File No. 819.77/71.
The American Chargé d’Affaires to the Secretary of State.
Panama, September 12, 1911.
Sir: I have the honor to report that Mr. August Dziuk, concerning whom there has been considerable correspondence between the Department and this Legation in relation to the Balboa and Pacific Estates Company, Limited, and railway development in Panama, called upon me this morning and stated that he is leaving Saturday for Washington (en route to Germany) to interview the American Government with regard to his affairs and is considering opening an office in New York for the purpose of interesting American capital.
Mr. Dziuk asked for a letter of introduction for use at the Department. I suggested that he would naturally come to our Government with an introduction from his Embassy in Washington, but that I would give him a personal note of introduction, as he requested.
The exact composition of the body of capitalists which he represents is a little in doubt as it is given out that it is made up of English capitalists rather more than of German. Such introduction to our Government as he may receive through the German Embassy will probably make more clear his standing.
Mr. Dziuk asked for a map and showed me the exact original concession, explaining that the territory, which he himself had been the first white man to explore, was very rich in gold. He stated that he had met with no opposition in obtaining the concession covering this first area of country and to the railroads covered by that concession. When he pointed out the route of his proposed extension to or near Panama, I asked him why he sought this. He showed some embarrassment saying that his original concession was no good without this concession, and that the territory through which the proposed line would run was very fertile and rich.
Mr. Dziuk evidently was cognizant, from Panaman sources, of the real reasons why his projects are obnoxious to our Government; and I thought it well to state that the opposition he had met with was not because of his nationality but that it would be quite the same if he were of any other foreign nation, saying that the American Government, [Page 1170] realizing that the canal is not only a commercial but a military measure, naturally considers everything from that viewpoint, even looking far ahead into the future. I remarked that the American Government had no objections to himself as an individual.
In conclusion, I said to Mr. Dziuk that while I could not with propriety have suggested his going to Washington to see my Government, however, since he had himself determined on this course, I would say that I had no doubt it would prove more satisfactory to him to discuss his affairs at headquarters.
I have [etc.]