718.1915/296a: Telegram
The Secretary of State to the Minister in Panama (Price)
15. This Government views with concern the growing acuteness in the relations between Panama and Costa Rica. The territorial question on which Costa Rica and Panama are divided has twice been the subject of disinterested and judicial examination upon the joint submission of both Governments.
In the first instance, the matter was submitted to the President of the French Republic, and after much time spent in its investigation, the so-called Loubet award was made. When this award in turn gave rise to controversy as to its intention and application, a new submission, after the lapse of several years, was made to the Chief Justice of the United States Supreme Court. Again an exhaustive examination was made of the whole controversy and an award made by the highest judicial authority and in the most disinterested spirit, which has not been accepted by Panama. It is difficult for us to see what can be gained by a proffer of good offices or any other form of friendly interposition in the present phase of this longstanding dispute. Such interposition could only point to further examination of the matter in controversy and a third arbitral decision of it. In view of the two instances in which this mode of adjustment has been sought, it seems idle either to recommend it or to look upon it as a method with any particular chance or promise of bringing the controversy to a conclusion. It is the opinion of the Department that both Panama and Costa Rica should desist from hostile demonstrations or armed activities, and thus afford an opportunity for a discussion and agreement as to the manner in which the terms of Chief Justice White’s decision shall be applied, paying due regard to any contentions that may be advanced by either party bearing upon the subject.
We are communicating the substance of the above to our Legation at Costa Rica for submission to the Costa Rican government, adding [Page 176] an expression of regret that Costa Rica should have seen fit to act so precipitately and without notification of its intention and suggesting the recall of her forces and complete avoidance of military action or the threat of such action, pending adjustment as herein mentioned. The same action should be taken simultaneously by Panama.