711.1928/349
The Attorney General (Cummings) to the Secretary of State
Dear Mr. Secretary: I am obliged for your letter of the 28th ult—initialed LA 711.1928/332B34—enclosing copy of a memorandum submitted to you by the Minister of Panama,35 in which he presents further argument in support of Panama’s contention that annuity payments under the Treaty of November 18, 1903, should be made in gold coin of the standard existing on that date.
Dr. Alfaro, the Panamanian Minister, has been both adroit and plausible in advancing his country’s position concerning this matter, as you are no doubt aware, but we have never admitted the accuracy of this position; on the contrary, it is highly debatable whether the construction asserted by Dr. Alfaro is legally correct, and it is certain, for the present at least, that these annuities were assigned by Panama [Page 923] to the use of bondholders in this country to whom the payments are distributable.
The entire subject was given careful consideration more than a year ago and the conclusion reached by your Department, after conferences with my representative, the Assistant Solicitor General, and representatives of the Treasury Department, that a new treaty should be negotiated with Panama, which would take into account and adjust any controversy about these annuities.
Permit me to suggest that I am still of the opinion, in which the Treasury Department concurs, that this controversial subject, because of complications it may induce, should be disposed of as promptly as may be, and by means of the treaty now in process of negotiation by your Department.
Sincerely yours,