File No. 819.77/111.

The American Minister to the Secretary of State .

No. 96.]

Sir: Referring to my dispatches No. 30 of December 22 and No. 391 of December 80 last, relative to a draft contract between Señor Arosemena, Minister of Public Works, and Messrs. J. N. Hyatt. H. G. Prescott, and R. Wilcox for the construction of a section of the [Page 1199] Panamá-David railway, which draft I stated the Panaman Government desired to execute, provided the Department of State had no objection to offer to it, I have the honor to inclose herewith a copy and translation of a note, dated the 21st instant, which I have received from Señor Chiari, Minister for Foreign Affairs. In this note Señor Chiari refers to Señor Arosemena having furnished mo with a copy of this contract with a request that I might transmit it to my Government for its consideration (inclosed in Dispatch No. 30 above referred to) and requests that, as no reply has as yet been received from my Government, I will obtain an expression of its opinion in view of the interest of this matter to the country and of the passing of the proper time for starting it.

There would seem to be a fairly considerable desire in the Western provinces and in Panama City for the construction of this railway and a “plank” advocating this has been included in the recently issued programme of the Porrista party. One of the charges made against President Arosemena and his party has also been their lack of real interest in this project which it is well known President Arosemena opposed at first. It seems very likely that President Arosemena’s desire to expedite the signing of this contract is at least partly to offset these charges and so assist the party’s new candidate, Don Pedro Diaz.

I have [etc.]

H. Percival Dodge.
[Inclosure.—Translation.]

The Minister for Foreign Affairs to the American Minister .

No. 914.[

Mr. Minister: In January last, Messrs. Hyatt, Prescott and Wilcox submitted to the Department of Fomento for consideration a draft contract for the construction of a part of the railroad from Panama to David, which starting from the port of Aguadulce should end in the city of Santiago. This project had the approval of this office, but the contract therefor was not entered into, in consideration of the suggestions made by the Department of State of the United States in regard to the advisabiliy for Panama of not entering into arrangements of this sort without previous detailed study by your excellency’s Government.

According to information furnished to me by the Secretary of Fomento, he submitted for the consideration of your excellency the project of Messrs. Hyatt, Prescott and Wilcox, with the request that it be transmitted to the Department of State for consideration and that he be advised of the result.

As no advices have thus far been received in regard to this matter, which is of great interest for the nation, and as the proper time for the starting of the work is passing, I will greatly appreciate it if your excellency will be good enough to obtain from your Government an expression of its opinion on the projected contract referred to.

The construction of a railroad which will unite the towns mentioned is a work of great possibilities for the future of the country and its agricultural development, since this is made an easy outlet for the products of the provinces of Codé, Los Santos and Veraguas. Its cost will not be a burden for the Republic, as it is only an experiment which is within the limits of our economic possibilities.

In view of these circumstances, it is to be hoped that the said undertaking will be acceptable to your excellency’s Government, which takes such interest in our welfare.

I am [etc.]

Eduardo Chiari.
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