711.1928/313a
The Chief of the Division of Latin American Affairs ( Wilson ) to the Chargé in Panama ( Burdett )
Dear Mr. Burdett: I am enclosing herewith, for your strictly confidential information, a copy of the draft of the proposed general treaty with Panama. This draft, which bears the date of December 11, 1934,2 indicates in general the status of the discussions as regards this proposed treaty. I have had written into the margin in pencil certain modifications which represent proposals recently made by one side or the other, but not as yet definitely agreed upon. The draft carries notations in the margin indicating that certain provisions have been “accepted” or “deferred” for further consideration. I might add that where the notation “accepted” appears, this does not necessarily indicate definitive agreement: both the Panamanians and ourselves have had occasion, and doubtless shall have again, to go back on certain provisions which had appeared in general acceptable.
I am also enclosing six drafts of notes2 which, it is proposed, we will address to the Panamanian Commissioners at time of signature of the treaty. These deal with matters which are self-explanatory. In addition to these notes, there will be others covering other matters. In general, only the draft note relating to coinage has been accepted by the Panamanians. The note on the use of hospitals, restaurants, et cetera, has not yet been submitted to the Panamanians: it is in answer to a request of theirs for writing some such phraseology into the treaty. Governor Schley3 and the War Department have been furnished in confidence the draft of the general treaty, dated December 11, 1934. Governor Schley is also informed, in general, regarding the provisions of the draft notes relating to Article II of the proposed treaty; to that part of Article III of the treaty dealing with the question of sale to ships of goods imported into the Zone; relating to the [Page 890] “labor gangs” and Article VI of the treaty; relating to the “hold for orders” business under Article III of the treaty (to which Governor Schley and the War Department strongly object, but which has been approved by the President).
We shall endeavor to keep you informed of progress and of any changes of substance in these drafts.
With kind regards [etc.]