for the amount in the aggregate of $3,000,000. The purpose of the bond issue is the construction and equipment by the Government of railways within the Republic, and the amount to be issued at this time is $750,000.

All the bonds of the series are to be issued under and secured by an indenture of trust to The Farmers' Loan and Trust Company of New York and William Nelson Cromwell as trustees (a copy of which is herewith submitted); and to secure the payment of the interest and sinking fund of said series, the Republic has set aside annually for the period of thirty consecutive years, commencing February 26, 1915, and ending February 26, 1944, the sum of $63,125 out of the annuity of $250,000 in gold coin of the United States of America which, pursuant to the terms of the "Convention between the United States and the Republic of Panama for the construction of a ship canal to connect the waters of the Atlantic and Pacific Oceans" ratified and proclaimed on February 26, 1904, the United States of America has agreed to pay in perpetuity to the Republic of Panama.

The Republic accordingly appropriates, transfers and sets over said sum to the said trustees and hereby appoints The Farmers' Loan and Trust Company of the City of New York, one of the said trustees, the agent and attorney-in-fact of the Republic of Panama, to receive payment of and give acquittance for the said sum of $63,125 out of the $250,000 to fall due to the Republic of Panama under said treaty on the 26th day of February, 1915, and a like sum on each 26th day of February thereafter until and including February 26, 1944, and we hereby agree, authorize and request that your excellency's Government pay over said several sums of $63,125 to The Farmers' Loan and Trust Company of the City of New York, during the period and as above provided.

EUSEBIO A. MORALES.

File No. 819.77/212.

The Secretary of State to the Minister of Panama.

DEPARTMENT OF STATE, Washington, November 7, 1914. DEAR MR. MINISTER: I have examined the indenture dated November 2, 1914, proposed to be entered into between the Panama Government and the Farmers' Loan and Trust Company and William Nelson Cromwell, trustees, arranging for the issue of a series of five per cent sinking fund, thirty year, gold bonds of the Republic of Panama, for an aggregate amount of $3,000,000, of which $750,000 only are now to be issued, the interest and sinking fund of which is to be met out of the annual treaty payments due to the Government of Panama by the Government of the United States under the Canal Convention; and as the proposed arrangement does not appear to contravene any treaty, convention or arrangement between the Governments of Panama and the United States, I see no occasion for any objection on the part of the Government of the United States and I, consequently, have the honor to inform you of the Department's acquiescence in the arrangements.

In this relation, I desire to direct attention to the Department's note to you of June 29, 1914, relating to this same matter, which note I desire now to renew, so far as it may be applicable to the present arrangement, and to inform your Government that any right which might hereafter arise or accrue to the Government of the United States to retain or decline payment of the treaty payments, or any part thereof, is reserved to this Government.

Accept [etc.]

W. J. BRYAN.

CONTROL BY THE UNITED STATES OF WIRELESS TELEGRAPH STATIONS IN PANAMA.12

File No. 819.74/30.

The Acting Secretary of War to the Secretary of State.

WAR DEPARTMENT, Washington, August 26, 1913.

MY DEAR MR. SECRETARY: The then President approved recommendations of the Joint Board of Army and Navy in 1911 that no private or commercial wireless installations be permitted in the Canal Zone, and that an understanding be reached with Panama to prevent the establishment of private and commercial wireless installations in its territory.18 To what extent any such understanding has been reached with Panama I do not know, but I do know that Colonel Goethals and the Isthmian Canal Commission, along with the Navy, are strongly of the opinion that no commercial wireless installations should be permitted within the Republic of Panama, and that the wireless installations in that territory should be erected by the United States Government and controlled thereby; giving to the people of Panama, however, facilities for private and commercial use.

On June 14, 1913, the Republic of Panama made a contract with the United Fruit Company for the establishment of a wireless telegraphy plant in Colon. At this time the Marconi Company of America is seeking a franchise from the Republic of Panama for the installation of a wireless outfit. It is the opinion of this Department that the effort of the Marconi Company should be frustrated and the arrangement approved by the President be carried out with the Republic of Panama whereby private wireless installations should be prohibited from the Zone and from the territory of the Republic of Panama.

Will you be so kind as to advise me of the status of this matter in your Department and of your intentions in the premises.

With great respect [etc.]

12 Continued from For. Rel. 1912, pp. 1206-1240. 13 Id. 1206.

HENRY BRECKINRIDGE.

File No. 819.74/30.

The Secretary of State to the Secretary of War.

DEPARTMENT OF STATE, Washington, August 29, 1913.

SIR: The Department has the honor to acknowledge the receipt of the letters of the Acting Secretary of War, dated the 7th,14 9th 14 and 26th instant, regarding the establishment of wireless stations in the Canal Zone and the Republic of Panama.

The Acting Secretary enclosed correspondence of the War Department with the American Marconi Company and with the United States authorities on the Isthmus in reference to the desire of the American Marconi Company to establish a wireless telegraph station on the Island of Taboquilla. It appears from this correspondence that the establishment of a station in this Island would interfere with the operation of the United States station now in use at Ancon, Canal Zone, and that as Taboquilla Island is situated outside of the Canal Zone and belongs to the Republic of Panama the proposed station does not fall under the prohibitions of the Act to regulate radio communication, approved August 13, 1912.

The Acting Secretary, therefore, requests that if in the opinion of this Department, the Panama Canal Act of August 24, 1912, authorizes the President so to do

the necessary steps be taken to enter into an agreement relative to the establishment of wireless telegraph stations so that there will be no danger of the Republic of Panama granting any concession for the erection of such wireless stations which would interfere with the operation of the Government plants on the Canal Zone.

By Section 6 of the Panama Canal Act of August 24, 1912, the President is authorized:

1. "To cause to be erected, maintained, and operated," subject to the international convention and the Act of Congress to regulate radio communication, "at suitable places along the Panama Canal and the coast adjacent to its two terminals, in connection with the operation of said Canal, such wireless telegraphic installations as he may deem necessary for the operation, maintenance, sanitation and protection of said canal, and for other purposes ";

2. To make such agreements with the Government of Panama as may be requested for necessary installations upon the territory of that Republic and to provide for the trasmission of private and commercial messsages as well as of those of the Government of Panama on such terms as he may prescribe, the messages of the United States to have precedence; and also

3. "In his discretion, to enter into such operating agreements or leases with any private wireless company or companies as may best insure freedom from interference with the wireless telegraphic installations established by the United States."

The Department is of opinion that these provisions authorize the President not only to make agreements with the Government of

14 Not printed.

Panama for the establishment of wireless telegraph installations within the territory of that Republic, but also, as an incident of the exercise of such power, to agree with the Government of Panama that the latter shall not do anything, either directly or by contract with governments, companies, or individuals which may interfere with the operation of the stations established or to be established by the United States within the Canal Zone or upon the territory of the Republic.

It is the opinion of the Department that an agreement to this effect, entered into with the Government of Panama under section 6 of the Act above quoted, is not a treaty and consequently would not have to be submitted to the Senate of the United States for its approval.

In this relation it is proper to advert to the fact that the Panama Government has heretofore appeared to admit that wireless installations were not to be permitted in its territory that conflict with those established by the United States and has, since 1910, repeatedly given oral assurances that it would not allow further installations of wireless plants within its territory without the consent of the United States. But, as the correspondence indicates that it would be desirable to have a definite agreement on the subject, this Department will be prepared to undertake negotiations with the Government of Panama to that end. Inasmuch, however, as the establishment and operation of wireless stations along the Canal are under the control of the War and Navy Departments, these Departments are in a better position than the Department of State to indicate what provisions it is necessary and advisable to include in an agreement with Panama on this subject. It is, therefore, suggested that the War and Navy Departments agree upon a draft of proposals which this Department may submit to the Government of Panama as the basis of an agreement. This suggestion has also been made to the Navy Department.

The Acting Secretary's letter of the 26th instant states that on the 14th of June last the Republic of Panama made a contract with the United Fruit Company for the establishment of a wireless telegraph plant in Colon. It appears from the files of this Department that the United Fruit Company had previously, on December 27, 1910, concluded a contract with the Government of Panama for a wireless plant at Colon, copy of which contract is on record in this Department. In order to form the basis of a protest against this apparent infraction of the understanding between the two Governments, this Department would be glad to be furnished with the terms of the contract of June 14 last, mentioned above, as well as with a statement of the reasons to be urged upon Panama for the acceptance by her of the proposals which the War and Navy Departments may desire us to present.

I have [etc.]

For the Secretary of State:
J. B. MOORE.

NOTE.-A letter similar to the above was sent to the Secretary of the Navy, August 29, 1913.

File No. 819.74/35.

The Secretary of the Navy to the Secretary of State.

NAVY DEPARTMENT, Washington, November 22, 1913.

SIR: The subject of an agreement with the Republic of Panama concerning the establishment of radio telegraph stations in the territory of that Republic, referred to in the State Department's letter of August 29, 1913, has been considered by the Joint Army and Navy Board. The report of that board was approved by the Secretary of War November 15, 1913, by the Secretary of the Navy November 15, 1913, and by the President November 17, 1913.

The Joint Board recommends as the attitude of the War and Navy Departments that the proposed agreement shall include the following engagements

On the part of Panama:

(a) To give to the United States Government the monopoly of all means of radio communication within its territory, and to cancel all concessions for stations not at this time in actual operation, if such exist.

(b) To forbid the operation of any station on board a ship that is within the harbors or territorial waters of Panama unless such ship be actually underway and making bona fide passage to or from port, and the station of a ship so making passage to port shall be required to communicate with the nearest coast station until such time as the ship shall have come to anchor or moored to the shore, as the case may be, after which the ship shall be required not to use its radio installation until it gets underway to make passage to sea; except that a ship at anchor in quarantine, or not yet having received pratique, may request permission to send messages to the nearest coast station, which permission may be granted, under conditions imposed by the Coast Station, until pratique is granted, when it shall terminate.

(c) To connect its land telegraph system to, and exchange business with, any station now or hereafter operated by the United States Government in the Republic of Panama, and in the Canal Zone.

(d) To become a signatory to the London Radio-Telegraphic Convention of 1912.

(e) To regulate the existing private station or stations in the territory of Panama, according to the London Convention, and to license it or them according to the terms of the Radio Act of the United States of August 13, 1912, with the additional proviso that the physical control and operation shall pass to the United States Government whenever that Government may elect.

On the part of the United States:

(f) To give official and commercial radio telegraphic service with all shipping within the radius of operation of U. S. stations in the Canal Zone or the territory of Panama, without other limitations than those governing their ordinary operation.

(g) To transmit and receive at its stations established under this agreement, free of all station radio charges, official messages to or