711.1928/152
The Secretary of State to the Panaman Minister ( Alfaro )
Sir: I have received your note of November 15 in which you inform me that your Government takes exception to the statement in the speech which the President of the United States made on the 11th instant, in which he said among other things the following:
“Our outlying possessions, with the exception of the Panama Canal Zone, are not a help to us but a hindrance.”
You state that by these words the President of the United States implicitly classified the Panama Canal Zone among the possessions of the United States, and you inform me that your Government desires to declare its disagreement with any expression which may be contrary to the idea which Panama holds concerning the legal status of the territorial zone whose use, occupation and control were granted to the United States for the construction, maintenance, operation, sanitation and protection of the inter-oceanic canal.
In reply I have to point out that the position of the United States with regard to the status of the Canal Zone was completely set forth in the note dated October 24, 1904, addressed by the then Secretary of State, Mr. John Hay, to the then Minister of Panama, Mr. J. D. de Obaldía,18 and to inform you that the position of the United States Government with regard to this question remains unchanged.
I have been much pleased to note your statement that the Government of Panama has been gratified by the President’s statement that the Canal Zone is a help to the United States. I feel sure you will agree with me that Panama has just cause for pride and sincere satisfaction in having contributed to making possible the construction of the canal, which has been of such inestimable benefit to the whole world, and that the relations between Panama and the United States, founded upon their co-operation in this great project, will always be marked by mutual consideration and friendly understanding.
Accept [etc.]