File No. 819.77/154.
The American Minister to
the Secretary of State.
[Extract]
No. 314.]
American Legation,
Panama,
February 7, 1913.
Sir: Referring to my despatch No. 310 of the
30th ultimo, and to my telegram of February 7, I have the honor to
enclose a copy and translation of a note from Señor Lefevre, Minister
for Foreign Affairs, dated January 31, 1913. This note is in reply to
mine of the 21st ultimo, referred to in my despatch No. 310.
In a conversation last evening with Señor Lefevre, he mentioned this
note, casually intimating the opinion that the only ground upon which
the United States could properly object to this bill was in case it
violated the provisions of Article V of the Canal Treaty. In reply I
expressed my surprise to Señor Lefevre and briefly mentioned other
possible and proper grounds of objection, referring him to the
Department’s instruction No. 89 of September 20, 1911,1 of which a [Page 1098] copy had formerly been
furnished to his office under instructions from the Department.
I also enclose, with a translation, a clipping from the “Gaceta Oficial”
of the 30th ultimo, which appeared several days later, giving the text
of President Porras message to the Assembly which accompanied,
evidently, the former of these railway bills. The message states that
the principal reason for the failure of Law 2 of 1911, authorizing the
Executive to contract for the construction of the Panama-David railway,
was the limitation to ten million dollars gold of the loan which the
Executive was authorized to contract for this purpose, this sum being
too small.
I have [etc.]
[Inclosure 1—Translation.]
The Minister for Foreign
Affairs to the American
Minister.
Foreign Office,
Panama,
January 31, 1913.
Mr. Minister: In reply to your
excellency’s esteemed communication No. 295 of the 21st instant, I
have the honor to inform your excellency that “the project of law
relative to the construction of railways and the authorization of
the Executive Power to contract a loan,” was submitted to the
consideration of the honorable National Assembly on the 14th of the
present month. Nevertheless, as a mark of courtesy to the Government
of the United States, the project in question will not be debated on
second reading before the second week of February.
I avail of this opportunity to inform your excellency that the
branches of the railway to David, which are mentioned in the project
in question, will be constructed in the Province of Los Santos and
on the Pacific slope of the Province of Chiriqui; and none of them
will affect in any way the rights acquired by the United States
under the Canal Treaty, signed between the Republic of Panama and
the United States.
I avail [etc.]
[Inclosure 2—Translation.]
Message of the President of
Panama to the Congress.
Honorable Deputies: Law 2 of 1911, of
January 2, relative to the construction of a railway from Panama to
David, with branches to the Provinces of Los Santos and the town of
Anton, remains ineffective, as you know, because the call for public
bids for these works which the Government was obliged to make within
two months after its approval according to the provisions of Art. 1
of this law gave no results.
And as the construction of this railway is of incalculable benefit
for the country and especially for the Provinces which the main line
and branches will cross, I consider that the proposal of putting
into effect this important project should be insisted upon,
endeavoring to suppress in the new law to be passed the obstacles
and inconveniences which impeded the effective accomplishment of the
former law.
On this account I request the Honorable Assembly, if it thinks
proper, to confer upon the Executive as wide powers as possible to
construct the railway to David, Los Santos and Anton either through
the Government itself or by contract, all together or in sections,
endeavoring always to attain the quickest completion of the whole
work relatively to the resources which the country can dispose
of.
It is reasonable to suppose that one of the most serious obstacles,
if not the principal one, which prevented the execution of Law 2 of
1911 was the one relative to the authority given to the Executive
for contracting a loan up to [Page 1099] the sum of ten million balboas for the cost
of works so difficult and valuable as are those of the railway in
question. Careful and prior studies show that an undertaking of such
size and technical difficulty cannot be completed with only ten
million balboas; and on this account it is indispensable to enlarge
the power of contracting the loan up to the amount which may be
indispensable for the conclusion of the railway, under the same
securities and terms as are contained in the law concerning this
matter.
The Executive will begin this colossal work, so advantageous for the
Republic of Panama, as soon as it is fully authorized to contract
the loan and to secure the construction of these railways either
altogether or in sections which will be connected together as soon
as the resources of the country allow.
In order to secure these results I place before you Honorable
Deputies the accompanying project for a law.
Panama, January 14, 1913.
The President of the Republic,
Belisario Porras.
The Secretary for Public Works,
R. F. Acevedo.
