File No. 819.55/32.
The American Chargé d’Affaires to the Secretary of State.
Panama, November 13, 1913.
My despatch of October 21. Panama Government having refused to modify essential provisions of Law 50 and subsequent decrees providing for registration and taxation or expulsion of Chinese Colony, the Chinese have unanimously refused to register with the Panama Government, fearing in any compliance with the law a loss of constitutional rights and continued extortionate taxation. Panaman Government has suddenly terminated period of negotiations and sent ultimatum, confirmed at personal interview with the Minister for Foreign Affairs, withdrawing all rights, including those [Page 1131] of liberty and residence, from entire colony if the latter fail to commence registering with the Government within seventy-two hours expiring tomorrow noon. Chinese at large meeting have absolutely refused to comply with the law under present terms.
Immediate cause of crisis appears to be enactment and enforcement of recent Executive Decree No. 72 of 1913 which (1) refuses passports and terminates further rights of residence to any Chinaman leaving the country without having registered; and (2) refuses to permit Chinese now abroad but possessing passports entitling them to return to Panama, commonly issued by the Government and for which Chinese have paid heavy fees, to embark for return to Panama without having appeared before the Panama Consul in the port of embarkation and agreed in writing to register upon arrival. I have protested against this decree as seemingly a retroactive violation of passport or breach of contract.
Panaman Government having failed in efforts to start registration threatens as first step to arrest tomorrow and imprison one hundred of the more prominent Chinese merchants and thus force the remainder to register. I have urged without avail further extension of the time for application of the law, a modification of the proposed measures for its enforcement or in some less provocative way the taking of a test case before the court.
Presence of large number of unemployed in Panama dependent on Chinese for cheap daily food lends importance to probable closing of Chinese shops. American banking and commercial credits with the Chinese amounting to quarter million dollars affected by precarious position of Chinese colony. Please repeat as much as seems advisable to American Legation Peking for the information of Chinese Government and advise action in case of American interests openly affected.