The Department of State to the Panamanian Embassy
Reference is made to the question of the transfer to the Government of the Republic of Panama of the water and sewerage installations in the cities of Panamá and Colón as discussed in the Panamanian memoranda of February 18, May 20, and June 23, 1941 and in this Government’s reply of July 8, 1941.
In the latter memorandum it was stated that “If the Panamanian Government so desires, the cities of Panamá and Colón may continue to receive supplies of water from the Canal Zone at the outlets now provided at the Canal Zone boundary at a reasonable rate to be [Page 462] agreed upon by both Governments”. In the Panamanian memoranda of May 20 and June 23 it was stated that Panama would be disposed to pay for water furnished at the Canal Zone boundary at a rate not to exceed B/0.09 per one thousand gallons.
The Government of the United States believes that the rate suggested by the Panamanian Government is satisfactory and accordingly is willing, subject to the same conditions as set forth in the last paragraph of the introductory remarks of this Government’s memorandum of July 8 regarding the twelve points in the relations between Panama and the United States with respect to which positive action by the United States was requested, to supply water at the Canal Zone boundary at the rate of B/0.09 per one thousand gallons, payable quarterly to the appropriate Canal Zone authorities.