essary to get returned the letters rogatory heretofore sent by his Government for the purpose of obtaining the testimony of various witnesses in this matter, one particularly from Brazil, and that the former Minister here, my predecessor, had expressed his desire that this testimony be in the files before final action in the case. I expressed to him my opinion that this testimony was of a cumulative character and not absolutely necessary in consideration of the merits of the case and that there had been great patience already shown by our Government in its dealings with the Panaman Government regarding this matter. The Secretary of Foreign Affairs has now requested me to withhold for the time being a Foreign Office note from this Legation regarding this matter, which I informed him I should have to draft in rather vigorous terms, and has assured me that he is discussing the matter with various officials of his Government for the purpose of replying to our Government in a manner calculated to bring about a satisfactory settlement of our demands. I shall continue to press this matter and the Department will be advised as to its further developments. I have [etc.] File No. 419.11D29/47. No. 12.] WM. JENNINGS PRICE. The Secretary of State to the American Minister. DEPARTMENT OF STATE, Washington, December 18, 1913. SIR: The Department has received your No. 22, of the 15th ultimo, reporting [etc.]. The Department approves your action in pressing the case and hopes soon to be informed that you have received the promised note from the Foreign Office. I am [etc.] File No. 419.11D29/48. No. 51.] W. J. BRYAN. The American Minister to the Secretary of State. AMERICAN LEGATION, Panama, December 23, 1913. SIR: Referring again to the disturbance in the restricted district of this city known as Cocoa Grove, on July 4th, 1912, in which one American was killed and several wounded, and supplementing my dispatch No. 22 of November 15th, 1913, I have the honor to report that I transmitted yesterday in person to Señor Lefevre, the Secretary for Foreign Affairs of Panama, a Foreign Office note vigorously insisting upon a prompt closing of negotiations in this matter and a settlement satisfactory to the United States. Said note in duplicate is herewith enclosed. Señor Lefevre read the note in my presence and said he would himself call a conference with officials of his Government regarding the matter tomorrow. WM. JENNINGS PRICE. I have [etc.] [Inclosure.] F. O. No. 14.] AMERICAN LEGATION, Panama, December 22, 1913. EXCELLENCY: Referring again to the occurrence in this city on the 4th of July, 1912, in the restricted district known as Cocoa Grove, in which one American citizen was killed and several others wounded by the Panaman police, I have the honor to communicate by this note what I have several times already communicated verbally; that my Government instructs me to say that the large patience it has exercised in this matter has been subjected to such continued strain by your excellency's Government, that it has almost become exhausted. The files in this case in your excellency's office set forth in detail the demands of my Government in this matter and further exhibit the persistency with which compliance with same has been insisted on. It was one of the first things taken up by me with your excellency promptly upon assuming the duties of my post here and ever since has continued to be a matter of urging on my part with your excellency and the importance of a prompt and gratifying settlement of the whole affair has been already pointed out. I have been given assurances each time by your excellency that all possible dispatch was being employed to bring these negotiations to a satisfactory conclusion with my Government, and at your excellency's request a Foreign Office note from this Legation regarding this matter has been held in abeyance until now. The very definite and determined attitude of my Government has been presented in the repeated communications to your excellency's Government respecting this cruel and criminal wounding and taking of life by men occupying official position under one of your branches of Government and any rehearsal would be more than unnecessary. It is now nearly a year and a half since the enactment of this tragedy. In addition to the permanent force of officials of eminent ability and worth that our great Canal will demand upon its completion, now near, and the body of skilled and high grade employees necessary under them, it is understood that there is to be stationed in the neighboring Zone a large body of soldiers and marines some of whom, as your excellency knows, are already on the way here. The proximity of all these representatives of my Government to the Republic of Panama and your chief and capital city can but be a source of considerable revenue and it is believed may be materially beneficial in other ways to your excellency's country. The desirability of pleasant feelings on their part toward your people and particularly on the part of the soldiers and marines, on account of the connection of the shocking events of this cocurrence with men of their rank, must seem clearly apparent. I shall indulge the hope of a prompt fulfillment by your excellency's Government in this distressing affair of what has resolved itself far beyond hope and into expectancy by reason of the amount of incontrovertible proof, that has made the position taken by my Government unquestionable, and respectfully ask an undelayed response to that end. I have [etc.] WM. JENNINGS PRICE. PROPOSED RAILROAD CONCESSION IN PANAMA-ATTITUDE OF THE UNITED STATES.1 File No. 819.77/135. The American Minister to the Secretary of State. [Telegram.] AMERICAN LEGATION, Panama, January 8, 1913. I have just obtained copy of contract signed a few days ago by the Panaman Government with Basil Barnes [Burns] Duncan, an American residing here, which now requires approval of Assembly to become law, providing for construction within five years of a rail Continued from For. Rel. 1912, pp. 1167-1206. way starting from west side of mouth of Chagres River and running more or less in southwest direction at least fifty kilometers. Concessionaire may construct at any time such branches of such length and direction as he may consider necessary to the enterprise, previously requesting consent of Executive. He may establish wharves at Chagres and other places which he may consider suitable. Authorization to be granted in accordance with Law 82 of 1904 and he shall execute at his expense necessary works at Chagres or another port to allow entry of larger ships. Government grants all necessary Government land including strip of fifty meters for main line and three hundred hectares per kilometer of main line in alternate sections; also right to operate necessary telegraph lines. Concessionaire must deposit $10,000 guaranty, allow connections to other railways and allow Government to use railway whenever it considers it to be desirable. He surrenders right to make diplomatic claim and agrees to pay percentage of receipts after ten years. Concession for seventy-five years, Government reserving the right to purchase main line after thirty years.. Contract may not be assigned at all without the consent of Government and may not be assigned to foreign Gov ernment. Have obtained from Panaman Government postponement of further action upon this contract pending an opportunity for consulting my Government. DODGE. File No. 819.77/137. No. 281.] The American Minister to the Secretary of State. AMERICAN LEGATION, Panama, January 8, 1913. SIR: Referring to my telegram of January 8, I have the honor to enclose herewith the text of this contract as furnished to me by Señor Acevedo, and a translation.1 I became aware by chance a few days ago that some railway contract of this nature had just been signed but not withstanding frequent requests I was unable to secure a copy of it until late last evening. Upon examining this contract it appeared to me that its nature and provisions made it one which the Department would desire to have an opportunity of considering before it became law notwithstanding that the nominal concessionaire is an American; for, especially, the concessionaire is to construct a railway to start from a point a very short distance from the Atlantic entrance of the Canal; the length of line which he is allowed to build is entirely left to his discretion, providing he builds at least 50 kilometers; he is also allowed to construct as many branches as he likes at any time and running in any direction; he is to establish wharves at various places near the Canal and to improve the mouth of the Chagres River so that it can be entered by large ships, etc. Certain provisions of the contract appear favorably, as the system of land grants in sections, alternately for the Government and the concessionaire; the fact that the concessionaire must, under reasonable conditions, allow connections with Not printed. other railways (as the Pan-American) and allows the Panaman Government to use the line whenever it considers this desirable; and the provision that the contract requires the Government's consent to be assigned and cannot in any case be assigned to a foreign Government. I accordingly called this morning upon President Porras and after stating my opinion as above, I requested him to delay further action upon this contract until I had been able to consult my Government. I added that although the Department's instruction No. 89 of September 20, 1911, which I had especially brought to his attention in August last, was particularly written in view of a railway contract with foreigners, it seemed to me to apply also to the present case. President Porras replied that, as he had read this instruction, it appeared to apply only to railway contracts made with foreigners but that nevertheless if I desired it, he would be happy immediately to stop further proceedings until I had had an opportunity of consulting my Government as I desired. He wished me however to address my request in writing to Señor Lefevre, Minister for Foreign Affairs, in order that he might justify his action. This I ageed to do and I enclose a copy of my note 2 to Señor Lefevre. President Porras then said that I had made this request at the right moment, as he had been about to send the contract to the Assembly for its approval. I have [etc.] File No. 819.77/141. No. 287.] H. PERCIVAL DODGE. The American Minister to the Secretary of State. AMERICAN LEGATION, Panama, January 11, 1913. SIR: Referring to my despatch No. 281 of the 8th instant, I have the honor to inform you that Mr. Basil Burns Duncan, the concessionaire of the railway contract therein mentioned, has since then. called upon me. He inquired as to the action taken by me which I fully explained to him, giving him my reasons as stated in my despatch No. 281 referred to. Mr. Duncan replied that he understood fully my reasons and had always understood this to be the attitude of the American Government which he thought perfectly reasonable. He was glad to have the Department of State examine his contract and as a patriotic American did not wish to do anything which might be disapproved by his Government. In reply to my questions, he stated that he alone was interested in this contract at present but that he expected to interest certain persons in the United States. He expected to form an American corporation, the control of which would remain in the United States where also any stock and bonds which may be issued would be sold. It would be a strictly American enterprise. His plan was to construct the main line in a westerly direction, how far he could not now tell. Its purpose was to open up the country to sugar, cocoa, and banana plantations. 1 For. Rel. 1912, p. 1171 et seq. Not printed. Since Mr. Duncan's call I have had a conversation with Mr. MeKay, the manager of the United Fruit Company's plantations at Bocas del Toro, who is now temporarily here. Mr. McKay informed me confidentially that Mr. Duncan had spoken to him about his concession and that he had told him that the United Fruit Company would be glad to look into the concession when it had been definitely granted. Mr. McKay also confidentially informed me that he believed that the only other person now interested with Mr. Duncan was a Señor Florencio Harmodio Arosemena A., a Panaman of some property and an excellent engineer educated in Paris who had formerly been in the employ of the United Fruit Company. He added that Mr. Duncan was intending to construct his line of the same guage as the United Fruit Company's lines in Bocas. In reply to my inquiry as to whether there was any truth in the report which I had heard that the United Fruit Company was considering the construction of a railway from Puerto Limon, Costa Rica, to Bocas del Toro, Mr. McKay stated that the United Fruit Company was not considering such a line but that, as I was probably aware, Mr. Minor C. Keith had a strong desire, if he lived long enough, to complete the Pan-American Railway as far as Panama City. The Panaman section of this line he thought would presumably follow the Atlantic coast. I have [etc.] H. PERCIVAL DODGE. File No. 819.77/137. The Secretary of State to the American Minister. [Telegram.] DEPARTMENT OF STATE, Washington, January 18, 1913. Action reported in your No. 281 approved. The contract has been referred to the War Department for study and report. Would it, in your judgment, be advisable to have a commission examine this contract as was done in the case of the Agua Dulce Railway? ΚΝΟΣ. File No. 819.77/138. The American Minister to the Secretary of State. [Telegrams.] AMERICAN LEGATION, Panama, January 18, 1913. My telegram of January 8 and despatch 281. Minister of Foreign Affairs requests decision regarding Duncan contract as soon as possible as, in order to be approved by Assembly, contract must be submitted to it several days before the end of session on the 28th. DODGE. |