, while yet conforming to a just appreciation of the rights of the Republic of Panama, that abundant time must be employed in their consideration. The fundamentals of American and Panaman relations are involved in this matter of railway development.

Permit me therefore, excellency, to especially impress upon your attention that, meanwhile, it is most essential that the Government of Panama refrain from any further commitments.

Accept [etc.].

Wm. Whiting Andrews.
[Inclosure 2.]

The Minister for Foreign Affairs to the American Chargé d’Affaires .

Sir: I have the honor to refer to your important communication No. 90, of this same date, in relation to the construction of railroads in the Republic and especially to the concession granted to Mr. August Dziuk for the exploitation of one in the region of the Darien.

As you know, by the correspondence which I have had the honor to hold with you upon this same subject, the Government of Panama has not lost sight of its obligation to give the United States all the protection which it needs for the execution and preservation of the Canal.

[Page 1169]

Respecting the concession granted to Mr. Dzuik, the Government has not changed its conduct. It was agreed with the Honorable Henry L. Stimson, Secretary of War of the United States, to wait until the American Government should fully consider the question, and this has been done. In nothing, absolutely in nothing, has the status of this matter been changed, and I can assure you most emphatically that my Government will take no step tending to separate itself from the agreement.

But if this assurance and those which’ have been made previously in the same sense were not sufficient to tranquilize the American Government, permit me to suggest the advisability of indicating to us the form in which we can guarantee our promise. This would have, for us, the further advantage of allowing us to complete, immediately following, an agreement relative to the demarcation of the cities of Panama and Colon, which is at present at a standstill on this account

I will appreciate it if you will communicate the foregoing to your Government and inform me of its decision in respect thereto.

I have [etc.]

Federico Boyd.
  1. Not printed; it informed the Minister that the subject specified was being considered.