File No. 819.77/278

The Secretary of State to Minister Price

No. 362

Sir: Referring to previous correspondence regarding the railroad concession granted by Panama to Mr. B. B. Duncan, I enclose a copy of a letter from the Secretary of War discussing the subject.

You are instructed to endeavor to make arrangements with the President of Panama under which no authorization for a branch line under the Duncan concession shall be granted until the United States Government through you has assented thereto. Should you succeed in making such agreement, you are further instructed that when any concession is submitted to you you should consult with the Governor of the Panama Canal and the Commanding General of the United States forces in the Canal Zone. Should your opinion be unanimous, you may advise the President of Panama in accordance with your [Page 1190] decision. Should there be any disagreement, the question should be referred to this Department and the War Department for final action.

I am [etc.]

For the Secretary of State:
Frank L. Polk