File No. 819.77/282
Minister Price to
the Secretary of State
No. 1349
American Legation,
Panama,
April 21, 1917.
Sir: Supplementing my despatch No. 1290,
of March 10, relative to the concession awarded Mr. Basil B. Duncan,
by the National Assembly of Panama, for the construction of a
railway on the Atlantic side of Panama, I have the honor to enclose
copy of a letter from Mr. Duncan, declaring that there was
eliminated from the concession the authorization for a branch line
to Penonomé; that the branch lines permitted to be constructed under
Article No. 2 of the concession are understood to be incidental
short lines for the purpose of reaching banana, sugar and other
plantations, and will be extended only to such distances as are
necessary to reach such plantation grounds, and giving the assurance
that it will be his aim and pleasure to work in harmony with the
Government of the United States and its representatives on the
Isthmus, and that such will be the spirit of the company which he
hopes to form to build the railway referred to.
I have [etc.]
[Inclosure]
Mr. Duncan to
Minister Price
Sir: Referring to our conversation at
the American Legation relative to my railroad concession from
the Panama Government, I beg to confirm my statement to you
regarding any possible branch roads referred to in said
contract.
I here repeat that the suggestion of a branch line to Penonomé as
originally anticipated, was at once eliminated on receipt of
information from the War Department to the effect that such
branch road would not be favorably considered by said
Department.
The branch lines admitted as per Article 2 of contract, refer to
working branches, with the view of developing banana, sugar or
other planting industries and would only be extended to a
distance necessary to reach such plantation grounds.
As you will note in the copy of contract (Art. 2) which I
furnished you, no branch road can be constructed by the
concessioner without the consent and approval of the Chief
Executive (President) of the Republic, who undoubtedly would not
give his approval, to any additional extension of road contrary
to the wishes of the American Government, which you
represent.
Furthermore, I desire to assure you that it would be my aim and
pleasure to work in harmony with my country’s Government (The
United States) and its representatives on the Isthmus, and such
will be the spirit of the company which I shall form to build
the railroad under consideration.
I have [etc.]
