File No. 711.21/203.
[Inclosure 1—Undated
Memorandum—Translation.]
The Minister for Foreign
Affairs to the American
Minister.
In order to fix the amount of the indemnity due to Colombia, amongst
other things the following should be taken into account:
The reversionary rights in the Panama Railway, which according to the
official report of Senator Bristow amount to $16,416,000, from which
there should be deducted a sum for advance payment.
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The right possessed by Colombia to acquire the property of the Canal
at the expiration of the 99 years of the concession, according to
the contracts made with the Canal Company.
The right possessed by Colombia to receive during these 99 years an
annuity of $250,000.
The right possessed by Colombia to receive during 66 years an annuity
of $250,000, in accordance with the terms of the Panamá Railway
contract.
The right to 8 annuities of $10,000 according to the terms of the
contract with the Railway Company of 1880. These annuities are for
the years between 1903 to 1910, which have not been paid to
Colombia.
The value of the Isthmus of Panama, in other words of the “richest
province of Colombia” as stated by Sir William R. Scott, in his work
“The Americans in Panamá.”
[Inclosure 2—Undated
Memorandum—Translation.]
The Minister for Foreign
Affairs to the American
Minister.
Money Indemnity.
Respecting this article1 of the draft treaty a sum of fifty million dollars
will seem very moderate if the following be taken into
consideration: That
1. Colombia renounces the right to 66 annuities of $250,000 in the
Panamá Railway and to her exclusive ownership thereof at the
conclusion of the concession, which represents an enormous sum,
according to the calculations of ex-Minister Du Bois.
2. Colombia renounces the right to 99 annuities of $250,000 according
to the terms of the Canal Contract and to her reversionary rights in
the work at the expiration of the 99 years of the concession.
3. Colombia renounces her participation in the indemnity mentioned in
the last part of Article II of the contract of 1876.
4. Colombia gives up “her richest province,” as stated by Mr. William
R. Scott in his book “The Americans in Panama” (1912): a territory
which affords the unique passage of the world for joining the two
oceans, and which forms one of the most beautiful, safe and
capacious bays of the globe, the Almiranto Bay.
5. Thanks to its occupation of the Isthmus, the United States have
been able to construct the Panamá Canal, far more advantageously,
more economically and more productively than the Nicaragua or any
other canal, as is shown by the report of Admiral Walker presented
to the Washington Government on November 30, 1910. According to this
report, the actual cost of building the Nicaraguan canal would have
exceeded one via Panamá by $58,000,000, “without taking into
consideration the cost of acquiring the last-named property.”
According to the same commission, “the Panamá Canal, after its
completion, would be shorter, would have fewer locks and a lesser
curvature than the Nicaragua Canal. We can gauge these advantages by
the time necessary for a boat to make the transit, which is
calculated for a ship of ordinary size at 12 hours for Panamá and 33
for Nicaragua.”
In this regard two points should be also kept in mind: (a) that the
occupation of the Isthmus by the United States permits of the
opening of the Canal for traffic in 1914, thanks to the great works
carried out there during a period of more than twenty years by the
French company in accordance with its contract with Colombia; and
that the Nicaragua canal, scarcely commenced, could only have been
terminated many years later with an accompanying great industrial,
economic and political loss to the United States; and (b) that the
volcanic nature of Nicaragua and of Central America in general,
would have endangered to a considerable degree the colossal work of
the canal.
According to the Spooner Law of 1901, “if the President of the United
States cannot acquire from the Republic of Colombia the control and
territory for the opening of the Panamá Canal, he shall obtain it
from Costa Rica and Nicaragua to construct it by the route known by
this name.”
It is well known that this provision of the Spooner law has not yet
been carried out, and it is only by means of this arrangement, now
being discussed, that
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the
United States can legalize the acquisition of the control which was
ordered by the Congress of that Republic;
6. By virtue of the treaty of Nov. 18, 1903, between the United
States and Panama, the Washington Government not only acquired the
Canal Zone but also a multitude of other rights in the territory of
that Colombian Department, which will never be perfected until the
treaty now being discussed shall enter into force, and in the form
established thereby.
7. Many voices in authority in the Congress of the United States, as
that of Senator Bacon and that of Representative Lewis, have stated
that the damages suffered by Colombia could not be indemnified by
any sum less than one of $100,000,000 in gold;
8. As the Herran-Hay Treaty is still unratified, Colombia was certain
to acquire the part of the Canal completed by the French Company, as
long as that company was unable to fulfill its obligations. This
right possessed by Colombia may justly be estimated at the sum paid
to the Canal Company for the work completed by it and for the
properties accessory thereto.
Note.—Owing to the illness of his wife,
the American Minister was obliged to return with her to the United
States. On November 5 the Department instructed him that the
negotiations with the Government of Colombia should continue in his
absence, conducted by the Chargé d’Affaires ad interim, Mr.
Harrison. On November 8 the Minister informed the Foreign Office of
the necessity for his immediate departure and of the continuance of
the negotiations in his absence by the Chargé d’Affaires. The
Minister for Foreign Affairs replied on November 10 (File No.
711.21/207) saying:
The Colombian Government, whose highest consideration has
been won by your excellency, sincerely regrets that such a
deplorable motive should necessitate your excellency’s
departure, and expresses the hope that upon the earnestly
desired disappearance of the distressing events in your
family, your excellency will again become the distinguished
guest of Colombia.
The Government furthermore expresses the hope that the
negotiations initiated by your excellency—which remain in
the charge of the honorable Chargé d’Affaires, by direction
of his excellency the Secretary of State, as your excellency
has informed me—may be carried to a just and desirable
conclusion, to which end your excellency can rest assured
that the Honorable Mr. Harrison may count upon the same
cooperation which your excellency has received.
The Minister departed on November 11. On November 24 the Colombian
Legation at Washington requested that the American Chargé d’Affaires
be instructed to continue at Bogotá the negotiations interrupted by
the departure of the Minister. (File No. 711. 21/205.) The Secretary
of State thereupon sent the following telegram to the Chargé
d’Affaires:
