File No. 819.1052/74


After conferring for two hours today with Panaman authorities Generals Goethals, Edwards and I agreed that the [omission] might box rifles, having to have boxes made, and deliver them to Panama Railroad Company not later than next Saturday to be sent Panama consul, New York City, for sale; that they exchange better ones for old in the hands of police outside of Colon and [Page 943] Panama, that 100 might be retained for the use of prison guards until a shipment of 125 shotguns arrive which were ordered by Goethals for them yesterday.

Since Saturday they have stored about 120 rifles at presidential palace and a persistent appeal has been made to us to permit them to retain all of them, and then as many as 50 for guards of honor Panaman President. We have refused to agree to retention of more than 25.