File No. 819.77/132.
The American Minister to
the Secretary of State.
No. 194.]
American Legation,
Panama,
August 24th, 1912.
Sir: I have the honor to acknowledge the
receipt of the Department’s telegram of August 22 in reply [etc.]
I immediately communicated the substance of the Department’s telegram to
the Panaman Government in a note, of which I enclose a copy, which I
handed personally to Señor Chiarí. Señor Chiarí informed me that he was
not aware of this new provision as these negotiations were being
conducted by Señor Carlos Constantino Arosemena, Minister of Public
Works. To-day I have received a reply from Señor Chiarí of which I also
enclose a copy and translation. It will be observed that in this note
Señor Chiarí renews the verbal assurances reported in my Despatch No.
187, referred to, that this contract if signed “will be wholly in accord
with the indications of the Government of the United States.”
I have [etc.]
[Page 1205]
[Inclosure 1.]
The American Minister
to the Minister for Foreign
Affairs.
No. 248.]
American Legation,
Panama,
August 22, 1912.
Excellency: Referring to a recent
conversation with your excellency in which your excellency informed
me that his excellency the Minister of Public Works was considering
the advisability of signing the contract with Messrs. J. M. Hyatt
and R. Wilcox relative to the construction of a railway from Antón
to Santiago via Nata and Aguadulce with a branch line from Antón to
Penonomé, mentioned in my note to your excellency of June 3rd last
and to the assurances which your excellency then gave me that this
contract, if signed, would, of course, conform entirely with the
conditions set forth in my note just mentioned, I have the honor to
inform your excellency that it has since then come to my knowledge,
from an apparently trustworthy source, that in the contract now
being considered there has been substituted for the provision
relating to the hypothecation of the annuity of $250,000 to be
received from the Government of the United States, another provision
granting a portion of the interest of the sum of $6,000,000 now
invested by the Panaman Government in New York as security for the
bonds to be issued for the construction of this railway.
My Government accordingly desires me to inform your excellency, for
your excellency’s information, that it has not acquiesced in the
substitution mentioned and further that the proposed concessionaries
of this contract did not present any such proposition to the
Department of State.
I avail [etc.]
[Inclosure 2.—Translation.]
The Minister for Foreign
Affairs to the American
Minister.
No. 2771.]
Department of Foreign Relations,
Panama,
August 23, 1912.
Mr. Minister: I have the honor to
acknowledge the receipt of your excellency’s esteemed communication
No. 248 of yesterday’s date, of which I have noted the contents,
then referring it to the Minister of Public Works for him to take
note of the declaration which your excellency makes relative to the
new clause which, according to the information you have, has been
introduced into the proposed contract with Messrs. Hyatt and Wilcox,
concerning the construction of a railway from Anton to Santiago with
a branch from Antón to Penonomé.
I avail of this opportunity to confirm to your excellency the
declaration which I have already made to you, that if this contract
is signed it will be wholly in accord with the indications of the
Government of the United States.
I avail [etc.]
