File No. 819.55/11.

The Secretary of State to the American Chargé d’Affaires.

Sir: The Department acknowledges the receipt of your despatch No. 475, of June 30, 1913, wherein you report on your action in carrying out the instructions contained in the Department’s telegram of June 26, 10 a.m. Your despatch has been read with interest and your action, as therein indicated, is approved.

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With regard to the Panaman Government’s proposal to summon in August a special session of the Assembly to reduce the tax upon Chinese who have entered the country since 1904, the Department notes the statement of the Chinese Consul General that his Government would prefer a suspension of the law as it now stands of from I twelve to twenty months to its reconsideration by the National Assembly, even with the certainty of a reduction in the tax and the abrogation of the other objectionable features of the law, as the former would afford time to his Government for the establishment I of a legation at Panama. You add that you are prepared to press this matter again with Señor Lefevre, if it is considered advisable by the Department.

It is not the desire of the Department that you further press the question of the suspension of the law with the Panaman Government, as the Department would feel satisfied with the proposed reduction of the tax and the more lenient enforcement of those features of the law considered objectionable by the Chinese.

You are instructed to keep the Department fully informed of any developments in this matter, particularly with regard to the proposed special session of the Assembly in August next.

I am [etc.]

For the Secretary of State:
J. B. Moore.