File No. 819.74/17.
The American Minister to the Secretary of State.
Panama, June 12, 1912.
Sir: I have the honor to acknowledge the receipt of your instruction No. 51, of the 13th ultimo, enclosing for my information a copy of a letter, dated April 22nd last, from the Secretary of the Navy, [Page 1236] regarding wireless stations” in Panama and directing me to use my influence against the erection of any radio stations in Panama except those of the Navy Department of the United States. In reply I beg to state that I shall not fail to use my influence as directed.
In this connection I desire to state that in a recent conversation upon this subject with Señor Chiari, Minister for Foreign Affairs, he requested me to inquire of the Department whether some arrangement could not be made as to the disposition of the wireless apparatus purchased by the Panaman Government for erection on the National Theatre in Panama City (despatch No. 71, of February 14th, 1912), all the parts of which had now been delivered here and which had cost the Panaman Government altogether about $6,000. As he understood that the Government of the United States desired to erect and maintain as a monopoly all wireless stations in the Republic, he suggested that it would only be fair that the Government of the United States should reimburse the Panaman Government for its outlay in this apparatus by purchasing it for use in its contemplated system.
It should be noted that Mr. Reynolds Hitt, in his despatch No. 21, of June 30, 1910, reports that he had mentioned to the Minister for Foreign Affairs that his predecessors, Señor Arias and Señor Arango, had informed Mr. Squiers that the Panaman Government would not enter into negotiations “for the establishment of a system of wireless telegraphy between Colon and the coast of Colombia and of a wireless station in the city of Panama,” “without first consulting the United [States and securing its assent,” and that in reply the Minister had “stated that he understood that to be the present attitude of the Panaman Government.” Unless this assurance should be understood as referring only to the granting of concessions to third parties for establishing wireless stations, and, consequently, as not affecting wireless stations to be established by the Panaman Government itself, the recent purchase of this apparatus for Panama City, as to which the Government of the United States was not consulted, must, of course, be considered as a breach of this assurance. I nevertheless believe that if any breach was committed by the Panaman Government it was not intentional, but was the result of the unsystematic conduct of the Panaman Foreign Office and of the frequent changes of Foreign Ministers and personnel, which make the permanence of such understanding here extremely precarious. In view of all the circumstances I consider that it would be advisable to make use of this apparatus, if suitable, reimbursing to the Panaman Government such a sum as may fairly represent its value.
I have [etc.]