711.1928/233 2/7: Telegram

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

71. President Arias informally told Burdett10 on April 22 that he had instructed Alfaro to suggest to the Department that the minor differences be settled by administrative action prior to discussion of groundwork for proposed new treaty and in order to establish favorable sentiment toward United States in Panama. Otherwise local popular reaction against any treaty might render ratification impossible. He grouped as minor differences the question of luxury articles in the commissary, continuance of prohibition in Canal Zone, removal of zone restrictions against entry of deported Panamanians, cheap prices on cigarettes in zone, trans-Isthmian highway, payment of annuity in gold,11 and repatriation of West Indians.

The Legation strongly believes that no major concessions should be made without compensatory concessions.

President stated he feared possibility of Panamanian default of next service charges on 1923 loan.

Detailed report on above follows by airmail.

  1. William C. Burdett, First Secretary of Legation.
  2. See pp. 612 ff.