File No. 419.11D29/94.

Minister Price to the Secretary of State.

No. 516.]

Sir: Referring to my telegram of May 18, I have the honor to enclose a copy of a Foreign Office note transmitted by me pursuant to the Department’s telegram of May 14.

There is herewith enclosed a copy of the response of the Secretary of Foreign Affairs to said note.

I have [etc.]

Wm. Jennings Price.
[Inclosure 1.]

Minister Price to the Secretary for Foreign Affairs.

No. 180.]

Excellency: I have the honor to advise your excellency, in conformity with our conference on Saturday afternoon, that my Government is considering duly the proposals submitted in your excellency’s note No. S–6439 of April 24, last, in the matter of the 4th of July riot, and that, in view of the length of said note and to the end that there may be no occasion for either of our Governments to be laboring under any misapprehension as to the portion of same relating to the payment of indemnities nor a possibility for either of us to have misunderstood the other in said conference, it would seem prudent, if agreeable to your excellency, to resolve same into formal shape.

I am moved, therefore, to inquire of your excellency if you will be good enough to confirm the following as the correct statement of the understanding by my Government of the proposals of your excellency’s Government in said matter, if same appears to your excellency as a correct statement thereof, namely:

Panama offers to pay indemnities for the injuries suffered by Americans on the occasion of the riot of the 4th of July, 1912, in the city of Panama, and agrees that the only question that will be submitted to an arbitrator, if the United States Government should agree to make the selection of one, would be the amount of damages sustained by the Americans who were killed and injured in said riot.
The writing to be signed, if the method of arbitration aforesaid is accepted by the United States, shall clearly state that Panama agrees to pay indemnities in said riot, and that the only questions to be passed upon by such arbitrator, if selected, shall be the amount of the damages suffered aforesaid measured in money indemnities.
The two Governments shall, if desired by the United States, first discuss between themselves the amount of the indemnities to ascertain whether an agreement can be reached before the proposition of selecting an arbitrator is considered.

I avail [etc.]

Wm. Jennings Price.
[Inclosure 2—Translation.]

The Secretary for Foreign Affairs to Minister Price.

No. S–6701.]

Mr. Minister: I have the honor to acknowledge the receipt of the polite note from your excellency, No. 180 of the 17th of this month, and I am glad to inform [Page 1176] you that the interpretation which your excellency has given to my note No. S–6439, of April 24 last, relating to the matter of July 4, 1912, is entirely correct; that is to say, that Panama agrees to pay indemnities in the matter for the damages suffered by American citizens as a result of the riot, and that the only thing which should be submitted to arbitration is the amount of the damages suffered by them.

In regard to the last paragraph of the note which I have the honor to answer, my Government consents, if it is the desire of your excellency, to discuss between ourselves the amount of the indemnities in order to see if we can reach an agreement before submitting the matter to arbitration.

I have [etc.]

E. T. Lefevre.