The Secretary of State to the Minister in Panama (Gonzalez)
29. For your strictly confidential information. This morning we suggested orally to the Minister of Panama the advisability, in view of the number of controversial questions pending between our two Governments, of discussing the possibilities of negotiating a treaty as a modification of the 1903 treaty to cover a settlement of such questions. [Page 626] We suggested that the Panamanian request for payment of the Canal annuity on the basis of the former gold value of the dollar might be dealt with in such discussions. The Minister is to consult his Government and advise us later of its views.
[The question of the payment of the Canal annuity came up again in 1935 and 1936. The matter was finally settled by article VII of the General Treaty of Friendship and Cooperation between the United States and Panama, signed March 2, 1936 (see Treaty Series No. 945, or 53 Stat. 1807).]