While Secretary Garay has indicated to me that he believed there
would be no hesitation on the part of the President in complying
with the wishes expressed by the Department, I have not as yet
received a response to my note.
[Inclosure]
Minister Price to the Minister for
Foreign Affairs
American Legation,
Panama
,
June 2, 1917
.
Excellency: Adverting to our
conversation upon the same subject, I have the honor to refer
again to the matter of the authorization contained in the
concession granted to Mr. Basil Burns Duncan by the last
National Assembly for the construction of a railway along the
Atlantic side of the Isthmus and in the section of Panama lying
between the Panama Canal and Costa Rica.
It will be remembered that considerable negotiation and
correspondence have taken place in the past between our
respective Governments relative to this concession, and that one
quite similar was withdrawn on two occasions from the National
Assembly in past years, as the result of the same being then
considered by my Government inimical to the proper defense of
the Canal and contrary to our treaty rights.
In a correspondence between Mr. Duncan and my Government last
year objection was waived to the granting of the concession
conditional upon there being eliminated the authorization to
construct branch lines in a manner, which might be objectionable
from the standpoints mentioned above. It would seem that Mr.
Duncan refrained from asking to have incorporated in the
concession the right specifically to construct a branch to
Penonomé, but there was included in the concession, as will be
seen from Article 2 thereof, an authorization for the building
of branch lines of such a general character that the
construction of same “at anytime and of any length and in any
direction” is permitted, a solicitation of the authorization of
the Executive Power of Panama in writing being first made.
My Government feels that the provisions of Article 2 under the
recognition of its interest and rights in this matter, already
heretofore accorded by your excellency’s Government, entitles it
to request that there may be formally noted, [Page 1193] as was done for instance in the
note from the Foreign Office of Panama No. S 5556 of January 30,
1915, relative to the use of certain funds authorized by the
National Assembly of 1914–1915, that the use of the
authorization embodied in said Duncan concession for the
construction of branch railway lines will not be permitted by
His Excellency, the President of Panama, without the consent of
my Government through this Legation being first obtained. There,
of course, can be no objection to such short branch lines as may
be known as working branches for reaching banana, sugar and
other plantations in the general neighborhood of the
railway.
I enclose a copy of a letter from Mr. Duncan expressing his
willingness and his good intentions with reference to this
matter.
I am instructed to say, therefore, that it will be most pleasing
to my Government if His Excellency, the President of Panama, may
find it agreeable to have your excellency make reply that the
use of the prerogative accorded him by Article 2 of said
concession will be exercised only in accordance with a joint
concurring action on the part of my Government.
I avail myself [etc.]
