Sullivan & Cromwell to the Secretary of State

Dear Sir: We beg to acknowledge herewith your letter of February 24, 193440 (BA—711.1928) addressed to William Nelson Cromwell, as Fiscal Agent of the Republic of Panama, and enclosing a copy of the Comptroller General’s settlement Certificate No. 0322603, dated February 24, 1934, check on the Treasurer of the United States, No. 27,530, dated February 24, 1934, to the order of William Nelson Cromwell, Fiscal Agent of the Republic of Panama, for $250,000 “in settlement of the annuity due the Republic of Panama on February 26, 1934, under Treaty of November 18, 1903”, and a form of receipt therefor.

This form of receipt contains the statement that the aforementioned check is “in full payment of the annuity due the Republic of Panama February 26, 1934”, etc.

In the absence from New York of Mr. Cromwell, but acting under his instructions, we beg to acknowledge your communication and to advise you that the Republic of Panama maintains the position that the payment of the Treaty Annuity, in accordance with the aforementioned Treaty, should be made in gold coin of the weight and fineness existing in 1904 or the equivalent in actual value thereof. Consequently, and in view of the aforementioned advice from the Government of Panama that it does not consider that the payment in question constitutes payment in full of the said Treaty Annuity, the Fiscal Agent considers that he cannot accept the check as tendered and the undersigned, on behalf of the Fiscal Agent, are returning the check herewith.

Respectfully yours,

Sullivan & Cromwell
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