File No. 819.77/1100.
The American Minister to the Secretary of State.
Panama , February 22, 1913 .
Upon receipt of Department’s February 17, I requested interview with the President and at request of Minister for Foreign Affairs sent him paraphrase of Department’s telegram. I was not able to obtain interview until this afternoon when Panaman President stated that law in question had passed Assembly February 17 (see my telegrams of February 7 and February 12) and been signed by him February 18, after the receipt of my paraphrase, as he could not then properly modify it Panaman President expressed surprise at Department’s objections in view of telegram from Valdes1 of 12th stating that Department had no objection to pledge of interest on six millions. With some vexation Panaman President insisted that doctrine that the United States had any right to control employment of annuity and six millions was new and declared that these moneys belonged to Panama to use as she pleased. He considered the six millions should be kept invested. Nevertheless if the United States desired he would agree not to use annuity or interest of six millions for railway construction which would thus probably become impossible for want of funds although Panama needed railways greatly for her development which the United States seemed not really to desire. In reply I explained Department’s views as to Panaman finance and railways in the sense of instructions 89, September 20, 1911, and 42, April 8, 1912. Panaman President stated he would send me statement in writing as to attitude of Panaman Government.
- Minister of Panama to the United States.↩