File No. 2491777.

The Minister of Panama to the Acting Secretary of State.

No. 25.]

Excellency: Referring to the interview which your excellency had the kindness to grant me, and in which I had the honor to place into your excellency’s hands a copy of a cablegram from the secretary of foreign relations of my country regarding the procedure of the Costa Rican Government in granting territorial concessions on the left bank of the Sixola River, this being territory which belongs de jure to the Republic of Panama, which is only being administered by Costa Rica by virtue of the present status quo, and which will eventually form part of the Republic of Panama, I have instructions from the secretary of foreign relations of my country to make known to the State Department the conclusions which my Government has reached, taking as a basis the official notes of your excellency’s Government to which I have the honor to refer below.

The cablegram from my Government to which I referred above announced that—

Minister Porras reports that the Costa Rican Government continues to make land grants on the left bank of the Sixola, thereby violating the status quo and assailing our rights as sovereign.

It would be suitable to inform the State Department of this procedure on the part of Costa Rica. We have given instructions to Minister Porras to protest.

In view of the conduct being observed by the Government of Costa Rica I deem it suitable to call the State Department’s attention to the following points contained in the note of instructions sent by the honorable Elihu Root to the United States minister in Panama, the honorable C. E. Magoon, under date of April 16, 1906, and numbered 37, in which he expresses the following ideas in regard to the boundary dispute between Costa Rica and Panama:

The first of these points is that, in accordance with the Loubet award of 1900, accepted as final by Colombia and Costa Rica, the territory included in the McConnell plantation was adjudicated to Colombia (now Panama) and became subject to the jurisdiction of said country. The second point is that Mr. McConnell, in 1903, penetrated into a part of these lands, planted bananas on a large scale, built houses, and began the construction of a tramway, expended large sums of money in his enterprise, and he alleges that his action was based on the authorization of certain laws of Colombia relating to vacant lands. The third point is that in the pending treaty of March 7, 1905, between Costa Rica and Panama, defining the boundaries between the two Republics, when the line is traced the McConnell concession will be within the jurisdiction of Panama.

The department is not oblivious of Costa Rica’s contention that an arrangement has existed between said nation and Panama pursuant to which the former has retained temporary possession and administrative control of the region, and pending the ratification of the treaty of March 7, 1905, she exercises police duties and other general [Page 792] attributions of de facto sovereignty within the territory. At the same time it can not be denied that the de jure sovereignty has been in Colombia and Panama since the rendering of the Loubet award, accepted as it is by Panama and Costa Rica, so that, either by virtue of this award or by the pending boundary treaty, the territory will eventually be under the jurisdiction of Panama.

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According to the idea of the department on this subject, Costa Rica now exercises temporary de facto sovereignty over the territory included in the McConnell concession, subject to being lawfully dispossessed at any time at the pleasure of Panama, but in reality continuing until the time when the pending boundary treaty shall be ratified. She exercises the necessary governmental functions for the orderly administration of the district, but she is not to use this sovereignty in such a way as to impair the rights of the de jure sovereign of the territory. Her governmental functions are limited by her tenure, which is of a temporary and uncertain character. Her duty is to preserve property, not destroy it, and to deliver it to her successor without having committed any act tending to impair eventually the rights of the de jure owner.

Under date of the 7th instant the Hon. G. T. Weitzel, chargé d’affaires ad interim of the United States in Panama, sent the following communication to his excellency, Mr. Samuel Lewis, secretary of foreign relations of my country:

I have the honor to state to your excellency that my Government has received information from its legation at Bogota to the effect that on July 31 last a telegram read in the Colombian Congress caused a marked sensation by announcing that Jurado had been occupied by Panama.

In consequence of the foregoing I have instructions to make known with perfect clearness to your excellency that the United States Government, which is compelled by its responsibilities to interest itself in the foreign relations of Panama, can not but disapprove any steps to the detriment of matters which are placed sub judice by pending treaties.

In reply to the foregoing note the Government of Panama hastened to flatly deny the report circulated in the Colombian Senate and earnestly requested the Hon. Mr. Weitzel to kindly express to the State Department the sincere thanks of the Panama Government for the interest it took in Panama affairs.

The doctrine set forth by your excellency’s Government in the note of the honorable chargé d’affaires of the United States in Panama clearly defines the present situation between the Government of Costa Rica and Panama, for since the American Government “considers itself compelled by its responsibilities to interest itself in the foreign relations of Panama and can but disapprove any steps to the detriment of matters placed sub judice by pending treaties,” it can likewise not help disapproving the conduct of the Costa Rican Government when the latter persists in taking steps to the detriment of matters which are placed sub judice by virtue of pending negotiations.

In view of the foregoing, which I respectfully submit to your excellency’s illustrious consideration, my Government deems itself warranted in asking your excellency’s Government to express to whom it may concern its disapproval of the steps which the Costa Rican Government is taking at present.

As my Government confides in the principles of justice which animate the State Department, I have the honor and pleasure in advance to convey to your excellency the sincere thanks of the Panama Government for the just and benevolent intervention of your excellency’s Government.

I avail, etc.,

C. C. Arosemena.