File No. 819.77 /83.

The Acting Secretary of State to the American Minister.

No. 3.]

Sir: The Department is in receipt of Mr. Andrews’s despatch No. 188,1 of the 11th ultimo, reporting that Mr. R. W. Hebard, who, with Mr. L. E. Myers, was one of the two most prominent contractors that recently offered bids for the construction of the Panama-David railway, proposes to take up, himself, at par, the bond issue, if any is made by the Government of Panama to provide funds for the construction of the railway, and to sell the bonds in Europe.

With his despatch Mr. Andrews sends a copy of a letter received by him from Mr. Hebard in which the latter states his position in the matter, and requests to be informed whether the Government of the United States approves or disapproves his proposed action as to these bonds.

Referring to Mr. Andrews’s despatch No. 190, of the 16th ultimo, in which he reports that both bills passed by the Panama Assembly relating to the construction and financing of the Panamá-David railway have been vetoed by the President of Panama, the Department would be glad to have you report what effect the vetoes have on Hebard’s proposition, and it would also be glad if you would send it a report, up to date, on the disposition that is proposed by the Panaman Government to be made of its funds invested in New York.

I am [etc.]

Alvey A. Adee.
  1. Not printed.