The Secretary of State to the Secretary of War (Dern)

My Dear Mr. Secretary: This Department has discussed with the President certain questions comprised in the present negotiations with Panama and he has informed me as follows:

That he is unwilling to request such further extension of United States political jurisdiction over Panamanian territory as would be involved in extension of such jurisdiction over New Cristobal. He therefore desires that this question be dropped. He said, however, that if it is seriously considered that the American residents of New Cristobal suffer from inadequate police and fire protection, some agreement may be negotiated with Panama whereby additional police and fire protection in New Cristobal might be furnished by American personnel from the Canal Zone;

That he desires that the United States Government and the Panama Railroad Company dispose by sale at a reasonable price of all lands owned by them in Colon and Panama not required by the activities of the Canal and the Railroad Company; and that this policy be made known as a portion of the pertinent agreements which it is proposed to negotiate with Panama.

Sincerely yours,

Cordell Hull