File No. 819.77/142.

The American Minister to the Secretary of State.

No. 291.]

Sir: Referring to previous correspondence2 on the subject of the proposed railway from Panama City to David, I have the honor to enclose herewith a copy, as well as a translation which I have made, of a draft for a new law1 for the construction of this railway, which [Page 1095] has just been sent to me by Señor Arango, Secretary to President Porras. In an accompanying letter Señor Arango states that he sends this copy by direction of President Porras “as a proof of his deference towards me” (“como una prueba de deferencia hacia su persona”) and adds that it will soon be submitted to the National Assembly.

It will be noted that this proposed law is for the construction of the Panama-David Railway either as a whole or in sections and re-enacts practically the whole of Law 2 of 1911 under which the recent attempts to construct this line have been made. Under the provisions of this law the contract in question could be granted to a foreign person or corporation.

The construction of this line was advocated by Dr. Porras in his electoral programme and has also been advocated by him since his election.

While adding that I shall keep the Department fully informed regarding this project,

I have [etc.].

H. Percival Dodge.