File No. 819.77/69.
The American Chargé
d’Affaires to the Secretary of
State.
No. 169.]
American Legation,
Panama,
September 9, 1911.
Sir: Referring to the Department’s telegraphic
instruction of September 2, 8 p.m.,1 on the subject of the extension desired by
Mr. Dziuk, the concessionary for the Darien Railroad, I have the honor
to enclose herewith a copy of my note to the Panaman Foreign Office, of
August 8, together with a copy and translation of the reply received
from the Foreign Office of the same date.
It may throw some light upon the tone of this reply to say that I have
ascertained that the Secretary of Foreign Relations was unaware of the
fact that the Secretary of Fomento had taken up the
[Page 1168]
matter with Colonel Goethals; that he
had made proposals to him for transmittal to the Secretary of War, and
had given him to understand that he desired a definite answer to the
question at issue.
There is no doubt that Mr. Dziuk has been extremely active in pressing
not only the permission to extend the concession, but that the matter be
definitely settled without further delay.
I am informed that the supposed reason for Mr. Dziuk urging the extension
of the concession is that the German and English capitalists back of the
Balboa and Pacific Estates Company declined to furnish him with
sufficient funds to carry on the enterprise unless he would secure these
extensions covering the entire eastern half of the Republic of
Panama.
I have [etc.]
[Inclosure 1.]
The American Chargé
d’Affaires to the Minister for
Foreign Affairs.
No. 90.]
American Legation,
Panama,
September 8, 1911.
Excellency: Referring to previous
correspondence with your excellency’s Government on the subject of
railways in the Republic of Panama, I desire to bring to your
excellency’s attention the subject of railway concessions in general
in the Republic, and in particular, the proposed extension of the
Dziuk railway concession from the headwaters of the Chucunaque River
via Chepo to the Sandías River, which the American Government
understands it to be the desire of the Panaman Government to
grant.
These questions are of such importance as will make it unavoidable
that a considerable further time be devoted to their investigation
and consideration by the Government of the United States. The new
ramifications of the railway plans under consideration introduce
many new and important elements, creating a situtation materially
different from that of last year.
All railway development in the Republic of Panama bears, potentially
where not actually, a relation to the immensely important American
interests created by the construction of the canal; and it is in
order to properly safeguard these interests, while yet conforming to
a just appreciation of the rights of the Republic of Panama, that
abundant time must be employed in their consideration. The
fundamentals of American and Panaman relations are involved in this
matter of railway development.
Permit me therefore, excellency, to especially impress upon your
attention that, meanwhile, it is most essential that the Government
of Panama refrain from any further commitments.
Accept [etc.].
[Inclosure 2.]
The Minister for Foreign
Affairs to the American Chargé
d’Affaires.
Ministry of Foreign Relations,
Panama,
September 8, 1911.
Sir: I have the honor to refer to your
important communication No. 90, of this same date, in relation to
the construction of railroads in the Republic and especially to the
concession granted to Mr. August Dziuk for the exploitation of one
in the region of the Darien.
As you know, by the correspondence which I have had the honor to hold
with you upon this same subject, the Government of Panama has not
lost sight of its obligation to give the United States all the
protection which it needs for the execution and preservation of the
Canal.
[Page 1169]
Respecting the concession granted to Mr. Dzuik, the Government has
not changed its conduct. It was agreed with the Honorable Henry L.
Stimson, Secretary of War of the United States, to wait until the
American Government should fully consider the question, and this has
been done. In nothing, absolutely in nothing, has the status of this
matter been changed, and I can assure you most emphatically that my
Government will take no step tending to separate itself from the
agreement.
But if this assurance and those which’ have been made previously in
the same sense were not sufficient to tranquilize the American
Government, permit me to suggest the advisability of indicating to
us the form in which we can guarantee our promise. This would have,
for us, the further advantage of allowing us to complete,
immediately following, an agreement relative to the demarcation of
the cities of Panama and Colon, which is at present at a standstill
on this account
I will appreciate it if you will communicate the foregoing to your
Government and inform me of its decision in respect thereto.
I have [etc.]
