711.1928/881
Memorandum of Conversation, by the Chief of the Division of the American Republics (Duggan)
Mr. White9 telephoned that he had learned from various sources, including the newspapers and the Chase National Bank, of the payment of Panama Canal annuities. He requested to be informed whether the distribution of payments in the form of three checks, two to the Chase National Bank of $1,500,000 and $220,000, respectively, and one to the Government of Panama for $860,000, was correct. Inasmuch as Mr. White seemed to be in possession of accurate information, I informed him that his information was correct.
Mr. White then stated that he felt that the irrevocable instructions given by the Panamanian Government to the United States Government were clear to the effect that all of the annuity payments were to be turned over to the Chase National Bank as Fiscal Agent. I informed [Page 753] Mr. White that that was a legal question which I was not prepared to discuss. He said that in the interest of protection of the bondholders he felt that the Council would have to write the Department a letter setting forth the Council’s contention that the money should have been paid over to the Chase National Bank as Fiscal Agent.
- Francis White, president of the Foreign Bondholders Protective Council, New York.↩