711.192/88: Telegram
The Secretary of State to the Minister in Panama (South)
64. Your 82 and 86, September 8, 4 p.m., and September 15, 4 p.m. You may tell the President informally in reply to his suggestions made to you as follows:
1. This Government would be willing to have the debt for water works and sewer construction liquidated in accordance with the arrangement now in force, and it will therefore not be mentioned in the treaty. This Government would be willing to include in the treaty a stipulation that, as compensation for the land in Colon jurisdiction of which is to be given to the United States, the United States would expend a sum not exceeding $1,250,000. for the construction of a road from Panama to Colon and Porto Bello on condition that the roads shall be constructed by the Panama Canal and construction shall be undertaken only after Panama has made satisfactory financial provision for furnishing the cost above the $1,250,000. provided by this Government, and after the latter sum has been appropriated by the Congress of the United States.
For your own information. Should Panama not be willing to make the above financial arrangement this Government would consider an agreement by which the cost of the construction as it progresses would be prorated between the two Governments each Government paying a share in relative proportion to its share of the total cost of the project as determined by the engineers’ estimate on the understanding that the total contribution by the United States will not exceed one million and a quarter dollars.
It is not clear from the Panaman proposal what line the proposed road will follow. The Department presumes that advantage will be taken of the road which the Canal Government proposes to construct from Balboa to Alhajuela.
2. While this Government does not now foresee the necessity for asking for any further cession of the city of Colon to the United States, it cannot bind itself in a treaty never to do so since future [Page 534] exigencies cannot be foreseen at this time. You may point out to the President that this request on his part seems unusual and unnecessary in view of the fact that Panama is in no wise obligated to grant any further request for transfers of jurisdiction.
3. This Government is unable to accept the Panaman proposal that the dividing line between the Zone and Colon follow the course of the streets and that the latter remain under Panaman jurisdiction. This Government would, however, consent to establishing the boundary line along the middle of the streets. You may point out to President Porras, however, that under such an arrangement Panama would be obliged to construct and maintain one half of the street paving which would not be the case if the boundary proposed by the United States were followed. The President of course understands that should the boundary be changed to follow the center of the streets a delay must necessarily occur while the new metes and bounds are surveyed and prepared.
4. The question of the statue of Christopher Columbus would not appear to be a matter to be covered by the treaty. However, should the treaty be negotiated this Government would have no objection to informing the Panaman Government by note that it can do what it pleases with this statue.
5. The United States would be willing to make proper allowance to Panama for the present value of improvements in the area to be ceded to the United States which were actually paid for by Panama. A number of these improvements were made by the Canal Zone and Panama contributed nothing to their cost. In such case of course no allowance can be made to Panama. The present value of the improvements for which compensation is to be made would be determined by the Joint Commission provided in Article I of the draft treaty.
6. The United States would consent to a cession of a small water area at the head of Boca Chica, covering the frontage involved in the recession provided for in the draft treaty. The line would be approximately as follows: From the intersection of the receded area and the Canal Zone in a straight direction to a point in about the middle of the Bay thence east to a point in the entrance of the Bay and thence north to land. The exact description of the water area ceded will be drawn up by the Canal authorities. The United States will also make full reservation regarding cables and cable landings already in existence or that may be required in the future.
7. In a desire to meet President Porras’ urgent request for a conclusion of the treaty before October 1, this Government would be willing to consent to a modification of the last paragraph of Article IV of the draft treaty so that it shall provide that the Article shall [Page 535] continue in force for twenty years from ratification of the treaty and thereafter for succeeding periods of seven years each.
You will of course make these proposals to the President orally and not in writing. You will also make it absolutely clear to the President that these very considerable concessions on the part of the American Government are made in a desire to meet the President’s wish that the treaty be concluded before October 1, and that they are made purely on the understanding that the treaty will be concluded and ratified by Panama prior to October 1, and that should this not occur for any reason whatsoever these concessions will be considered as withdrawn and the United States will stand upon the proposals made in the treaty negotiations in Washington. Cable results of your conference.