The Chief of the Division of Latin American Affairs, Department of State (White) to the Secretary of State

Dear Mr. Secretary: The Panaman Minister has just telephoned to say that he had received instructions from his Government to sign the liquor treaty as given to him the other day (I gave him an exact copy of the German treaty, mutatis mutandis). His Government desired, however, to have reference made to the special conditions existing between the Canal Zone and Panama and the question of the three mile limit. Certain waters three miles from the Canal Zone limits are Panaman territorial waters, and he suggests an exchange of notes at the time of the signing of the treaty making reservations on this point. He would also like to have it stated in the exchange of notes that the article which we have agreed upon on the subject of the carriage of liquors, under seal and certificate by the Panaman authorities from the terminal ports of the Canal to the cities of Panama and Colon and from those cities to other ports in the Republic, for inclusion in the treaty to take the place of the Taft Agreement63 will in no manner be prejudiced by the signing of this special liquor treaty. Mr. Baker is drafting the proposed exchange of notes.

  1. For correspondence on inconclusive negotiations for a convention to replace the Taft Agreement, see vol. ii, pp. 521 ff.