810.154/747
Memorandum by the Chief of the Division of Latin American Affairs (Wilson)
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3) Dr. Alfaro then spoke of the question of the Panama Canal annuity, the next payment of which would be due on the 26th of this month. He referred to the recent correspondence he had had with me on this subject and again brought up the matter of action taken by Congress to return to the Philippine Islands the full value of the currency reserve which the Islands had held in this country prior to the devaluation of the dollar. We discussed this question in friendly fashion at considerable length, covering the ground already familiar. At the end of our discussion I said that I still felt that the only feasible way in which we could meet Panama’s desires—and we had already indicated clearly our wish to meet those desires—was by including appropriate provision to that effect in the treaty we were endeavoring to negotiate. I said, however, that I would be glad to discuss with the Secretary again Dr. Alfaro’s suggestion that without waiting for the conclusion of the treaty consideration be given to the introduction of specific legislation authorizing the payment of the annuity in an amount of present dollars equivalent to the stipulated amount in old dollars. I said that I would advise the Minister later after I had had an opportunity to talk with the Secretary.