File No. 819.74/6.
The American Minister to the Secretary of State.
Panama, December 26, 1911.
Sir: Supplementing my telegram of the 22d [21st?] instant, relative to the unwillingness of the Panaman Government to enter into an understanding with the American Government with a view to preventing the establishment in Panaman territory of wireless telegraph installations of a private and commercial character, I have the honor to report that upon the receipt of your telegram of the 16th instant I discussed this matter discreetly with Señor Boyd, Minister for Foreign Affairs, who immediately replied that he could inform me at once that if the American Government considered that the protection of the canal required such an understanding the Government of Panama was willing to enter into it. He only feared that it might hinder the commercial and agricultural development of the country, which was just beginning, especially if, as seemed possible, future improvements in wireless telegraphy rendered this system [Page 1210] more advantageous than cables and also convenient for local use. After some discussion, during which I expressed the belief that such an understanding would not operate unfavorably to Panama, in whose prosperity and development my Government was so deeply interested, Señor Boyd requested a couple of days to consider the matter. On the 22d [21st?] instant Señor Boyd made me his reply, as promised and as embodied substantially in my telegram referred to. In making this statement he also expressed to me the sincere wish of his Government to assist the American Government in every way possible in securing the adequate protection of the canal.
At the same time, in reply to my question, Señor Boyd informed me that the only wireless apparatus existing in Panama, except such as belonged to the United States, was a small apparatus purchased not long ago by the Panaman Government and established at Panama City for the purpose of communicating with ships in case of disaster and the wireless station of the United Fruit Company at Bocas del Toro.
Further, by the law of December 27, 1910 (Ley 36 de 1910), a contract had been entered into with the United Fruit Company by which this company agreed to establish “an office for wireless communication “(Paragraph a) at Colon for service with the station at Bocas. A copy and translation of this contract is enclosed,1 from which it will De noted that the company further agrees to establish this service within one year of the approval of the contract (December 27, 1910). The Government on its side cedes to the company the national land in Colon necessary for the installation of a wireless plant for the term of fifty years. The contract further includes an agreement as to tolls, the (government collecting and retaining the tolls on all messages sent from Colon to Bocas and the company doing the same with the tolls on messages sent from Bocas to Colon.
I have learned that the company has not as yet erected any wireless apparatus of its own at Colon, but has established and maintained a wireless service between these points by using the apparatus on its ships, when any are in port, and when none are there by having its messages (both its own and those taken in accordance with its contract) transmitted by the Naval wireless apparatus. From what I have learned through Captain Maxwell, U. S. N., who has recently arrived here on a mission from the Navy Department connected with the establishment of a powerful wireless station at Culebra, this arrangement appears to be satisfactory to our Naval officials, who in return secure from the United Fruit Company the transmission of their messages through the company’s stations at Bocas, Puerto Limon, and at other places.
As to why the company has never constructed any station of its own at Colon, it would seem that none of the Panaman Government lands at Colon were found suitable for the purpose. Moreover, the company apparently believes that the naval station will shortly be abandoned at Colon when the Culebra station is established, thus giving them an opportunity to acquire this site which is one of the only desirable ones apparently in this locality. I am confidentially informed by Captain Maxwell that the Navy Department will probably not give up this site.
[Page 1211]In this connection I may state that on the 24th instant Captain Maxwell kindly informed me that an agent of the United Fruit Co. had just called him up by telephone and requested an interview, which was urgent as he stated, because the company’s contract at Colon would expire on the 27th, presumably it would seem, on account of noncompliance with the terms of its contract requiring the establishment of a wireless station within the year, although from the wording of the contract this does not seem altogether clear. In view of this and of the possibility that some action might be taken by the Panaman Government at the request of the company which would be unfavorable to the understanding mentioned in your telegram of December 16, I took an early opportunity to mention the matter to Señor Boyd, who stated that, so far as he knew, the company had been fulfilling its contract although he was unaware that it had not constructed any wireless station at Colon. I then said that although in view of our recent conversations I thought it unnecessary to mention it, nevertheless I might say that I hope of course that his Government would do nothing to alter the status quo of the wireless telegraph situation without previously giving me an opportunity of communicating with my Government. Señor Boyd cordially agreed to this, adding that he would even go so far as to offer to rescind this contract if my Government desired it and saw any ground for so doing.
As yet the United Fruit Co. have apparently had no communication with the Panaman Government as to this matter, and it would seem unlikely that they will have any. It would also seem that they will not be able to establish a wireless station at Colon unless they are able to secure the present Naval station there.
I have [etc.]
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