Accept, Mr. Minister, the renewed assurance of my highest consideration.

SIR: On Monday last I had an interview with Mr. Arango and Mr. Arosemena, and Mr. Arango advised me that he is instructed by the Government of Panama to refuse assent to the proposed new Article VIII of the draft treaty communicated with your letter of December 28 last, stipulating that the boundary between Colombia and Panama shall be that described in the act of June 9, 1855.

Mr. Arango says, however, that if the treaty were made in accordance with the protocol he would take the responsibility of agreeing to submit the question to arbitration.

Accept, sir, the renewed assurance of my highest consideration.

No. 293.]

Minister of Colombia to Secretary Root.

[Translation.]

ELIHU ROOT.

LEGATION OF COLOMBIA, Washington, D. C., February 19, 1908. Mr. SECRETARY: I have the honor to acknowledge the receipt of your excellency's obliging communication, dated yesterday, by which you are pleased to advise me that at an interview had with you the day before, Señor Arango declared to you that he had instructions from his Government not to accept the article I had proposed, under No. VIII, in my draft of a treaty with Panama, which relates to the acceptance by Panama of the boundary line established by the law of June 9, 1855, of New Granada. Your excellency adds that Señor Arango mentioned in this respect that if a treaty were made in accordance with the protocol, Señor Arango on his own responsibility promised to agree to an arbitration for the settlement of the boundary line.

I thank your excellency for that communication, which I consider important, and I should have hastened to have the honor to exchange views with the Secretary touching its contents had I not found myself disabled for the present by an attack of the grippe, which confined me to my room. But until I may have the opportunity and honor to call on your excellency, I venture to make one or two remarks which I believe pertinent.

From the knowledge your department possesses of the instructions I have received from my Government and by which I must abide as long as they stand, the intimation of Señor Arango is tantamount to an indefinite suspension of the negotiations, since I am inhibited

from affixing my signature to any treaty in which there be no recognition of the said boundary by Panama.

I permit myself to call to your excellency's mind that since the beginning of these negotiations that is, since your excellency's conferences with the Colombian minister of foreign relations at Cartagena the initial point of the negotiations has been the friendly mediation of the United States for the purpose of bringing about a convention between Colombia and Panama which would guarantee permanent friendly relations for the future and the recognition of Panama's independence. The highest importance was attached to this intervention by my Government in the belief that, without it, the position of Colombia became for obvious reasons a difficult one. The American intervention and mediation made it Colombia's duty to assume an extremely conciliatory and friendly attitude. This, I believe, is the path I followed; and, as your excellency will recall, Colombia in the course of my labors has endeavored most studiously to ward off any incident, allusion, or demand which might impart to the discussion the slightest feature of irritation or even lack of cordiality. Colombia went on narrowing and curtailing her claims in a consistent effort not to transgress the limits of the most scrupulous "compromise," and ever careful not to ask of the United States anything but a friendly attitude. We were nearing this goal when two important incidents sprang forth-your department's letter of August 26 and the excitement created by the occupation of Jurado. The first as it appears to me settled the boundary question as far as the United States is concerned, and should, ipso facto, settle it as far as Panama may be concerned. But the second again put the question in an acute phase and made it necessary for Colombia not to leave open a door which might in the future prove to be a source of controversy and danger.

Our demand that this question be settled is one of imperative importance. The dangers above alluded to are all the more obvious to me as Panama maintains her claims in spite of the declaration of the United States, under date of August 26, based upon a careful examination of the point which would seem to have been thereby determined.

Until I have the honor to call on your excellency, I permit myself to call your attention to the contents of this letter, which I hope will be favorably received.

I have the honor to be, Mr. Secretary, with the highest and most distinguished consideration.

Your obedient and very humble servant,

ENRIQUE CORTES.

Mr. Taft to Mr. Root.

WAR DEPARTMENT, Washington, March 11, 1908.

MY DEAR MR. ROOT: I am in receipt of a letter from Mr. Cromwell, a copy of which I send for your files.

Sincerely, yours,

WM. H. TAFT.

UNITED STATES-PANAMA-COLOMBIA TREATIES.

Hon. WILLIAM H. TAFT,

49 AND 51 WALL STREET, New York, March 10, 1908.

Secretary of War, Washington, D. C.

MY DEAR MR. SECRETARY: Referring to the protocol between the Republic of Colombia and the Republic of Panama, exchanged at Washington on the 17th of August last between the ministers of the Governments mentioned, and approved by you in behalf of the United States, under the direction of the President, I beg leave to advise you that since that date the New Panama Canal Co. and the Republic of Colombia have reached a satisfactory adjustment of the claims and interests of the Republic of Colombia in the 50,000 shares of the capital stock of the New Panama Canal Co. standing on the books of that company in the name of the Republic of Colombia, and also that the litigation instituted by the department of fisc of the Government of France respecting registration and stamp duties has been adjusted.

Under this arrangement there has been paid to the Government of France 7,000,000 francs, in satisfaction of its said claims, and the canal company has paid to the Government of Colombia direct about 4,000,000 francs, the balance upon the cash distribution appurtenant to said 50,000 shares.

This subject, therefore, has been adjusted to the satisfaction of all parties; the Republic of Colombia has received from the canal company the sum of about $800.000 gold, and therefore there is no occasion to embody Article V in the treaty consummating the protocol referred to,

I always assured the President, Secretary Root, and you that we would aid Colombia in getting the proceeds of these shares (part of the forty million payment), and you will see that the assurance is fulfilled. It should facilitate the pending treaty.

As you may wish to keep Secretary Root's files complete, I inclose a duplicate hereof for the purpose.

Respectfully, yours,

WM. NELSON CROMWELL, Counsel.

No. 295.]

Colombian Minister to Secretary Root.

LEGATION OF COLOMBIA, Washington, D. C., March 12, 1908. SIR: In the matter of the treaties in course between the United States and Colombia and Colombia and Panama, I am becoming rather anxious, as the time is growing short and it will require a good deal of attention and time. I have therefore the honor to request your excellency to be good enough to inform me if you have been able to come to an understanding with Panama about the matter of boundaries as mentioned in my previous communications to you.

I am ready to meet the Panama representatives and discuss the matter with them at any moment, but consider it necessary to know exactly what is their final standing on the matter, as the result of the

change of ideas you have mentioned to me has been in course for some time.

I beg likewise to remind your excellency that it would be most important to have your letter of disclaimer from the part of the United States in the matter of a deposit made by the new canal company at the London & County Banking Co., London, within the nearest time, as the company will be extinguished on the 1st of April next. Thanking your excellency beforehand, I have the honor to remain, Your obedient, humble servant, (Signed)

No. 53.]

ENRIQUE CORTES.

Secretary Root to Minister of Colombia.

DEPARTMENT OF STATE,
March 17, 1908.

SIR: Referring to the latter part of your note of the 12th instant, I have the honor to inclose a letter, of to-day's date, to the London & County Bank, of London, England, in which I state that this Government claims no interest in the sum of 750,000 francs, and interest thereon, deposited with it in 1878 or thereabouts by Lucien N. B. Wyse, under Article II of his concession from Colombia. Accept, sir, the renewed assurance of my highest consideration. ELIHU ROOT.

Inclosure as above.

DEPARTMENT OF STATE, Washington, March 17, 1908.

LONDON & COUNTY BANKING CO. (LTD.),

Lombard Street, London, England.

GENTLEMEN: I beg to state, with reference to the sum of 750,000 francs deposited with you in the year 1878 or thereabout, under article second of the concession granted by the United States of Colombia to Lucien N. B. Wyse for the opening and operation of a canal across the Isthmus of Panama, that the United States claims no interest in that sum nor the interest thereon.

Very truly, yours,

ELIHU ROOT, Secretary of State.

Minister of Colombia to Secretary Root.

LEGATION OF COLOMBIA, Washington, D. C., March 31, 1908.

SIR: As I have had the honor to inform you verbally, the Colombian Government, in view of the refusal of the representatives of Panama to agree to our line of limits, is quite ready to proceed on the basis of no mention being made of the boundaries in the treaty at all.

As your excellency is aware, when the Colombian Government desired so earnestly to have the line of limits of the laws of June, 1855, accepted by Panama, even when no mention was made of the matter

in protocol, the reason was twofold-on the one hand, that such line was accepted by the American Government; on the other hand, that we could not avoid to occupy Jurado, and that in so doing it we might bring on a collision or friction with Panama which might affect the fate of the treaty.

As far as I gather, such is the position now, but I am not perfectly clear about the attitude of Panama and must trouble your excellency, in prosecution of the rôle assumed by the American Government, to discuss the matter with the Panama representatives.

No mention was made in the protocol of boundaries, be it on any ideal line or on the statu quo; we are ready to carry on the provisions of the protocol. Are the Panama representatives ready to proceed in accordance? If so, we might at once arrange to carry on the necessary meetings together to give shape to the instrument.

But I must express the feeling of my Government that if Panama. refuses to sign the treaty under the reason that we intend to occupy Jurado, that is a proceeding at variance with the lines of the protocol and which, in my opinion, is not justified.

In the hopes of hearing from your excellency on this important point, I am happy to renew the assurance of my highest consideration.

ENRIQUE CORTES.

Acting Secretary Bacon to Colombian Minister.

Serial No. 54.]

DEPARTMENT OF STATE,
April 9, 1908.

SIR: I have the honor to acknowledge the receipt of your note of the 31st ultimo, in which you advise the department that "the Colombian Government, in view of the refusal of the representatives of Panama to agree to our line of limits, is quite ready to proceed on the basis of no mention being made of the boundaries in the treaty at all." I have the honor to say in reply that your note will receive consideration.

Accept, sir, the renewed assurance of my highest consideration. ROBERT BACON, Acting Secretary.

No. 174.]

American Chargé to Secretary Root.

AMERICAN LEGATION,
Bogota, October 6, 1908.

SIR: I have the honor to report, for the information of the department, that in an interview with Dr. Urrutia at the ministry for foreign affairs this afternoon he informed me that the Colombian Government had been gratified to learn, through its own sources, that the new administration of Panama was disposed to meet the Government of Colombia on the ground already outlined as that approved by the United States in the negotiations now pending at Washington for the conclusion of a treaty between the two countries. In Mr. Dawson's final interview with the President, at which both