File No. 718.1915/240.

Minister Price to the Secretary of State.

[Extract.]
No. 574.]

Sir: I have the honor to transmit a copy of a note and of its translation received from the Secretary of Foreign Affairs of Panama in response to a note sent in accordance with the Department’s instruction No. 137 of April 28 last, regarding the matter of the award made by Chief Justice White of the United States Supreme Court in the boundary controversy between Panama and Costa Rica. A copy of my note last mentioned was forwarded to the Department with my despatch No. 521 of June 3.

I have [etc.]

Wm. Jennings Price.
[Page 1151]
[Inclosure—Translation.]

The Minister for Foreign Affairs of Panama to Minister Price.

No. S–7456.]

Mr. Minister: I have the honor to acknowledge the receipt of your note No. 184, of the 31st of May last, in which you declare that you have been informed by his excellency the Secretary of State of the United States of America that both Panama and Costa Rica have presented to that Department their views in regard to the award made by the Honorable Chief Justice White in the matter of boundaries between the two countries, and that, after examination of the respective papers, said Department is convinced that no exception can be taken to the procedure followed nor to the findings of the Arbitrator, and that, therefore, it is hoped that both parties would respect the award; and that your excellency’s Government could not view with indifference the rejection of that award by either party, because this would imply a lack of respect for the principle of arbitration as a means of solving international disputes, or for the high tribunal to which this dispute was submitted; and in conclusion offering the good offices of the Government of the United States to the effect that both parties come to some agreement in order to regulate definitely and satisfactorily the question of boundaries, until after Panama indicates its willingness to accept the award.

In reply, permit me, in the first place, to dwell upon that which the Minister of Panama accredited to the Government of your excellency declared to the Department of State on making known the opinion of my Government with respect to the award made by the Honorable Chief Justice White; that is, our conclusions in no way signified any undervaluation of the institution of arbitration nor of the high official who presides over the highest tribunal of the United States of America.

The Republic of Panama has professed since its foundation the greatest respect for the principles of arbitration. This was demonstrated, first, by including in its Constitution the decision of President Loubet in spite of the fact that Colombia and Costa Rica had not been able to agree upon on this matter; it was also demonstrated at the signing of the Porras-Anderson Convention with Costa Rica which gave rise to the last arbitration, by its opposing the grant to the Arbitrator of powers other than those necessary to interpret the Loubet Award, because any course would have been equivalent to annulling it, thus undervaluing the principle of a binding arbitration. It was with this very purpose—not to impair the principle of arbitration—that Panama has declared that she does not feel obliged to accept the award of the Honorable Chief Justice White, since in place of interpreting the Loubet Award, as had been agreed upon, it has resulted in annulling and modifying it.

The declaration made by Panama does not, furthermore, imply any lack of respect for the high official to whom this dispute was submitted, since it does not imply any lack of respect for a tribunal to appeal from the decision rendered on account of a belief that the judge has exceeded his powers.

Having made this clear, it remains for me to say to your excellency that my Government is very grateful for the kind offer made by the United States of America, which goes to demonstrate again the interest always taken by the great Republic in matters referring to the well-being of the American nations and especially that of Panama.

As your excellency knows, my Government in order to demonstrate its good will to settle this matter in a satisfactory and definite way, and by making a real sacrifice considering the financial situation of all nations by reason of the conflict in Europe, has recently accredited a Minister near the Government of Costa Rica; and there is no doubt that, by means of the good will shown on both sides, the two Republics will soon be able to arrive at a complete settlement of their boundary dispute.

Unfortunately, the Minister referred to, Dr. Don Santiago de la Guardia, has had to leave Costa Rica for a few days, due to the bad state of his health; and direct negotiations can be renewed only when he has been reestablished in his post.

The Government of your excellency could in the meantime contribute to the solution of the matter by means of its good offices, and our gratitude would be lasting if it would abet us in the sense that in case Panama accept the award of [Page 1152] Chief Justice White in the region of the Atlantic, due compensation shall be given it in the Pacific.

In transmitting again to the Government of the United States, through the worthy medium of your excellency, our sincerest thanks for its good will toward Panama, allow me [etc.]

E. T. Lefevre.