Papers Relating to the Foreign Relations of the United States, 1926, Volume II

711.192/217a

The Secretary of State to the Minister in Panama (South)

Washington, August 4, 1926.

No. 433

Sir: There is enclosed herewith for your confidential information a copy of the Treaty signed with Panama on July 28, 1926, together with copies of the five exchanges of notes made at the same time. There is also enclosed a copy of the Claims convention signed at the same time.⁵

You will of course not communicate these documents to anyone until the Senate shall have removed the injunction of secrecy thereon.

I am [etc.]

Frank B. Kellogg

[Enclosure 1]

Treaty Between the United States of America and the Republic of Panama, Signed at Washington, July 28, 1926⁶

The United States of America and the Republic of Panama, desiring to settle certain points of difference between them which have arisen out of the exercise by the United States of sovereign rights in the Canal Zone by virtue of the Treaty of November 18, 1903, as well as to regulate certain features of their future intercourse arising from the contiguity of the Republic of Panama and the Canal Zone, have resolved to conclude a Treaty and have accordingly appointed as their plenipotentiaries:

• The President of the United States of America, the Honorable Frank B. Kellogg, Secretary of State of the United States of America, and the Honorable Francis White, Chief of the Division of Latin American Affairs, Department of State; and
• The President of the Republic of Panama, the Honorable Doctor Ricardo J. Alfaro, Envoy Extraordinary and Minister Plenipotentiary of Panama to the United States and the Honorable Doctor Eusebio A. Morales, Envoy Extraordinary and Minister Plenipotentiary of Panama on special mission;

Who, after communicating to each other their respective full powers which were found to be in due and proper form, have agreed upon the following:

Article I

Article XV and the last sentence of Article VI of the Panama Canal Treaty between the United States of America and the Republic of Panama dated November 18, 1903, are hereby superseded and the provisions of the second sentence of Article VI are hereby amended in the manner following so far as concerns the method of ascertainment of damages to the owners of private property:

Should it become necessary for the Government of the United States to acquire private property in conformity with the grants contained in said Treaty of November 18, 1903, after the date of this Treaty, the said Government shall give due and reasonable notice through diplomatic channels to the Republic of Panama, either by a note addressed by the Department of State to the Panaman Legation in Washington or by a note addressed to the Foreign Office in Panama City, stating the intention of the Government of the United States to acquire by expropriation said lands or properties in conformity with the grants contained in the Treaty of November 18, 1903, and title to the property shall be deemed to have passed from the owner thereof to the United States when the formality of giving the notice has been complied with. The Government of Panama shall thereupon take the necessary steps for the transfer of jurisdiction to the United States with due care for the interest of all inhabitants who might be in the territory whose jurisdiction is thus transferred. The value of said private lands and private property and the assessment of damages to them shall be appraised and settled by a Joint Commission composed of one of the Associate Justices or a substitute Justice of the Supreme Court of the Republic of Panama to be selected by the President of the Republic of Panama, and the Judge of the District Court of the Canal Zone, but in case of disagreement of the Commission an Umpire shall be appointed by the two Governments and he shall render the decision. All decisions by the Commission or by the Umpire shall be final. The appraisal of any such private property and the assessment of damages to it shall be based upon its value at the time the property is taken. No part of the work of the Canal or the Railroad or any of the auxiliary works relating thereto and authorized by the said Treaty shall be prevented, delayed or impeded by or pending proceedings of the Joint Commission or of the Umpire as established in this Article.

Article II

The Republic of Panama grants to the United States in perpetuity the use, occupation and control of that portion of Manzanillo Island, at the Atlantic terminus of the Canal bounded and described as follows:

Beginning at a copper plug in the concrete dock which is near the northern end of the old Panama Railroad stone freight house in the city of Colon, said plug being 0.5 feet from the face of the dock and equi-distant from either end, the coordinates of said plug being Latitude 9° 21′ plus 4682.0 feet and Longitude 79° 54′ plus 3315.5 feet; thence N 74° 15′ E a distance of 100.42 feet to an iron bolt concreted in the ground, the coordinates of said bolt being Latitude 9° 21′ plus 4709.3 feet and Longitude 79° 54′ plus 3218.8 feet; thence N 15° 52′ W a distance of 727.63 feet to an iron bolt in the center of the west end of 2nd Street, the coordinates of said bolt being Latitude 9° 21′ plus 5409.2 feet and Longitude 79° 54′ plus 3417.7 feet; thence N 74° 04′ E a distance of 379.93 feet to a cross cut in an iron ring in concrete at the intersection of 2nd and Bolivar Streets, the coordinates of said point being Latitude 9° 21′ plus 5513.5 feet and Longitude 79° 54′ plus 3052.4 feet; thence N 15° 59′ W a distance of 210.57 feet to an iron bolt in the center of Bolivar Street, the coordinates of said bolt being Latitude 9° 21′ plus 5715.9 feet and Longitude 79° 54′ plus 3110.4 feet; thence N 73° 49′ E a distance of 1038.11 feet to a copper plug concreted in a 2 inch pipe, the coordinates of said plug being Latitude 9° 21′ plus 6005.2 feet and Longitude 79° 54′ plus 2113.4 feet; thence N 65° 49′ E a distance of 315.3 feet to an iron bolt in the center of Coconut Alley, the coordinates of said bolt being Latitude 9° 22′ plus 86.9 feet and Longitude 79° 54′ plus 1825.8 feet; thence S 15° 54′ E a distance of 261.41 feet to an iron bolt concreted at the intersection of Coconut Alley and 2nd Street, the coordinates of said bolt being Latitude 9° 21′ plus 5883.0 feet and Longitude 79° 54′ plus 1754.2 feet; thence N 74° 11′ E along the center line of 2nd Street a distance of 179.24 feet to a copper plug concreted in the center of “G” Street, the coordinates of said plug being Latitude 9° 21′ plus 5931.8 feet and Longitude 79° 54′ plus 1581.7 feet; thence S 15° 56′ E along the center of “G” Street a distance of 1762.7 feet to a copper plug in the concrete at the intersection of 7th and “G” Streets, the coordinates of said plug being Latitude 9° 21′ plus 4236.9 feet and Longitude 79° 54′ plus 1097.8 feet; thence N 74° 06′ E along the center of 7th Street a distance of 1408.5 feet to a copper plug concreted in a 2 inch G. I. pipe in the center of the park circle at the intersection of 7th and “K” Streets, the coordinates of said plug being Latitude 9° 21′ plus 4622.7 feet and Longitude 79° 53′ plus 5749.6 feet; thence S 15° 52′ E along the center of “K” Street a distance of 755.2 feet to a copper plug in the concrete at the intersection of 9th and “K” Streets, the coordinates of said plug being Latitude 9° 21′ plus 3896.3 feet and Longitude 79° 53′ plus 5543.1 feet; thence N 74° 00′ E along the center line of 9th Street and the center line produced a distance of 960 feet more or less to the mean low water line of Manzanillo Bay; thence following along the said mean low water line northerly, westerly and southerly to point of beginning. All bearings refer to the true meridian.

It is agreed that the harbor of Colon shall consist of the maritime waters lying to the westward of the city of Colon and bounded as follows:

Beginning at mean low water mark on Limon Bay at a copper plug in a concrete monument, marked D prime on the map marked Exhibit A, the boundary runs N 78° 30′ 30″ W to a point in Limon Bay marked E on above mentioned map and located 330 meters east of the center line of the Panama Canal; thence turning to right and running in a northerly direction the line runs parallel with the above mentioned center line and at a distance of 330 meters easterly therefrom for a distance of 660 meters more or less to a point in Limon Bay marked F prime on above mentioned map; thence, turning to right and running in an easterly direction and paralleling the above mentioned southerly boundary to a point marked G on the above mentioned map; thence, on a bearing of N 74° 15′ E to a copper plug set in Panama Railroad concrete dock near the north end of the Panama Railroad stone freight house, said copper plug being the starting of the new Cristobal boundary; thence, turning to the right and running along the mean low water line in a generally southerly direction to the point of beginning.

And it is further agreed that there shall be added to the harbor of Colon the maritime waters lying in head of Boca Chica arm of Folks River to the northward of a line described as follows:

Beginning at a point (marked by a 2 inch G. I. pipe) at mean low water, on the southeastern shore of Manzanillo Island the coordinates of said point being Latitude 9° 21′ plus 466.9 feet and Longitude 79° 53′ plus 3987.3 feet, the boundary runs due south into Folks River, a distance of 334.9 feet; thence due west in Folks River a distance of 1473.7 feet; thence S 38° 30′ W in Folks River a distance of 1290 feet to the most southerly point on the western shore of Folks River, the coordinates of said point being Latitude 9° 20′ plus 5170 feet and Longitude 79° 54′ plus 257 feet; thence following mean low water line in a generally northerly and easterly direction to the point of beginning. All bearings refer to the true meridian.

It is further agreed that in the harbor of Colon the United States shall retain jurisdiction and control over all cables now laid including cable landings, and that it shall have the right to lay such other cables in the harbor as it may deem advisable and to land such cables on the shores of the harbor, retaining like control and jurisdiction over such additional cables and cable landings.

And it is further agreed that the water mains and sewers of the said city of Colon shall be available for the joint use of Colon and the area incorporated in the Canal Zone by virtue of this Treaty, and such use of said facilities by the United States shall bear its equitable share of operation and maintenance charges, which charges shall be determined by the proportionate quantities of water and sewage passing through the said facilities in such joint use.

And it is further agreed, without impairment of the provisions of Article VII of the Treaty of November 18, 1903, that the United States will make provision to reimburse the Republic of Panama for the present value of such public improvements within the area incorporated in the Canal Zone by virtue of this Treaty, where said improvements have been provided under former agreement at the expense of the Republic of Panama, and that the determination of the amount of such reimbursement shall in the absence of direct agreement be made by the Joint Commission described in Article I of this Treaty.

The use, occupation and control of the land area described in this Article and of the water area lying between the harbor as established by this Treaty and the north boundary of the present harbor as established by the Boundary Convention between the United States and the Republic of Panama dated September 2, 1914,⁷ are hereby granted to the United States in perpetuity as part of the Canal Zone and consequently the provisions of Article III of the said Treaty of November 18, 1903, shall apply thereto. For a further description of the land and water areas described in this Article reference is here made to a blue print which accompanies this Treaty signed by the American Plenipotentiaries on behalf of the United States and the Panaman Plenipotentiaries on behalf of the Republic of Panama and marked “Exhibit A”.⁸

In consideration of the grant by the Republic of Panama to the United States of the use, occupation and control in perpetuity of the portion of Manzanillo Island and the water area mentioned and described in this Article, and of the other conditions of this Treaty, it is hereby agreed that the permanent boundary between the city of Colon and the Canal Zone on the western shore of Boca Chica (sometimes called Folks River) shall be as follows:

Beginning at the most southerly point on the western shore of Folks River, the coordinates of said point being Latitude 9° 20′ plus 5170 feet and Longitude 79° 54′ plus 257 feet; thence South 73° 41′ West a distance of 120 feet to a copper plug in the east curb of the Mount Hope Road, the coordinates of said point being Latitude 9° 20′ plus 5136.2 feet and Longitude 79° 54′ plus 372.5 feet; thence North 16° 05′ West, a distance of 794.3 feet to a second copper plug in the east curb of the Mount Hope Road, the coordinates of said point being Latitude 9° 20′ plus 5899.4 feet and Longitude 79° 54′ plus 592.5 feet; thence in northwesterly direction following the line of the east curb of the Mount Hope Road to its intersection with the line of the south sidewalk of 14th Street; thence in a southwesterly direction following the line of the said sidewalk to a point in the center of Bolivar Street; thence to the north along the center line of said Street until meeting another point also situated in the center of the said Street and marked point “B” on the map marked “Exhibit A”.

All bearings mentioned in this Article and in the map marked Exhibit A refer to the true meridian.

And in further consideration of the grant by the Republic of Panama to the United States of the use, occupation and control in perpetuity of the portion of Manzanillo Island and the water area mentioned and described in this Article, and of the other conditions of this Treaty, it is agreed as follows:

The United States will undertake the construction of a paved highway, from Paraiso (in the Canal Zone), by way of Summit, Alhajuela, and Cativá, to a connection with the Canal Zone highway between Colon and Fort Randolph; and a paved highway from a point on the above described road south of Las Minas Bay to the town of Porto Bello, completing all necessary grading for roadbeds twenty-six (26) feet wide, with a concrete pavement not less than six (6) inches thick and eighteen (18) feet wide in the center, together with all necessary culverts, and single track bridges capable of carrying a fifteen-ton road roller.

It is agreed that the United States will enter on the construction of the highways described in this Article after the Republic of Panama shall have made provision satisfactory to the United States to reimburse the United States for all costs of construction of all said highways north of Alhajuela, excepting $1,250,000 which it is agreed will be the total expense to the United States of this portion of the highway system. It is also agreed that the total expense of the section of the highways described in this Article and lying between Paraiso and Alhajuela shall be borne by the United States.

Article III

1. The Republic of Panama agrees to build the roads specified in a, b, c, and d of paragraph 2 of this Article, completing all necessary grading for roadbeds twenty feet wide with a surfaced strip ten feet wide in the center. The Republic of Panama further agrees to construct new culverts along each of the roads mentioned of sufficient length to permit the subsequent widening of the roadbeds to twentysix feet. The United States agrees that if and when existing concrete structures between the Canal Zone line and the Quebrada Herradura near El Creo shall be incorporated in a new road it will widen such structures to the necessary extent at the time of placing the road surfacing specified in paragraph 2 of this Article. The Republic of Panama agrees that it will construct the necessary bridges on the roads to be built and that such bridges shall be made permanent structures with a single track and strong enough to carry a fifteen ton road roller. It is agreed by the High Contracting Parties that the foregoing conditions as to construction shall apply to the roads in Panaman territory as far as the culvert over the Quebrada Herradura, near El Creo, on the west, and Pacora on the east, but that if desired by the Republic of Panama the surfaced strip hereinafter referred to shall be omitted from the roads within those limits. The United States further agrees that when appropriations shall be made by the Congress of the United States for road construction in the Canal Zone it will pay to the Republic of Panama the sum of thirty-five thousand dollars ($35,000) for the prior construction by Panama of the bridge over the Caimito River.

2. The United States engages to complete the grading and to place substantial surfacing eighteen feet wide on the above specified roadbeds to the extent below indicated:

a. From the Zone line near Arraijan to the Caimito River, concrete pavement not less than six inches thick.

b. From the Caimito River through Chorrera and Laguna to the culvert over the Quebrada Herradura, in the vicinity of El Creo, bituminous macadam six to ten inches thick.

c. From the end of the present concrete road near Sabanas Police Station to a point about one mile beyond Tocumen River, concrete pavement not less than six inches thick.

d. From the end of the concrete road under (c) to Pacora, bituminous macadam six to ten inches thick.

e. On all the above described roads, the United States agrees to widen the roadbeds to twenty-six feet before placing the pavement or surfacing.

3. The United States further agrees that when the Republic of Panama shall build a road in Panaman territory to the line of the Canal Zone at the proper point it will either build and operate a steel bridge across the Canal at Pedro Miguel Locks or establish and operate a ferry across the Canal on the Pacific side and it will construct a connecting road with concrete pavement eighteen feet wide and not less than six inches thick from the bridge or the ferry landing to the Zone line near Arraijan and will construct the necessary bridges along this road to be of a permanent character.

4. Each High Contracting Party agrees to maintain the roads and bridges on the portion of the road system provided for in this Treaty which lies within its jurisdiction. The Government of Panama agrees that such sums as may be necessary for the proper maintenance of the road system within its territory, and not less than $55,000 per annum, shall be included in each biennial budget and set apart and expended exclusively for such maintenance. With a view further to assure the carrying out of this undertaking the Republic of Panama agrees that the expenditure of the funds above mentioned will be made only in accordance with the joint recommendation of the Chief Engineer in charge of the supervision and maintenance of road work in the Republic of Panama and an engineer to be designated by the United States.

5. The United States shall continue to have at all times the free and gratuitous use of all roads in Panaman territory and the Republic of Panama shall have at all times free and gratuitous use of all roads within the limits of the Canal Zone including the bridge across the Canal at Pedro Miguel Locks, except as military necessity in time of war shall dictate restrictions by the United States upon this right.

6. It is further agreed that the United States shall have in time of peace as well as in time of war the right to install, maintain and operate for official use telephone and telegraph lines along all roads to be constructed in Panaman territory in accordance with this Treaty.

7. It is agreed by the two High Contracting Parties that the road system provided for in this Article shall be completed within a term of three years from the date of the exchange of the ratifications of this Treaty.

Article IV

In order to strengthen the friendly relations which have so fortunately existed between the United States and Panama the United States agrees in perpetuity as follows:

1. With the exception of sales to ships which the United States will continue to make as heretofore, the sale of goods imported into the Canal Zone by the Government of the United States shall be limited by it to the officers, employees, workmen and laborers in the service or employ of the United States or of the Panama Railroad Company and the families of all such persons, and to contractors operating in the Canal Zone and their employees, workmen and laborers and the families of all such persons, and to such other persons as under the provisions of Section 4 of this Article may be permitted by the United States to dwell in the Canal Zone, and who actually do dwell in said zone, it being understood that guests of the hotels operated by the Panama Canal or the Panama Railroad Company are not included unless they come under one of the other classes to which such sales may be made. It is furthermore understood that the provisions of this Section shall in no way prejudice the operation of such bonded warehouses as the United States may permit to be established in the Canal Zone. The United States will continue to extend the privilege of dealing at its commissaries and storehouses to such foreign diplomatic agents accredited to the Republic of Panama as the Panama Government may specifically request.

2. The Government of the United States will continue to cooperate in all proper ways with the Republic of Panama to prevent smuggling into the Republic of goods purchased in the commissaries.

3. The United States will not permit the establishment in the Canal Zone of private business enterprises other than those existing therein at the time of the signature of this Treaty. This provision shall in no wise be construed as prohibiting either the establishment of bonded warehouses, aforementioned, which are establishments for the assembling, storage, re-packing or distribution of merchantable articles in wholesale and not in retail quantities, or the operation of cable, oil, shipping or other concerns having a direct relation to the construction, operation, maintenance, sanitation or protection of the Canal.

4. With the exception of guests of the hotels operated by the Panama Railroad Company or the Panama Canal no person who is not comprised within the following classes shall be entitled to dwell within the Canal Zone:

Officers, employees, workmen or laborers of the United States the Panama Canal or the Panama Railroad Company;

Contractors operating in the Canal Zone and their employees, workmen and laborers;

Officers, employees or workmen of companies entitled by Section 3 of this Article to conduct operations in the Canal Zone;

Settlers employed in the cultivation of small tracts; hucksters, proprietors and clerks of small establishments for supply of these settlers and of other employees; and

Members of the families and domestic servants of all the before-mentioned persons.

No dwellings belonging to the Government of the United States or to the Panama Railroad Company and situated within the Zone shall be rented or leased to persons not within the excepted classes.

5. In aid of the enforcement of the provisions of Panaman law the United States agrees not to permit the landing at the ports of Balboa and Cristobal of any merchandise consigned to the Republic of Panama unless the invoices and manifests covering such merchandise shall be legalized by the Consular representatives of the Republic of Panama.

6. The Government of the United States will continue to extend to private merchants residing in the Republic of Panama the facilities for making sales to vessels transiting the Canal which they now enjoy, subject always to its police and military regulations.

Article V

There shall be complete reciprocal free importation of goods, wares and merchandise from the territory of the Canal Zone into that of the Republic of Panama, and from the Republic of Panama into the territory of the Canal Zone, provided, however, that no goods imported into the Canal Zone for sale in the commissaries or for sale to ships, according to this agreement, or for distribution or re-exportation in bonded warehouses shall enter the territory of the Republic of Panama without the payment of such duties as the Republic may have established, or will in future establish, upon foreign goods, it being understood, however, that any goods purchased in the commissaries may pass into the Republic of Panama without payment of import or other duties when they are used by or belong to the officers, agents, and employees of the United States, the Panama Canal, and the Panama Railroad Company, who reside or sojourn in the Republic of Panama during and in performance of their service with the United States, the Panama Canal, or the Panama Railroad Company and the goods are intended for their own personal use and benefit or that of their families, as well as any such goods belonging to or used by any contractor who is performing services in the Canal Zone for the United States, the Panama Canal or the Panama Railroad Company, or by representatives, agents, and employees of such contractors, and the families of all such persons, when the goods are intended for their own personal use and benefit and they reside or sojourn in the Republic of Panama during their service in the Canal Zone, and in addition such goods used by persons in the diplomatic or consular service of the United States and stationed in the Republic of Panama.

Article VI

Article IX of the said Treaty of November 18, 1903, is hereby superseded.

The United States agrees that the ports at either entrance of the Canal, and the waters thereof, shall be free for all time, so that there shall not be imposed or collected customs house tolls, tonnage, anchorage, lighthouse, wharf, pilot or quarantine dues or any other charges or taxes of any kind upon any vessel using or passing through the Canal, or upon the cargo, officers, crew or passengers of any such vessels, except such tolls and charges as may be imposed by the United States for the use of the Canal or other works, and except upon merchandise introduced into the Canal Zone for use or consumption therein, and upon vessels touching at the ports of the Canal and which do not pass through the Canal.

The Republic of Panama agrees that the cities of Panama and Colon and their adjacent harbors shall be free for all time, so that there shall not be imposed or collected customs house tolls, tonnage, anchorage, lighthouse, wharf, pilot or quarantine dues or any other charges or taxes of any kind upon any vessel using or passing through the Canal or belonging to or employed by the United States directly or indirectly in connection with the construction, maintenance, operation, sanitation and protection of the Canal or auxiliary works; or upon the cargo, officers, crew or passengers of any such vessels, except duties and charges imposed by the Republic of Panama upon merchandise destined to be introduced for use or consumption in the territory of the Republic of Panama, and upon vessels touching at the ports of Colon and Panama and which do not cross the Canal.

The United States agrees to furnish to the Republic of Panama free of charge the necessary space for the establishment of customs houses in the ports of the Canal Zone for the collection of duties on importations destined to the Republic and for the examination of merchandise, baggage and passengers consigned to or bound for the cities of Panama and Colon, and to prevent contraband trade, it being understood that the collection of duties and the examination of merchandise and passengers by the agents of the Government of Panama, in accordance with this provision, shall take place only in the customs houses to be established by the Government of Panama as herein provided.

No charges of any kind whatsoever shall be imposed by the authorities of the United States upon persons passing from the territory of the Republic of Panama into the Canal Zone, and the authorities of the Republic of Panama shall grant reciprocal free passage of persons other than immigrants into the Republic, from the territory of the Canal Zone into that of the Republic of Panama.

The United States shall have the right in case of emergency to make use of the cities and harbors of Panama and Colon as places of anchorage and for making repairs, for loading, unloading, depositing or transshipping cargoes, either in transit or destined for the service of the Canal and for other works pertaining to the Canal.

Article VII

It is agreed that no penalty or forfeiture under the laws of the United States shall be applicable or attach to alcoholic liquors or to vehicles or persons by reason of the carriage of such liquors when they are in transit under seal and under certificate by Panaman authority from the terminal ports of the Canal to the cities of Panama and Colon and from the cities of Panama and Colon to the terminal ports of the Canal when intended for exportation, and between the cities of Panama and Colon and any other points of the Republic and between any two points of the territory of the Republic when in either case the direct or natural means of communication is through Canal Zone territory and provided that such liquors remain under said seal and certificate while they are passing through Canal Zone territory.

Article VIII

In furtherance of the purpose of Article VII of the Treaty of November 18, 1903, so far as it relates to the sanitation of the cities of Panama and Colon, it is agreed that the Government of the United States shall continue to enforce all quarantine and sanitary ordinances and regulations of a preventive or a curative character heretofore prescribed or that it may hereafter prescribe, for the cities of Panama and Colon and their adjacent harbors, and the enforcement of said ordinances and regulations by the United States shall be effected through the health officers whom the United States will maintain in each of the cities of Panama and Colon, it being understood however that the United States will not prescribe, nor the said health officers enforce, under this heading building or other regulations within the province of the municipal authorities of the Republic of Panama except in so far as such building or other regulations may relate to sanitary matters. It is agreed that the sanitary rules and regulations prescribed by the United States for the cities of Panama and Colon and their adjacent harbors will be promulgated by Executive Decree of the President of Panama. It is further agreed that whenever an epidemic or disease appears in or threatens any part of the Republic of Panama which may be considered by the Panama Canal authorities as a menace to the health of the Canal Zone and the cities of Panama and Colon, the Panaman authorities will, upon the request of the Government of the United States, apply to such region the quarantine and sanitary ordinances and regulations prescribed by the Chief Health Officer of the Panama Canal. In case the epidemic should be of such severity that the resources and efforts of the Republic of Panama appear to the Chief Health Officer of the Panama Canal to be insufficient or unavailing to check or control the epidemic, the Republic of Panama grants to the United States the right and authority to enforce such ordinances and regulations in the same manner as prescribed for the cities of Panama and Colon. The foregoing measures shall continue in force until the menace to the Canal Zone and the cities of Panama and Colon has been removed. The expenses incident to the enforcement of such quarantine and sanitary measures as may be necessary shall be borne by the United States when, in accordance with the above provisions, it has taken over the enforcement of such measures.

All moneys collected in the cities of Panama and Colon from fines, penalties, and forfeitures under said ordinances and regulations shall be held by the Panaman authorities as an emergency fund to be used in special cases for sanitary purposes only in the respective cities of Panama and Colon, where collected, upon the approval of the Chief Health Officer of the Panama Canal.

In furtherance of the provisions of Article VII of the Treaty of November 18, 1903, it is agreed that the President of the United States and the President of the Republic of Panama will make agreements from time to time relative to the establishment of hospitals for the treatment of persons insane or afflicted with the disease of leprosy, and indigent sick in the Republic of Panama, on such conditions respecting the administration thereof, and such terms regarding the cost of construction and maintenance thereof, as the said Executives may determine by mutual agreement.

Article IX

The High Contracting Parties agree that with the exception of the stations specified in paragraph three of this Article and those owned and officially operated by the Government of Panama, no radio station, radio installation, or radio receiving set shall be imported, erected or operated in the territory of the Republic of Panama without a license issued by the Government of Panama. Panama will furnish to the United States notice of all applications for such licenses as they are made, and no license shall be issued in case objection is made by the United States, within fifteen days after receipt of such notice, to any such radio station, installation, or radio receiving set as endangering the efficient protection, defense or operation of the Panama Canal. Transfers of licenses shall be made only in the same manner as above provided for the original issue of the license.

Every license to a radio station, radio installation or radio receiving set in the Republic of Panama shall provide that the station, installation or receiving set shall at all times be subject to inspection by the United States and censorship, control or closure by the Government of Panama. The Panaman Government agrees, upon request by the United States Government, to close without delay any radio station, radio installation or radio receiving set which is, in the opinion of the United States, detrimental to the safety or operation of the Canal and its defense or the operation of the United States Fleets or Forces. It is agreed, however, that with the exception of enemies in time of war the operating company or individual shall be duly reimbursed for losses due to such closure and that the damages arising out of such closure shall be appraised and determined by the Joint Commission provided for in Article I of this Treaty, and shall be paid by the United States in case such closure shall have been carried out by Panama at the request of the United States.

The Republic of Panama grants to the United States, with a view to the more efficient operation of the Canal, the right to install, maintain, and operate such radio stations in the Republic of Panama as the United States Government may deem necessary for use in connection with its other stations in the Republic of Panama or the Canal Zone, or for the purpose of controlling the movements of its Fleets or Forces. It is agreed that such radio stations erected, maintained, and operated by the United States in the Republic of Panama shall be open to the public service and shall transmit commercial business in the absence of commercial radio service by private enterprises, it being understood that Government messages shall have priority.

The Republic of Panama shall have complete sovereignty over the territory occupied by such radio stations as may be established by the United States in the Republic of Panama for the protection of the Canal and the management of United States Fleets or Forces, except that the United States shall exercise exclusive jurisdiction over such station sites, the property thereon and the personnel engaged in operating such stations, as well as the members of the military or naval forces of the United States supplying such stations. These provisions shall apply to the radio stations situated in La Palma and Puerto Obaldia now operated by the United States.

In case of war or threatened hostilities, the provisions of Article XI of this Treaty shall apply.

Article X

All aircraft and aviation centers in the Republic of Panama other than those pertaining to the defensive forces of the Canal and those owned and officially operated by the Government of Panama shall be subject to inspection by both the United States and the Panaman Governments to insure compliance with such rules and regulations as may hereafter be agreed upon.

Aircraft owned and operated by the nationals of the United States or Panama may operate in the Republic of Panama, provided both the aircraft and the operators thereof hold a joint United States-Panama license issued by a board composed of representatives of the Governments of the United States and Panama and otherwise conform to restrictions recommended in the Convention for the Regulation of Aerial Navigation signed at Paris, October 13, 1919, or such other restrictions as the two countries may from time to time jointly prescribe.

All aircraft other than those pertaining to the defensive forces of the Canal and those owned and officially operated by the Government of Panama must follow routes prescribed jointly by the United States and Panama in flying over the Republic of Panama and must land at airports or airdromes designated jointly by the United States and Panama and must otherwise conform to such restrictions as the two countries may from time to time jointly prescribe.

In applying and enforcing the rules and regulations regarding aircraft and aviation centers the two Governments shall regard as the deciding factor the safety of the Panama Canal.

The Republic of Panama agrees not to permit flying in Panaman territory over areas near the defenses of the Canal except in agreement with the United States.

In time of war or threatened hostilities the provisions of Article XI of this Treaty shall be applied.

Article XI

The Republic of Panama agrees to cooperate in all possible ways with the United States in the protection and defense of the Panama Canal. Consequently the Republic of Panama will consider herself in a state of war in case of any war in which the United States should be a belligerent; and in order to render more effective the defense of the Canal will, if necessary in the opinion of the United States Government, turn over to the United States in all the territory of the Republic of Panama, during the period of actual or threatened hostilities, the control and operation of wireless and radio communication, aircraft, aviation centers, and aerial navigation.

The civil and military authorities of the Republic of Panama shall impose and enforce all ordinances and decrees required for the maintenance of public order and for the safety and defense of the territory of the Republic of Panama during such actual or threatened hostilities and the United States shall have the direction and control of all military operations in any part of the territory of the Republic of Panama.

For the purpose of the efficient protection of the Canal, the Republic of Panama also agrees that in time of peace the armed forces of the United States shall have free transit throughout the Republic for manoeuvres, or other military purposes, provided, however, that due notice will be given to the Government of the Republic of Panama every time armed troops should enter her territory. It is understood that this provision for notification does not apply to military or naval aircraft of the United States.

Article XII

As long as the Republic of Panama shall make the gold dollar of the United States unlimited legal tender equally with the balboa established by Law 84 of 1904, the Government of the United States agrees to make the subsidiary silver currency issued by the Republic of Panama legal tender in the Canal Zone, with the following conditions:

1. That such Panaman currency shall not be legal tender for the payment of tolls for the use of the Panama Canal;

2. That the total nominal value of such Panaman subsidiary silver currency shall not exceed the amount of $1,000,000;

3. That the Republic of Panama, in order to maintain the legal parity and equivalence with the gold standard of such fractional silver coins, shall create and maintain a reserve fund by deposit with a responsible banking institution in the United States of a sum in lawful currency of the United States always equivalent to not less than fifteen per cent of the nominal value of the silver fractional currency issued by the Republic, and as the same is issued, together with an amount equal to the seigniorage on the silver coins issued, less all necessary costs of coinage and transportation;

4. That Panama further agrees to maintain the parity of its silver coinage with the gold standard by exchanging silver coins when presented in sums or multiples of twenty dollars or twenty balboas for gold, and by taking such steps with respect to exchange by drafts upon its reserve fund as will tend to prevent disturbances of the legal parity of the silver fractional currency of the Republic of Panama with the gold standard;

5. That such Panaman silver currency shall have an intrinsic value equal to or higher than the corresponding silver coins of the United States;

6. That the silver money of the United States shall be legal tender in the Republic of Panama to the same extent that it now is in the United States;

7. That the Republic of Panama shall not prohibit, restrict or impose any tax upon the exportation of gold coin.

Article XIII

It is expressly understood and agreed that nothing provided in this Treaty shall in any wise affect the rights of either of the two High Contracting Parties or be taken as being a limitation, definition, restriction or restrictive construction of the rights of either party under the Treaty of November 18, 1903, and the Treaty of September 2, 1914, except as expressly provided in this Treaty, and it is furthermore expressly understood that the rights of the Panama Railroad Company acquired by virtue of its concessions from the Republic of Colombia or otherwise and the rights of the United States acquired by virtue of their purchase of the rights of the French Canal Company, are in no manner altered, impaired or diminished by any of the terms of this Treaty.

Article XIV

The present Treaty shall be ratified in accordance with the constitutional forms of the High Contracting Parties and shall take effect immediately on the exchange of ratifications which shall take place at Washington.

In witness whereof, the respective Plenipotentiaries have signed this Treaty in duplicate and have hereunto affixed their seals.

Done at the City of Washington the 28th day of July 1926.

[seal]

Frank B. Kellogg

[seal]

Francis White

[seal]

R. J. Alfaro

[seal]

Eusebio A. Morales

[Enclosure 2]

The American Commissioners to the Panaman Commissioners

Washington, July 28, 1926.

Sirs: With reference to the question of the statue of Christopher Columbus now standing on the grounds of the Washington Hotel in the city of Colon, and which was presented to the Republic of Colombia by Eugenie, Empress of the French in 1866, the American Commissioners take pleasure in confirming the understanding arrived at during the negotiations of the present treaty, that the Republic of Panama is recognized to have the ownership of said statue and that consequently it may be removed from its present location to such other place within the territory of Panama as may be deemed convenient by the Panaman Government.

Accept [etc.]

• Frank B. Kellogg
• Francis White

[Enclosure 3—Translation]

The Panaman Commissioners to the American Commissioners

Washington, July 28, 1926.

Sirs: The Panaman Commissioners have received with great gratification the note of this date in which the American Commissioners confirm the understanding arrived at in the present negotiations with regard to the statue of Columbus now standing in the grounds of the Washington Hotel in the city of Colon, presented to the Republic of Colombia in 1866 by Eugenie, Empress of the French, and the ownership of which is recognized to correspond to the Republic of Panama, with the right to remove it to such place within the territory of the Republic, as may be convenient.

Accept [etc.]

• R. J. Alfaro
• Eusebio A. Morales

[Enclosure 4—Translation]

The Panaman Commissioners to the American Commissioners

Washington, July 28, 1926.

Sirs: Referring to Section 4 of Article IV of the treaty signed by us today with the American Commission in which is set forth the persons who shall be entitled to dwell within the Canal Zone and to whom dwellings belonging to the Government of the United States or to the Panama Railroad Company and situated within the Zone may be rented or leased, we desire to confirm the understanding arrived at between the Commissioners during the negotiations, that consular officers of career holding exequaturs from the United States are included within the category of those who are entitled to dwell within the Canal Zone and to whom dwellings belonging to the Government of the United States or to the Panama Railroad Company and situated within the Zone may be rented or leased.

Mention was not made in the treaty of consular officers of career holding exequaturs from the United States as it was not desired to give undue prominence to the fact that such persons may dwell in the Canal Zone and thus perhaps cause a number of such persons who now reside in the Republic of Panama to take up residence in the Canal Zone.

Accept [etc.]

• R. J. Alfaro
• Eusebio A. Morales

[Enclosure 5]

The American Commissioners to the Panaman Commissioners

Washington, July 28, 1926.

Sirs: In reply to your note of today’s date in which you confirm the understanding arrived at by the American and Panaman Commissioners in the recent negotiations that it is understood that consular officers of career holding exequaturs from the United States are to be considered as included among those persons enumerated in Section 4 of Article IV of the treaty signed by us today who are entitled to dwell within the Canal Zone and to whom dwellings belonging to the Government of the United States or to the Panama Railroad Company and situated within the Zone may be rented or leased, the American Commissioners take this opportunity to thank the Panaman Commissioners for this confirmation of the understanding reached during the negotiations.

Accept [etc.]

• Frank B. Kellogg
• Francis White

[Enclosure 6—Translation]

The Panaman Commissioners to the American Commissioners

Washington, July 28, 1926.

Sirs: Referring to paragraph 2 of Article IX of the treaty signed by us today with the American Commission in which it is provided that all radio stations, radio installations or radio receiving sets in the Republic of Panama shall be subject to control by the Government of Panama, we desire to confirm the understanding arrived at between the Commissioners during the negotiations that the Republic of Panama in the exercise of her control, may require the operator of every radio station, radio installation or radio receiving set to furnish the Government of Panama with a copy of every message received or sent by it and that the Government of Panama will supply copies of such messages to the agents of the United States, if the United States should advise Panama that it considered such measures necessary in the protection, defense or operation of the Panama Canal or the operation of the United States fleets or forces, it being understood that this phase of control by the Republic of Panama would not be exercised in ordinary circumstances but only in the case above stated.

With reference to the third paragraph of Article IX of the treaty it is of course understood, as brought out in our negotiations, that radio stations operated by the United States in the Republic of Panama shall be operated under such regulations as the United States may prescribe for them.

Accept [etc.]

• R. J. Alfaro
• Eusebio A. Morales

[Enclosure 7]

The American Commissioners to the Panaman Commissioners

Washington, July 28, 1926.

Sirs: In reply to your note of today’s date in which you confirm the understanding arrived at by the American and Panaman Commissioners in recent negotiations that it is understood that Panama in exercising control over radio stations, radio installations or radio receiving sets in the Republic of Panama may of course demand that copies of all messages received or sent by such radio stations, radio installations or radio receiving sets shall be supplied to the Republic of Panama, which will in turn furnish such copies to the United States, it being understood that such measures will not be taken in ordinary circumstances but only when the United States advises Panama that it considers such measures necessary in the protection, defense or operation of the Canal or the operation of the United States fleets or forces, and furthermore that it is of course understood that radio stations operated in the Republic of Panama by the United States will be operated under such regulations as the United States may prescribe for them, the American Commissioners take this opportunity to thank the Panaman Commissioners for this confirmation of the understanding on these points reached during the negotiations.

Accept [etc.]

• Frank B. Kellogg
• Francis White

[Enclosure 8—Translation]

The Panaman Commissioners to the American Commissioners

Washington, July 28, 1926.

Sirs: Referring to Article XII of the treaty signed by us today with the American Commission, in which arrangement is made to make the subsidiary silver currency issued by the Republic of Panama legal tender in the Canal Zone under certain conditions, we desire to state that the Republic of Panama will cause the silver currency referred to in said Article to be coined at one of the mints of the United States.

Accept [etc.]

• R. J.Alfaro
• Eusebio A. Morales

[Enclosure 9]

The American Commissioners to the Panaman Commissioners

Washington, July 28, 1926.

Sirs: In reply to your note of today’s date in which you state, with reference to Article XII of the treaty signed by us today, that Panama will cause the silver currency referred to in said provision to be coined at one of the mints of the United States, we desire to express the thanks of the American Commission for this confirmation of the understanding reached by us during the negotiations for the treaty.

Accept [etc.]

• Frank B. Kellogg
• Francis White

[Enclosure 10—Translation]

The Panaman Commissioners to the American Commissioners

Washington, July 28, 1926.

Sirs: Referring to Article I of the treaty signed by us today with the American Commission, in which it is provided that the value of private lands and private property, and the assessment of damages to them shall be appraised and settled by a Joint Commission composed of one of the Associate Justices or a substitute Justice of the Supreme Court of the Republic of Panama, to be selected by the President of the Republic of Panama, and the Judge of the District Court of the Canal Zone, and that in case of disagreement of the Commission an Umpire shall be appointed by the two Governments and he shall render the decision, we desire to confirm the understanding arrived at between the Commissioners during the negotiations, that Panama agrees to the appointment at any given moment, for the responsible position of Umpire of the Joint Commission, of a citizen of the United States of America who is known in Panama for his eminent qualifications for the position.

Accept [etc.]

• R. J. Alfaro
• Eusebio A. Morales

[Enclosure 11]

The American Commissioners to the Panaman Commissioners

Washington, July 28, 1926.

Sirs: In reply to your note of today’s date in which you confirm the understanding arrived at by the American and Panaman Commissioners in their negotiations that the Panaman Government agrees to the appointment to the position of Umpire, provided for in Article I of the treaty signed by the plenipotentiaries of the United States and Panama today, of a citizen of the United States of America known in Panama for his eminent qualifications for that responsible position, the American Commissioners take this opportunity to express to the Panaman Commissioners their gratification in receiving this confirmation of the understanding reached during the negotiations.

Accept [etc.]

• Frank B. Kellogg
• Francis White

5. Post, p. 865.
6. Filed separately as unperfected treaty No. B–10.
7. Foreign Relations, 1915, p. 1123.
8. Not printed.