File No. 819.77/145.

The Secretary of State to the American Minister.


Your No. 298 of January 20, 1913. Subdivision D of Article 3 of the proposed general railway law would seem to include the annuity of $250,000 shortly to become payable to the Panaman Government by the United States and the income on the $6,000,000 invested in New York. The Department’s position as to the first of these matters has already been made clear to the Legation in its telegram of May 31, 1912.1 Concerning the second, the Department feels that it is a matter which should be most carefully considered and decided only after consultation between the two Governments. The Department would therefore object to the passage of the law as it now stands and believes that an addition to paragraph D should be included so as to except the annuity and the principal and interest of the money invested in New York. You will earnestly lay this matter personally before the President, and point out that the Department could not consent to appear to be bound by any law such as this if it were to pass, and would be obliged to make formal representations to the Government of Panama concerning it.