File No. 819.55/14.
The American Chargé d’Affaires to the Secretary of State.
Panama, August 4, 1913.
Sir: I have the honor to report that I have had several interviews with Mr. Ow Yang King, the Chinese Consul General, and with Señor Lefevre, the Minister for Foreign Affairs, and that I have been fully aware of the delicate position of the Legation in this matter and in the absence of instructions from the Department, have refrained from pressing any of the points raised by Mr. King with Señor Lefevre, but have confined my offices to those of friendly mediation.
As a result of these representations I have obtained nearly all of the concessions desired by Mr. King from the Panaman Government with regard to the eventual enforcement of the law, receiving from Señor Lefevre the assurance that the tax of $250 gold upon the Chinese who may be found to have entered the country since 1904 without legal right to do so, would be reduced by one-half, and that, if necessary, a special session of the National Assembly would be called to effect this change. He also promised me that if this sum were still considered too high the time for paying the tax would be extended for a period of twelve months or more, during which payment could be made by installments. Señor Lefevre also agreed that in making out their application the Chinese would not be required to state by what means, legal or otherwise, they entered the country, but might leave that space blank. He also explained [Page 1117] to Mr. King’s satisfaction that where Chinese domiciled in the country prior to 1904 had left the country bearing passports and subsequently returned, this would not be considered an “entry” under the law so as to make them liable to the tax of $250 from which they would otherwise be exempt; and also that wives and children of Chinese domiciled in the country prior to the executive decree of April 15, 1904, would not he included among those subject to the tax provided under Law 50. These and many other points where Law 50 seems to have been badly drawn, I have been able to clear up at personal interviews, and have received from Mr. King frequent expressions of his appreciation and thanks. He has, indeed, lately changed his attitude from one of uncertainty to one of confidence, and has in turn yielded practically nothing, but after consulting with various Panaman lawyers remains opposed even to the taking of a census and registration of his people by the Panaman Government. This is a point on which the Panaman Government is firm and it has been repeated to me several times by Señor Lefevre that if this census and registration are not complied with, as provided for in the law, by the 15th of the present month his Government will take prompt and probably severe measures. Mr. King, on the other hand, on the advice of his lawyers, informed me this morning that his people would exhaust every legal means before complying with the law and this after I had repeatedly urged him to persuade his people to yield the point of allowing the census and registration to be taken.
Mr. King prefers to contest the constitutionality of the entire law and to base his opposition to its enforcement on the ground that for many reasons it is invalid and unconstitutional, and also declares that his people are not treated as on an equality with other foreigners and Panamans, as provided in the Constitution, but are compelled to be registered as a class and to be reregistered thereafter every six months, a procedure which he says opens the way to a continuance of the system of persecution under which his people have suffered so much in the past. Otherwise, he adds, the law might be of benefit to his people in that it clears up once and for all time their right to reside in Panama.
In summary I am of the opinion that there is a strong feeling of obstinacy on both sides and I have endeavored to present the exact point at issue to the Department, emphasizing on the side of the Government of Panama the necessity of having definite knowledge as to the number of Chinese, their occupation, the time and also the authority under which they entered the country, and on the part of the Chinese the fear that by presenting their certificates they will find the same to be invalid and so lose what protection they already possess, being compelled either to pay a heavy tax or be expelled from the country.
In view of the Department’s instructions, I have the honor to inform you that I shall use every effort consistent with the exercise of good offices in endeavoring to arrange some further ground of understanding between the Foreign Office and the Chinese Consul General so as to minimize whatever difficulties may be expected on the 15th of this month.
I have [etc.]