File No. 819.77/162.
The American Minister to
the Secretary of State.
No. 372.]
American Legation,
Panama,
March 22, 1913.
Sir: Referring to my despatch No. 341 of
February 24 last, I have the honor to inform you that I have not yet
received the statement which, as mentioned therein, President Porras
said that he would send me as to the attitude of the Panaman Government
in this matter. Upon referring to this lately to Señor Lefevre, Minister
for Foreign Affairs, he stated that the Government were awaiting the
return in a few days of Dr. Valdés, Panaman Minister at Washington, in
order to question him as to his telegram reporting that the Department
of State had no objection to a pledge of the interest of the fund of six
million dollars (see my telegram of February 22.)
I enclose in this connection a clipping1 from the “Gaceta Oficial” of the 4th instant,
containing the text of this law as passed by the National Assembly,
which it will be noted is identical with the bill, the text and the
translation of which were enclosed in my despatch No. 298 of January
20th last. It will also be noted that this law was passed by the
Assembly on February 18 and not on February 17, as stated to me by
President Porras (see my telegram of February 22), and so would seem not
to have been passed when my paraphrase of the Department’s telegram of
February 17 was received by Señor Lefevre.
I take this opportunity to enclose a copy of the aide mémoire which I
handed to Señor Lefevre on the 1st instant, after communicating to him
the substance of the Department’s telegram of February 28.
I have [etc.]
[Page 1104]
[Inclosure.]
aide mémoire.
The American Minister stated that he had received a reply from his
Government to a telegram which he had sent informing it briefly of
the substance of the views expressed by His Excellency the President
at the interview which the American Minister had with His Excellency
and his excellency the Minister for Foreign Affairs, on the 22nd
ultimo.
This reply stated that the American Government obviously entertained
the desire that the railways of Panama should develop and prosper
and that it would neglect no proper endeavors which might conduce to
this result. Just as obviously however the American Government
considered that it was bound to caution the Panaman Government
against any use of this annuity payable in accordance with Article
14 of the Treaty of 1903 and of the fund of six million dolars
invested in New York which might be ill-advised or unwise. It was
the opinion of the American Government that the discounting of these
future revenues of Panama would be imprudent.
The American Government would not be willing to agree to the future
installments of the annuity above referred to being pledged. This
was outlined in the American Minister’s communication to his
excellency the Minister for Foreign Affairs, F. O. No. 71 of June
3rd, 1912. It has always been plainly manifest from the beginning of
the negotiations first with the Colombian Government afterwards with
the Panaman Government that the purpose of the interested
Governments was through the annuity to constitute a fund by which a
permanent revenue would be assured for maintaining on the Isthmus a
stable Government. A similar purpose was also provided for by the
permanent investment of the fund of six million dollars in New
York.
American Legation,
Panama, March 1, 1913.
