The Chargé in Panama ( Flexer ) to the Secretary of State
[Received 5:10 p.m.]
35. I am absolutely reliably informed that German interests are negotiating with local Swedish company in which Axel Wallenberg, former Swedish Minister to the United States is a partner, for purchase of tract of 5000 hectares surrounding Pinas Bay, Darien Province, and two outlying islands. Definite offer of $30,000 acceptable to Germans. Local Swedish representative,28 although anxious to [Page 822] dispose of nonproductive property, has cautioned against sale if investigation [shows?] German interests to be screen for Government. He is telegraphing Wallenberg at Stockholm accordingly.
Pinas Bay is the only unobstructed protected anchorage for deep draft vessels on Gulf of Panama, has been demonstrated to have no agricultural possibilities. It was German owned except Balboa. German interest arouses suspicion inasmuch as property has been demonstrated to have no agricultural possibilities. It was German owned prior to the war; then acquired by Ricardo Alfaro on technicality of tax arrears; by whom sold to Wallenberg. Military authorities informed.
- Hans Elliott, operator of the Elliott Shipping and Land Co., Inc., of Panama City.↩