Mr. Beaupré to Mr. Hay.
Bogotá, September 30, 1903.
Sir: I have the honor to report that I have succeeded in obtaining from Senator Rivas G., chairman of the committee to whom was referred the report made to the Senate by the canal committee on September 12, the substance of the report which he will make in the next day or two. As I telegraphed to the Department to-day, he will recommend the approval of the action of the Senate on August 12 in rejecting the Panama Canal treaty with the United States. He will also recommend the disapproval and rejection of the proposed law authorizing the President to make treaties or contracts for the construction of an Isthmian canal. This law was embodied in the committee’s report made on September 12, and contained many provisions binding the President to a certain line of action, and prescribing the concessions which could be made, of which I have previously informed the Department.
Senator Rivas said that by simply rejecting this proposed law, and adding no further legislation, the Government would be left at full liberty to negotiate, without restrictions, on such terms as could be obtained, and as would be honorable and just to the contracting parties. He felt confident that his plan would be accepted by the Senate and confirmed by the Chamber of Representatives.
If the Senate takes this step, and there seems to be a reasonable probability that it will, the canal matter will stand just as it did the day after its rejection on August 12; or, in fact, as it did before the treaty was signed in Washington on January 22, 1903.
It is said, and generally believed in this city, that there is a project on foot among certain Senators to annul the arrangement entered into by the Colombian Government and the French Canal Company in 1900, extending the franchise and privileges of that company. Even men good enough to be candidates for President are advocating this action with all seriousness and solemnity. It is urged that Congress has full power to either annul or ratify the action of the Government in this matter, and that if the arrangement made extending the contract is declared null and void, the French company’s rights and interests on the Isthmus cease to exist, and Colombia could then arrange with the United States to receive not only the $10,000,000 offered her, but the $40,000,000 offered the company.
The good or bad faith of such a movement is not of sufficient consideration to prevent an attempt being made to carry it out, and were it not for one important element in the situation, it is quite among the possibilities that it would be successful.
Senator Caro and his followers are powerful factors in the present Senate. Senator Caro was an intimate friend and advisor of President Sanclemente, under whose administration the franchise of the French company was extended, and it is quite certain that he will defend that administration to the extent of his ability. He would probably favor any investigation or action tending to the detriment of the present Government, but not any retrospective measure censuring the previous Government. As the situation now is, any project seriously opposed by him would stand little chance of success.
I am, sir, your obedient servant,