819.51/235: Telegram

The Acting Secretary of State to the Minister in Panama (Price)

Your September 12, 9 a.m.

Panaman Chargé d’Affaires informs Department he is working under instructions from Panaman Secretary of the Treasury for million dollar loan and for no other.20

  1. The outcome of this negotiation is indicated by the following extract from despatch No. 2640, Mar. 26, 1920, from the Minister in Panama: “The action of the Panaman Administration, as I have referred to in my reports, in deciding to pay out of the accumulated surplus in the treasury the sum of $500,000. upon Panama’s local indebtedness, and to apply to the indebtedness of the Panama Canal the balance of the Canal annuity and of the income from the mortgage investments in New York for this year, instead of borrowing the one million dollars, which has been under negotiation for the purpose, seems to have been a popular move.” (File No. 819.51/265.)