. ■o.v- rj. "•'^ v<>..,V ■ •'■ '»*-^--'. %^# -'*w*^- ^*. .^ '" rv« , X ^ A^ \/ , -1 » . '^. ^*^ °- ». f °^ °.yiPi* ff ^-^ °^;^ ^cP< •P^^\'^^.;'^^ ^.^''^f% cP^< jH Q_. o- w/w\\Sr ^ ■cL> Q<> O « ^ ,^^ ^^ °./ N^^"- Q. \ . "Q. .^ '^ %/ ...^ : C^ '•„ ^. ' o N' "'» " (T"^ " -i -0.1 :• ^^^°- I^P^\n^^"- l^P//"-' ^^^P//'-^^^^ v^^vV" 9d,*^o,..-^ ^V* 9?, 58th Congress, )' SENATE. J Document M Session. f 1 No. 51. I CORRESPONDENCE CONCERNING THE CONVENTION BETWEEN THE UNITED STATES AND COLOMBIA FOR THE CONSTRUCTION OF AN INTEROCEANIC CANAL ACROSS THE ISTHMUS OF PANAMA. MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, TRANSMITTING A REPORT FROM THE SECRETARY OF STATE, WITH ACCOMPA- NYING PAPERS, CONCERNING THE CONVENTION BETWEEN THE UNITED STATES AND COLOMBIA FOR THE CONSTRUCTION OF AN INTEROCEANIC CANAL ACROSS THE ISTHMUS OF PANAMA. December 19, 1903. — Read; referred to the Committee on Foreign Relations and ordered to be printed. To the Senate and House of Representatives: I transmit, for the information of the Congress, in connection with the correspondence already transmitted relating- to the recent revolu- tion on the Isthmus of Panama, and contained in House Document No. 8, Fifty-eighth Congress, first session, parts 1 and 2, a report from the Secretary of State, with accompanjdng papers concerning the con- vention between the United States and Colombia for the construction of an interoceanic canal across the Isthmus of Panama. Theodore Roosetelt. White House, Washington, Deceiiiber 18, 1903. The President: The undersigned, Secretary of State, has the honor to lay before the President, with a view to their transmission to Congress for the information of that body, in connection with the correspondence already transmitted, relating to the recent revolution on the Isthmus of Panama and contained in House Document No. 8, Fifty-eighth Congress, first session, parts 1 and 2, copies of the correspondence between the Department of State and the legation of the United States 2 INTEEOCEANIC CANAL. at Bogota concerning the convention between the United States and Colombia for the construction of an interoceanic canal across the Isthmus of Panama. Respectful!}^ submitted. John Hay. Department of State, Was/ilngton, December 18^ 1903. ^ % / ? c lilST OF PAPERS. From and to whom. Mr. Loomis to Mr. Beaupr6 (tele- gram) Mr. Hay to Mr. Beaupr^ (telegram) Mr. Beaupre to Mr. Hay Same to same Same to same Same to same Mr. Hay to Blr. Beaupre Mr. Beaupre to Mr. Hay Same to same Same to same (telegram) Same to same Same to same Same to same (telegram) Same to same Mr. Hay to Mr. Beaupr6 (telegram) Same to same Same to same (telegram) Mr. Beaupr6 to Mr. Hay Same to same Same to same Same to same (telegram) Same to same (telegram) Same to same Same to same Same to same Same to same (telegram) Same to same (telegram) Same to same Same to same Mr. Loomis to Mr. Beaupr6 (tele- gram) Mr. Beauprd to Mr. Hay Same to same (telegram) Same to same (telegram) Mr. Beaupre to Mr. Hay Same to same (telegram) Same to same (telegrarfi) Same to same Mr. Hay to Mr. Beaupr6 (telegram) Mr. Beaupr^toMr. Hay(telegram) Same to same Mr. Loomis to Mr. Beaupre Mr. Beaupre to Mr. Hay Mr. Loomis to Mr. Beaupr6 (tele- gram ) Mr. Hay toMr.Beaupre(telegram) 1903. Mar. 18 Apr. 7 Mar. 30 Apr. 16 Apr. 2'! Apr. 27 Apr. 28 May 4 May 5 May 7 May 7 May 12 May 28 May 28 May 30 June 2 June 9 June 10 June 10 June 13 June 17 June 17 June 20 June 20 June 20 June 28 June 25 June 26 July 1 July 1 July 2 July 5 July 5 July 6 July 9 July 11 July 11 July 13 July 15 July 21 July 21 July 22 July 29 July 31 No. 101 105 115 129 133 139 150 154 Prom and to whom. Mr. Beaupre to Mr. Hay Mr. Loomis to Mr. Beaupr6 Mr. Beaupr6 to Mr. Hay (telegram) . Same to same (telegram) Same to same (telegram) Same to same (telegram) Same to same (telegram) Same to same Same to same Mr. Loomis to Mr. Beaupre^ (tele- gram) Mr. Beaupre to Mr. Hay (telegram). Same to same (telegram) Same to same (telegram) Mr. Loomis to Mr. Beaupre (tele- gram ) Mr. Beaupr6 to, Mr. Hay Mr. Loomis to Mr. Beaupre (tele- gram) Mr. Beaupr(5 to Mr. Hay (telegram) . Same to same Same to same (telegram) Same to same Mr. Adee to Mr. Beaupre (telegram) . Mr. Hay to Mr. Beaupr6 (telegram) . Mr. Beauprfi to Mr. Hay (telegram) . Same to same Same to same (telegram) Mr. Hay to Mr. Beaupr6 (telegram) Mr. Beaupr6toMr. Hay (telegram) Same to same (telegram) Same to same ( telegram) Same to same (telegram ) Same to same (telegram) Same to same (telegram ) Same to same Same to same (telegram) Same to same ; Same to same (telegram) Same to same (telegram) Same to same Same to same Same to same Same to same Same to same (telegram) Same to same (telegram) Same to same Date. 1903 Aug. 3 Aug. 3 Aug. 5 Aug. 5 Aug. 5 Aug. 5 Aug. 6 Aug. 7 Aug. 10 Aug. 10 Aug. 12 Aug. 12 Aug. 12 Aug. 13 Aug. 15 Aug. 15 Aug. 15 Aug. 17 Aug. 17 Aug. 18 Aug. 19 Aug. 24 Aug. 24 Aug. 24 Aug. 26 Aug. 29 Aug. 29 Aug. 80 Aug. 81 Sept. 1 Sept. 2 Sept. 5 Sept. 5 Sept. 10 Sept. 11 Sept. 14 Sept. 17 Sept. 18 Sept. 22 Sept. 24 Sept. 25 Sept. 28 Sept. 30 Sept. 30 INTEKOCEANIC CANAL. List of papers — Continued. No. From and to whom. Date. No. From and to whom. Date. - Mr. Beaupr6toMr. Hay (telegram). 1903. Oct. 9 Oct. 14 Oct. 10 Oct. 15 Oct. 16 Oct. 16 Oct. 17 Oct. 19 Oct. 20 Oct. 21 Oct. 22 Oct. 23 Oct. 23 Oct. 27 Oct. 29 Oct. 30 199 207 Mr. BeauprC' to Mr. Hay (telegram) . 1903. Oct. 31 Nov. 1 176 Nov. 2 179 181 Nov. 6 Mr. Hay to Mr. Beaupre(te]egram) . Mr. Beaupre to Mr. Hay (telegram). Nov. 6 183 Nov. 7 185 186 Nov. 9 Mr. Hay to Mr. Beaupre (telegram) . Same to same (telegram) Nov. 11 188 Mr. Hay to Mr. Beaupre (telegram) . Mr. BeauprS to Mr. Hay (telegram) . Same to same (telegram) Nov. 11 Mr. Beaupr6toMr. Hay (telegram). Same to same (telegram) Nov. 12 Nov. 14 Same to same (telegram) Same to same (telegram) Nov. 17 Mr. Hay to Mr. Beaupr^ ( telegram) . Mr. Hay to Mr. Beaupr6( telegram) . Nov. 18 Mr. Loomis to Mr. Beaupre. [Telegram.] Department of State, Washhigton, March 18, 1903. Inform Colombian Government Senate yesterday approved canal convention without amendment. Loomis, Acting. Mr. Hay to Mr. Beauj>re. [Telegram.] Department of State, Washington, Aiyril 7, 1903. Referring- to requests of Colombia to canal and railroad companies for appointment of agents to negotiate cancellation of the present con- cessions, et cetera, if the subject arises inform the Colombian Gov- ernment that the treat}" covers entire matter, and any change would be in violation of Spooner law and not permissible. Hay. Mr. Beaupre to Mr. Hay. No. 741.] Legation of the United States, Bogota, March 30, 1903. Sir: The matter of the ratification of the Panama Canal convention is intensely interesting to the people of this capital, and there is much public discussion of it. Without question public opinion is strongly against its ratification, but, of course, public opinion in Colombia is not necessarily a potent factor in controlling legislation. It is quite impossible to come to a definite conclusion as to the out- come until the result of the recent elections for members of Congress is known. It has been generally thought that the Government would be able to control the elections and that the members returned would be favorable to the administration's view on the canal question; but there has been serious disappointment to the governmental party in the result of some of the elections heard from, prominent and able members of the National part}", opposed to the Marroquin administra- tion and to the canal convention, have been elected. Ex-President Caro and Gen, Pedro Nel Ospina, Nationalists, are to represent the Department of Antioquia in the Senate. It seems altogether probable 6 INTEROCEANIC CANAL. that unless the Government is thoroughly in earnest in its desire to have the convention ratified, it will not be done; and there is a possi- bility that it may not g"o through in an}- event. There is no public information as to the date at which the Congress will be called, but from private source I am given to understand that it will be aljout the 20th of May, owing to the slowness of returns from remote election districts. It is apparent lately that the French Canal Company is to take a decided interest in securing the ratification of the convention, and that its influence to that end will be of much importance. I am, sir, your obedient servant, A. M. Beaupre. Mr. Beaupre to Mr. Hay. No. 6.] Legation of the United States, Bogota, AprU 15, 1903. Sir: I have the honor to advise you that within the last month there has been such a sudden outburst of controversy, both in the Bogota press and among the public in this city, with regard to the Panama Canal convention that I feel it my duty to report on what I regard as the chances for and against its passing Congress. During the long revolution which has but lately come to an end the measures employed by the Government to prevent public discussion of affairs of state had the effect of destroying anything like public opinion. It may have been for this reason that when, in the early part of February last, news came of the signing of the canal conven- tion complete apathy on the subject seemed to reign, as far as the gen- eral public was concerned. The financial crisis had, previous to this announcement, reached a most acute stage, and the only feeling expressed was that of relief at the prospect of receiving $10,000,000, which was then considered sufficient to put in reasonably good condi- tion the finances of the country. I am convinced I am right in saying that the public had never expected better terms. The proof is that when the news of the signing of the convention came foreign exchange ran down from 10,000 per cent to 6,300 per cent, and when it was rumored that the United States Senate had refused its assent a panic immediatel}^ ensued on the market, and exchange at once rose again to over 10,000 per cent. This was the state of affairs until General Fernandez, the minister of Government in charge of the ministr}^ of finance, issued a circular to the Bogota press (which had suddenly sprung into existence), inviting discussion on the canal convention. The circular was to the effect that the Government had no preconceived wishes for or against the measure; that it was for Congress to decide, and Congress would be largely guided by public opinion. At the same time what pur- ported to be a translation of the text of the convention was published. Since then a complete revolution in feeling has taken place. From approbation to suspicion and from suspicion to decided opposition have been the phases of change in public sentiment during the last month. The newspapers of the cit}^ are full of strongly worded arti- cles denouncing the convention, and, in general, these articles show the most bitter hostility to a scheme which they represent as being the INTEROCEANIC CANAL. 7 attempt of a strong nation to take an unfair advantage of the crisis through which Colombia is passing, and, for a paltry sum, rob her of one of the most valuable sources of wealth which the world contains. So ridiculous are the facts brought forward by these journalists in support of their arguments that they are not even worth comment. As, for instance, I may mention that one of the most widely read of the newspapers states, and brings forward a whole collection of figures in support of its statement, that on the initial deal alone the United States starts with a cleai- profit of $180,000,000. Absurd as such state- ments are, they voice the opinions and convictions of the Bogota public. This fact is clear, that if the proposed convention were to be sub- mitted to the free opinion of the people it would not pass. The Con- gress about to assemble has been elected under the supervision of Government officials, and a system of quite indigenous wire-pulling has undoubtedly been used; and yet, if Congress as now constituted were allowed to give a free vote, I feel convinced the convention would not be ratified. This, then, is the present state of affairs. As to what will happen it is impossible to predict; yet this much seems certain to me, if it is the wish of the Government that the convention be ratified it will be done. It now seems likely that Congress will be convened about the 25th of May next for twenty days. 1 am, sir, your obedient servant, A. M. Beaupre. Mr. Beaupre to Mr. Hay. No. 10.] Legation of the United States, Bogota, April %Ip, 1903. Sir: I have the honor to refer to your telegram of the 7th instant, confirmed elsewhere, in regard to the negotiations for the cancella- tion of the present concessions of the Panama canal and railroad companies. The subject had not arisen, within my knowledge, but I deemed it best, in two interviews with the minister for foreign affairs, to bring the conversation as cautiously as possible to a point that would enlighten me. 1 can not say that his excellency showed any disposition to be entirely frank in the matter, but sufficient was said to elicit from him the information that such negotiations were at least under the consideration of the Colombian Government, if not actually started. I then imparted to the minister the purport of j^our telegram of the 7th instant, whereupon he requested me to convey those instructions officially. This I did in a note, copy of which 1 herewith transmit. I am, sir, jonr obedient servant, A. M. Beaupre. [Inclosure.] Legation op the United States, Bogotd, April ^4, 1903. His Excellency Dr. Luis Carlos Rico, Minister for Foreign Affairs of the Republic of Colombia, etc. Sir; Eef erring to the two interviews I have had with your excellency, in which the question of the negotiations for the cancellation of the present concessions of the 8 INTEROCEANIC CANAL. Panjjina Canal and Railroad companies and other matters were brought up, I have the honor to inform your excellency that I am in receipt of instructions from my Government on the subject. I am directed to inform your excellency, should the subject arise, that the entire matter above referred to is covered by the recently signed convention between the Republic of Colombia and the United States on the 22d of January last. Moreover, that any change would be in violation of the Spooner law and therefore not per- missible. I avail myself of this opportunity to renew to your excellency the assurances of my highest consideration. A. M. Beaupre. Mr. Beaupre to Mr. Hay. No. 13.] Legation of the United States, Bogota, April ^7, 1903. Sir: I have the honor to advise yow. that it seems quite impossible to tell just when the Congress will be convened. Forty days' notice is required, and no notice has as yet been given. In a conversation with the minister for foreign affairs I ascertained that the session would probablj^ commence at some time between the middle of June and the 1st of Jul}", but this is no more definite than the dates I have mentioned in my previous dispatches. The Government is evidenth^ " mending fences" in many election districts. It is said that owing to the disordered condition of the interior of the country, especially in the department of the Tolima, elections were illegally conducted, for which reason new elections were necessary. Hence the delay in calling Congress. I am, sir, your obedient servant, A. M. Beaupe:^. Mr. Hay to Mr. Beaupre. No. 6. J Department of State, AYasMngton, Aj)rU 28, 1903. Sir: I confirm to you my dispatch by cable of the 7th instant in the following terms: Washington, A^ml 7, 1903. American Minister, Bogota: Referring requests Colombia to canal and railroad companies for appointment agents negotiate cancellation present concessions, etc. If subject arises, inform Colombian Government that treaty covets entire matter and any change would be in violation of Spooner law and not permissible. Hay. and I now inclose to you copies of the notices given by the minister of hacienda of the Republic of Colombia to the New Panama Canal Com- pany and the Panama Railroad Company, respectively. You will observe that by these notices the Colombian Government contemplates the formal grant to these companies by the Colombian Congress of a further permission to transfer their concessions to the United States besides that contained in the treaty which is to be rati- fied hj that Congress. You will also note that as a preliminary to this permission the companies are expected to enter into agreements with Colombia for the authorization and canceling of all obligations of Colombia to either of them contracted by Colombia under the conces- sion. INTEEOCEANIC CANAL. 9 Such action on the part of Colombia or on tliat of the companies would be inconsistent with the agreements already made between this Government and the canal compan}^, with the act of June 28, 1902, under the authorit}^ of which the treaty was made, and with the express terms of the treaty itself. By the act of June 28, 1902, the President was authorized to acquire, at a cost not exceeding 140,000,000, " the rights, privileges, franchises, concessions," and other propert}^ of the New Panama Canal Company, and an agreement to that end was made by him with the company. It was, of course, known to the President, to the companv, and to the Government of Colombia that, by articles 21 and 22 of the Salgar- W3^se concession of 1878, the company could not transfer to the United States its " rights, privileges, franchises, and concessions" without the consent of Colombia. Therefore, and before entering upon any deal- ings with the New Panama Canal Company, the present treaty with Colombia was negotiated and signed. The first article of that treaty provides as follows: The Government of Colombia authorizes the New Panama Canal Company to sell and transfer to the United States its rights, privileges, properties, and concessions, as well as the Panama Railroad and all the shares or parts of shares of said company. The authorization thus given, it will be observed, covers expressly the " rights, privileges, "•''' * * and concessions " of the company, as well as its other propert3^ _ Colombia, now, hj these notices, indicates a purpose not only of disregarding the authorization thus explicitly given (a matter to which I shall refer more at length later on), but to destroy a great part of the subject-matter to which it refers. She states an intention of requiring the company to cancel all obligations of Colombia to it, and thus to deprive the United States of the rights, privileges, and con- cessions which she has expressl}^ authorized the company to transfer to them, and which the canal compan}^ has contracted to sell and con- ve}^ to the United States. This Government can not approve such a transaction either by Colombia or by the company. If the company were to accede to the demands of Colombia, the President would be*^ unable to consummate the proposed purchase from it, for it would have surrendered to Colombia a material part of the property for which he is authorized to make payment. Nor could the treaty itself be carried out, inas- much as the payments to Colombia for which it provides are, by the express terms of Article XXV of the treaty itself, to be made in com- pensation, not only for the right to use the canal zone and to indem- nif}^ Colombia for the annuity which she renounces and the greater expenses which she may incur, but also "in compensation for other rights, privileges, and' exemptions granted to the United States." Among these other rights and privileges, one of the most important is the right of acquiring the rights, privileges, and concessions of the New Panama Canal Company, secured by Article I of the treaty, and if these rights, privileges, and concessions were to be canceled, it would fundamentally change the terms of purchase. The act of June 28, 1902, requires the President, if he should maks the purchase of the New Panama Canal Company, to acquire ite "rights, privileges, franchises, concessions." This act is annexed to the treaty, and the provisions of Article I of the treat v are framed 10 INTEROCEANIC CANAL. expressly so as to enable this part of the law to be carried out. The action proposed b}' Colombia would constitute pro tanto an annulment of Article 1, would render impossible the execution of the law, and is wholly inadmissible. Equally inadmissible would be any action b}" the canal company in the direction indicated which would destro}' rights which it has agreed to convey to the United States. Nor, upon the question of an authorization b}' Colombia of the transfers proposed, can it be admitted that any further or other authorization than that contained in Article I of the treaty is required or would be proper. So far as the Panama Railroad Company is concerned, it is enough to point out that Articles XXVIII and XXIX of its contract with Colombia, and which contain the only provisions which impose any restriction upon any alienations of propert}^ connected with that com • pany, have no bearing upon any transaction now in contemplation. These articles declare that "the present privilege can not be ceded or transferred to any foreign government," under penalt}' of forfeiture. No transfer of this privilege by the comj)any is contemplated, nor, indeed, any transfer by the company of anything. The purchase by the United States from the New Panama Canal Company of certain shares of the railroad company is the only operation now proposed, and this does not affect the railroad company itself. To this transfer of shares the railroad company is not a party and in it the compan}'^ has no part. It neither makes it nor can it prevent it. Plainl}', there- fore, the provisions of the company's contract with the Colombian Government can have no application to such a transaction. This is irrespective of the rights in relation to the railroad property and con- cessions which the United States acquires under and pursuant to the provisions of the treaty itself. With regard to the New Panama Canal Company the situation is different in this respect, for that company will make a direct transfer of all its property and concessions to the United States, and such a transfer was originally forbidden by articles 21 and 22 of the Salgar- Wyse concession of 1878. Passing, for the moment, the terms of the treaty by which consent is given, the consent of the Colombian Government to the proposed sale has been given so repeatedly and in so many different ways, and has been so frequent}^ and officially brought to the notice of this Gov- ernment by the ministers plenipotentiary of Colombia, duly accredited to the United States, as to make it impossible for the Executive Gov- ernment of that Republic to retract it. The entire action of this Government upon the subject has been taken in reliance upon these official assurances of the consent of Colombia, and smj withdrawal or qualification of that consent would be wholly inconsistent with such assurances. In a memorandum presented by Doctor Martinez-Silva, then minister plenipotentiary of Colombia to the United States, to this Department on March 27, 1901, this Government was officially assured that the Republic of Colombia would authorize the canal company to transfer its concessions to the United States, provided onl}^ that the latter agree with Colombia upon the terms on which the canal is to be con- structed and operated by the United States. On April 29, 1901, the Colombian minister wrote M. Maurice Hutin, then president of the canal compan}^, requesting him to state generally INTEROCEANIC CANAL. 11 the basis on which the company would transfer its property to the United States, assuming that the consent of Colombia be given. This letter M. Hutin answered on May 1, 1901, and a copy of his answer was by the minister handed to Admiral Walker, president of the Isthmian Canal Commission. M. Hutin thereupon took up nego- tiations directly with Admiral Walker, of which fact he notified the minister b}^ a letter of May 6, 1901. In answer to this letter the min- ister wrote M. Hutin on May 7, 1901, approving his action and stating to him the fact that it was stated that in the memorandum submitted by him to this Department "no condition is formulated relative to the sale of the private rights and interests of the company." It is in reliance upon these assurances, either made directly to this Government by the duly accredited minister of Colombia or communi- cated to it through his act, that the action resulting in the present treat}' has been taken, and to raise new conditions and impose new terms upon the consent thus freel}' tendered or to cancel any provi- sions of the concessions would be a complete departure from them. The Government of Colombia initiated the negotiations, and it can not be conceived that it should now disclaim its own propositions, nor can this Government acquiesce in such a course. It is further to be noted that the Republic of Colombia is the second largest shareholder in the New Panama Canal Company. At the meet- ing of the shareholders of this compan}' held on December 21, 1901, at which the board of directors was authorized to make the proposal of sale to the United States which has been accepted, the Republic was represented by M. Uribe, her consul-general at Paris, specially accred- ited for that purpose, who was one of the officers of the meeting and voted the shares of Colombia in favor of the sale. Similarly at the meeting of the board of directors of the company on December 23 1901, M. Samper, the representative of the Colombian Government on the board, voted in favor of the sale. It is not to be supposed that these representatives of Colombia acted without or contrary to instructions, nor has their action ever been dis- avowed by their Government. These various considerations show that the Republic of Colombia is fully committed to the United States, wholly apart from her express agreement by the treaty, to consent fully and freely to the acquisition of the property of the New Panama Canal Company by the United States without other terms or conditions than those embodied in the treaty. It is not necessary here to consider the questions of good faith toward the canal company which would be raised by new exactions of that company at this time. The foregoing considerations, however, though sufficient in them- selves to justify this Government in declining to recognize an 3^ right in the Republic of Colombia to limit the consent given by Article I of the treaty by any terms or conditions of any kind, are less important than others arising from the actual negotiations attending the making of the treaty. These other considerations render it impossible that any such new limitations should even be considered and give any attempt by Colombia in that direction the character of a serious departure from the agreement reached between the Executive Governments of the two nations. The treaty in its present form is the result of certain modifications in an original form presented to the Department of State by Mr. Jose 12 INTEROCEANIC CANAL. Vicente Concha, minister plenipotentiar}^ of Colombia to the United States, on March 81, 1!H)'2. This form of treat}' represented the original proposal of Colombia to the United States, and was presented by Mr. Concha shortly after the recall of the former minister, Dr. Martinez Sih'a. In this draft the terms of Article 1, by which Co- lombia authorizes the sale by the New Panama Canal Company to transfer its property to the United States, were the same as in the actual treaty. In fact, this article has undergone no change in any of the negotiations and it now expresses Colombia's original proposal. No change in it was ever even suggested by Colombia, in all the dis- cussions by which the presentation of the original treaty was followed, until November 11, 1902. On that day Mr. Concha submitted to this Department a ?nemorandum of certain changes which he desired made in the treat}' as it then stood. In this memorandum a modification of Article I was proposed in the following terms: This same article shall clearly state that the permission accorded by Colombia to the canal and the railroad companies to transfer their rights to the United States shall be regulated by a previous special arrangement entered into by Colombia with the said company, and for which they have been notified that they are to appoint an attorney at Bogota. To this proposal this Department answered that " the United States considers this suggestion wholly inadmissible." The proposition was then abandoned by Colombia, and the treaty, as has. been said, was signed by authorit}' of her Government, without any modification of the absolute authorization to the compan}' to sell. It will thus be seen that this proposition to make Colombia's consent to the sale dependent upon an agreement between that country and the canal company is not new; that it has already been made to this Gov- ernment and rejected, and that it was onh' upon the abandonment of it that the treat}' was signed. It is impossible that this Government should even discuss the matter any further or permit this rejected and abandoned proposition to be put in force under any form. The argument which it is understood has been advanced by Colombia in support of her pretensions upon this point (that the concession of the canal company, by its approval by the Colombian Congress, has become a law of Colombia, and must be obeyed as it stands until by another law it has been amended) can be allowed no force. The con- tract of concession was approved by the Colombian Congress in obe- dience to the provisions of Title VI, article 76, of the constitution of Colombia. The present treaty is to be ratified by the Congress of Colombia under the provisions of the same title and the same article in the same way. If every force be allowed to the constitution of Colombia, it can not be admitted that the approval of the treaty by the Congress should not be as etl'ectual as approval by the same body of a new contract between the company and Colombia. But the considerations which led to the rejection of the proposal of the Colombian minister in his memorandum of November 11, 1902, are of themselves decisive of the point. The consent of Colombia to the sale of the canal company's property and concessions to the United States is a matter of agreement between the two nations. It has not been granted by Colombia to the company alone, but also to the United States. To that agreement neither the canal nor the railroad company is or can be a party; nor can the United States permit its international compacts to be dependent in any INTEEOCEANIC CANAL. 13 degree upon the action of any private corporation. Such a course would be consistent neither with the dignity of either nation nor with their interests. To make the effectiveness of the agreement between Colombia and the United States depend upon the willingness of the canal company to enter into arrangements with Colombia, of a char- acter satisfactory to that country, would not only give that company an influence which it can never be permitted to exercise in the diplo- matic affairs and international relations of this country, but would enable it to control the acquisition by the United States of the rights granted by Colombia and the enjoyment by Colombia of the equivalent advantages secured to her by the United States. It may be noted further that such a course would practically nullify Article 1 of the treaty. That article grants an unconditional consent to the sale. But if there be added the condition of an agreement between Colombia and the canal company this consent is wholly nuga- tory. No such arrangement may be reached, and in that case Article I of the treaty would never practically take effect. Such a possibility alone renders any such plan wholly impossible. Upon every ground, therefore, "the present proposals of the Colom- bian Government to make its consent to the sale to the United States of the property and rights of the New Panama Canal Company, con- tained in Article I of the present treaty, dependent upon arrangements between it and either the canal or the railroad company, is wholly inadmissible, and if the subject arises you will inform that Government that the United States can approve no dealings between either of these companies and Colombia relating either to that consent or to the sale. I am, sir, your obedient servant, John Hay. [Inclosures.] 1. Mr. Jose Ramon Lago to the president of the New Panama Canal Company, December 24, 1902. 2. Mr. Lago to the attorney of the Panama Railroad Company, December 27, 1902. [Republic of Colombia, ministry of finance, No. 36. First section, Panama Canal and Railroad division.] Bogota, December 24, 1902. Mr. President of the New Panama Canal Company, 7 Rue Louis-le- Grand, Paris. The congress of this country being about to meet shortly to consider among other matters that relative to the permission which the Government of Colombia is to grant, should occasion arise, to the New Panama Canal Company to make a transfer of its concessions to the Government of the United States of America in consequence of the negotiations which have begun and are going on upon the subject, this depart- ment has thought it its duty to inform the company over, which you worthily preside, of this fact, in order that it may appoint in this capital, if it think fit, a represen- tative of it who should be present Avhen the sessions of that high body take place, provided with ample and sufficient authority and power to deal with all the points which are to be settled with the company concerning the rights and obligations existing between it and this Republic; an appointment which may be conferred upon its present agent, Mr. Alexander Mancini, if the same company thinks fit. It will not be superfluous to inform you that the government of my country, in view of the great interests which the French people have in this coUossal enterprise, will not in any way oppose, and on the contrary, will support and second the grant- ing of the permission for the transfer of the concession; but it will demand and require from the concessionary company, if this be done, by way of return, a sum of 14 INTEROOEANIC CANAL. money which shall be previously agreed upon, and the cancellation on the part of the company of every (accion) undertaking or obligation which the Government of Colombia has contracted by virtue of the concession for the opening of the Isthmus of Panama, up to the date on which it passes to the new concern. I am, your very obedient, faithful servant, Jose Ramon Lago. [Republic of Colombia, ministry of finance, No. 38. First .section, Canal and Panama Railroad division.] Bogota, December 27, 1902. Mr. Dr. Eladio Gutierrez, Attorney Panama Batlroad Company, E. L. C: The congress of Colombia being about to meet shortly to consider among other matters that, relative to the permission which the Government of this Republic is to grant, should occasion arise, to the New Panama Canal Company, to make a trans- fer of its concession to the Government of the United States of America, in conse- quence of the negotiations which have been begun and are going on upon the subject, this ministry has thought it its duty to inform the company, worthily represented by you, of this fact, in order that it may appoint in this capital, if it think tit, a repre- sentative who should be present at the time when the sessions of that high body take place, provided with ample and sufficient authority and power to deal with all the points which are to be settled with the company concerning the rights and obli- gations existing between it and this Republic. It will not be superfluous to inform you, in order that you may so notify the Pan- ama Railroad Company, if you think fit, that the government will not in any way oppose and, on the contrary, will second and support the granting of the permission for the transfer of the concession, but it will demand and require, if there shall be occasion for it, a sum of money which shall be previously agreed upon and the can- cellation, on the part of the same company, of every (accion) undertaking and obli- gation which the Government of Colombia has contracted by virtue of the concession for the construction of the Panama Railroad up to date on which it passes to the new concern. I am your obedient, faithful servant, J. R. Lago. Mr. Beaxqjre to Mr. Hay. No. 17.] Legation of the United States, Bogota, May. Jp, 1903. Sir: I have the honor to advise that the opposition to the ratifi- cation of the canal convention is intensifying. The press is teeming with articles rancorous in enmity to the proposed treat}^, while public opinion is veering into a current of extreme bitterness against the authors of the pact, especially Mr. Herran. A gentleman of my acquaintance prepared an article favorable to the convention and sent it to the publisher of a newspaper here. The article was declined, and the writer admonished that it would be to his welfare, with his views, to keep out of the controversy. Mr. Mancini, the representative of the French Canal Company at the capital, says that he is emphatically of the opinion that the Con- gress will refuse to ratify the convention, and that he has written to his company to that effect. He also said that while there was a moral obligation clearly upon the Government to defend a contract of its own making, it had not done so, and evidently did not intend to do so. It is entirely impossible to convince these people that the Nica- ragua route was ever seriously considered by the United States; that the negotiations concerning it had any other motive than the squeezing of an advantageous bargain out of Colombia; nor that any other than INTEROCEANIC CANAL. 15 the Panama route ever will be selected. Therefore, it is conteiided, and generallj- believed, that there is no immediate necessity of con- firming the Hav-Herran conventiou; that the negotiations can be safeh' prolonged, in the end securing 'very much better terms for Colombia. . , i The public discussion is largely along the lines ot the loss ot the national honor by the surrender of sovereignty: that the clause in the convention guaranteeing sovereignty means nothing, because the lease is perpetual; that the whole contract is favorable to the United States and detrimental to Colombia. Private discussion, which perhaps more clearly reflects the real situa- tion, is to the eflect that the price is inadequate; that a much greater sum of money can be obtained, and that the United States can be obli- gated to guarantee the sovereignty of Colombian ports outside the department of Panama against the invasion or seizure by foreign enemies. The one great determining point, however, is the belief that the price can be greath' augmented. The Congress has not been called, but it is still thought that the ses- sion will commence about the 1st of July. 1 am, sir, vour obedient servant. A. M. Beaupre. Mr. Beawpri to Mr. Soy. No. 18.] Legation of the United States, Bogota.; May 5. 1903. Sir: I have the honor to advise you that information has reached me through a private source to the effect that within a week or two the Colombian Government will send Gen. Marcellano Vargas, a son- in-law of Vice-President Marroquin, to Washington, to negotiate for better or different terms in connection with the Panama Canal con- vention. I am, sir, j'our obedient servant, A. M. Beaupre. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, May 7, 1903. Mav 7, 4 p. m. : Special session of Congress has been called for June "20. Beaupre. 3fr. Btavpre to Mr. Hay. No. 19.] Legation of the United States, Bogota, May 7, 1903. Sir: I have the honor to adrise you that in the course of a conver- sation 1 had vesterdav with one of the ablest and most distinguished 16 INTEROCEANIC CANAL. of Colombians, who is in close touch with the vice-president and his administration, the question of the Panama Canal convention oppor- tunely and confidentially arose. His views are interesting and entitled to considei'ation, and from them I gather that the tremendous tide of public opinion against the canal treaty is appalling to the (iovernment, and there is, in conse- quence, a diversity of opinion among its members as to the proper course to pursue. Some are in favor of forcing contirmation through Congress, while others, dreading the effect of such action in the pres- ent state of the public mind, counsel moderation and delay, and the adoption of measures to change public sentiment into a more favorable channel. All of the enemies of the Government are united in an onslaught upon the canal convention. ^lany of them are sincere, of course, in their opposition to the propped treaty as such, but man}^ more, regarding it as an administration measure and at present unpopular, are assailing it with the indirect object of undermining the Government. M}' informant is of the opinion that the convention ma}^ eventually be confirmed, but only after much discussion and maneuvering in Con- gress. The probabilities are that when the measure is presented to Congress there will be a lengthy debate and an adverse vote. Then the representatives of the coast departments of the Cauca, Panama, and Bolivar will ask for a reconsideration, and urge a ratification of the convention as the only means of preventing the secession of those departments and the attempt to constitute of their territories an inde- pendent republic. The debate will be resumed and in the end the friends of the Government and of confirmation will prevail. My informant is on such intimate terms with the chief officers of the Government that 1 deem it best to transmit his statements for your consideration. I am, sir, your obedient servant, A, M. Beaupre. Mr. Beaupre to Mr. Hay. No. S-i.] Legation of the United States, Bogota, May 12, 1903. Sir: In my No. lY, of the 4th instant, 1 referred to the abuse which the authors of the Panama Canal convention were receiving at the hands of the press of the countr3^ Apropos of this, I have the honor to give you an extract from an article written by Dr. Juan B. Perez y Sota, a senator in the coming Congress from the Department of Panama, which appeared in El Correo Nacional of j^esterday. The article is long, abounds in vituperation, and closes as follows: The Herran treaty will be rejected, and rejected by a unanimous vote in both chambers. That is what I hope, since there will not be a single representative of the nation who will believe the voice of people who have sold themselves; who have had the brazenness to recommend the shameful compact. The insult, however, which Herran has cast upon the Colombian name will never be wiped out. The gallows would be a small punishment for a criminal of this class. I am, sir, j^our obedient servant, A. M. Beaupre. INTEROCEANIC CANAL. 17 Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, May 28, 1903. (Received 9.28 p. m., 29.) Ma3^ 28, 10 a. m. Am informed that the President has received a telegram relating to large number United States employees lately arrived at Isthmus. If explanation should be asked, what answer shall i make i It it is true, it will intensify opposition to the ratification of tne convention. Beaupre. Mr. Beaupre to Mr. Hay. ^o- ^^-l LecxAtion of the United States, Bogota. May 28, 'lOOS. Sir: Referring to my telegram of this date, elsewhere confirmed I have the honor to advise you that there was considerable excitement about the Government palace yesterday upon the receipt of news that about loO employees of the United States had arrived at the Isthmus ''"wu'^wf T' sent to the Governor of Panama asking for information.' n bile the better informed seemed to understand that such employees were but necessary to the commission in the work it was eno-aP-ed upon others were disposed to take a more unfriendly view, and alt were of the opinion that in the present excitable condition of the public mind the news, if it proved true, would have an unfavorable efi'ect upon the ratification of the canal convention. I am, sir, your obedient servant, A. M. Beaupre. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, ^ ■ Washington, May 30. 1903. Ihe report that there is a large number of United States ofiicials or PnIhf"'Th-'r "'''■' '''^^''Yuy ^^J«e- J^eny it promptly and emphati- w^ T' aT' ^^«^^e"™ent has three engineers there inspecting canal woi k. Also there may be a few engineers sent by private contractors. Hay. Mr. Hay to Mr. Beaupre. ^"-I Department of State, Washinqton, June ^, 1903. of Anril aTVI ^.^l^^^o^^ffe the receipt of your No. 6, confidential, of April lo, last, in regard to the Panama Canal Convention. 1 our report has been read with much interest. S. Doc. 51 2 18 INTEROCEANIC CANAL. The Department expects 3^011 to keep it fully informed respecting the situation in Bogota and Colombia, so far as the ratification of the treaty is concerned. From your long residence there you ought to be in a position to be in close touch with ever}' phase of the situation and to know and under- stand the intricacies of Colombian politics as the}'^ may bear upon the very important question at issue. The Department desires all of the pertinent, accurate information that itcan obtain, and wants it promptl}'. You should, when the time seems opportune, in so far as you discreet!}^ and properly may, exert your influence in favor of ratification. It is also expected that you will know what hostile influences, if an}', are at work against the ratification of the treat}^, and whether or not there is opposition to it from European sources. The situation is seemingl}- a grave one, but the Department has confidence that you will rise to the full measure of its requirements. I am, sir, your obedient servant, John Hay. M/'. Hay to Mr. Beaupre. [Telegram.] Department of State, Washington, June 9, 1903. The Colombian Government apparently does not appreciate the gravity of the situation. The canal negotiations were initiated by Colombia, and were energeticall}' pressed upon this Government for several years. The propositions presented by Colombia, with slight modifications, were finally accepted by us. In virtue of this agree- ment our Congress reversed its previous judgment and decided upon the Panama route. If Colombia should now reject the treaty or unduly delay its ratification, the friendly understanding between the two countries would be so seriously compromised that action might be taken by the Congress next winter which ever}^ friend of Colombia would regret. Confidential. Communicate substance of this verbally to the minister of foreign affairs. If he desires it, give him a copy in form of memorandum. Hay. Mr. Beauj>re to Mr. Hay. No. 44.] Legation of the United States, Bogota, June 10, 1903. Sir: Referring to the Department's No. 6 of April 28, 1903, con- cerning the request of the Colombian Government to the Panama Canal and Railroad companies for the appointment of agents to nego- tiate the cancellation of present concessions, etc., and considering that the subject had arisen, as reported in my No. 10 of April 24, 1903, I have the honor to report that I have this day addressed a note to the minister for foreign affairs pursuant to the Department's instructions. TIerewith I transmit a cop}' of said note. I am, sir, yoiu* obedient servant, A. M. Beaupre. INTEROCEANIC CANAL. 19 ^ [Inclosure.] Legation of the United States, Bogota, June 10, 1903. His Excellency Luis Carlos Kico, Minister for Foreign Affairs of the Republic of Colombia. Sir: Referring to the note which I had the honor to address to your excellency on April 24, 1903, concerning the requests of the Colombian Government to the Panama Canal and Railroad companies for the appointment of agents to negotiate the cancellation of present concessions, etc., I now inclose to you copies of the notice given by the minister of hacienda of the Republic of Colombia to the New Panama Canal Company and the Panama Railroad Company. Your excellency will observe that by these notices the Colombian Government contemplates the formal grant to these companies by the Colombian Congress of a further permission to transfer their concessions to the United States besides that contained in the treaty which is to be ratified by that Congress. Your excellency will also note that, as a preliminary to this permission, the companies are expectecl to enter into agreements with Colombia for the authorization and cancelling of all obligations of Colombia to either of them contracted by Colombia under the concessions. Such action on the part of Colombia or on the part of the companies would be inconsistent with the agreements already made between my Government and the canal company, with the act of June 28, 1902, under the authority of which the treaty was made, and with the express terms of the treaty itself. By the act of June 28, 1902, the President of the United States w^as authorized to acquire, at a cost not exceeding $40,000,000, "the rights, privileges, franchises, con- cessions," and other property of the New Panama Canal Company, and an agreement to that end was made by him with the company. It was, of course, known to the President, to the company, and to the Governmient of Colombia that, by articles 21 and 22 of the Salgar-Wyse concession of 1878, the company could not transfer to the United States its "rights, privileges, franchises, and concessions" without the con- sent of Colombia. Therefore, and before entering upon any dealings with the New Panama Canal Company, the present treaty with Colombia was negotiated and signed. The first article of that treaty provides as follows: "The Government of Colombia authorizes the New Panama Canal Company to sell and transfer to the United States its rights, privileges, properties, and conces- sions, as well as the Panama Railroad and all the shares or parts of shares of said company. ' ' The authorization thus given, it will be observed, covers expressly the 'rights, privileges, * * * and concessions" of the company, as well as its other property. Colombia, now, by these notices, indicates a purpose not only of disregarding the authorization thus explicitly given (a matter to which I shall" refer more at length later on), but to destroy a great part of the subject-matter to which it refers. She states an intention of requiring the company to cancel all obligations of Colombia to it, and thus to deprive the United States of the rights, privileges, and concessions which she has expressly authorized the company to transfer to them, and which the canal company has contracted to sell and convey to the United States. My Government can not approve such a transaction either by Colombia or by the company. If the company were to accede to the demands of Colombia, the Presi- dent of the United States would be unable to consummate the proposed purchase from it, for it would have surrendered to Colombia a material part of the property for which he is authorized to make payment. Nor could the treatv itself be carried out, inasmuch as the payments to Colombia, for which it provides, are, by the express terms of Article XXV of the treaty itself, to be made in compensation, not only for the right to use the canal zone and to indemnify Colombia for the annuity which she renounces and the greater expenses which she may incur, but also, "in compensation for other rights, privileges, and exemptions granted to the United States." Among these other rights and privileges, one of the most important is the right of acquiring the rights, privileges, and concessions of the New Panama Canal Company, secured by Article I of the treaty; and if these rights, privileges, and con- cessions were to be canceled, it would fundamentally change the terms of purchase. The act of June 28, 1902, requires the President of' the United States, if he should make the purchase of the New Panama Canal Company, to acquire its "rights, privileges, and franchises and concessions." This act is annexed to the treatv, and the provisions of Article I of the treaty are framed expresslv so as to enable this part 20 INTEROCEANIC CANAL. of the law to be carried out. The action proposed by Colombia would constitute {)ro tanto an annulment of Article I, would render impossiVjle the execution of the aw, and is wholly inadmissible. E(iualiy inaJo 23 1 Department of State, • ^ ' '^ July n, 1903. Sir: At the instance of the Hon. John T. Morgan, I have to request that you will forward two copies of the proclamation of Acting Presi- dent Marroquin, calling the session of Congress to consider the canal treaty, and two copies of the law under which the proclamation was issued. 1 am, sir, your obedient servant, Francis B. Loomis, Acting Secretary. Mr. Beaujpre to Mr. Hay. No 85 1 Legation of the United States, Bogota, July 22, 1903. Sir: Referring to the Department's telegram of April 7, 1903, to my ^o. 10 of April 24, 1903, and No. 4-1 of June 10, 1903, concern- ing the proposed cancellation of the present concessions of the Panama Canal and Railroad companies, I have the honor to transmit herewith a copy and translation of a note received from the minister for foreign affairs on the subject, together with a copy of my reply thereto. As soon as cable communication is reestablished I propose to telegraph the Department the substance of this correspondence. I am, sir, your obedient servant, A. M. Beaupre. [Inclosure 1.— Translation.] Ministry op Foreign Kelations, Bogota, July 21, 1903. Mr. Minister: In your polite note of the 24th of April last, your excellency was pleased to inform me, in accordance with the instructions of your Government, that all that referring to the cancellation of the actual shares of the Panama Canal and Railroad companies, was included in the convention between Colombia and the United States, signed on the 22d of January last, for the opening of the canal. I shall be obliged by your excellency's telling me, as early as possible, if modihca- tions, which, according to the final part of the note referred to, are considered as violating the Spooner law, are only those which concern the concessions of each of the companies, or if they are such also as may be adopted with regard to the (treaty itself) convention spoken of. With this motive, etc., (Signed) Luis Carlos Rico. To his excellency A. M. Beaupre, Envoy Extraordinary and Minister Plenipotentiary of the United States, etc. [Inclosure 2.] Mr. Beaupre to Doctor Bico. Legation op the United States, Bogota, July 22, 1903. His Excellency Dr. Luis Carlos Rico, Minister for Foreign Affairs of the Bepublic of Colombia. Sir: I have the honor to acknowledge the receipt of your excellency's polite note of the 21st instant, referring to my note of April 24, 1903, concerning the requests ot 40 INTEROCEANIC CANAL. the Colombian Government to the Panama Canal and Railroad companies for the appointment of agents to negotiate the cancellation of present concessions, etc., in which 1 informed your excellency that my Government considers that the treaty covers the entire matter, and any change would be in violation of the Spooner law, and not permissible. Your excellency asks me if any modifications in the treaty itself would be considered in violation of the Spooner law, as those other suggestions for special cancellation of the concessions of the companies have been so considered by my Government. I have the honor to say to your excellency that with the approval by the United States Senate of the treaty between Colombia and the United States, signed on the 22d of January, 1908, the Spooner law, which authorized the making of that treaty, was fully complied with, in the opinion of the Senate, so far as the Panama route is concerned. Hence, the said law went out of active existence with reference to Panama, and can onlj' again become a subject for discussion, and then in reference to the Nicaragua route, in the event of the rejection of the treaty by Colombia. This is, of course, my personal opinion, which, unfortunately, I am unable at present to confirm by cable reference to my Government. But I consider it my duty to inform your excellency that I have no reason to believe that my Government will consider or discuss again any modifications whatever to the treaty as it stands. This strong impression I gather from a careful reading and study of the notes already in your excellency's possession, for, if in the case of the concessions of the companies my Government would consider their modification as violating the Spooner law, then, with much more reason, it would seem that the treaty itself, as the oflficial interpretation of the law, can not be modified at all without violating that law. I shall, of course, submit your ex;cellency's note to my Government as soon as it is possible to do so by the reopening of cable communication. I embrace this opportunity, etc., (Signed) A. M. Beaupre. Mt. Loomis to Mr. Beaupre. [Telegram.] Department of State, Washington, July 29, 1903. Would like information as to present situation. Loomis, Acting. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, Washington, July 31, 1903. Instructions heretofore sent to you show the great danger of amend- ing the treat3\ This Government has no right or competence to cov- enant with Colombia to impose new financial obligation upon canal company and the President would not submit to our Senate an}'- amend- ment in that sense, but would treat it as voiding the negotiation and bringing about a failure to conclude a satisfactorj^ treaty with Colombia. No additional payment by the United States can hope for approval by United States Senate, while any amendment whatever requiring recon- sideration by that body would most certainW imperil its consummation. You are at liberty to make discreet unofficial use of your instructions in the proper quarters. The Colombian Government and Congress should realize the grave risk of ruining the negotiation b}'^ inprovident amendment. Hay. INTEEOCEANIC CANAL. 41 Mr. Beaupre to Mr. Hay. No. 90. j Legation of the United States, Bogota., August J, 1903. Sie: Mr. Spencer S. Dickson, British vice-consul at this capital, has prepared for his Government an interesting- memorandum relativ^e to the discussions in the Bogota press on the question of the proposed Panama Canal as a business concern, and has been good enough to furnish me with a copy, which 1 have the honor to inclose herewith. I am, sir, your obedient servant, A. M. Be autre. [Inclosure 1.] Memorandum by Mr. Spencer S. Diclson, relative to the discussions in the Bogota press on the question of the proposed Panama Canal as a business concern. Since the news of the signing of the Hay-Herran treaty last February, the imagi- nation of the Bogota pubhc, as expressed in the local press, has been occupied with the question as to what is the extent of the pecuniary advantages which the Gov- ernment of the United States is about to derive from the projDOsed undertaking. The articles written have so ridiculously exaggerated the possible takings, even from the most optimistic standpoint, as to render themselves unworthy of any no- tice whatever, were it not for an interesting answer thej' have called forth from the pen of Mr. J. T. Ford, the manager of the Cartagena Harbor, Railway, and River companies. Mr. Ford's article is principally directed against an article written by a Dr. Novoa Zerda, a prominent Bogota lawyer, who has published an elaborate state- ment in the Bogota press in which he proves, to his own satisfaction, that the Gov- ernment of the United States are, by the terms of the Hay-Herran treaty, securing for themselves a net profit of 11,186,537,377 during the first term of the concession. My reason for transmitting this memorandum is that the statements made by Mr. Ford in his answer, based, as they are, on long experience and a thorough knowledge of the conditions ruling, merit attention and are, as far as I am aware, of a somewhat novel character, though on a question already so much discussed. Mr. Ford, M. I. C. E., a British subject, holds the position of consulting engineer to the Colombian Government, and has at various times been attached to the Colombian legation at Washington during the course of the negotiations which have taken place respecting the construction of an Isthmian Canal. He has brought his knowl- edge and experience to prove that the Panama Canal is not a profitable undertaking from a commercial point of view, and is valuable to the United States only because of its naval significance. Mr. Ford, in estimating the commercial value of the pi'ojected Panama Canal, has taken as a basis the experience gained by the Suez Canal. The traffic of the latter is regulated by an international convention, the terms of which the United States and Great Britain adopted when formulating the Hay-Pauncefote treaty, signed to substitute that known as the Clayton-Bulwer. These regulations establish a special tonnage measurement, which is neither the gross nor the net of the ordinary ton- nages of Lloyd's. Nor is it the tonnage system of Germany or France. It is the Suez Canal sj'stem. The Suez Canal, in 1900, thirty-two years after being open to trade and with all the extra traffic produced by the Transvaal war and the intervention of the European powers in the Boxer attack on Pekin, has a traffic of 3,441 vessels of 13,699,238 gross tons, or 9,738,152 Suez tons.a Francs. Its gross product in money was 93,451, 403 Expenses of operation and maintenance 25, 648, 264 Resulting in a net income of -. 67, 803, 139 Supposing that Colombia rejects the Hay-Herran treaty and constructs the Panama Canal for its own account, so as to have the full benefit of all the takings. Take also for granted the absurd supposition that, in the first year of its being opened to public, traffic, this canal shall be able to show the same tonnage as that of Suez in 1900, «The later returns for 1901 show a still greater increase. 42 INTEROCEANIC CANAL. thirty-two years after its opening. Taking the above tonnage only and the gross product of the canal in money, an average for ])urpose of comparison is deduced of 6.80 « francs per ton (gross), or §1.86 American gold, by the Suez route. With regard to the question of population served by the two canals, tlie continents of North and South America together contain but one hundred and fifty million inhabitants. The canal will only be used by a portion of the trade of the western coast of the two continents, with part of the eastern coast, and with Europe. It is evident that trade can not in the first year reach the same figure as the total trade of Suez, which unites the continents of Europe and Asia, with twelve hmidred millinn inhabitants between them. To do this, Panama must take from Suez at least one-half its trade. Suppose this second absurdity be regarded as a possibility, owing to the superiority of the Panama route between certain ports, admitting a certain amount of competition in freights from Europe to Australia, New Zealand, and to the islands of the Pacific, it is a question^ whether Great Britain would, without a struggle, thus allow the devia- tion of this important trade from its present established route. The immediate creation of the 3,000 new vessels necessary for the traffic deviated from the trans- continental railroads must also be taken "as an accomplished fact. Against these hypotheses there is the following consideration — the shares of the Suez Canal are being sold at nearly ten times their nominal value. It is perfectly evident that this extraordinary company would certainly be well able to attempt to avert its ruin or injury and face competition by making some reduction in its tariff; but supposing that the Panama Canal has, by competing with the Cape Horn route and the trans- continental railroads, created for itself a trade equal to half the trade of Suez; also, that owing to its admitted superiority in certain voyages now made via Suez, Panama has taken away from Suez the half of its total trade, the Panama Canal would then have its 13,699,238 gross tons as above; but also, for the above-mentioned reasons of competiou, the rate per ton would have to be reduced, probably, to say ipO.70 gold to obtain that result in tonnage. This trade, on the same basis as above, w'ould give to Panama a gross earning of $9,589,466. ^ As to the operating cost, the country in which the Suez Canal is situated has a dry climate, without rains, and is so healthy that the same class of invalids as go to the Eiviera and other sanatoriums of Europe make it their residence in winter. It is moreover a simple canal in a sandy plain without locks, or any other artificial works of importance. Panama, on the other hand, has a disastrously unhealthy climate. Very high salaries would have to be paid and a much greater number of employees would be required than at Suez. There are unforeseen damages to be pi'ovided for, owing to the torrential rains. Difficulties have to be faced in the management of locks and the maintenance of artificial works without parallel up to the present in the entire world, because of their monumental proportions. Mr. Ford, however, to err on the right side, assumes that the cost of operating the Panama canal will be no more than that expended at Suez. The gross cost of operation at Suez for handling the trafiic of 1900 was 25,648,264 francs or 15,129,653 American gold. The Panama accounts, under these conditions, would be as follows: 13,699,238 tons at the above rate of $0.70 per ton would be $9, 589, 466 Cost of administration (the same as Suez in 1900) 5, 129, 653 Net earnings 4, 459, 813 The minimum figure for the cost of construction, of the Panama Canal, with locks, including cost of French canal works and other contingencies, may be taken at $200,000,000, according to the best available estimates. Mr. Ford then assumes another favorable absurdity — that Colombia has a credit equal to the credit of the United States and that she'could therefore obtain the $200,000,000 capital required for the construction at 3 per cent interest without initial discount. She would then have in hand the $4,459,813, the net earning of the canal, to pay the interest on the invested capital. The account then stands as follows: Three per cent on $200,000,000 $6, 000, 000 Net earning 4,459,813 Colombia would therefore have an annual deficit of 1 , 540, 187 « This, of course, is not the actual rate charged at Suez, since Mr. Ford has taken the_ gross and not the Suez tonnage, and the gross earnings include other charges beside the simple tonnage of the ships, but the above figure fully illustrates the point made. & Mr. Ford again uses here his arbitrarily deduced average rate, and not the prob- able actual rate. INTEROCEATSriC CANAL. 43 instead of the net sum of $550,000 « per annum, which she would receive under the Hay-Herran treaty, leaving to the United States the above-mentioned deficit, plus the $250,000 extra rent paid to Colombia. Mr. Ford then goes on to point out that should Colombia build a sea-level canal, costing $400,000,000 instead of $200,000,000, she would find herself with an annual deficit of $7,540,187, including the 3 per cent on the extra $200,000,000. In the discussions which have taken place, those opposed to the treaty have argued on the fact that in previous concessions made witti private parties the terms for the Colombian Government have been much more favorable. To this Mr. Ford opposes the fact that those old contracts were signed in complete ignorance of the Suez undertaking and the enormous natural difficulties and cost of building a canal at Panama which would compare at all points with Suez, and before the experience gained through the working of that canal could throw real light on the profit and loss account of such an undertaking. The natural difficulties inherent to the work- ing of the Isthmus of Panama, which were the cause of the failure of the French, even with their superior contract of 1878, were then all unknown. It is a mistake, says Mr. Ford, to suppose that the United States would make a contract similar to those made formerly when the same ignorance of conditions does not exist. The canal can not be a paying concern for any country except the United States, and for the United States it is a paying concern, not from a commercial standpoint — it will therein be a loser, but on account of its Navy. To show that this statement as regards its commercial value is not exaggerated, Mr. Ford refers to the map of the continents of America. The Cordillera of the Andes, from Patagonia to Panama, the Sierra Madre of Mexico, and the Eocky Mountains of the North, which end in Alaska, are so situated that on the side of the Pacific there is only a small strip of territory, very narrow and comparatively sterile, whereas on the Atlantic disk and in direct communication with Europe (where the Panama Canal will never be needed) are situated seven-eighths of its one hundred and fifty millions of inhab- itants and the whole of its productive lands, i. e., the Argentine, Bi'azil, Mexico, Colombia, Venezuela, the United States, and Canada to one hundred and fifteenth meridian west, approximately. As far as the above countries are concerned, their trade can never reasonably be expected to make use of the Panama Canal to any extent worth considering at present. , Spencek S. Dickson, His Britanic Majesty' s Vice- Consul. Mr. Zoomis to Mr. Beaupre. No. 26.] Depaetment of State, Washington, August 3, 1903. Sir: I have to acknowledge the receipt of your No. 67 of July 1, last, concerning the Panama Canal. It is receiving consideration. There is an error in translation in the twentieth line of the second page of the note inclosed. "Dos companias" has been translated "two countries" instead of "companies." I am, sir, your obedient servant, Francis B. Loomis, Acting Secretary. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota., August o, 1903. (Received 12.) Referring to my dispatch of April 24, containing j^our cipher tele- gram, April 7, 1 have received a note from minister for foreign affairs « Three per cent on the $10,000,000 compensation under the treaty, plus the $250,000 annual rent. ^A 44 INTEEOCEANIC CANAL. asking if "any modification in the treaty itself would be considered in violation of Spooner law, the same as suggestions for canceling concessions of companies had been considered by the Government of the United States." I replied July 22 substantially as follows: With the approval of the treaty by the Senate of the United States, the Spooner law, which authorized its making, was fully complied with, so far as the Panama route is concerned. Hence said law went out of active existence with reference to Panama, and can only become a subject of discussion, and then with reference to Nicaragua, in the event of rejection of the treaty by Colombia. This is my personal opinion, which 1 am unable at present to confirm by cable reference to my Government, but 1 believe it my duty to inform you that I have no reason to believe my Government will again consider or discuss any modification whatever to the treat}^ as it stands, which impression 1 gather from a careful read- ing and study of the notes already in your possession, for if in case of concessions of the companies m}^ Government would consider their modifications in violation of Spooner law, then with great reason it would seem the treaty itself as the official interpretation of (the law) can not be modified at all without violating that law. From conversations with prominent Senators 1 believe the Govern- ment does not consider my opinions as final or authoritative. 1 beg for an emphatic statement from you or instructions under my tele- gram of July 15. There is much danger that the treaty will be amended. Beaupre. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota {dated 6th). (Received August 12, 1903.) August 5, 10 a. m. It is now apparent that the treat}^ will not be ratified without amendment, because the positive influence on the part of this Government can not be expected. There are but eight sena- tors of the twentj^-four in favor of it, but more than two-thirds are in favor of the report of the committee, which is as follows: First. In the preamble the references to the Spooner law shall be suppressed. Second. In article 1 the condition shall be introduced that the Panama Railroad and Canal Compan}^ shall be obliged beforehand to make arrangements with Colombian Government in which the condi- tions shall be established under which that Government will grant consent necessary to enable these companies to transfer their rights to the United States. It shall be expressed that Colombia shall recover ownership of all land grants which are at present in the possession of companies, without excepting any of such lands, to the end that the cities Panama and Colon maj^ remain effectively and completely excluded from zone which is the subject of the concession. Third. Terms of articles 2 and 3 shall be modified in such a manner as to express clearly that Colombia grants the United States only the right of use of the zone and parts adjacent territory. It should be expressed with precision that the rights granted the United States are in nature of tenanc}^, excluding the idea of ownership, and establish- INTEROCEAlSriC CANAL. 45 ing in a peremptory manner the perpetuity of the concession. The boundary of zone shall be indicated with the greatest precision, and the necessary properties to which concession extends shall be clearly determined, excluding from the concession, in an unequivocal manner, cities Panama and Colon; besides which it shall be stated that the guaranty of the treaty of 1846-1848 shall not be modified in any way whatever, and shall continue in its application to the whole Department of Panama, inclusive of the zone. Fourth. In article 7 concession of the right of gratuitous use of the waters of lakes, lagoons, rivers, and the other streams, whether natural or artificial, which may be devoted to the supply of the canal or auxiliary channel, or which may be made use of during its construc- tion, maintenance, or operation, shall be clearly limited, in order that they may be deviated in their course, elevated or lessened in their levels, converted into lakes, widened or narrowed, if necessary, for such purposes. It shall be established that this right is exclusive only in so far as it refers to use of such waters for the supply and main- tenance of the canal, or of the auxiliary channels, without allowing that concessions are to prevent utilization of such waters by others in virtue of their legitimate rights for any purpose which is not one of naviga- tion and would not disturb, make difficult, or prejudice employment that the United States may desire to give such waters for the above- mentioned purposes. The use of waters or rivers outside zone of the canal for the transportation materials, etc. , shall not be an exclusive right of the United States, but the right shall be given to them to use the waters, without tax or charge of any kind, in so far as the use relates to maintenance and operations of the concession. The natural product property of the Republic which the United States may take for the work shall be determined with the greatest precision possible, limiting this concession to the Department of Panama, and determin- ing that the compensations which may have to take place under article 7 in all things shall be subject to what is provided in article 14. Fifth. In article 8 uncertainty of the clause shall be corrected under which no duties of any kind shall be collected in the cities Panama and Colon, with the exception of merchandise destined to be introduced for the consumption of the rest of the Republic. Sixth. In article 13 all relating to establishment ol tribunals of the United States and to application of the laws of United States in Colombian territory shall be suppressed, as it is contrary to article 10 of the constitution, and it shall be established that the regulations, police and sanitary, which will be in force in the zone shall be subject to an agreement between the two Governments. Seventh. Indemnities which the concession mentioned in article 14 will decide upon for the seizures which may have to be made in those cases which are mentioned in the same article shall be determined and paid by the United States, in accordance with valuation at the time. Eighth. In article 24 a clause of forfeiture shall be introduced fixing termination, which, if exceeded, and if work shall not have been exe- cuted, all the concessions must cease to exist and all properties and rights of the undertaking shall revert to Colombia. The last para- graph article 25, beginning "But any delay," shall be suppressed. Ninth. In an additional clause the tribunal, which must decide upon the differences which may arise between the contracting parties as to the fulfillment of the treaty, shall be indicated. Beauprj&. ^ 46 INTEROCEANIC CANAL. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota.. August 5. (Received 16.) August 5, 10 a. m. I have addressed a note minister for foreign affairs concerning the report of the committee appointed to consider the treat}^, to the effect that the proposed modification article 1 is tantamount rejection the treaty. My opinion is that my Government would not consider or discuss the amendment; that the committee has been insufiiciently acquainted with mj^ notes, April 24, June 10, or have failed to give them importance they demand as definite expression of opinion and intention of the Government of the United States. The amendment, article 13, suppressing tribunals, will not be accepted in any event, and the other modifications, not so serious in principle, are too little value to Colombia to submit for the discussion of the Senate of the United States. They could be adjusted by assurances or b}^ special legislation when the commission required by the treaty has been appointed. Closing with strong reminder of the dangerous consequences of further unnecessary delay, urging that if Colombia really desires to preserve friendly relations and to secure the advan- tages of canal, backed by so close an alliance of national interests, the treatj^ should be ratified without modification. Beaupre. Mr. Beaupre to Mr. Hay., ma consulate at Colon. [Telegram.] United States Legation to Colombia, August 5. 1903. (From Colon, August 18, 1903.) No cable received since (the) 13th July, the company having closed Buenaventura office. Government does not allow cables to pass over land lines. Situation critical. American minister Bogota. August 5. Malmros. 3Ir. Beafiijpre to Mr. Hay. [Telegram.] United States Legation, Bogota., August 6, 1903. (Received 12.) August 6, 10 a. m. Confidential. Note reference to treaty 1846 in the committee repoi-t. Colombia dreads above all things newspaper reported intention of the United States to denounce the treaty in the event of rejecting canal treaty. I have additional confirmation the statement of my dis-patch No. 49 June 15. Beaupre. INTEBOCEANIC CAN^AL. 47 Mr. Beaupre to the Secretary of State. No. 98.] Legation of the United States, • Bogota.; August 7, 1903. Sir: I have the honor to report that the telegrams which I had the good fortune to get through yesterday and the day before give a more or less accurate idea of the situation in so far as the canal treaty is concerned. These telegrams are the only ones thus far passed since the 15th ultimo, and it was only after very earnest interviews with the vice- president, the minister for foreign affairs, the minister of government, and the director-general of mails and telegraphs that I finally suc- ceeded. " The report of the special committee of the Senate appointed to con- sider the treaty presented on the 4:th instant, and transmitted in my telegram of the 5th instant, was signed b}'^ seven of the nine members of the committee and was in the nature of a compromise. The two other members made independent reports amending nearly every article of the treaty, but as they will have no weight in the ultimate decision of the matter it is not necessary to mention them. On the morning of the 5th instant I addressed a note to the minister for foreign affairs concerning the committee's report, a copy of which is herewith inclosed. Early in the afternoon of the same day I received the Department's telegram of the 31st ultimo, and as the instructions therein had a direct bearing upon the question I immediately dispatched another note to the minister for foreign affairs, a copy of which is herewith inclosed. A reference to ni}'^ telegram of the 6th instant concerning the treaty of 1846 will give a better understanding of the last clause of this note. I have positive information that both notes were read to the Senate in secret session. The situation is chaotic just now and intense feeling is being mani- fested in the debates in the Senate. Apparently there is little prospect that the treaty will be ratified without modifications, but I must still hope that a better sentiment will be brought about before the end. I am, sir, your obedient servant, A. M. Beaupre. [Inclosure 1.] Mr. Beaupre to Doctor Rico. Legation of the United States, Bogota, August 5, 1903. His Excellency Dr. Luis Carlos Eico, Minister for Foreign Affairs of the Republic of Colombia. Sir: I have the honor to inform your excellency that I observe with regret the terms in which the committee of the Senate has seen to frame their report with ref- erence to the Panama Canal treaty, and would earnestly request your excellency to take into consideration the unfortunate circumstance of interrupted cable communi- cation which has prevented my immediate consultation with my Government, and «The telegrams referred to were not received by the Department of State until August 12, 16, and 18, respectively. 48 INTEROCEANIC CANAL. which alone has decided me to address another note to your excellency in furthei interpretation of the instructions I have referred to in my previous notes as having been received from my Government. It would appear to me that the committee has either been insufficiently acquainted with the contents of my notes dated April 24 and June 10, 1903, or that they have failed to attach to these direct communications the importance they demand as definite expressions of opinion and intention on the i^art of my Government. From them it is clear that the committee's proposed modification of article 1 is alone tantamount to an absolute rejection of the treaty. I feel it my duty to reiterate the opinion I have before expressed to your excellency that my Government will not consider or discuss such an amendment at all. There is another important modification suggested by the committee to article 13, suppressing the forms of tribunals there provided. I deem it my duty again to express very emphatically my opinion that this also will not be acceptable in any case. The other modifications, though not equally serious in principle, are nevertheless of such slight value to the interests of Colombia that they do not warrant the risk of further discussion by the Senate of the United States; even in the event, Avhich I consider more than doubtful, that they be even submitted to that body by my Gov- ernment, since all such amplifications or explanatory items can equally well be given, either by separate emphatic assurances of the Government itself, or be the subject of special legislation when the joint commission mentioned in the treaty shall have begun its official existence. For the moment disregarding the probable correctness, or otherwise, of my con- victions, there is one point that I would especially urge upon your excellency, and that is that the Senate should be reminded of the dangerous consequences to the whole negotiations that the undue delay hitherto experienced in arriving at conclu- sions will undoubtedly produce on the attitude of my Government. If the present modifications of the committee constitute really the final decision that is likely to be arrived at by the Congress of Colombia, the matter should be voted without any delay, and so give at least a slight opiaortunity to my Government to consider the matter before the expiration of the time for exchange of ratifications provided in the treaty. Less than this can not be expected by my Government, which in good faith signed the pending treaty more than six months ago, and promptly ratified it without modifications. I take this opportunity to respectfully reiterate what I have before expressed to your excellency, that if Colombia really desires to maintain the present friendly relations existing between the two countries, and at the same time secure to herself the extraordinary advantages that the construction of the canal in her territory will undoubtedly produce, if backed by so close an alliance of national interests as would supervene with the United States, the pending treaty should be ratified exactly in its present form, without any modifications whatever. I say this from a deep con- viction, that my Government will not in any case accept amendments. I avail myself of this opportunity to renew, etc., (Signed) A. M. Beaupre. [Inclosure 2.] Mr. Beaupri to Doctor Rico. Legation of the United States, Bogota, August 5, 1903. His Excellency Dr. Luis Carlos Rico, Minister for Foreign Affairs of the Republic of Colombia. Sir: I have the honor to inform your excellency that in the matter of the pend- ing treaty for the construction of the Panama Canal it has hitherto been impossible for me to do more than advise you of the construction I have from time to time put upon the instructions received from my Government in more or less general terms, as the various questions involved had not been brought to a definite issue. Now referring to my several notes on this subject, it is a matter for great satisfac- tion to me that to-day, together with the publication of the Senate committee's re- port on the treaty, I have received such definite instructions from my Government as enable me not only fully to confirm, but materially amplify the terms of all my previous notes above alluded to. I may say that the antecedent circumstances of the whole negotiation of the canal treaty, from official information in the hands of my Government, are of such a nature as to fully warrant the United States in considering any modification what- INTEROCEANIC CANAL. 49 ever of the terms of the treaty as practically a breach of faith on the part of the Gov- ernment of Colombia, such as may involve the very greatest complications in the friendly relations which have hitherto existed between the two countries. I am instructed to say that my Government has no right to covenant with Coloni- bia to impose new financial obligations upon the canal company, and that the Presi- dent would not submit to the Senate of the United States any amendment in that sense, but would treat it as voiding the negotiation, and as a failure to conclude a satisfactory treaty with Colombia. The amendment to Article I of the treaty pro- posed by the Senate committee is clearly in that sense. I am also instructed to say that no additional payment by the United States can in any case hope for approval by the Senate of the United States. What I said to your excellency in my note of this morning, with reference to the minor amendments proposed by the committee, I can now emphasize in the language of my instructions, that any amendment whatever requiring consideration by that body (the Senate) would rnost certainly imperil the treaty's consummation. Your excellency's Gov- ernment and Congress should realize the great risk of ruining the negotiation by improvident amendment. It is impossible for me to express to your excellency more emphatically the attitude of my Government on this important matter, or to implore more earnestly than I now do the careful consideration by Colombia of the reasons which in the opinion of my Government should impel your excellency's Government to urge upon Con- gress the necessity of ratifying the treaty in its present form. It is to be regretted that the reference to the necessity for the practical reenact- ment of the treaty of 1846-1848 in the Senate committee's report should constitute almost a doubt as to the good faith of the intention of the United States in its com- pliance therewith. I must assure your excellency that unless that treaty be denounced in accordance with its own provisions my Government is not capable of violating it, either in letter or spirit; nor should there be any fear on the part of Colombia that if ratified the clauses guaranteeing her sovereignty in the pending treaty, couched as they are in still more precise and solemn terms than those of 1846, will ever be disregarded in the slightest degree by the Government of the United States. I avail myself of this opportunity, etc. (Signed) A. M. Beaupee. Mr. Beaupre to the Secretary of State. No, 101,] Legation of the United States, Bogota., August 10., 1903. Sir: Referring to my No, 98 of the 7th instant, I have the honor to inclose herewith a copy and translation of a note from the minister for foreign affairs, together with a copy of my reply thereto, I am, sir, 3^our obedient servant, A, M, Beaupre. [Inclosure 1.— Translation.] Dr. Rico to Mr. BeauprL Ministry for Foreign Kelations, Bogota, August 8, 1903. Mr. Minister: One of your attentive communications which your excellency had the pleasure to address to me on the 5th of the present month, relative to the busi- ness of the Interoceanic Canal of Panama, contained the part which I take the liberty to quote as follows: "I may say that the antecedent circumstances of the whole negotiation of the canal treaty, from official information in the hands of my Government, are of such a nature as to fully warrant the United States in considering any modification of the terms of that treaty as practically a breach of faith on the part of the Government of Colombia, such as may involve the very greatest complications in the friendly relations which have hitherto existed between the two countries." S. Doc. 61 4 50 INTEROCEANIC CANAL. "Wishing to give to your excellency as soon as possible the required answer to the two notes to which I refer in the present, I will appreciate it if you will inform me that if among the circumstances alluded to in the paragraph, a version of which I have transcribed, there exist any others not mentioned in the notes which your excel- lency has seen tit to address to me on this subject. With this motive 1 renew to your excellency the assurance of my highest consid- eration. (Signed) Luis Carlos Rico. His Excellency A. M. Beaupre, Envoy Extmordinary and Minister Plenipotentiary oj the United States. [Iiiclosure 2.] Mr. Beaupre to Doctor Rico. Legation of the United States, Bogota, August 8, 1903. His Excellency Dr. Luis Carlos Rico, Minister for Foreign Affairs of the Bepuhlic of Colombia. Sir: I have the honor to acknowledge receipt of your excellency's courteous note of to-day, quoting a paragraph of my note of the 5th instant, and asking if the state- ment therein contained is based upon information not mentioned in my previous notes. In reply I have the honor to inform your excellency that the antecedent circum- stances to which I made reference are fully outlined in my previous notes, and par- ticularly in the one of June 10, 1903. If your excellency will permit me a few words more on this subject I would like to refer to the extraordinary efforts made by my Government to keep faith with Colombia after an agreement had been reached between the executive Governments of the two nations. As your excellency is aware, when the canal convention was presented to the Senate of the United States it encountered the most violent opposition. Not only were strenuous efforts made to defeat the treaty in its entirety, but many amend- ments of varying degrees of importance were presented and urged. During all that period the friends of the Government were steadfast in their determination to uphold the action of the Executive and to preserve intact the agreement made with Colom- bia. It was a momentous struggle, and the final and close victory W'as secured in the end only by the most stupendous efforts on the part of the Administration, im- bued as they were with the idea that such a compact, made after mature and careful consideration by the executive departments of the two Governments, must be rati- fied as it stood. In view of the foregoing, it is absolutely believed by my Government, that any modification, as such, to the pending treaty could not be safely submitted to the present Senate. The intense feeling over large sections of the United States in favor of the Nicara- gua route on the one hand and interests on the other hand hostile to any canal at all, and especially the Panama route, are circumstances that, I fear, your excellency's Government and the people of Colombia have not weighed sufficiently to attach to them the importance they deserve. While my previous notes may have expressed an almost exaggerated desire to impress upon your excellency the dangers of delay or modification of any kind, they were inspired by a full knowledge of conditions in my own country, w^hich I feared would not be fully appreciated in Colombia. The condition which appears to me to be absolute, at least, is that the proposed treaty should be ratified as it is, in good faith with my Government, or the opportu- nity will be lost for any later negotiations of anj^ kind whatever. In my own behalf, I most earnestly desire to assure your excellency that, aside from fulfilling the instructions of my Government, I have the deepest personal con- cern in the honor and glory of the country to which I am accredited, and in which I have been extended so much kindness and consideration. Every conviction of my mind leads me to the belief that enormous aggrandizement must accrue to Colom- bia if an interoceanic canal be constructed through her territory, while the desire to bring the two countries into closer and lasting friendship is ever present. Feeling INTEROCEANIC ' CANAL. 51 thus deeply every effort I may have made, or shall make to this end, has or will have as its incentive the ultimate good not only of the country which I represent but of that in which I have the privilege and pleasure of residing. I avail myself of this opportunity to renew, etc. (Signed) A. M. Beaupre. Mr. Loomis to Mr. Beatipre. [Telegram.] Department of State, Washmgton^ August 10^ 1903. Keep the Department advised and embody date in messages. Loomis, Acting. Mr. BewMpre to Mr. Hay. [Telegram.] Bogota, August 12, 1903. (Received 15.) August 12, 7 p. m. The treat}^ was rejected b3^ the Senate to-daj^ in its entirety. Contidential. Do not accept this as final. There is still some hope. Wait for further advices. Beaupre. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, August m, 1903. (Received 23.) August 12, 9 p. m. Referring to my telegram of August 12, 7 p. m. , I do not believe that rejection of treaty is final, for the following reasons: Yesterday's debate and vote was undoubtedly previously arranged. This I believe both from the tone of the debate and from information which I had already received through persons of high influence. Debate lasted five hours. All communications between myself and the Colombian Government read. The fact that the Gov- ernment of the United States can not accept modifications or delay was made clear to the Senate. The most important speech made was that of General Ospina. It was to the effect that while desiring canal he could not give his vote for the ratification of the treaty because the terms were contrary to the provisions of the constitution. He implied that to bring negotiations to a conclusion the constitution should be modified, so as to allow negotiations to be brought to a successful con- clusion without prejudice to the honor of the country. He stated also that to effect this no delay was necessarv, as two debates will be suflicient for the purpose; he intimated that the Congress should be immediately dismissed by a decree for the purpose of modifying the constitution. ^ Upon that a new law will be passed authorizing the Executive, without further recourse to Congress, to conclude a canal treaty with the United States. Should this prove true the text of the 52 INTEROCEANIO CANAL. present treaty could be accepted without hesitation. By this means Congress will be able to conclude negotiations without individual sen- ators publicly speaking in favor of it. Beaupr^. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, August 12, 1903. (Received 19.) August 12, 10 p. m. Confidential. [ ] called to inform me that this day's action of Congress was in accordance with plans perfected by the Government and influential Senators and citizens in in the belief that the treaty could not now be passed without amend- ments, but that within ver}^ short time such a reaction public senti- ment can be created as will enable the President to present the treaty again to the Senate and secure its passage without amendments. I have been aware of such a movement for some days, hence my tele- gram advising that there was still hope. [ ] asks if 3^ou will give two weeks more for the consum- mation of this plan before taking other action, and requests immediate reply. He doubts whether the constitution can be amended in time, and thinks it is not necessaiy. Beaupre. Mr. Loomis to Mr. Beaupre. [Telegram.] Department of State, Washington, August 13, 1903. Have you received Department cable of July 31 ? Amendments suggested in your cable of the 5th would be fatal to treaty. Loomis, Acting. Mr. Beaupre to Mr. Hay. No. 105.] Legation of the United States, Bogota, Atcgust 15, 1903. Sir: I have the honor to report that the most intensely critical period for the canal treaty seems to have passed, and that now there is some hope for a satisfactory conclusion. Since the rejection of the treaty on the 12th instant there has been an almost hysterical condition of alarm and uncertaintv in Bogota as to the future action of the United States. Yesterday there was a widelj^ circulated report that United States troops had landed on the Isthmus. When, finally, large posters were put up all over the city, announcing that because of a desire to maintain the most cordial relations with the United States, a joint com- mittee would be appointed by Congress to confer as to the way and means of an agreement for the construction of a canal, I am certain that there was a genuine feeling of relief. INTEROCEAlSriC CANAL. 53 When the report of the special committee of the Senate was pre- pared, and I had positive information that twenty of the twent3^-seven votes in the Senate had been secured to jjass it, I knew at once that such action would be fatal; and there being no cable communication to permit of instructions from you, I determined upon a course of ener- getic action which, while it might seriously lessen my popularity here, and seem undiplomatic unless viewed in the light of the exigency and the circumstances, resulted in my two notes of the 5th instant and one of the 8th instant to the minister for foreign affairs. These notes were as strong and incisive as I could make them, with no attempt to dis- guise in suave phrases the fact that there was no probability that the United States Senate would accept the amendments proposed by the committee. Whether or not I was justified in writing such strong notes is best judged in the light of events, for they accomplished what I deemed to be necessary, and no other course could have prevented the adoption of the report of the committee. Some of the newspapers and members of Congress are expressing dissatisfaction with what they term my dictatorial attitude, but I do not consider this important, provided a satisfactory treaty is finally ratified, which now seems probable. When action was taken on the 12th instant no one in authority believed that it was final. Aside from the tone of the public debate, which would indicate this to the public, the Senators had come to an agreement some days before as to the policy to be pursued. Because of the apparent fatality of the amendments proposed, it seems to have been thought best by those in charge (and 1 was so informed about the 10th instant), in view of the present state of public opinion, to reject the treaty in the first debate, and then, believing that there would be a reactioiQ of this public opinion, to resort to some coup to get the treaty again before Congress and pass it. Apparently the manner of getting at this has not been definitely determined, for there are various ideas of ways and means. General Ospina, the chairman of the new committee, stated to a friend of mine yesterday that the main objections to the treaty rested upon lawful or constitutional grounds. That the treaty was not unconstitutional, but contrary to law 2 of 1886 and law 158 of 1887. That the committee could recommend an annulment of these laws, which, if done, would permit the ratification of the treaty, with some trivial amendment intended to soothe the apparent inconsistency of the two votes. That the action of the 12th instant was taken on the minority report of the committee, and the majority report could still be called up and a reconsideration had. General Valencia, a senator and lawyer of reputation, says that the treaty is not unconstitutional, except with reference to the appoint- ment of United States tribunals on the isthmus, which is not highly important; that it is not necessary to annul laws, because the treaty itself would become a superseding law if passed; that the only thing to look to was to get enough votes to pass the treaty when it again came before the Senate. The feasible scheme, however, and the one most generally talked of as being likely to be adopted, is to frame a law authorizing the execu- tive to continue and finish the negotiations for a canal without further recourse to Congress. 54 INTEROCEANIC CANAL. Whatever may be the means determined upon, it is altogether probable that the report of the joint committee will be passed when presented. There is a seeming of good intentions in this movement, and 3^et I can not forget that there has never been a favorable word said for the treaty in the Senate, nor in fact has it been discussed at all, and there is little evidence of a desire to treat the matter with open good faith to the United States. The first weeks of the session were devoted to the discussion of the question as to whether the vice-president must sign the treaty before it was considered by the Senate. In other words, an attempt of the vice president's political enemies to place the responsibilit}" for the negotiations upon him, which he declined to assume. When this point was settled to the satisfaction of the Government and the burden was apparentl}'- placed upon Congress, came the appointment of the special committee of one member from each of the nine departments of the Republic, who consumed nearlj^ three weeks in their delibera- tions, and then reported recommending the nine amendments, which I immediately cabled to j^ou. The first (and only) debate upon the committee's report occurred on the 12th instant, and that j^ou ma}^ understand how the matter has been treated I will give a summary of that day's proceedings: Senator Marroquin (son of the vice-president) moved that the debate be preceded b}^ the reading of the correspondence which had passed between the United States minister and the minister for foreign affairs on the canal negotiations. Senator Caro gave notice of a law he would move, containing two clauses, viz: (1) To reject the Hay-Herran treat^^ (2) That the United States Government be informed that the Con- gress of Colombia meant no manifestation of hostilit}" by this act, nor any antagonism to the construction of a canal by the United States. The correspondence above referred to was then read. My memorandum and notes, in which I pointed out that the Colom- bian Government did not apparentl}^ realize the gravity of the situa- tion, and that if Colombia should now reject the treaty or unduly delay its ratification the friendl}^ understanding between the two countries would be so seriously compromised that action might be taken by our Congress next winter which every friend of Colombia would regret, was received with loud murmurs of disapproval b}" the densely packed gallery. The minister for foreign affairs' replies, read mostly b}^ himself, were, on the other hand, greeted with applause. Besides the above, the tenor of my notes was (a) that an}- modifica- tions would be fatal; (h) that any modifications affecting the arrange- ments with the Panama Canal and Railway companies would not be accepted. The minister's replies were to the effect that the Govern- ment was bound to submit the treaty to the Congress, and that in the event of its not passing that body he understood that the United States would proceed to the negotiation with Nicaragua; but that he did not see that the refusal to ratify the treaty could in any way alter the friendly relations existing between Colombia and the United States. Senator Caro vehementl}^ attacked the Government for its attitude in the conducting of the negotiations. He taunted the minister for foreign affairs for his action in having the correspondence between the TNTEROCEANIC CANAL. 55 United States minister and himself read as an attempt to elude the responsibility resting on the Government, and to cover it by courting- the applause of the gallery as the champion of the rights of the Colom- bian Senate; rights which, he said, had never been called in question by the United States minister. This same attitude was taken b}^ Senator Arango, in a short speech. The minister for foreign affairs then went through the whole history of the negotiations, beginning with the project of an interoceanic canal first made. He gave a detailed resume of the whole De Lesseps scheme, and its subsequent failure, and deduced the following conclusion: That the present situation, as shown by the history of antecedent schemes and negotiations, was that Colombia must choose one of two things — either the whole scheme of a Panama Canal must be abandoned, or Colombia must hand the undertaking over to the United States. Feelers had been thrown out which had proved that no other power or entity would under any circumstances take the project in hand. The concession, therefore, if given to anybody, must be given to the United States Government. But this fact must not be lost sight of, that the United States Government would not even consider the cutting of a canal which should not be its own canal. The minister than made reference to the notes which had passed between him and the legation of the United States. The result of that correspondence was that the Colombian Congress found itself in the dilemma of either accepting the treaty as it stands or losing all hope of seeing the great work cut through Colombian territorj^. He concluded by expressing the hope that, in discussing this matter, the Senate would strictly limit itself to the points at issue. The Government had done what it could in the matter. The negotiations had been initiated by the ablest of their statesmen, Dr. Martinez Silva, and the treaty, even as it now stood, bore the impress of that initiatory work. The Government had, moreover, left the decision of the issue to the free judgment of the country, and had exerted no influence whatever upon public opinion, when it could have passed the measure through by the use of dicta- torial measures. (This evoke marked disapprobatorj?^ murumrs from the gallery.) Senator Marroquin then made a short speech to the effect that the question turned on the acceptance or nonacceptance of the treaty, and not on questions of government policy, brought in by honorable sen- ators, and which were foreign to the discussion. A speech by Gen. Pedro Nel Ospina then followed, in which he blamed the minister for foreign affairs for having in a note given the United States minister the opportunity of raising the question as to whether or not his Government would accept any modifications. He said the minister's joosition reminded him of the man who, on being- told by an alcalde that he must furnish three horses for the use of the Government, turned, as he was leaving the room, and inquired: "Must I furnish saddles, also? " To which the alcalde replied: " Cer- tainl}^" He also said that, outside of the question as to whether he did or did not favor the canal treaty as it stood, he could not, in view of the existing laws of the country, give his vote for its ratification. That the Congress should, in his opinion, first so amend the laws of the country as to enable the Colombian Government to come to an agreement with that of the United States in a manner honorable to both countries. 5(5 INTEROCEANIC CANAL. Senator Rodriguez spoke in the same sense, expressing his advocacy of the construction of a canal and his friendl}^ disposition toward the Government of the United States. He should, however, as privately agreed upon, give a negative vote on this occasion. And thus ended the only debate ever had in the Colombian Senate on the canal treat\\ A vote was taken at 6.30 p. m., and everj'- senator present was I'ecorded as voting against the ratification of the treat3^ As I have on man}' occasions informed you, ratification has seemed almost hopeless from the beginning without the active influence of the Government, and this it has never used. The Nationalists, under the lead of Senator Caro, have been too deeplj^ concerned in their efforts to belittle the Government to consider the merits of the treaty at all. The Liberals, while not represented in Congress, are the most active factors in creating public opinion, and have taken an almost identical position. The coffee planters and exporters, who think their business would be ruined by low foreign exchange, have been unpatriotic enough to place personal interests above national good, and have been against the treat}" because the $10,000,000 once paid Colombia would send exchange so low that coffee could not be exported from the interior. Even the Panama representatives have lately become so thoroughly imbued with the idea of an independent republic that they have been more or less indifferent to the fate of the treaty. As a matter of fact the treaty, as such, has had no active friends or or supporters, and if it is ratified at all it will be because of the strong attitude taken by the United States and the earnest repetition of the statement that the friendly understanding between the two countries depended upon it. It has been a diflicult and trjdng situation from the first, rendered more so by the interruption of cable communication, and one in which a strong, rather than a velvet hand, was imperative. I await the consummation with some hope and much distrust. I am, sir, your obedient servant, A. M. Beaupre. Mr. Loomis to Mr. JBeawpre. [Telegram.] Department of State, August 15^ 1903. Cable additional information concerning rejection of treaty as soon as possible. Loomis, Acting. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota., August 15, 1903. (Received August 23.) August 15, 1 p. m. Prominent Senator says that the vote on Wed- nesday^ was upon the minority report of the committee; hence, it is believed reconsideration possible on the line of majority report Thurs- INTEROCEANIC CANAL. 57 day. Senate appointed new committee of tliree, General Ospina, chairman, in cooperation with similar committee appointed Friday by Chamber of Representatives, to report as joint committee of both Houses. The appearance is a disposition to find the means of ratify- ing the treaty. The committee seems one that will work to that end. Beaupre. M7\ Beaupre to Mr. Hay. No. 107.] Legation of the United States, Bogota, August 17, 1903. Sir: I have the honor to send you inclosed copies and translations of two notes from the minister for foreign affairs in regard to the Panama Canal treaty. I am, sir, your obedient servant, A. M. Beaupre. [Inclosure 1.— Translation.] Doctor Rico to Mr. Beaupre. Minister of Foreign Relations, Bogota, August 11, 1903. Me. Minister: In your polite note written the 8th of the present month, in answer to the one I had the honor to address to you on the same date, your excellency has been pleased to inform me that your previous notes have fully defined the antecedent circumstances which, as it appears from one of the two notes of your excellency of date of the 5th instant, "attended the whole negotiation of the canal treaty," and according to the same note, ' ' are of such a nature as to fully warrant the tFnited States in considering as a violation of the pact any modification whatever of the con- ditions stipulated in the treaty, such as may cause the gravest complications in the friendly relations which have hitherto existed between the two countries." The said note makes special reference to your excellency's note of June 10 last, which deals with the permission the canal company and the Panama Railroad Com- pany must obtain in order to transfer their respective concessions. I answered said note on the 27th of that month and stated to your excellency that in order to deter- mine the meaning of article 1 of the treaty. Congress would have to consult the ante- cedents of the negotiation, among which were included the notes of the minister of "hacienda" dated December 25 and 27, 1902, and an extract from the memorandum addressed to his excellency the Secretary of State on the 22d of November of the same year by the Colombian legation in Washington. In the opinion of the Colombian Government the view expressed by your excel- lency's Government that the circumstances attending the whole negotiation of the canal treaty are of such a nature as would fully authorize the United States in con- sidering as a violation of the pact any modification whatever of the conditions of the treaty is not compatible with diplomatic usages nor with the express stipulation of article 28 of the same convention. In fact, plenipotentiaries in concluding public treaties propose and accept con- ditions with the purpose of facilitating the negotiation which is not final except by means of ratification, which in republics is vested in the executive power with the concurrence, direct or indirect, of some other high powder of state. This doctrine is expressly recognized in the said article 28, which reads: "This convention when signed by the contracting parties, which shall be ratified according to the laws of the respective countries, and shall be exchanged in Washington within a term of eight months from this month, or earlier if possible." Under that article the Government of the United States submitted the treaty to the Senate for its approval, and the Government of Colombia has bad to do the same in respect to its Congress. The former proceeded in conformity to a constitu- tional provision, and the latter adopted analogous proceedings, because, according to paragraph 10 of article 120 of the constitution, the power of making treaties with foreign powers is qualified by the necessity of submitting them to the approval of 58 INTEROCEANIC CANAL. Congress; so that the convention for the opening of the canal must, in order to be ratified in accordance with the laws of Colombia, as stipulated in said article 28, be ratified by the Congress; and the obtention of such approval, with or without amendments, could not have been a matter for agreement in any of the circum- stances which attended the negotiation and to which your excellency refers when you say that any modification of the terms or any delay in the exchange of ratifica- tions would be considered a violation of the stipulated conditions. If my Govern- ment had entered into that agreement your excellency would have said so in your note of the 8th instant, by which you were pleased to explain the paragraph in which those circumstances are discussed. Your excellency tells me that when the canal convention was presented to the Senate of the United States it met there the most violent opposition; that not only were the strongest efforts made to reject it as a whole, but that many amendments more or less important were proposed for immediate discussion, and that the final and definite victory was only attained after the most strenuous efforts on the part of the friends of the Administration, convinced as they were that it ought to be ratified without any alteration. The course of the honorable Senators who proposed the modifications makes it clear that they used their constitutional rights in proposing changes in the conditions of the pact, without any reason to consider that the Government of the United States was bound to approve the treaty without modifications, as has been claimed in regard to the Government of Colombia. I suppose that your excellency's Government has never denied to the Senate the right to introduce modifications in the international pacts, and that this right has the same legal force as that of approving or disapproving public treaties, and I under- stand that the Senate has exercised its right to propose modifications not only in this case, but also in others, as I pointed out to your excellency in my contra memoran- dum of June 18, in connection with the project of convention dated November 28, 1902, between the United States and Great Britain, for the abrogation of the Clayton- Bulwer treaty of 1850. The Colombian Government, fully aware that justice and equity govern the course of the United States in its relations with all powers, and that its respect for the autonomy of the Spanish- American countries is a substantial guaranty of the sta- bility and independence of those nations, is confident that the principles which I have adduced in favor of the right which the Colombian Congress has, not only to propose modifications to the convention for the opening of the canal, but also to refuse its approval, can not but convince your excellency's Government that the exercise of that right can not in any manner entail complications great or small in the relations of the two countries, which it is to be hoped will continue on the same equal footing and in the same good understanding which has happily existed until now, and that they will facilitate the removal of the difficulties which have retarded the final agreement, the result of which is to accomplish that work of such great importance to the two high contracting parties and to the world's commerce. My attention has been especially called to a paragraph of your excellency's note of the 8th of this month which says that the opposition the treaty's approval met in the United States Senate convinces your excellency's Government beyond a doubt that no modifications to this pact could be submitted to that same Senate, because they would not be accepted. I might observe that the general opinion which has been developing itself in favor of the Panama route might induce the Senate in Washington to accept some or all of the modifications which may be adopted by the Colombian Congress; but as the Government of your excellency does not think possible the presentation of modifi- cations to the pact, I will call the attention of the Congress of Colombia to this grave circumstance. I am gratified at the explanation of your excellency in your notes relative to the approval of the treaty, that you have done nothing but fulfill the instructions of your Government, and I fully appreciate the personal interest which your excellency manifests in the honor and glory of the nation to which you are accredited, as well as the declaration that you wish to procure as great benefits as possible, not only to the country you represent, but also to that in which you reside, which it is hoped may exercise a beneficial influence in maintaining the most cordial friendship between the two Republics. I beg that your excellency accept the reiterations of my highest and most distin- guished consideration. (Signed) Luis Carlos Rico. His Excellency A. M. Beaupre, Envoy Extraordinary and Minister Plenipotentiary of the United States, etc. INTEEOCEANIC CANAL. 59 [Inclosure 2. — Translation.] MiNisTEY OP Foreign Relations, Bogota, Atigust 14, 1903. Mr. Minister: As your excellency has been pleased to address me various notes relative to the treaty for the opening of the Panama Canal which was signed in Washington the 22d of January last, I inform your excellency that the Senate of the Eepublic disapproved that pact, by the unanimous vote of the senators present, in the session of the 12th of this month, and the day following approved, also unani- mously, the proposition which I have the honor to communicate to your excellency, and which is as follows: "The Senate of the Eepublic, in view of the disapproval given to the treaty signed in Washington the 22d of January of the present year, by the charge d'affaires of Colombia and the Secretary of State of the American Union, and taking into account the desire of the Colombian people to maintain the most cordial relations with the people of the United States of America, and its sentiment that the completion of the interoceanic canal across the Isthmus of Panama is a work of the greatest importance for the commerce and advancement of the world, as well as for the development and progress of the American nations, resolved: " 1. That a commission of three senators, appointed by the president of the Sen- ate, consulting in every possible way the opinion of the House of Representatives, study the manner of meeting the earnest desire of the Colombian people touching the construction of the Panama Canal, in harmony with the national interests and observance of the law by which the Senate was ruled on this solemn occasioa; and ' ' 2. That the widest publicity be given both at home and abroad to this resolu- tion, to the modifications to said treaty proposed by the commission of the Senate, and to the other documents which had led to this resolution." Although I have made known by cable to the Colombian legation in Washington the contents of the proposition above quoted, in order that it may inform the Depart- ment of State of both actions, I communicate the same to your excellency in order that you may, if you see fit, also bring them to the knowledge of the Government of the United States. I renew to your excellency the assurances of my highest consideration. (Signed) Louis Carlos Rico. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota., August 17^1903. (Received August 25.) The President informs me that Congress will pass law authorizing him to continue and finish negotiations for canal; but what conditions will be specified he can not state at the present moment. Beaupre. Mr. Beaupre to the Department of State. No. 110.] Legation of the United States, Bogota, August 18, 1903. Sir: I have the honor to report that the Department's telegram of the 31st ultimo is the only instruction I have received since the tele- gram of the 13th of July concerning the canal treaty. As telegrams have arrived from London, Paris, and Berlin, there is something mysterious in the fact that none have come from the United States during this critical period. There is a feverish anxiety here to know what your position will be upon receiving news of the rejection of the treaty, and further action by Congress upon it. I am, sir, your obedient servant, A. M. Beaupr^:. 60 INTEROCEANIC CANAL. Mr. Adee to Mr. Beau2?re. [Telegram.] Department of State, Washmgton, August 19, 1903. A telegram from consul at Colon communicates a telegram in Spanish, dated August 6, saying no cable received since Jul}^ 13. Department of State telegraphed 3^ou on Jul}^ 13, 2-1, 29, 31, August 10, 13, and 15, and has received telegrams from you dated July 15, five dated August 5, one August 6, 10, and 12. Have you received Department's messages? If not, protest against interference with your official communications which are entitled to privilege. Adee, Actmg. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, Washington, August 2Jf., 1903. The President will make no engagement as to his action on the canal matter, but I regard it as improbable that any definite action will be taken within two weeks. Hat. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, August '2 If., 1903. (Received 28.) August 24, 11 a. m. Nothing has been done, and veiy little satis- factory action, this depending upon the attitude of the Government of the United States, which is waited for in great anxiety. The report of the committee prepared. Have received telegram of 13th; none later. , Beaupre. Mr. Beaupre to Secretary of State. No. 115.] Legation of the United States, Bogota, August ^4, 1903. Sir: Referring to the Department's No. 23 of July 21, 1903, I have the honor to inclose herewith two copies of the decree of Vice-President Maroquin calling the session of Congress to consider the canal treaty, and two copies of the sections of the constitution referred to in said decree as requested by the Hon. John T. Morgan. 1 might add that the constitution of Colombia is to be found at page 179 of Foreign Relations for 1886. 1 am, sir, your obedient servant, A. M. Beaupr^. INTEKOCEANIC CANAL. 61 [Inclosure in 115.] EXTRACTS PROM CONSTITUTION. Article 72. Congress shall assemble in extraordinary session when sunimoned by the Government. It shall, in such sessions, consider only such business as is specially submitted by the Government for its consideration. Paragraph 2 of article 118. To convene Congress in extraordinary sessions for serious reasons of public convenience and after previous consultation with the coun- cil of state. The preamble of article 118 reads: " The President of the Republic shall exercise the following powers in relation to the legislative department." Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, August 26, 1903. (Received 29.) August 26, 7 a. m. Have received telegram 19th. Have not received Department's messages of Jul}^ 24, 29, and August 16, which is most unfortunate, for the situation is grave, and much depends upon your attitude. Will protest. . Beaupre. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, Washington, Augtist 29, 1903. The President is bound by the Isthmian Canal statute, commonly called the Spooner law. By its provisions he is given a reasonable time to arrange a satisfactory treaty with Colombia. When, in his judgment, the reasonable time has expired and he has not been able to make a satisfactory arrangement as to the Panama route, he will then proceed to carry into effect the alternative of the statute. Meantime the President will enter into no engagement restraining his freedom of action under the statute. Hay. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, August 29, 1903. (Received September 4.) August 29, 12 m. I have not yet received an}^ messages from the Department concerning the rejection of the treatj^ nor those mentioned in my telegram of the 26th. The committee has not 3^et reported, and the prospects of satisfactory report are not good. Beaupre. 62 INTEROCEANIC CANAL. Mr. Bfiaupre to Mr. Hay. Bogota, August 30, 1903. (Received September 12.) August 30, 8 a, m. Confidential. 1 am informed authoritatively that to assure the election of Reyes, Marroquin has alread}^ changed the governors of Bolivar, Magdalena, and Panama, nominating, respec- tively, Insignares, Barrios, and Senator Obaldia. All pledged to the treaty and to Reyes. Beaupr6. M7\ Beau/pre to Mr. Hay. [Telegram.] United States Legation, Bogota.^ August 31., 1903. (Received September 5.) August 31, 1903, 2 p. m. I had an interview with Senator Ospina to-da3^ He informed me that he is willing to remain so long as there is hope for the treatj^, but he is convinced that there is none, and will leave, therefore, on the 6th proximo. Confirms General Reyes state- ment concerning presidential candidate, and says that the next Senate was made certain for the treat}^; that he bears instructions to Gover- nors Signares and Barrios concerning the elections which will be held next December; that in accepting governorship of Panama he told the President that in case that the department found it necessary to revolt to secure canal, he would stand by Panama; but he added if the Govern- ment of the United States will wait for the next session of Congress canal can be secured without a revolution. Senator Campo, from the Cauca, is about to leave, thinking the treaty gone. Confidential. My opinion is that nothing satisfactory can be expected from this Congress. Caro's party has been joined by Velez and Soto and their followers, constituting a decisive majority against the treat3^ General Reyes seems to still entertain hopes. Beaupr^. Mr. Beaujpre to Mr. Hay. [Telegram.] United States Legation, Bogota., September 1, 1903. (Received through German embassy September 5.) Have not received Department's messages, while others of late date for various legations have arrived. I have sent important telegrams 30 and 31. On receiving, answer by German minister. Beaupr^:. Mr. BeojuprS to Mr. Hay. [Telegram.] United States Legation, Bogota, Septemher ^, 1903. (Received September 6.) Have received your telegram 24. Beaupr^. IISTTEROCEANIC CANAL. 63 Mr. Becmiwe to Mr. Hay. [Telegram.] United States Legation, Bogota., Septemher 5. (Received September 11, 10.10 p. m.) September 5. Have received telegram 29. Tiie committee have reported a law which approves rejection of the treaty; authorizes the President to conclude treaties for Panama canal or contract for same with private parties, subject to rights of companies; railroad company permitted to transfer, purchaser assuming all obligations, including annual pajmients of $250,000 and transfer of property to Colombia in 196T; canal compan}^ permitted to transfer on pa3axient to Columbia of $10,000,000; the President authorized to make following concessions: Lease of zone for one hundred years, not including Panama or Colon; annual rent $150,000 until 1967; lease renewing ever}^ hundred 3^ears on payment of 25 per cent increase; neutrality of canal and the recogni- tion of Colombian sovereignty over the whole territory and inhabitants; mixed tribunals only; police and sanitary commissions Colombian only; excluded from zone; time limit for completion of works; Colombia to receive from contracting Government $20,000,000 on the ratifications of the treat}^; fixing regulations concerning purchase of private company. It is now highly probable even this may not be accepted by the Senate. In anj^ event nothing more satisfactoiy may be expected from this Congress. The debates will begin next Monday. Beaupre. Mr. Beaupre to Mr. Hay. No. 129.] Legation of the United States, Bogota, Septemher 5 ., 1903. Sir: I have the honor to report that since the appointment of the joint congressional committee to consider the canal matter nothing was done until the committee made its report on the 4th instant. I cabled the substance of that report, and should there seem any prospect of its passing I will send it in full. As the situation seems at present, it is not likely to pass. The first debate in the Senate will commence on the Tth instant, and the ques- tion may be settled during the week. I think my previous reports have given the Department a very good idea of the situation, but there are some phases of it which I should like to discuss personally when I next visit the United States. This will be in March of next year, I think, if I can get the Department's permission, and circumstances admit of it. The impressions which I set forth in my No. 6 of April 15, 1903, that there would be an attempt to secure greater concessions from the United States before a canal treaty would be ratified, are now con- firmed. It is quite probable that the Government originally intended that a treaty of some sort should be passed, but apparently not the one under consideration in its entiret3^ If in the earlier days of Congress, when the Government had a majority in the Senate, the United States or the canal company could 64 INTEROCEANIC CANAL. have been induced to add $10,000,000 or $15,000,000 to the recompense to be received by Colombia, 1 believe the treaty would have been rati- fied; but latel}' the tide of opposition has set in so stronol}^ that it has seemed beyond control. The public discussion which the Government invited has not only overwhelmed the treaty, but has been inmiensely disastrous to the Government itself. It has not been a discussion in fact, but a rivalry among- the newspapers as to which could produce the most violent and bitter attacks upon the whole iieg'otiation. The onl}' articles which have appeared in defense of the treaty were written by Mr. J. T. Ford and Mr. Enrique Cortez. These were answered bv personal attacks upon the writers. Mr. Ford was accused of desiring the passage of the treaty in order to secure the payment of the claims of his companies. I must give Mr. Ford the credit of working for the treaty to the utmost of his abilit}" during the three months that he remained at this capital. Some of the newspapers are now urging that by threats and intimi- dation a powerful nation has been trying to coerce the acceptance of an unconstitutional and unsatisfactor}^ treat}^ upon a weak one, but that through the lo^^alty of its legislators Colombia has emerged from the ordeal with unstained honor. With respect to the assurances from certain quartei'S that the next Congress would be made up so that the canal treaty maj^ be ratified, I believe that this must be taken with due allowance. That any one in authority here has any intention of securing the ratification of the treaty in its present form I can not believe. They will insist upon more mone}'^ and other modifications. It is now understood that the vice-president will close this Congress on the 20th instant, so that little consideration can be given to the important questions before it. I believe a law concerning foreign claims will be passed. It is said that in this the Government will dis- tinctly refuse to recognize its responsibilit}^ for damages occasioned b}^ the revolutionists. I am, sir, your obedient servant, A. M. Beaupre;. Mr. JBeaupre to Mr. Hay. [Telegram.] United States Legation, Bogota^ Septemher 10., 1903. (Received September 12.) Since the report of the canal committee the question has not been discussed in the Senate. First consideration of the report postponed until 14:th instant. Fierce attack to-day in the Senate upon the appoint- ment of Obaldia as governor of Panama. The appointment is reg-arded as being the forerunner of separation. Of several Senators who spoke only the son of the President defended the action of the Government. A resolution passed by almost unanimous vote, which is equivalent vote of censure against the Government. The situation is not improved. There is no prospect of satisfactory action. BEAUPEi:. INTEEOCEANIC CANAL. 65 Mt. Beawpre to Mr. Hay. No. 133.] Legation of the United States, Bogota., Sejpteinber 11, 1903. Sir: I have the honor to report that events of interest have taken place in connection with the appointment of Senator Obaldia to the post of governor of the department of Panama. Senator Obaldia's separatist tendencies are well known, and he is reported to have said that, should the canal treaty not pass, the depart- ment of Panama would declare its independence, and would be right in doing so. That these are his opinions there is, of course, no doubt, as I stated in my telegram to the Department of August 31, 1903. At yesterday's session of the Senate the feeling of opposition to Senior Obaldia's appointment was given expression by a resolution proposed by Senator Perez y Soto, to the effect that — The Senate of the Republic can not see with indifference the appointment which has been made for the post of governor of the department of Panama, which it regards as a menace to the safety of the Republic. This resolution was amended by omitting the reference to the govern- orship of Panama in particular, and made to include all administrative posts held under the Government. In this form it passed with an almost unanimous vote. The debate itself, though short, for it lasted under two hours, was one of the most important that has yet taken place in open session. As I telegraphed yesterday, it was nothing more or less than a direct vote of censure. It was said that Obaldia's appointment could have one, and only one, explanation: That he was sent to the isthmus to make necessary preparations for the presidential election; and that other similar appointments had been made with the same end in view — such as that of insignares to the Department of Bolivar. The speakers showed greater heat than I have yet known them to evince in this Congress. It seemed to be the general opinion that the Government was prostituting the general interests of the country for purposes of electioneering intrigue. Gen. Pedro Nel Ospina, in a passionate and much applauded speech, warned the Government that should it persist in its present course, exhausted as the county was, a fresh revolution was not far distant. The notable feature in thie debate was the general spirit of hostility shown toward the Government, both by the Senators themselves and by the public assembled in the gallery and round the lobbies. With the exception of one Senator there was not a speaker who did not bitterly and uncompromisingly denounce the Government. When Senator Marroquin, the son of the President, rose to defend the action of the Government, he was greeted with hisses from all parts of the house, and hisses and jeers accompanied him throughout his speech. There was absolutely no sympathy for him nor for his position. It is evident, I think, that a cross current was at work during the debate. It was initiated by an opponent of the canal and a believer in the integrit}^ of Colombia against the appointment of a Panamaian who ardently supported the canal, and who, if forced to accept an alternative, would rather see the isthmus independent than lose the chance of seeing the canal built through his department. The oppo- S. Doc. 51 5 66 INTEROCEANIC CANAL. nent of the canal scheme carried the house with him, but he gained their support, not in virtue of his attitude on the canal question, but because his resolution opened the door to a general attack on the Government. It really begins to appear that the majority of the senate care little about the canal, except in so far as that subject ministers to their own political ends. During yesterday's session the senators were presented with a document published by Senator Perez y Soto, protesting against the appointment of Senator Obaldia to Panama. The large portion of this publication consists of a cop}- of a letter addressed to the President on the subject. Treating of the canal in this letter, the following signiiicant passage occurs: When we (Perez y Soto and the President) again met, in December (1902), my first care was to entreat you to allow nothing to be signed — nothing at the time pending with the American Government — for by knowing how to wait we might be able to obtain greater advantages in the canal treaty. You answered me that the Government could very well allow the treaty to be signed, leaving it to Congress to make such modifications as it might see fit. I then observed to you that even that was a dangerous course to pursue, because with the Americans there was no playing. I said that you did not escape responsibility by making concessions ad referendum. I have no reason to doubt the Senator's veracit}', and his statement brings vividly to mind the predictions I made in my No. 6 of April 15, 1903, to the effect that when the President ordered the treaty to be signed he anticipated amendments, and indulged in the hope of having them accepted b}" the United States. In view of recent representations made to the department that the election for members of the Congress of 1904 would be so looked after that the canal treaty could be passed, it is well to remember that the present Congress was speciall}^ called to consider the treaty, and that the same methods were employed in electing this one as must be in electing the one of next year. Why, then, if that power is lodged in the Government, were not the present senators and deputies pledged to the ratification of the treaty? If the Government intended to elect a minority strongly opposed to the treat}^, and to give them full play in their attacks upon it with the view of obtaining better terms from the United States, it has reckoned without its host, for it has brought into existence a Congress, a large portion of which is not onl}^ against the treaty but intensely hostile to the Government itself. This is partly due to blunders on the part of some of the governors of departments, especiall}^ the one in Panama, but also to the rupture with General Fernandez. A considerable num- ber of the senators and deputies elected were supporters of the latter, and were regarded as votes upon which the Government could count. After the break with Fernandez these votes joined the opposition, and to-day the Government finds itself confronted with a hostile majority instead of a noisy minority. It was evident!}^ plain to the Government some time ago that there is no hope for the ratification of the treaty; that the treaty would be rejected not on its own merits, but as a means of dealing a blow at the Government of President Marroquin. Seeing how the political game was being plaA^ed the Government abandoned an}" intent it may have had to advocate the treaty, and turned its attention to averting from itself the current of opposition, or at any rate the responsibility for the rejection of the treaty. For this reason on a motion by Senator ITSTTEEOCEAISriC CANAL. 67 Marroquin, the President's son, ou the dsij which had been set apart b}^ previous arrangement for the rejection of the treat}^, the debate was preceded by the reading of the correspondence which had passed between the minister for foreign affairs and mj^self . The object of this move is clear. The Government desired to*^ make it appear that the rejection of the treaty was not a blow aimed at the President and his ministers, but was a protest against what was asserted to be the dictatorial attitude assumed by the United States Government through its minister. The first debate on the report of the joint congressional committee appointed to consider the canal matter has been postponed until the 14th instant, but nothing satisfactory is to be expected from this Congress. I am, sir, j^our obedient servant, A. M. Beaupee. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, September llf,, 1903. (Received September 15.) Canal committee report unanimously passed first reading to-day. Perez Soto gave notice amendment absolutely restricting the Execu- tive to terms of proposed law. The situation has not changed, and nothing better than this law maj^ be expected. Beaupee. Mr. Beaapre to Mr. Hay. [Telegram.] United States Legation, Bogota, Septemher 17, 1903. (Received 7.30 p. m., 18.) Septeniber 17, 11 a. m. No discussion of canal question and no change in the situation. The probability is that Congress will not adjourn before 20th proximo. Beaupee. Mr. Beaupre to Mr. Hay. No. 139.] Legation of the United States, Bogota, Septemler 18, 1903. Sir: I have the honor to send you inclosed a copy of the Diario Oficial of September 15, 1903, containing the majority and minority reports of the special committee of the Senate appointed to consider the Panama Canal treaty, which reports were made on August 1:, 1903. I also inclose the printed report of the Senate members of the joint committee appointed to consider the question of the construction of a canal, which report was made on September ■!, 1903. 68 INTEROCEANIC CANAL. 1 informed j^ou that the last report had passed the first debate in the Senate. Since that time the matter has not been considered at all. It is altog-ether probable that amendments will be made before the project passes the Senate, and that still others will be attached to it in the lower house. It is the general opinion that the Congress will be closed on October 20, but this has not been definitely decided. At any rate the canal matter is not likel}^ to be disposed of until the last da3^s of the session. I am, sir, your obedient servant, A. M. Beaupre. [Translation.] t PANAMA CANAL. [Several papers concerning the treaty between Colombia and the United States. From the Diario Oficial.] [Translation of a project of a law submitted by certain senators on August 3, 1903, by which the treaty between the Republic o"f Colombia and the United States of America, for the construction of an interoceanic canal between the Atlantic and Pacific oceans, is approved with modifications. From the Diario Oficial, Septem- ber 15, 1903.] The Colombian Congress, having examined the treaty signed the 22d of January of the present year between the charge d'affaires of Colombia before the Government of the United States of America and the Secretary of State of that Republic, which treaty reads literally as follows (see text of treaty as signed), decrees: Sole article. That the above-inserted treaty is approved with modifications set forth as follows: First. In the preamble the reference to the law of the United States of June 28, 1902 (Spooner law),- shall be suppressed. Second. In the first article a provision shall be introduced that the Panama Canal and Railroad companies shall previously enter into an agreement with the Colombian Government setting forth certain conditions, among which the Colombian Govern- ment shall give the necessary consent that such companies may transfer their rights to the United States. It shall be stipulated that Colombia shall recover control of all the public lands which are now in the possession of the said companies, without exception, so that the cities of Panama and Colon shall remain effectively and com- pletely outside of the zone of the concession. Third. The terms of the second and third articles shall be modified so as to clearly provide that Colombia concedes to the United States only the right to use the zone of the canal and such part of the adjacent territory as may be necessary for the work; it must be clearly set forth that the rights conceded to the United States are in the nature of a tenancy, excluding any idea of transfer of dominion by establishing clearly and peremptorily the perpetuity of the concession. The boundaries of the zone shall be indicated with the greatest possible precision and the accessory properties included in the concession shall be clearly set forth, definitely excluding from the latter the cities of Panama and Colon. It shall be stipulated, moreover, that the guaranty of the treaty of 1846-1848 shall not be modified in any way and shall continue to be in force in the Department of Panama, including the zone of concession. Fourth. In the seventh article the concession shall be limited expressly to the right to use gratuitously the waters of the lakes, lagoons, rivers, and other streams, natural or artificial, which are necessary for the feeding of the canal, or for its con- struction, sustenance, and operation, having the right to deviate the course of such waters, to raise or lower their levels, to convert them into lakes, widen or reduce them, as may be most convenient for the purposes; and it shall be stipulated that such right is exclusive so far as it relates to the use of said waters for the feeding and supply of the canal and canal auxiliaries, this concession not preventing the waters referred to being used, under legitimate authority, for other purposes than naviga- tion, which do not interfere with or obstruct the use which the United States may desire to make of them. The use of water or waterways outside of the canal zone for the transportation of materials shall not be the exclusive right of the United States, but this right shall be granted to them without taxes or imposts of any kind, so far as relates to materials for the construction, support, and working of the canal. INIEEOCEANIC CANAL. 69 The natural products, property of the RepubUc, which the United States may require for the work shall be stipulated with the greatest possible exactness, the right being limited to the Department of Panama, and providing that the expropriations which shall be made under this article (seventh) shall be'subject to the provisions of article 14. Fifth. In the eighth article the vagueness of the clause shall be corrected, under which no taxes shall be collected in the cities of Panama and Colon except upon merchandise imported for consumption in the rest of the Republic of Colombia, etc. Sixth. In the thirteenth article there shall be suppressed as being contrary to the constitution all that relates to the establishment of United States tribunals and the application of the laws of that country in Colombian territory, and it shall be stipu- lated that the regulations of police and sanitation which shall be in force in the canal zone shall be a matter for agreement between the two Governments. Seventh. Indemnifications which may be named by the committee mentioned in article 14 of the convention for expropriations made in certain cases referred to in the same article shall be paid by the United States, and the valuations shall be in accord- ance with the regulations set forth in article 9 of the law 119 of 1890. _ Eighth. In the twenty-fourth article a clause of forfeiture shall be introduced, des- ignatmg a term after which, if the work is not completed, all the concessions shall lapse and all the rights and property of the enterprise shall return to Colombia. The last part of article 25, beginning, "But no delay, etc.," shall be suppressed. Ninth. In the additional clause the tribunal shall determine what must be done concerning differences that may arise between the contracting parties touching the fulfillment of the treaty provisions. Given, etc. Submitted to the honorable Senate, in special committee, by the undersigned senators in the session of Mondav, the 3d of August, 1903. Pedro Nel Ospina, J. D. de Obaldia, J. M. Uricoechea, Luis F. Campo, Eduardo B. Gerlein, J. M. Eibas Groot, Jose M. Gonzalez Valencia. Joaquin M. Uribe B. and Juan B. Perez y Soto reserve the privilege of a separate report. (In their minority reports they greatly amend the treaty.) Colombia, Senate Chamber, Office of the Secretaey, No. 116, _, , ,^. . Bogota, August 13, 1903. 10 the Minister for Foreign Affairs: In compliance with article 322 of the Senate rules. I have the honor to inform your excellency that this body, in j^esterday's session, rejected on first debate the project of law ' by which the treaty (signed in Washington on January 22, 1903) for the opening of the Panama Canal is approved." God preserve your excellency. Miguel A. Penaredonda. Colombia, Senate Chamber, Office of the Secretary, No. 121, i,r- ■ . ^ -r. ■ -r, , . Bogota, August 13, 1903. Mimster of Foreign Relations: In order that the Department under your excellency may take such course as may be deemed proper for foreign publicity, I communicate at once to your excellency the resolution unanimously approved by the Senate at to-day's session, iir" u^^ Senate of the Republic, in view of the rejection given to the treaty signed in Washington on January 22 of the present year, between the charge d'affaires of Colombia and the Secretary of State of the American Union, and taking into account the tact that the people of Colombia desire to maintain the most cordial relations with the United States of America, and deem the construction of an interoceanic canal across the Isthmus of Panama a matter of the greatest importance to commerce and the_ world s progress, as well as for the development and progress of the American nations, resolves: "First. That a committee of three senators, designated by the president of the benate, consulting as far as possible the views of the House of Representatives, shall investigate a way of satisfying the desire of the Colombian people regarding the con- struction of the Panama Canal in harmony with the national interests and respect for law which has been on this solemn occasion the guide of the Senate. 70 INTEROCEANIC CANAL. "Second. That the greatest possible pubUcity shall be given, in this country as well as elsewhere, to this resolution, to the modifications which the Senate com- mittee may propose to said treaty, and to the other documents which have preceded in the consideration of this matter. God jjreserve your excellency. MiciUEL A. Penaredoxda. [Inclosurc with dispatch No. 139, September 18, 1903, from the United States minister at Bogota.— Transhition.] PANAMA CANAL — REPORT OP A COMMITTEE AND DRAFT OF A LAW. Honorable Senators: Having been designated on the 1.3th instant by this honorable chamber to "find a way to satisfy the desire of the Colombian people regarding the construction of the Panama Canal in harmony with the national interests and respect for law, which has been on this solemn occasion the guide of the Senate," a designation made in con- formity with the resolution adopted on the same day and reached after the unani- mous rejection, on first debate, of the draft of law "which approves the treaty signed in Washington on the 22d of January of the present year between the plenipoten- tiaries of the Republic of Colombia and of the United States of jVmerica for the con- struction of an interoceanic canal through the Colombian Isthmus," we have given our whole attention to this difficult subject, endeavoring to find a solution which may harmonize and satisfy the exigencies of the case. It is known that the treaty was disapproved because of unconstitutionality, illegal- ity, and inconvenience for Colombia of some of its provisions, and because, while the Senate was considering it (under its constitutional prerogative and in accordance with the provisions of the treaty itself) and was in possession of the report which, at the first debate, the majority of the committee named for the purpose submitted, and of the restrictions proposed, the Government of the United States made known to Colombia, through their United States minister in Bogota and the department of foreign affairs, and by the latter directly to the Senate, that any modification which might be introduced into the convention would not be admitted and would be equiva- lent to a rejection of the treaty. The Colombian Senate, in view of the attitude and declaration of the United States Government, was left necessarily with the alterna- tive of approving wh'at the constitution and the interest of the country ordered it to reject, or of refusing its approbation to what had been conditionally agreed upon by the two Governments. The Senate determined upon the latter of these alternatives, as was to have been expected. Keeping within the constitutional limits (according to our loyal understanding of the constitution) and admitting such concessions as reason and experience show are indispensable, in order to arrive in this matter at a satisfactory and practical solu- tion, we have formulated a draft of a law of authorizations, which we submit on a separate page, and which, if certainly an imperfect result because of the difficulties of the subject, of our incapacity, and of the many peculiar circumstances of the present case, will show our desire to succeed, and that an initiative which may tend to solve a problem of such universal importance as that of communication between the two oceans through our Isthmus of Panama, is not abandoned without some fresh effort made in good faith and loyalty by both parties. It is too clear to us (as to all the world) that this matter can not be determined heedlessly, but that its solution, the result of which will affect our entire country for centuries, and represents at this time the hope of life and prosperity or the fear of ruin to important sections of the country, and even to those sections apparently remote and isolated with respect to the colossal work, demands that it be considered and acted upon in an especial manner, not permitting the standard to be disturbed either by erroneous notions or half-formed truths, which usually divert it or carry it to extremes which, the fervor of the moment having passed, may afterwards appear improper. Calmness, a precise appreciation of the present and future national needs, in the widest and noblest sense of those words, foresight and prudence most enter irito the study of this thorny question in order that it can be said that it Avas settled for the country's good, which must consist in acts, not in words; in serving the country, not in harming it in the belief of serving it. We may feel sure that this is the first occasion in which this problem has been presented before the world under the con- ditions which we now have before us. It would be, then, useless to look for prece- dents. Whatever may be done to settle the matter under these circumstances, INTEROCEAlSfIC CANAL. 71 which no one can alter, will be the precedent for future cases. We must bravely and loj'ally meet the problem because it is ours and at the same time interests^ the entire civilized world. It is necessary, then, to proceed without losing sight of the most important points, which are not necessary to enumerate here, and not only to look for the greatest good possible in the facts for Colombia, but to try to patriotically avoid serious evils whose character and importance might perhaps involve worse results than those which are now circulated around by the best intentioned but, per- chance, not sutficiently discerning persons who, in desiring that things shall be as they are not, close their eyes to the reality of a situation which if prudently looked into might be converted into good to the country, but if unknown or carelessly studied, will not fail to bring about dangers and complications in no way compen- sated by good intentions or friendly words. Civil courage demands, in cases like this, a frank expression of honest conviction. In view of which we have the honor to propose the following draft of a resolution: "That there be a first debate of the draft of a law by which a disapproval is ratified and authorizations are given to the Government to negotiate for the opening of an interoceanic canal across the Isthmus of Panama." Bogota, August 29, 1903. Submitted by the undersigned members of the committee designated by the presi- dent of the Senate: Pedro Nel Ospina. Manuel Maria Rodriguez. Upon the recommendation of the honorable Senator Luis F. Campo. Pedro Nel Ospixa. Office- of the Secretary of the Senate. On this date it was resolved to extend the time for consideration of the draft to w^hich this report refers until the session of next Monday, and to publish prior to that date the report of the draft of the law in a loose sheet. September 2, 1903. Draft of a laiv ivMch ratifies the disapproval and gives authorization to the Government to negotiate for the opening of an interoceanic canal across the Isthmus of Panama. The Colombian Congress decrees: Article. Ratifies the rejection made on the 12th of August in the Senate chamber of the ' ' convention between the Republic of Colombia and the United States of America for the construction of an interoceanic canal between the Atlantic and Pacific oceans," signed at Washington on the 22d of January of the present year, 1903. Article. Invests the President of the Republic wdth all the necessary powers, in order that at any time he may deem proper and opportune he may negotiate public treaties or conventions for the opening of an interoceanic canal across the Isthmus of Panama, or contract for the construction of such a work with cori^orations or pri- vate companies who may give sufficient guarantee of being able to carry the work to completion within the term that may be designated. Article. The foregoing authorizations shall be understood to be granted Avithout prejudice to the rights acquired by the New Panama Canal and Railroad companies, which companies shall continue in the full use and enjoyment of their privileges and concessions, and subject to the fulfillment of their obligations, so long as they have not come to an agreement with the Government of Colombia concerning the manner of transferring to another company, political entity (corporation?), or foreign gov- ernment the rights, concessions, and privileges growing out of the contracts entered into with them. _ ■ Article. The Government of Colombia shall permit the railroad company of Pan- ama to transfer to another government or entity the rights and enjoyments which said company may possess in the aforesaid enterprise, providing that the conces- sioner and concessionist respect the contracts which are now in forces in the matter, particularly as regards the recognition of the obligation to pay to Colombia the annual rental of 250,000 pesos in gold, and to transfer (to her) the absolute owner- ship in the enterprise at the expiration of the year 1967, or pay in that year a fair price for the work, fixed by an agreement between the two parties or, in case of dis- agreement, a sum to be determined by the government of some friendly nation as arbitrator. 72 INTEROCEANIC CANAL. Paragraph. In the transfer mentioned, the pubUc lands referred to in title 2 of the contract entered into with the railroad company on the 15th of April, 1850, shall not be included, such lands shall then be returned to Colombia. The lands used by the line of the railroad, the stations and other appurtenances shall be turned over to the Republic at the expiration of the existinj^ concession. Article. The Government of Colombia will likewise permit the New Panama Canal Company to transfer its rights and engagements to any other government or political entity providing that the said company fultills the following conditions: First. That there be paid to the Government of Colombia when the transfer is made the sum of 50,000,000 francs. Second. That there shall not be included in the cession 500,000 hectares of public land which, under the present contract, belongs to it. These lands shall be returned to the full control of Colombia. Paragraph. The 50,000 preferred shares which the Republic has in the New Canal Company shall be canceled as soon as the Government receives the 50,000,000 francs referred to in the second part of this article. Article. In the negotiation of the treaties or conventions mentioned in this law the Government of Colombia is authorized to make, if it shall be necessary, concessions on the following bases: First. To constitute a right for the sole end of constructing, maintaining, and operating a canal and its auxiliary works upon a strip of Colombian territory 10 miles wide, from the Caribbean Sea to the Pacific Ocean, in which (zone) the cities of Panama and Colon shall not be included. The duration of this right shall be for one hundred vears and the concessioner shall pav for this right an annual rental sum of $150,000 in gold up to the year 1967, inclusive, and $400,000 from 1968 and thereafter, this concession being renewable at the option of the concessioner for periods of equal duration (one hundred years), provided the latter agrees to increase, in the propor- tion of 25 to 100, above the maximum bases of the preceding period, the annual rental sum. The concessioner shall also have the right to use and dispose of materials of con- struction which are within the zone referred to and of the waters necessary for the construction, operation, and maintenance of the canal and its auxiliary works. 2"'. Expropriation in conformity with Colombian law, and at the cost of the con- tracting government, of private properties in the aforementioned zone, and previous indemnification, at the cost of the same government, for damages and injuries which the works or labors undertaken may occasion to private properties. 3''. The consent of Colombia for the construction of ports at the mouths of the canal and for the use of the portion of the sea adjacent to them, so far as said use is neces- sary for anchorage, repair, and protection of vessels. 4'\ The free use across the zone for public roadways already existing or for those that may be constructed between the towns and districts of the Department of Panama. 5". Exemption from customs duties, established in favor of the foreign contracting government for the introduction of machinery, fixtures, and tools necessary for the construction and maintenance of the work. 6". The neutrality of the canal and explicit recognition of the sovereignty of Colombia over all its territory and inhabitants. 7". For the judging of all causes or litigations, whether the interested parties are foreigners or Colombians and foreigners, the Colombian Government shall agree with the foreign contracting government upon the establishment, in the constituted zone, of mixed tribunals with civil, criminal, and admiralty jurisdiction, which tri- bunals shall be composed of jurists named in equal number by each of the two Gov- ernments and the laws and regulations which they may agree upon shall be in force. 8". It shall be the duty of the Colombian Government to maintain order, security, and public sanitation by means of police and the national army in the aforementioned zone of the canal; but Colombia shall be permitted to ask the loan of such service from the foreign contracting government, and in such event the latter government must render the service at its own cost. 9=*. And, finally, that the Bahia del Almirante shall be, in no case, included in the waters which are at the disjaosal of the contracting government, and that the right is reserved to Colombia to utilize as seems best the present geographical communica- tion between the channels of the Atrato and San Juan rivers. Article. The Government of Colombia shall stipulate in the treatj^ or convention a provision for forfeiture in the event that the concessioner does not begin or com- plete the work on the canal within the appropriate and sufficient periods that may be fixed for that purpose. Article. It shall be expressly stipulated that any disagreement as to the meaning or interpretation of the treaty shall be settled by the arbitration of a nation friendly to both contracting parties. INTEROCEANIC CANAL. 73 Article. As an initial compensation for the granting of the right which is referred to in article , and for the other rights and concessions authorized by this law, the contracting Government shall pay to Colombia, as a minimum, the sum of §20,000,000 in American gold upon the exchange of ratifications of the treaty. Article. If Ihe negotiation shall be made with a private company or association, the bases shall be analogous to those of the contract entered into with the French companv, and shall primarily stipulate the following conditions: (o) Recognition of the legislation and jurisdiction of Colombia; _ (6) Renunciation of diplomatic intervention in case of any claim not a denial of (e) Forfeiture of the privilege for nonexecution of the work within the fixed periods; . {d) Recognition in favor of Colombia of such shares m the enterprise as may be the estimated value of the works already made, of the machinery, fixtures, and tools of which the nation shall be the owner at the expiration of the extension granted to the Canal Company; _ . ^ , ^ , , • . .i, (e) The complete acquisition of the enterprise gratmtously by Colombia at tJie termination of the one-hmidredth year of the concession. Bogota, August 29, 1903. , ^ ^,. Submitted by the undersigned members of the committee designated by his excel- lency the president of the Senate: Pedro Nel Ospina; Manuel Maria Rodriguez. Upon the recommendation of the honorable Senator Luis F. Campo, Pedro Nel Ospina. Mr. JSeaupre to Mr. Say. [Telegram.] United States Legation, Bogota, September ^2, 1903. (Received 1.36 p. m., 23.) September 22, 5 p. m. The proposed law concerning the canal ^ treat}- has not. been discussed since the first reading. No new developments. Beaupre. 3£r. Beaiqyre to Mr. Hay. No. 150.] Legation of the United States, Bogota, Septemler ^If,, 1903. Sir: The report of the committee with its project of law authorizing the executive to negotiate for the construction of an Isthmian canal has not yet been presented to the Senate since the first debate. The legislative procedure in the Colombian Congress is as follows: At the first debate the project of law is presented, and if it is a sub- ject that the Senate desires to consider, it is passed. If rejected it is implied that the Senate does not wish to consider the matter at all. If the project of law passes the first debate it is referred to a com- mittee appointed by the president of the Senate. The comhiittee is given a reasonable time to study the law and has the power to suggest amendments. When this committee reports the matter comes up for the second debate, and this is the crucial test. Aside from the report of the committee individual members may propose amendments, and there is a general discussion of the whole question. As the law comes out of this debate it will pass, for the third debate is but a matter of form. The project then goes to the Chamber of Representatives, where the same rules are observed. 74 INTEROCEANIC CANAL. A law may originate in either the Senate or the Chamber, and may be introduced b^^ any member tliereof or by the ministers of the Gov- ernment, and the ministers may take part in all legislative debates. There is no provision for conference committees, but if amendments are made to a Senate law by the Chamber, it is sent back to the original body for further consideration. As I have previously reported, the proposed law authorizing the Executive to negotiate for the construction of a Panama canal, passed the lirst debate in the Senate; it was then referred to a committee headed b}^ Senator Quintero Calderon as chairman. That Senator has since been ver}'^ ill, so that nothing has been done toward a report. Yesterday, the 23d instant, the president of the Senate appointed Senator Rivas G. as chairman of the committee to succeed Senator Quintero Calderon, and gave him live daj^s in which to prepare a report. According to the very best information that I can get at this time, there is very little probability of the law passing the second debate in its present form. The enemies of the Government and the canal treaty threaten to add amendments still more unfavorable to the United States, and that the}^ will succeed I do not doubt. I had an interview this morning with Gen. Pedro Nel Ospina, one of the strong men of the Senate, and he, too, is of the opinion that modifications are certain to be made. I am, sir, your obedient servant, A. M. Beaupke. Mt. Beaujjre to Mr. Hay. No. 154.] Legation of the United States, Bogota., Septemher ^5, 1903. Sie: I have the honor to report some further details relating to the Panama Canal treaty. A resident of the United States, and one not thoroughh' familiar with the people of Colombia and especially of Bogota and the inte- riors, can not understand the embarrassments and trials experienced by this legation during the course of the canal negotiations. The difficulty of getting reliable information of the status of affairs has been almost insurmountable, because public opinion and the ideas of the leaders on both sides have varied and shifted with the succeed- ing days. When Congress convened and the first votes taken in the Senate indicated that the Government had been sustained and that its friends were in the raajorit}^, most people believed that the treaty would be ratified. As time went on and the Government did not use its influence in favor of the treaty and the committee to whom it had been referred were twice given an extension of time for their deliberations, the long wait and inaction lessened public interest in the main question, and there was little discussion of it. Then Senator Caro appeared upon the scene and commenced his violent assaults upon the Government, and the executive power began certainly and surely to lose ground. Again the public was aroused into vehement opposition to the treaty. During this period, and INTEROCEANIC CANAL. 75 before there was an opportunity for another reaction, and before there was any real discussion of the merits of the treaty, it was presented and rejected. While this latter period lasted it seemed impossible to get the expression of the real opinion of any of the senators, with the excep- tion of Obaldia, Perez y Soto, and Velez. It is a positive fact that some of the most prominent senators avoided me because of the charges, frequently made, that bribery was being resorted to by the United States, and the consequent fear that if seen in conversation with the American minister they would be under suspicion. This was admitted to me after the rejection of the treaty. Mr. Enrique Cortez was one of the two men who defended the treaty in public articles. Because 1 was seen making a social call at his residence, he was openly accused the next day of being in the pa}^ of the United States minister. He afterwards intimated to my son- in-law that for the above reason he could not see as much of me and my family as he wished. Of course these matters are unimportant, except that they show the annoyances and difficulties one has to contend with in this country, where, after all, the little things so greatly affect and influence the great ones. The minister for foreign affairs was evidently as reluctant as others to express any opinion, and it was very apparent that he did not wish to discuss canal matters. About all I could get from him was that con- ditions were "very bad" or "a little better." I found the President much more inclined to tell me his hopes and fears on the question. General Reyes said to me that he had advised the Government against forcing the ratification of the treaty in the earl}^ days of Con- gress, thinking it best to influence public opinion into a more favorable state before taking such action, and that this had been the Govern- ment's view. He realized that this course had been a serious mistake, for the reaction that they had anticipated had not come. His own actions had been influenced by these views, and it was only a few days before the rejection of the treaty that he came out in the open and advocated its ratification. I believe that he did the best he could after that, but it was too late. It was in these last few days that the idea presented itself to mem- bers of the Government, General Reyes, and others, that it would be best to have the treaty rejected at the first debate, in the hope that such precipitous and unusual action would arouse the coast depart- ments into vehement protests, send exchange up enormously, and so disturb the country that there would be a reaction of public sentiment which would enable them to either have the treat}^ reconsidered or to pass a law authorizing the President to complete the negotiations. But their plans and anticipations were built upon sand. The reac- tion they hoped for did not come. The mere announcement that a joint Congressional committee had been appointed to provide ways and means for the construction of a canal was enough to calm the public pulse, for the public has continued in the secure belief that the United States would never seriously consider any other route for a canal than that through Colombian territory; that she was abundantly able and would in the end concede to Colombia a much greater recompense in money and more favorable concessions generally; that whatever pro- posals the new committee would make would be accepted by the United 76 i]srTj:E0CEANic canal. States. With this belief abroad, the opposition to the terms of the proposed treaty has intensified rather than otherwise, culminating in the report of the joint committee now before the Senate. With all this shifting and changing of plans and sentiments, it has been most difficult to forward to the Department reliable information. I have several times been about to telegraph news which came to me from what should be absolutely authoritative sources, when further investigation convinced me that it was a myth; a theory of one day which would be abandoned the next. In connection with the uni'eliabilit}'^ of the information given out by people in high places, 1 might mention that one day a prominent Sena- tor told me very confidentially of a plan concerning the treaty that was to be carried out. Within an hour afterwards, a friend came to the legation, fresh from an interview with the same Senator, who had told him that a plan would be proposed in all respects different from the one explained to me. When I informed my visitor of my conver- sation with the Senator, he said: "Mr. Beaupre, am I going mad! or have these people all lost their senses? There is nothing but lies and lies! 1 walk two blocks to hear an important bit of news, and in the next two hear an entire contradiction, both coming from the same source." I should add that neither of the plans were ever acted on. And so it has been from the beginning. I am, sir, your obedient servant, A. M. Beaupke. Mt. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, Septemher ^7, 1903. (Received September 28, 1.12 p. m.) September 27, 8 p. m. No change in canal matter. Second debate of projected law will probably be decisive, and this will occur within a few da3^s. Additional amendments practically certain. Beaupre. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota., Sej^teviher 30, 1903. (Received 10.55 p. m.) September 30, noon. The Senate commission appointed at the first debate on canal committee's report of September 12, to prepare the matter for second debate, have prepared their report, and it will be presented in a few days. It approves rejection of the treaty August 12, but disapproves the proposed law authorizing the executive to negotiate for the construction of a canal under mentioned conditions. The object is to leave the Government at liberty to negotiate a new treaty without restriction. There is a prospect that it will be adopted. Beaupre. INTEROCEANIC CANAL. 77 Mr. Beaupre to Mr. Hay, No. 164.] Legation of the United States, Bogota^ September 30^ 1903. Sir: I have the honor to report that 1 have succeeded in obtaining" from Senator Rivas G., chairman of the committee to whom was referred the report made to the Senate by the canal committee on September 12, the substance of the report which he will make in the next day or two. As I telegraphed to the Department to-da}^, he will recommend the approval of the action of the Senate on August 12 in rejecting the Panama Canal treatj^ with the United States. He will also recommend the disapproval and rejection of the proposed law authorizing the President to make treaties or contracts for the con- struction of an Isthmian canal. This law was embodied in the com- mittee's report made on September 12, and contained many provisions binding the President to a certain line of action, and prescribing the concessions which could be made, of which 1 have previously informed the Department. Senator Rivas said that by simply rejecting this proposed law, and adding no further legislation, the Government would be left at full liberty to negotiate, without restrictions, on such terms as could be obtained, and as would be honorable and just to the contracting par- ties. He felt confident that his plan would be accepted by the Senate and confirmed by the Chamber of Representatives. If the Senate takes this step, and there seems to be a reasonable probability that it will, the canal matter will stand just as it did the day after its rejection on August 12; or, in fact, as it did before the treaty was signed in Washington on January 22, 1903. It is said, and generally believed in this city, that there is a project on foot among certain Senators to annul the arrangement entered into by the Colombian Government and the French Canal Company in 1900, extending the franchise and privileges of that compan3^ Even men good enough to be candidates for President are advocating this action with all seriousness and solemnity. It is urged that Congress has full power to either annul or ratify the action of the Government in this matter, and that if the arrangement made extending the contract is declared null and void, the French company's rights and interests on the Isthmus cease to exist, and Colombia could then arrange with the United States to receive not onlv the $10,000,000 ofi'ered her, but the $40,000,000 offered the company. The good or bad faith of such a movement is not of sufficient con- sideration to prevent an attempt being made to carry it out, and were it not for one important element in the situation, it is quite among the possibilities that it would be successful. Senator Caro and his followers are powerful .factors in the present Senate. Senator Caro was an intimate friend and advisor of President Sanclemente, under whose administration the franchise of the French company was extended.^ and it is quite certain that he will defend that administration to the extent of his ability. He would probabh^ favor any investigation or action tending to the detriment of the present Government, but not any retrospective measure censuring the pre- vious Government. As the situation now is, any project serioush^ opposed bj^ him would stand little chance of success. I am, sir, your obedient servant, A. M. Beaupr^. 7 b INTEKOCEANIC CANAL. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation. Bogota, October P, 1903. (Received October Itt, 2.10 p. m.) The report of the committee referred to in my telegram of Septem- ber 30 will be presented this afternoon. Informed the principal rec- ommendation will be to annul the arrangement made with the canal compan}^ in 1900 extending its concession. By such action Colombian Government evidently hopes to renew the negotiations without any reference to compan}^, and by this means United States of Colombia would be enabled to accept the money compensation otherwise accru- ing to the compan3^ Will advise further as soon as I can see report. Beaupr^. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legatinon, Bogota, Octoher 10, 1903. (Received October 11:, 2.59 p. m.) October 10, 1 p. m. Presentation of the committee report post- poned until 12th. My telegram of September 30 states the first two clauses of the report. The third and last presents a project for law approving extension in time granted canal company. Apparently this is proposed with the expectation that the Senate will negative the project and annul extension, thus accomplishing the object stated in my telegram, 9th. However, I think in case most of them vote, exten- sion in time to the compan}^ will be annulled. The probability is that Congress will adjourn without taking conclusive action on this report. Beaupre. Mr. Beaupre to Mr. Hay. No. 176.] Legation of the United States, Bogota, October 10, 1903. Sir: I have the honor to make reference to my telegrams of yester- day and to-day concerning the probable terms of the report to be pre- sented by the commission of three Senators to whom the project of law authorizing the Government to negotiate for the construction of an interoceanic canal across the Isthmus of Panama was referred. I had been given to understand that this report was to be presented and discussed yesterday, the 9th instant. On sending to the Senate, however, I was told that the canal question would not be brought up, and several Senators informed me that the}" were not even aware of the terms of the report, but that the question would in all probabilit}'' be brought before the Senate on Mondaj'^ next, the 12th instant. My only source of information was therefore of an entirely private nature. Through I obtained a summary, the substance of which was contained in my telegram to the Department. INTEEOCEANTC CANAL. 79 As I telegraphed the commission has decided that there is no need for the rejection of the treaty to be reaffirmed by the Senate; that neither is it advisable to pass the special law authorizing the Govern- ment to conclude a fresh treaty for the construction of an isthmian canal on certain basis, thinking it best not to tie the hands of the Gov- ernment with hard and fast conditions. Lastl}", the commission sug- gest that the Senate should settle the question of the extension of time to the New Panama Canal Company and present a project of law approving the action of the Colombian Government in this matter. With regard to this extension of time, known as "proroga," there is no doubt that many people high in authority have cherished the hope that some means might be found to undo this act of the Sancla- mente Government. The feeling of the Bogota public on this question is, moreover, very patent. They have been led to believe through the medium of the press that, could the "proroga" be annulled, Colombia would thereby inherit the whole of the money compensation otherwise a,ccruing to the French company. However, as I reported in my No. 164 of September 30, 1903, I am informed that there is no danger of this taking place. Such men as Senators Caro, Pedro Nel Ospina, and even Perez y Soto thoroughly realize that the preceding Government and this one are equally involved in the "proroga." The Sanclamente Government agreed upon the grant of an extended time limit, while the Marroquin Government received the 5,000,000 francs, the price paid for that extension. Besides, it is the view of these senators that the "proroga" was a contract concluded in good faith between the Colombian Government and the canal company, and to rescind this contract will need the consent of both parties to it. It is, therefore, thought that while the "proroga" ma.j be used as a means of bringing up a discussion in Congress with the view to censuring the Govern- ment, no act of that body can have the effect of annulling the extension contract without the consent of the other party to it — the New Panama Canal Company. Because of the attitude of these and other senators, there is decided ground for believing that this project of law approving the extension will be passed. Monsieur Mancini, the local agent of the canal company, is taking an active interest in this matter, and takes every opportunity to im- press upon the Senators the fact that even should the contract now held b}^ the French Company lapse, the Colombian Government would be no better off than thej' are at present, for the reason that, in such event, all the material would remain the property of the French Com- pany, leaving the Colombian Government merely in possession of the ditch itself. The Panama Railroad, however, remains. Since the French Canal Company owns the majority of the shares in that rail- road, it has practical control of the undertaking. Now, the canal works have been carried on within the zone of territory controlled by the railroad company, and could onlj'^ be continued subject to the consent of that company. Therefore, even though the concession held by the French Compan}^ lapse, that company nevertheless retains control of the territory, and its previous consent would be required before the Colombian Government could dispose of its rights over the canal zone. Monsieur Mancini informs me that he had made this point clear to the principal members both of the Government and of Congress, and that many concur in his views. Moreover, that some time before the rejection of the Hay-Herran treaty, he wrote to Mr. Cromwell inform- 80 INTEROCEANIC CANAL. ing him that in all probabilit}^ an attempt would be made to override the rights of the French company and to call in question the validity of the extension of time granted to it. To this he received no reply beyond the mere acknowledgment of his message, and his only instruc- tions have been not to move in the matter at all. He therefore con- cludes, so he told me, that the United States Government and the French company have arrived at some satisfactory understanding. I desire to take this opportunity to state that my position during the whole course of the canal negotiations has been a most embarrass- ing one. 1 have thoroughly realized what must have been the anxiety of the Department to be well informed of the progress of events. And yet, although it is nearly four months since Congress met, there have been but four or five da3^s during which the canal question was considered, from the initiation of the discussion up to the present time. I have kept in touch wilh the principal members both of the Govern- ment and Congress, and whenever 1 have succeeded in getting any reliable news, which has not been often, I have reported it. During* the long intervals between the days above mentioned there was really nothing to report, except street gossip and wise people's predictions. I have, therefore, had to choose between adopting the attitude of the newspaper reporter and forward such as news, or limit myself to the scant}^ facts I was able to gain from authentic and official sources. I chose the latter course. When 1 did obtain information which I deemed of sufficient importance to cable, I have had the misfortune to have some of ni}^ most important messages mutilated in transmission. During the long interims, when the canal treaty was buried with inactive committees, there was apparently an absolute lack of interest m the matter on the part both of the Government and Congress. One would have thought that the question was some matter of trivial or temporary importance to judge by the attitude in official circles. Dur- ing one of these periods, when Congress was devoting its attention to resolutions concerning prominent individuals who were killed in the late revolution, the Liberal daily El Comercio said: '"Cover with laurels dead heroes, praise the memories of your illus- trious men, make panegyrics over those who have served in j^our cause; all this is verj' well, and we do not wish to discuss it; but, Mr. Legis- lators, why sing songs of love to God over these things when you ought to consider the great questions which compromise the tranquil! it}" and life of the Eepublic? " Except then, on the few days heretofore mentioned, there was no reliable or satisfactory information to send to the Department. I am, sir, jonv obedient servant, A. M. Beaupre. Mr. Beaicpre to Mr. Hay. [Telegram.] United States Legation, Bogota.^ October 15, 1903. (Received 6.20 p. m., 18.) The report of the committee referred to in my telegram of the 10th has been read in the Senate, was ordered printed, and will probably be discussed next week. It is true that the committee proposes a project for law ratifying the time extension granted canal compan}^, USTTEROCEAlSriC CANAL. 81 but the tone of report clearly gives to understand that Colombia would greatly benefit by the canceling of the extension, and states that in that case Colombia would next year obtain possession of all the rights and properties of the canal company [and] thereby be free to come to terms with Government of the United States under most advantageous circumstances. The committee provides for the case of the annulment of time extension by recommending the appropriation of the neces- sary sum for the repajanent with interest of the 5,000,000 francs paid by the French compan3^ In view of developing sentiment, my opinion of final result is less decided than stated in my telegram of 10th. Beaupre. Mr. Beaupre to Mr. lihy. No. 179.] Legation of the United States, Bogota, Octoher 16, 1903. Sir: 1 have the honor to report that in compliance with the request contained in a newspaper article written by Dr. Emilio Ruiz Barreto, that the candidates for the presidenc}'^ should publicly express their views on certain named questions of national interest, Gen. Joaquin F. Velez publishes a signed communication in to-day's issue of El Nuevo Tiempo. It is apparent that General Velez will be the candidate f oi" President to be named in opposition to the one selected by the Government, for he has demonstrated far more strength than anyone else mentioned. As the election will take place on the first Sunday of December next, it becomes interesting* to know General Velez's views on the Panama Canal question, and I inclose herewith a copy and translation of that portion of his communication dealing with this subject. General Velez has some very remarkable ideas concerning public instruction, the duties of foreigners, etc. , some of which he very freely expressed when he was governor of the Department of Bolivar in a letter addressed to Mr. George Colvig, United States consul at Bar- ranquilla, on Februar}^ 11, 1902. A copy of this letter was sent to this legation by the Department in its No. 385 of March 26, 1902," as one of the inclosures in a letter from the Board of Foreign Missions of the Presbyterian Church in the United States, dated March 19, 1902, and I respectfully refer to it. I am, sir, your obedient servant, A. M. Beaupr^. [Translation.] pvercoming numerous difficulties, I have assisted at the late sessions of the Senate with the main, if not the sole, object of voting against the Hay-Herran treaty, as I was rejoiced to do at the celebrated session of August 12, a session at which that august body rejected that treaty in first debate and by a unanimity of votes. That treaty was a violation of our fundamental institutions, of the sovereignty of our nation. I say, therefore, that any other project respecting the building of an inter- oceanic canal presented to the Senate, and having implicitly or explicitly any of the numerous mistakes which rendered the treaty in question unacceptable to the com- a Published in Foreign Relations, 1902, p. 293, S. Doc. 51 6 82 interocp:anic canal. mon sense and dignity of Colombia, will always receive my adverse vote. The integrity of its territory, the attributes of independence and sovereignty, and other important points which form the principal constituents of a civilized country are absolutely inviola1)le. This is a universal and unalterable canon which may not be altered out of false considerations of worldly or territorial purposes, and still less for a certain kind of pessimism engendered by errors antl false views in governments or by vile speculation. Nations, like families, in their development and growth, umst pse their own forces without defiling the natural laws of growth with exotic stimu- lants, which paralyze or unnerve even when they do not ruin. Foreign aid will be beneficial under our own intelligent and well-supported direction. Our beautiful country will surely acquire in epochs that are, whcj knows, not far off the tranquil- lity and maturity, the practical spirit and the political wisdom, which nations of all races have been without for long periods of time; nations which, while certainly being models of culture, have been powerless to do good. Of life-giving wisdom there is more than enough; all that is wanting is a man of superior talents who will put that knowledge into practice. In one word, I desire, as do many of my countrymen, that any canal that shall cross our isthmus shall be for all time, in the rigorous significance of the word, a Colombian canal; and if it is not to be a Colombian canal, that it shall not be constructed. Better times will come which will admit of the carrying out of that gigantic work without detriment to the national existence, and in a way satisfactory to the sentiments of patriotism. Mr. Beaupre to Mr. Hay. No. 181.] Legation of the United States, Bogota, October 16, 1903. Sir: 1 have the honor to inclose herewith a copy and translation of the report of the committee to whom was referred the project of law authorizing- the Executive of the Republic to negotiate for the con- struction of a Panama canal. This report w^as read in the Senate on the llrth instant. I am, sir, j'our obedient servant, A. M. Beaupre. [Inclosure with No. 181, October 16, 1903, from Mr. Beaupr6— translation.] MAJORITY EEPORT OF THE PANAMA CANAL COMMITTEE. Honorahle Senators: Colombia desires the construction of a canal via the Isthmus of Panama that will bring the two oceans into communication with each other. Since it became independ- ent our Republic has considered such a work as an enterprise of universal progress. In 1825, at the initiative of this country, an effort was made to organize a company for this purpose. In 1828 and 1829 the liberator president gave Avise and precise orders looking to the construction of a canal, and to that end a scientific commission began the work, made a survey of the route, and explored the entire distance between the two oceans. On the 27th of May, 1835, the congress of New Granada issued a decree for the development of the enterprise, granted a privilege to Baron de Thierri, and in 1838 sanctioned a legislative decree making a concession to the company organized in France and New Granada. After several years of exploration, the reports of the company were so satisfactory that the Government of France appointed, in 1843, a special commission which finished its examination with the most hearty support of the Government of New Granada. We deem it unnecessary to enumerate here the successive efforts and concessions which, during seventy years, seconding the initial thought of the liberator, Colombia has made in behalf of the interoceanic canal. We will recall, in passing, some of the various official acts designed to promote the work. Decree of Congress in 1835; legislative decree of 1838; decree of Congress in July, 1842; legal convention ot 1851; official instructions of 1843; law 60 of 1866; treaty of INTEROCEAISIIC CAISTAL. 83 January, 1869; Congressional instructions of 1869; treaty of January, 1870; law of approval, July, 1870; law of authorization, 1876; treaty of May, 1876; treaty and law of approval, 1878; extension granted by law 107 of 1890; new second extension granted by law 91 of 1892; contract for extension, April, 1893; legislative decree granting extension in 1900. As is seen, Colombia, by solemn public acts, has shown that she considers the con- struction of the canal as a great national work and as a necessity for the commerce of the world. Although the Senate unanimously rejected the Herran-Hay treaty, it did so not with a view to opposing so glorious and necessary a work, but from the fairest and highest motives. . The foreign press affirms our right to reject said tready, and it is recognized by the chairman of the Interoceanic Canal Committee. That remarkable public man who, for more than a quarter of a century, has fought for an interoceanic canal controlled by the United States, hearing of the rejection, expressed his views as follows: " If the Colombian Congress has rejected the treaty, it is because that country respects its constitution, is mindful of the integrity of its territorial limits, desires to maintain its friendly relations with the United States, and is watchful of its financial interests. All this will raise that Republic in the estimation of other peoples and nations." We will now examine the bill ratifying the rejection and authorizing the Govern- ment to negotiate for the construction of an interoceanic canal via the Isthmus of Panama. As is seen, the said bill has two objects, viz, to confirm the Senate's rejection of the treaty between the Republic of Colombia and the United States of America, con- cluded at Washington January 22, 1903, and to invest the President of the Republic with such powers as will enable him to conclude public treaties or conventions rela- tive to the Panama Canal or to contract for the same work with private companies. We consider that the first object is not only superfluous, because the rejection by the Senate is based upon constitutional provisions to which an authentic interpreta- tion has been given and which have constantly been put into practice in the same sense, which interpretation and practice render the rejection sound and correct in the form in which it was made; but also that the new form of ratification which is proposed would introduce a doctrinal theory different from that already established and accepted for seeking to decide a special case of grave import, to which, for this and many other reasons, it would be wholly inapplicable. In fact, it is a ponstitutional provision that every proposed law by ineans of which the legislative houses exercise, or seek to exercise, their powers in conformity with article 76 of the constitution, may be rejected in any of their debates, thereby ful- filling the negative in contrast to the positive form, both of which are the outcome of the twentieth provision of said article. If this were not so, the members of the houses would be deprived of the necessary freedom in their opinions and votes, and both would cease to be deliberative bodies. The authentic interpretation to which we refer is contained with great clearness in article 323 of the rules of the Senate, identical with article 322 of those of the house of delegates, which we here insert: "As it is not possible for a treaty to be constitutionally approved otherwise than by Congress, with the sanction of the Executive, but as it may be rejected by the Senate or House of Representatives, like any other proposed law, according to the constitution, if any decree should come from the House of Representatives totally and absolutely rejecting a treatj'', it shall return it, stating that the Senate is apprised of its rejection." When the said article 76 of the constitution provided that the Congress should exercise by law the powers enumerated in that article, among which is the laower to approve or reject public treaties, it tended to prevent the exercise of those powers, notwithstanding the prohibition contained in paragraph 2 of article 78 of the same constitution, by means of simple resolutions, but it did not pretend to compel the legislators to vote in a determinate sense or to pass laws, even those most necessary. The second object of the proposed law concerning authorizations consists in finding a way to satisfy the desire of the Colombian people regarding the excavation of the Panama Canal in harmony (says the proposition approved by the Senate on the 13th of August last) with the national interests and respect for law, which has been on this solemn occasion the guide of the Senate. Your committee considers that the proposed law relative to authorizations is uncon- stitutional. Article 120 of the constitution says: ' ' It shall be the duty of the President of the Republic, invested with the supreme administrative authority * * * 10. To direct diplomatic and commercial rela- tions with other powers and governments * * * and to conclude treaties and con- 84 INTEROCEANIC CANAL. ventions with foreign powers. Treaties shall be submitted to Congress, for approval and conventions shall be approved by the President during the recess of Congress, with the advice and consent of the ministers and council of state. The proposed law shall not modify the provisions of the constitution." Besides, that law is not only unconstitutional, but fails to meet its object because the instructions which would be given to our diplomatic agents, instead of being' necessarily confidential, would V^e public, and known to the other Government or to the contracting company, which would consequently have an indisputable advantage in the case. Furthermore, the Senate does not overlook the fact that if this law concerning authorizations should be passed, and if the Executive, basing his action upon it as ujDon a firm basis, should expedite a negotiation and conclude a treaty, he would perhaps give occasion to the power with which the treaty was concluded to complain, subsequently, that a Congress had rejected what this Congress and the Executive branch of the (xovernment had presented as a basis of negotiations. Moreover, the matter being carefully considered, no negotiations could, in any case, be properly carried on upon the bases that would be presented to this Congress by that law; and the law would not have the serious and efficient character which every law ought to have. Your committee thinks that this law is not only unconstitutional and ill adapted to meet its purpose, but that it is unnecessary. The constitution which has provided for the independence of the different branches of the Government, thus consecrating a principle which has been recognized since the adoption of the constitution of 1811, has also traced limits for those branches, and although it leaves to the Executive the power to conclude treaties, it makes it absolutely obligatory upon him, at the same time to submit them to the legislative branch for its approval. Article 57 says: "All branches of the Government shall be limited, and shall exercise their respective powers separately." And article 76 says that it shall be the duty of the Congress "to ai^prove or reject such treaties as the Government may conclude with foreign powers." Even if a law concerning authol-izations should be passed, the treaty that should be concluded in virtue thereof by the Government would necessarily have to be sub- mitted to the approval of another legislature, which might fail to pass it. What would, therefore, be gained by a law that would give no force to the treaty which would be concluded on the bases and authorizations which it contained? We present these abstract considerations, and they would all be pei'tinent even if the Executive were free to conclude treaties looking to the construction of the Panama Canal, but it is known that the Government of Colombia is not at liberty to do so; a contract exists which binds it, and this link has not been broken. This is, in our opinion, the greatest obstacle to the law in question, which would be premature if not calculated to defeat its own object. We think it useless to demonstrate that the fundamental point to which the attention of the Senate should be confined is the one relating to the validity of the engagement already contracted by the Government. The Herran-Hay treaty has ceased to exist, both because of its unanimous rejection by the Senate and because the time for the exchange of its ratifications, the 22d of September, has already expired, without any extension having been provided or asked for. Consequently the state of the case is the same that it was before the conclusion of the treaty. The first condition therein established was the permission granted to the new company to transfer its rights. The Senate having refused to accept this condition, the company has remained under obligations to fulfill its contract, and the Colombian Government is still under obligations to respect all its provisions and to cause them to be respected. How can it be asked that Congress shall enact a law of authorizations to negotiate with a foreign government when the rights and privileges of the New Panama Canal Company are still in force? The treaty concluded April 4, 1893, which amended those of March 23, 1878, and December 10, 1890, granted to the New Panama Canal Company an extension of ten years — that is to say, until December 31, 1904. Consequently, even without a new extension, the company will be in the full enjoyment of its rights and privileges until October of the coming year. But there is another consideration: The legisla- tive decree No. 721 of 1900 granted to the company a new extension of six years, which begins to be reckoned next year and will end October 31, 1910. One point now remains to be examined, which has so often been discussed by the press, a point which, now that the matter is under discussion, should be defined. Is the extension granted by that legislative decree valid or not? In the first case — that is to say, if it is considered valid — seven years must elapse before the extension INTEROCEANIC CANAL. 85 expires, and therefore any law concerning authorizations seems premature, as three sessions might still be held which would be able to examine the matter and to legislate concerning it with better data and evidence than the present Congress has; and if the extension is not valid, the aspect of the question changes entirely, and the basis of discussion will be quite different. By the 31st of October of next year — that is to say, when the next Congress shall have met in ordinary session — the extension will have expired and every privilege with it. In that case "the Repubhc will become the possessor and owner, without any need of a previous judicial deci- sion and without any indemnity, of the canal itself and of the adjuncts that belong to it, according to the contracts of 1878 and 1900." When that time arrives, the Republic, without any impediment, will be able to contract, and will be in more clear, more definite, and more advantageous possession both legally and materially. The authorizations which would then be given by the next Congress would be very different from those that can be given by the present one. It is seen, therefore, that it is the duty of Congress to decide, as a previous ques- tion that can not be shirked, concerning the validity of the extension granted in 1900. We venture nothing on the subject, and we respect, in advance, the decision of Congress in so delicate a matter. Supposing that it does not ratify said extension, it is well to observe now that it would be necessary to include in the budget the appropriation that would be necessary to repay to the company the sum of 5,000,000 francs with interest. In view of all the foregoing, we conclude our report by laying before you a draft of a law whereby a contract is approved, and by submitting to your consideration the following: Let the discussion of the draft of a law whereby a rejection is ratified and authority is granted to the Government to negotiate for' the construction of an interoceanic canal across the Isthmus of Panama be indefinitely postponed. Honorable Senators: GUILLERMO QUINTEEO CaLDERON. J. M. RivAs Geoot. Luis Maria Calvo. Mr. Beaupre to Mr. Hay. [Telegram.] Legation of the United States, Bogota, October 17, 1903. (Received October 19—2.20 p. m.) Have received information, confidentially, that there was a meeting of the cabinet yesterday to discuss the question of renewing canal negotiations with the United States and that the adjournment of con- gress will be followed by the mission of special envoy to Washington for that purpose. The President's message dissolving the congress will be delivered probably before 30th instant. Beaupre. Mr. Beaupre to Mr. Hay. No. 183.] Legation of the United States, Bogota, Octoher 19, 1903. Sir: I have the honor to inform you that during the evening of the fateful 12th of August last, on which day the Hay-Herran treaty w^as rejected by the Colombian senate, I sent the Department three tele- grams concerning the matter. Two of these reached the Department with an interval of about a week between them, but the third, the one of most timely import of all, was never received, or at least has 86 INTEEOCEANIC CANAL. not been acknowledged. This telegram was sent at 10 o'clock p. m. of that day and was contirnied in my No. 104 of that date. 1 beg that the Department will accept the cipher dates of my tele- grams as in all cases correct. The open date given by the telegraph office is made to suit its convenience. I am, sir, your obedient servant, A. M. Beaupre. Mr. Beaupre to Mr. Hay. No. 185.] Legation of the United States, Bogota, October W, 1903. Sir: I have the honor to inform you that it would be of great utility and satisfaction to me to be kept posted as to the course of events on the Isthmus, and, if not inconsistent with the rules, 1 would be glad to have it arranged so that our consular officers at Panama and Colon could send me copies of their dispatches to the Department on the political situation, and that the consul-general at Panama could tele- graph me whenever anj^thing of unusual importance occurs. I am, sir, your obedient servant, A. M. Beauprje:. Mr. Beatipre to Mr. Hay. No. 186.] Legation of the United States. Bogota, Octoler % 1,1903. Sir: 1 have the honor to inform you that there is no disguising the alarm existing as to the possible action of the Government of the United States should the feeling of disaffection undoubtedly existing in the department of Panama find expression in overt' acts. This alarm took the form of a heated debate in the Senate yesterday when the Government was again attacked for the apointment of Seiior Obaldia as governor of Panama. The reply elicited from the minister for foreign affairs was rather significant. He read an extract from the treaty of 1846, in which the United States guaranteed Colombian sovereignty on the Isthmus, and assured the Senate that in case of an insurrection in the department of Panama the United States would be bound to support the Government, In the course of this debate Senor Caro said that the minister for for- eign affairs had the notes of the American minister read to the Senate, in secret session, with the object of convincing that body of the necessity of accepting the Hay-Herran treaty, in view of the menacing attitude outlined in those communications. Finding in that secret session that the Senate disapproved the treaty and was determined to act accord- ingly, the Government, through Senator Lorenzo Marroquin, its spokesman, obtained a resolution demanding that those notes be read in public session, with the object of making it appear that the rejection of the treaty was influenced by a sentiment of indignation at the threatening attitude assumed by the United States minister. This comedy became known to the Government of the United States, and it has resented it. He was not influenced, generally, by what was reported in the newspapers, but the statement universally given expression to in the press of the United States that the Wash- ington (jlovernment resented the criticism made against the United INTEEOCEANIC CANAL. 87 States minister in canning out the orders emanating both from the President and Secretary Hay can not be without foundation. This was only one instance proving that the Colombian Government had not acted in good faith in these negotiations. The refusal on the part of President Marroquin to sign the treaty before presenting it to the Senate was another. Whatever reasons the Government adduced as to there being no necessity for such a signature was outside the point. The intention was clear that the treaty was not signed because the Government wanted to have a loophole whereby to escape their obli- gations to the United States. In other words, it did not want to be under the obligation of coming forward to defend and support a treaty which was signed by its order. It was bound in good faith to the United States to do so. It was for Congress alone to accept or reject it. Had such a course been followed there would have been no reason to look forward with alarm to the attitude which the United States might adopt. The Colombian Government had nothing to fear from the United States had it clearl}^ done all in its power in supporting the treaty. No responsibility would then have attached to this country for the rejection of the treaty by Congress, a body which had the perfect right to reject or accept as it pleased. What he feared was that the United States might take the Isthmus from us under the just plea that we had acted in bad faith with them. The only strength which a small nation has is its good faith. In reply the minister for foreign affairs said that the press of the United States was given entire liberty of public discussion, but that the statements made therein were not alwaj'^s to be accepted as entire statements of fact. That he had just received positive information that no resentment was entertained by the W^ashington Government for this Government's action in having Mr, Beaupre's notes read. The report of the committee on the canal question, which was read, in the Senate on the 14th instant, has not jet been called up for dis- cussion. As a matter of fact, the Government and Congress are playing a waiting game. At various times it has been announced authoritatively that the Congress would adjourn at a given date, but thus far there have been timely reconsiderations and other dates fixed. Last week it was said that the President had certainl}^ and definitely concluded that an adjournment must take place on the 30th instant, now that it has been determined that the closing day shall be the 14th proximo. As a matter of fact, the Government and the Congress have waited and are waiting to acertain, if possible, the final attitude of the Gov- ernment of the United States concerning the canal matter before the life of this Congress is ended. An effort was made by the Government to falsely place the blame for the rejection of the Hay-Herran treaty upon the notes addressed by this legation to the minister for foreign affairs, and the result was awaited in the belief that this view would be accepted by the Govern- ment of the United States. This attempt failed; the situation is dis- turbing; and now the further delay is, quite apparently, for the purpose of awaiting the action of President Roosevelt in his message to the special session of our Congress which is to meet, it is under- stood here, on the 9th proximo, and the attitude of that Congress upon receiving the President's message. I am, sir, your obedient servant, A. M. Beaupre. 38 INTEROCEANIC CANAL. Mt. Hay to Mr. Beaujpre. [Telegram.] Department of State, ^^ashhigton, Octoher"22, 1903. Eeferring to 3"oiir telegram 17th, if j^ou find disposition on the part of Colombia to ask terms more favorable to Colombia than those here- tofore negotiated, j^ou ma}^ intimate orally, but not in writing, that it will be useless to send a special envoy. Hay. Mr. Beaiipre to Mr. Hay. No. 188.] , Legation of the United States, Bogota, Octoher 23, 1903. Sir: Referring to my No. 160^' of September 29, 1903, concerning the taxes and charges on shipping at Panama, I have the honor to inclose herewith a copy and translation of a note from the minister for foreign affairs on the subject. I am, sir, your obedient servant, A. M, Beaupre. [Inclosure with No. 188, October 23, 1903— Translation.] Ministry of Foreign Relations, Bogota, Octoher 19, 1903. Mr. Minister: On account of the presence of an alarming degree of bubonic plague in various points on the Pacific coast it was determined to use a Government ship for ^ lazaretto in the Bay of Panama, and in accordance with law 106 of 1892, authoriz- ing the organization of the sanitary service in the marine ports of the Republic in time of peace and placing an extraordinary contribution on the boats which arrive in Colombian ports, the governor of the department using these legal rights, issued the decrees of June 24 and August 4 of this year, by which a tax was temporarily levied on boats of more than 1,000 tons register arriving in the ports of Panama and Colon, proceeds of which Avere to defray the expenses of that lazaretto. The urgency of the case prevented notice of such police measures being given to the public sooner than their insertion in the official publication. _ The ports of Panama and Colon being united by rail, the same measures taken in either of these benefit the other and are taken not only to attend to transit sickness and to_ avoid contagion, but to favor navigation in both oceans. This shows how fair it is that not only the ships arriving at Panama but also those entering Colon should pay the tax for the plague hospital. To facilitate foreign commercial relations as those of importation, exportation, and transit, etc., which are or are not permitted to be executed in the ports of the Republic the law divides these into free and closed ports. The designation of free ports does not come from any international pact, neither does it signify that the vessels arriving in those ports are exempt from the payment of taxes or contributions. In the binding treaty between Colombia and the tJnited States it is stipulated that the citizens of each of the contracting parties may frequent all the coasts and territories of the other, and reside therein and do business in all classes of productions, manufactured goods, and merchandise; that they will enjoy all_ the rights, privileges, and exemptions in navigation and commerce which the citizens of that country enjoy or may enjoy in accordance with the laws, decrees, and uses established there, and that no other or higher duties will be levied on the tonnage of the respective ships. The free transit of the Isthmus of Panama is conceded to the citizens of the United States and the transport of their products, manufactures, or merchandise of lawful «Not printed. INTEKOCEANIC CANAL. 89 commerce without the imposition of other taxes or contributions other than those placed on the natural products ol the country (Panama) under similiar circumstances. There are these advantages of an equal treatment, and there is no other in favor of the ships of the United States. In the polite note of September 29 last, your excellency informs me that you have received a protest from the vice-consul-general of the United States against the taxes and contributions on shipping levied in the port of Panama, and especially against said decree No. 91. In reference to the different points treated of in said note, in which your excel- lency is also pleased to express the hope that means will be taken in the matter, I have the honor to inform your excellency, in addition to what I have expressed in this note, that according to the information which has been given me in this mat- ter, it is hoped that in a short time all fears of the invasion of the bubonic plague on the Isthmus will have ceased, and immediately the tax levied for the lazaretto will be rescinded. I avail myself of this opportunity, etc. , Luis Caklos Rico. His Excellency A. M. Beaupee, etc. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, October '23, 1903. (Received October 24, 6.23 p. m.) October 23, 11 a. m. The report of the committee not yet discussed. It appears to me the Congress is playing a waiting game, evidently with the object of ascertaining attitude of the President of the United States in his message to the extra session of Congress and of that body. It is said that Congress will not adjourn until 14th proximo. Minister for foreign affairs gives me private information that at the next meet- ing the Cabinet will again discuss canal question, it being proposed to send an envoy extraordinary and minister plenipotentiary and also a commission of three prominent men to Washington to renew negotiations. Beaupre. Mr. Beojupre to Mr. Hay. [Telegram.] United States Legation, Bogota, October ^7, 1903. (Received 10.15 p. m., 29.) October 27, 7 p. m. Report of the committee was discussed to-day in the Senate. Only four Senators spoke. Caro opposed the pro- posed law authorization as unconstitutional, on the ground that any future action which the Government might take and was free to take was subject to approval of future Congress, and that this Congress has no right to bind the action of the next one. He strongl}^ denounced the treaty itself and the selfish motives of the United States in desiring such a treat3^ Senator Groot, one of the authors of the report, spoke in the same tone. Senator Ospina defended the proposed law of authorization. Finally Senator Arango, after pointing out the futility, of the proposed law, which was only the treaty with modifications which the Government of the United States has declared unacceptable, 90 INTEROCEANIC OANAL. proposed that the discussion of the whole matter be postponed indefi- nitel}^, as there was no time for the Senate to discuss it. The Senators appeared to agree to the proposal, but the presiding officer closed the debate without vote having been taken. Action ma}- be taken to-morrow or, as is also probable, the matter ma}' be allowed to drop entirely. Congress will adjourn on the 31st instant. Beaupre. Mr. Beanjpre to Mr. Hay. [Telegram.] United States Legation, Bogota, Octoher29,1903. (Received 6.55 p. m., November 6.) October 29, 1 p. m. Please give instructions to consul-general at Panama keep me advised by cable matters of consequence. Canal situation unchanged. Beaupre. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, Washington, October SO, 1903. You may avail yourself of leave of absence under authorization cabled to you July 9. Hat. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation at Bogota, Octoler 31, 1903. (Received November 6, 1903.) Congress adjourned to-day. No action has been taken upon the last report concerning the canal. Therefore nothing more than the vote of August 12 rejecting treaty done. The people here in great anxiety over conflicting reports of seces- sion movements in the Cauca and Panama. Beaupr^. Mr. Beaupre to Mr. Hay. [Telegram.] United States Legation, Bogota, Nomirtber 1, 1903. (Received 7.15 p. m., November 8.) November 1, 10 a. m. The Government issued manifesto to the nation to-day severely criticising acts of Congress and discussing important questions which have been presented and unsatisfactorily INTEROCEANIC CANAL. 91 dealt with. With regard to canal, states that Colombian charge d'affaires has been instructed to inform the Government of the United States that the Colombian Government would consider new negotia- tions, which it is believed will be accepted by the next session of Con- gress. Therefore, if the Government of the United States still desires to open canal, which it is presumed that it does, as neither by act nor word has it shown any other intention, it is to be hoped that the great work will be carried out in the end through Colombian territory. I took the opportunity of informal visit to the President yesterday to inform him of substance your cipher telegram October 22. Beaupre. Mr, Beau2?re to Mr. Hay. No. 199.] Legation of the United States, ■ Bogota, Novemler ^, 190S. Sir: I have the honor to report that the extraordinary session of the Colombian Congress was adjourned at half past 2 o'clock on Saturday, the 31st ultimo. In so far as the Hay-Herran treaty for the construction of a Panama Canal is concerned, the only definite and recorded action of this Con- gress is the vote taken on August 12, 1903, rejecting that treaty. Under article 76 of the Colombian constitution, Congress can exer- cise its functions in certain cases by the enactment of laws, and in that way only. Thus it is that when such matters are presented, whether by individual members, ministers of the Government, or by commit- tees, they are accompanied by what is termed "projects of law." Under section '20 of said article Y6 of the constitution, the Congress, by making a law for that purpose, may "approve or disapprove the treaties entered into by the Government with foreign powers." The vote taken in the Senate on August 12, 1908, rejecting the treaty, is not understood to have been a legal or constitutional disapproval of that pact. It was, in effect, an expression of opinion; but since no other action on this question was taken, and the treaty was not ap- proved within the time fixed for the exchange of ratifications, it has died by limitation rather than by any legal enactment of the Colombian Congress. It has been understood for some time that in all probability no further action would be taken by Congress in this matter, and when it was finally brought up in the last da3^s before adjournment it was more for the purpose of giving vent to individual opinion than any- thing else. On Tuesday, the 27th ultimo, the report of the committee on the project of law authorizing the President to negotiate for the con- struction of an interoceanic canal was brought before the Senate for discussion. Four senators spoke during the debate. Senator Caro opposed it on the ground that to grant an authoriza- tion to the Government to conclude a treat}^, on certain bases, was an absurdity. It was impossible to limit the power of the Executive, who could conclude an}^ treaty it pleased and submit it to the next Congress. This project of law was, moreover, an unconstitutiona one, as this Congress had no right to arrogate to itself the powers and privileges which would legitimately fall to its successor. He then 92 INTEROCEANIC CANAL. turned to the attitude of the. senate on the canal question. It had been correct on the main point from the beginning-. Mistakes there had been, but the}'^ were mistakes of which the Government and not the senate had been guilty. The first great error had been the read- ing of the correspondence which had passed between the United States minister and the minister for foreign affairs prior to the rejection of the treaty. It had made it appear as if the Senate had rejected the treaty as a protest against the attitude of the United States, and this was tantamount to a reflection on the conduct of President Roosevelt and his Secretary of State, under whose instructions their representa- tive in Bogota had acted. This was how the matter had been viewed in the United States. In support of this statement he quoted various extracts taken from United States newspapers. Among these was an interview by Walter Wellman, who. Senator Caro stated, was well aware of the opinions held by the Department of State. He then emphat- ically stated that the reading of the American minister's notes had nothing to do with the action taken by the Senate with regard to the Hay-Herran treaty. The Senate rejected that treaty because its terms were a violation of the constitution and harmful to the interests of the Republic. No reflection could be cast on that body for its action, but the minister for foreign affairs, in causing the notes to be read, had made it appear that the Senate was actuated by motives which did not exist. The second great error committed b}^ the Government was the appointment of Senor Obaldia to the governorship of the Department of Panama. The election of General Reyes to the Presidency of Colombia meant the election of a Congress next year pledged to pass whatever canal treaty the Government should present, Seiior Obaldia was therefore a supporter of the candidacy of General Re3"es, and it was for this reason that he was appointed governor of the Isthmus. But Senor Obaldia was before all an isthmanian, and he was known to have said that should the department rise in fayor of the canal he would be with Panama. Therefore the Government had for election- eering purposes endangered their possession of the Isthmus. He read to the Senate an extract from the New York Herald, containing an interview with Goyernor Obaldia, in which the above-mentioned facts were stated, and in which Seiior Obaldia said that, before leaving Bogota, he had had several interviews with the American minister, to whom he had communicated these facts, which Mr. Beaupre had doubt- less telegraphed to his Government. The reading of this extract caused much excitement. Senator Caro pointed out that whatever the views of President Roosevelt may be, this much was certain, he had no intention of adopting the Nicaragua route. The only possible explanation of the present inactive attitude of the Unitect States Government Avas that events on the Isthmus were being watched. Senator Caro then, for the first time, openl}" attacked the policy of the United States Government. Colombia was told that the con- struction of the canal was essential to the commerce and, therefore, to the progress of the world, and that she should not, therefore, stand in the way of so important an undertaking merel}^ because of the loss of sovereignt}^ over a small strip of territory. But why, he asked, did the United States wish to deprive Colombia of her sovereignty? It was because the United States wanted the canal for themselves, and not for commerce and civilization. Senator Rivas Groot, who had reported to the Senate against the II^TEROCEANIC CANAL. 93 granting of authorization to the Government to conclude a canal treaty, then spoke, supporting the views expressed by Senator Caro. Senator Pedro Nel Ospina's speech was devoted to an explanation and defense of the law of authorization which he had drawn up. Neither of these speeches had any special significance. The day's debate was, however, closed with an important speech by Senator Arrango, which was the outcome of a tacit understanding with the majority of his colleagues. He pointed out that this project of law, worded in general terms, authorizing the President to conclude a canal treat}^ with a foreign power or companj^ was a clumsy attempt to befog the real issue. It was perfectly well known that a canal, if constructed at all, would have to be constructed b}^ the United States Government, and it would, therefore, be more straightforward to frankly own that fact instead of vaguely talking of foreign powers and companies. When the Hay-Herran treat}^ was brought forward for discussion it was believed that the Senate would be willing to ratify the treat}^, with essential modifications. The United States minister had, however, made it clear that his Government would not accept these modifications, and it was, therefore, decided to reject the treatj^ Now, this project of law was nothing more or less than the Hay-Herran treat}^, with the modifications necessary to have rendered it acceptable to the Senate. If this was the course proposed, it would be a more reasonable policy to reconsider the Haj^-Herran treaty, put in the modifications desired bj^^ the Senate, and return it, thus amended, to the United States Government for their consideration. An impor- tant event had, however, occurred, which rendered any consideration of the canal question useless. The vice-president had decided to dis- solve Congress on the 31st instant. There remained, therefore, no time for deliberation, and the onlj^ possible course for the Senate to adopt' was to decide on the indefinite suspension of any further dis- cussion regarding the canal question. The Senate then adjourned. On the following daj^, the 28th ultimo, news of an insurrectionary outbreak in the Department of Panama leaked out, and three members of the cabinet were summoned to the Senate for the purpose of elicit- ing information on the subject. On the arrival of the minister of war, however, the Senate was declared in secret session. It was given out that the trouble on the Isthmus consisted merely of an invasion of 70 men from Nicaragua. The president of the Senate, however, informed me that there was much anxiety, both on the part of the Government and Congress, as to the turn events were taking on the Isthmus. The session of the 29th occupied itself with the passing of laws of minor importance and routine work. On Friday, the 30th, the Panama Canal question was treated for the last time. The Senate unanimously resolved to adopt the course pro- posed by Senator Arrango in his speech of the 27th, which was to indefinitely suspend the consideration of the matter. The Government thus remains with its ordinar}^ authority to treat the question afresh, subject to the approval of a future Congress. Senator Caro spoke with some heat to the effect that the Govern- ment had rendered it impossible for the Congress to carry out its work by introducing extra laws which had not been treated of in the mes- sage, and then cutting short the deliberations of the legislative body. 94 INTEKOCEANIC CAJSAL. Saturday, the 31st ultimo, was the last da}" of Congress. The mem- bers of the Senate met in the forenoon, and the minister of war, who had been speciall}^ summoned, was present. He was again questioned, this time publicly, as to the state of affairs in the Department of Panama. The telegram received from Governor Obaldia had, it appeared, been badly transmitted, but he gathered from the message that an invasion of 70 men from Nicarag'ua and a rising in the frontier province of Veraguas had occurred simultaneously. The secretary' of the Senate informed me that in the telegram it was not clear whether the number of invaders was TO or 700, most probably the latter, and that the feel- ing of unrest in the Department of Panama was great. The Senate rose at 11 a. m., and did not return in the afternoon to receive the President's message closing Congress. The Chamber of Representatives remained sitting until half past 2 o'clock p. m. , when Congress was declared officially closed by the vice- president. Yesterda}^ the Government issued a manifesto to the nation, which has been published and posted on the streets this morning. It severel}^ criticises the action of Congress, and especially that of the Senate, which latter body has wasted its time in attacks on the Executive instead of devoting itself to the consideration of measures necessary to the well-being of the countr}^ As regards the canal, it states that the Government has decided to resume negotiations in the hopes of being able to come to a fresh agreement which shall meet with the approval of the next Congress, and that the Colombian charge d'affaires at Washington has been instructed to convey this information to the Government of the United States. I am, sir, your obedient servant, A. M. Beaupre. Mr. JBeaupre to Mr. Hay. No. 207.] Legation of the United States, Bogota., Novemher ^, 1903. Sir: The manifesto issued b}^ the Government of Colombia to the nation on the 1st instant, the day after the closing of Congress, is interesting as a declaration of attitude and policy. ^ The Government makes reference, in the first place, to the difficul- ties it had to encounter on first taking charge of the administration; difficulties with the revolution on one hand and with the administration on the other. By difficulties with the administration was evidently meant, though not actually stated, the equivocal position in which the Government found itself after the coup d'etat of the 31st of July, 1900. Moreover, the revolutionary part}^ was in a strong position, as it could count on many elements and on the material help of friends outside the countr3^ With the termination of the revolution, the difficulties to be faced b}^ the Government were b}^ no means at an end. The country was suffering from stagnation in its industries, paralyzation of its com- merce, the innumerable difficulties created by a depreciated currency, penury of the treasury, and a general demoralization. In the midst of all these difficulties most governors would have been sorel}^ tempted to dictatorially take matters into their own hands, INTEEOCEANIC CANAL. 95 and, providing themselves with the necessary resources, assume the personal powers required for putting an end to the anarch}^ reigning. The Vice-President has chosen rather to abide by the provisions laid down bj^ the constitution. He had, therefore, issued the writs for elections for Congress, and declared public order restored. In calling this extraordinary Congress he had hoped for the loyal cooperation of the legislature in aiding the Executive to restore the state of affairs of the Republic to a normal condition. The legislative bod}^ had now terminated its labors and it will be for the countrj'' to judge impartially both its work and that of the Executive. No one is ignorant of the causes which have rendered this session of Congress only partially fruitful. The disorder reigning between the two cham- bers has impeded the carrying out of much necessary work. The Executive, while loyally aided by the majoritj^ in the Chamber of Representatives, found its work thwarted by the hostility of the majority of the Senators. The question of almost unique importance, which decided the calling of a special Congress^ was that of the construction of an interoceanic canal, to wit, the Hay-Herran treaty. The Senate, after debates in which too much prominence was given to its feeling of hostility toward the Chief of the Government, rejected that treaty. A committee was then appointed to consider on what bases the aspirations of the Colom- bian people for the construction of an interoceanic waterwaj^ could best be satisfied. As the deliberations of the committee were produc- tive of no result, a project of law was presented to the Senate by its com- mittee, ratifying the rejection of the treaty and granting authorization to the Executive for the opening of this waterway. This project was approved on the first reading, and was then referred to a new commit- tee. The committee reported against this project of law, and sug- gested the suspension of its consideration and raised the question as to the validity of the extension of time granted to the New Panama Canal Company in 1900. The Senate resolved to adopt part of the sugges- tions of the committee, and indefinitely suspended consideration of the projected law of authorization. Congress has, therefore, amply dis- cussed and definitel}^ decided upon the question which formed the principal motive of its convocation, that of the treaty respecting the construction of an interoceanic canal. The opening of a canal is, however, a matter of vital interest to the Republic, and especially to the Department of Panama. The Colom- bian charge d'affaires at Washington has, therefore, been instructed to inform the United States Government that new negotiations would be set on foot on bases which it was believed would be acceptable to the next Congi-ess. In that case, if the North American Government persists in its proposal to open the canal, which it is to be presumed it does, as neither by word nor by act has anything to the contrary been done, it is to be hoped that the great work will finally be carried out through Colombian territory. The Vice-President then refers to the character of the Congress which was convoked. The sessions were extraordinarJ^ not ordinary sessions. H.e was, therefore, constitutionally in his right in limiting the Congress to the consideration of certain matters of vital impor- tance. He showed, however, a generous latitude in this matter, giving to their consideration even such questions as those concerning the leg- islative decrees issued by the Government during the war — questions 96 INTEROCEANIC CANAL. which, strictly speaking, belong to the domain of an ordinaiy Con- gress. The Senate, however, chose to take an unconstitutional attitude, and assume the character of a body called together in ordinar}^ session, and treated the questions submitted not from the point of view of the national welfare, but to make political capital of its attitude toward the Chief Executive. Fortunately the patriotic spirit shown by the majority of the Chamber of Representatives, in conjunction with the minority of the Senate, helped to some extent to counteract the evil influence which the systematic opposition of one part of the legislative body was trjnng to exert. The Vice-President then goes on to deal with the constitutional powers of the Executive in its relations to the legislative body. Since the constitution of 1863, it has been decided that the ordinary Congress has one hundred and twent}^ da3'S alloted for its sessions; but an extraor- dinary Congress is called for the consideration of certain special matters, and the duration of its session is at the discretion of the Executive. To support this statement, various precedents are quoted. The honorable Chamber of Representatives, in its session of October 2, resolved that twenty days more would suffice for it to finish the work entrusted to its consideration. The Executive, so as not to feel that it was restricting the time of the legislature, added eleven dsLjs to the specified twenty. If the labor of the present legislative body be care- full}^ compared with that of its predecessors it will be clear that the one hundred and thirtj^-four days which the legislature has had for its deliberations was not merelj^ time strictly necessary, but more than ample to dispose of the matters submitted to its consideration. Its work would have been more beneficial if it had not wasted a large part of this time in fruitless debates. The Vice-President expresses the hope that the ordinary Congress, which is to unite in a little over eight months, will be able to fitly dis- pose of the questions which the late Congress has left undone. The hostile attitude of some members of Congress has raised a cer- tain spirit of unrest and agitation. Nevertheless, peace and the sta- bility of constitutional rule has been maintained. There is, therefore, reason to hope that the forthcoming elections will not be the cause of agitation, and that their result may be the genuine expression of the will of the people, the carrying out of which is assured by the laws, and will be respected by the Government. The manifesto is signed by the Vice-President and all the members of his cabinet. I am, sir, your obedient servant, A. M. BEAUPRi;. Jlr. JBeaupre to Mr. Hay. [Telegram.] Bogota, Novemher !{,, 1903. (Received November 6, 1903, 5 p. m.) Fourth, 5 p. m. Confidential. I have been shown telegram from reliable source in Panama to the effect that Isthmus is preparing for secession and that proclamation of independence may be expected soon. The particulars carefully guarded. Reliable information hard INTEEOCEANIC CANAL. 97 to obtain. This Government is evidently alarmed and troops are being sent to Isthmus. Repeat telegrams of importance from United States consul-general. His telegrams to me ma}^ be interfered with. Beaupr^. Mr. Bemipre to Mr. Hay. [Telegram.] United States Legation, Bogota., November 6., 1903. (Received November 8, 11.05 p. m.) November Q., Q p. m. Knowing that the revolution has already commenced in Panama, says that if the Government of the United States will land troops to preserve Colombian sovereignty and the transit, if requested by the Colombian charge d'affaires, this Government will declare martial law, and by virtue of vested constitu- tional authority, when public order is disturbed, will approve by decree the ratification of the canal treat}^ as signed ; or, if the Govern- ment of the United States prefers, will call extra session of Congress with new and friendh^ members next May to approve the treaty. General Reyes has the perfect confidence of Vice-President, he says, and if it becomes necessary will go to the Isthmus or send representa- tives there to adjust matters along above lines to the satisfaction of the people there. If he goes, he would like to act in harmony with com- mander of United States forces. This is the personal opinion of Reyes, and he will advise this Government to act accordingly. There is a great reaction of public opinion in favor of the treaty, and it is considered certain that the treaty was not legally rejected by Congress. To-morrow martial law will be declared; 1,000 troops will be sent from the Pacific side; about the same number from the Atlantic side. Please answer by telegraph. Beaupre. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, Washington., November 6", 1903. The people of Panama having, by an apparently unanimous move- ment, dissolved their political connection with the Republic of Colom- bia and resumed their independence, and having adopted a government of their own, republican in form, with which the Government of the United States of America has entered into relations, the President of the United States, in accordance with the ties of friendship which have so long and so happily existed between the respective nations, most earnestly commends to the Governments of Colombia and of Panama the peaceable and equitable settlement of all questions at issue between them. He holds that he is bound, not merel}^ by treaty S. Doc. 51 7 98 INTEROCEANIC CANAL. obligations, but bj'^ the interests of civilization, to see that the peace- able traffic of the world across the Isthmus of Panama shall not longer be disturbed by a constant succession of unnecessar}^ and wasteful civil wars. Hay. M7\ Beauvre to Mr. Hay. [Telegram.] United States Legation, Bogota, Novemler 7, 1903. (Received 7.30 p. m. November 10.) November 7, 2 p. m. General Reyes leaves next Monday for Panama invested with full powers. He has telegraphed chiefs of the insurrection that his mission is to the interests of Isthmus. He wishes answer from you before leaving to the inquiry in my telegram of yesterday and wishes to know if the American commander will be ordered to cooperate with him and with new Panama Government to arrange peace and approval of the canal treaty, which will be accepted on condition that the integrity of Colombia be preserved. He has telegraphed President of Mexico to ask the Government of the United States and all the countries represented at the Pan-American confer- ence to aid Colombia to preserve her integrity. The question of the approval of the treat}^ mentioned in my telegram of yesterday will be arranged in Panama. He asks that before taking definite action j^ou will await his arrival there, and that the Government of the United States in the meantime preserve the neutrality and transit of the Isthmus and do not recognize the new Government. Great excite- ment here. Martial law has been declared in the Cauca and Panama. Answer. Beaupr]&. Mr. Beauj)re to Mr. Hay. [Telegram.] United States Legation, Bogota., Novemher 7, 1903. (Received November 10, 7.55 p.m.) As the Government of the United States has war vessels at Panama and Colon, minister for foreign affairs has requested me to ask will 3^ou allow Colombian Government to land troops at those ports — to fight there and on the line of railway? Also if the Government of the United States will take action to maintain Colombian right and sovereignty on the Isthmus in accordance with article 35, the treaty of 1846, in case the Colombian Government is entirely unable to sup- press the secession movement there? INTEROCEANIC CANAL. 99 Mr. Beaupre to Mr. Hay. [Telegram.] Bogota, November 9, 1903. (Received November 11, 12.30 a. m.) November 9, 9 a. m. I am desired to inform 3^ou by General Re^^es that Gen. Bedronel Ospina and Lucas Cabellero, prominent part}^ leaders, accompany him on his mission. Very great excitement here. Large crowds paraded streets yester- day, crjdng "Down with Marroquin." Mass meeting denounced him; called for a change of government. Hundreds gathered at the palace, and their orator, a prominent national general, addressed the President, calling for his resignation. Troops dispersed gathering, wounding several. Martial law is declared here, and the city is being guarded by soldiers. Legation of the United States under strong guard, but apparently no indications of hostile demonstration. The residence of Lorenzo Marroquin attacked with stones. Referring to the questions presented by minister for foreign affairs in m}^ telegram of 7th, 1 have preserved silence, but bear in mind page 578, Foreign Relations, part 3, 1866, and instructions ISi to minister to the United States of Colombia, 1865. Beaupre. [Note. — For convenience the above-mentioned instruction, No. 134, is reproduced, as follows:] No. 131. Department of State, Washington, November 9, 1863. To Allan A. Burton, Esq., etc., Bogota. Sir: The question which has recenth' arisen under the thirty-fifth article of the treaty with New Granada, as to the obligation of this Government to comply with a requisition of the President of the United States of Colombia for a force to protect the Isthmus of Panama from invasion by a body of insurgents of that country has been submitted to the consideration of the Attorney-General. His opinion is that neither the text nor the sjiirit of the stiiDulation in that article, by which the United States engages to preserve the neutrality of the Isthmus of Panama, imposes an obli- gation on this Government to comply with a requisition like that referred to. The purpose of the stipulation was to guarantee the Isthmus against seizure or invasion by a foreign power only. It could not have been contemplated that we were to become a party to any civil war in that country by defending the Isthmus against another party. As it may be presumed, however, that our object in entering into such a stipulation was to secure the freedom of transit across the Isthmus, if that freedom should be endangered or obstructed, the employment of force on our part to prevent this would be a question of grave expediency to be determined by circumstances. The Department is not aware that there is yet occasion for a decision upon this point. Your despatches to No. , inclusive, have been received. I am, sir, etc. , William H. Seward. 3fr. Beaupre to Mr. Hay. [Telegram.] Legation of the United States, Bogota., Novemher 11., 1903. (Received November l-l.) The situation here under control, but how long this will continue is uncertain, as there is intense feeling against the Government. There 100 INTEROCEANIC CANAL. is also a bitter feeling against the United States because of the belief that the Government of the United States has encouraged the secession movement, and of the statement of telegram received by the Govern- ment to the etl'ect that the United States forces interfered with Colom- bian troops under General Tobar at Colon, necessitating their surrender. An army ten thousand strong being raised here, and one of five thousand in the Cauca to operate against Panama, commanded by General Reyes, provided the United States will allow Colombia to land troops. A meeting was held under the leadership of Senator Caro, and a resolution was passed requesting the Government to call a convention for the purpose of amending the constitution in order to render pos- sible immediate ratification of the treaty. This is opposed by the Government and General Reyes as being inopportune. Beaupre. Mr. Hay to Mr. Beaupre. [Telegram.] Department of State, Wa^Jdngton, Novemler 11, 1903. (Sent 12.12 p. m.) Earnestly desiring an amicable solution of matters at issue between Colombia and Panama, we have instructed our consul-general at Panania to use good offices to secure for General Reyes a courteous reception and considerate hearing. It is not thought desirable to per- mit landing of Colombian troops on Isthmus, as such a course M^ould precipitate civil war and disturb for an indefinite period the free tran- sit which we are pledged to protect. I telegraphed you on November 6 that we had entered into relations with the provisional government. Hay. Mr. Beaupre to Mr. Hay. [Telegram.] Legation of the United States, Bogota., N'ovember 1'2, 1903. (Received November 14.) I was invited to the Palace last night to confer with the President and his Cabinet, and communicated the substance of 3^our telegram of the 6th in the form of a note to the minister of foreign afi'airs. I was asked if I would officially construe the last clause to mean the United States would not permit the landing of Colombian troops. I replied my opinion is that the language used needs no interpretation; that I had fulfilled my official duty in delivering the note and had no explanation to make. The President then enjoined secrec}' upon those present until direct answer has been received to the two questions of the minister for foreign afi'airs contained in my telegram of the 7th. There is consternation in Government circles, and I fear serious trouble when the public is informed of the real situation. I believ^e there is much danger, not only to the Government, but also to Ameri- cans in the interior, especially in Bogota. Beaupr^. INTEROCEANIC CATSTAL. 101 i Mr. BeaupTe to Mr. Hay. [Telegram.] United States Legation, Bogota.^ November llf, 190S. (Received November 17.) In an official note, dated 14th, minister for foreign affairs writes me as follows: The immediate recognition of the so-called Government of Panama by the Gov- ernment of the United States entering into relations with it is a circumstance aggra- vated by the fact that such recognition is a violation of the treaty of 1846, which compels the Government of Colombia to protest, as it does in most solemn and emphatic manner, and to consider that the friendship of this Government with the Government of the United States has reached such a grave point that it is not possible to continue diplomatic relations unless the Government of the United States states that it is not its intention to interfere with Colombia in obtaining submission of the Isthmus nor to recognize the rebels as belligerents. I hope you will submit these points to your Government immediately, for the army is already marching to the Isthmus of Panama. The note is very long, to the effect that this recognition is contrary to all precedents and in violation of the treaty of 1816, offering to submit the latter point to The Hague, with the understanding that in the meantime there shall be no interference with the military opera- tions necessary to reestablish integrity of Colombia. National council — especially elected to advise the executive in the present emergency — has decided, by 10 votes to 1, to hand me my passport. The Government understands that such action would be tantamount to a declaration of war, and has advised me such a step will not be taken. Send instructions as a guide in case of severance of diplomatic relations. Beaupre. Mr. Beauj^re to Mr. Hay. [Telegram.! United States Legation, Bogota., Novemher 17, 1903. (Received November 19.) Minister for foreign affairs sends another note, requesting that transmit hj cable an abstract, as follows: As the Government of the United States does not definitely state that it will oppose landing of Colombian troops, but will secure hear- ing for General Rej^es, it maj^ be supposed its purpose is to bring- about peace in Colombia and Panama, to the end that the latter shall renounce independence and thus avoid armed action otherwise inevita- ble. If this is the intention of the United States, Colombia will accept, provided territorial rights of Colombia on the Isthmus are not preju- diced. Maintenance of order falls to the power holding sovereignt}^, which the United States has heretofore recognized. Accordingly, it is an inadmissible theory that the United States should now permit or aid dismemberment of Colombia merely to prevent temporary dis- turbance of the transit. Colombia has for fifty years maintained free transit, but she can not be asked to carry this to the extent of agree- ing to the loss of precious territory simply from fear some inter- ruption of transmit maj^ occur. Sovereignty of nations may not 102 INTEROCEANIC CANAL. be destroyed for the purpose of avoiding transitory prejudice to commerce — an argument as to the eti'ect of the existing treaty, and that civilization will sutfer more by the violation of a public treaty than a temporary interruption of traffic. The most efficient means the United States could employ to pre\'ent interruption of transit would be to notify rebels to abstain f i-om obsti'ucting Colombian Gov- ernment in reestablishing order and constitutional rule. This is demanded of the United States by treaty. If the United States troops have been used to disarm Colombian army it is in subversion of national sovereignty and contrar}" to the treaty. Beaupre. 3{r JTay to Mr. Beaupre. [Telegram,] Department of State, WasJungton, Noveviher 18, 1903. You will once more inform Colombian Government that we have recognized the Republic of Panama; that our action has been taken in the interest of peace and order on the Isthmus; that we earnestly desire an amicable settlement of questions at issue between Colombia and Panama, and would gladly render what services are in our power to that end. I repeat that j^ou and the secretar}^ of legation are authorized to take your leave of absence whenever you think best, requesting one of your colleagues to take charge of your legation, if both of you come away. Hay. INTEROCEANIC CANAL. 10b House Bocument No. 8, Fifty-eighth Congress, first session. MESSAGE FROM THIS PRESIDENT OF THE UNITED STATES, TRANSMITTIKG, IN RESPONSE TO RESOLUTION OF THE HOTJSE OF REPRESENTA- TIVES OF NOVEMBER 9, 1903, ALL CORRESPONDENCE AND OTHER OFFICIAL DOCUMENTS RELATING TO THE RECENT REVOLUTION ON THE ISTHMUS OF PANAMA. November 16, 1903. — Message and accompanying papers referred to the Committee on Foreign Affairs and ordered to be printed. To the House of Representatives: In response to a resolution of the House of Representatives of Novem- ber 9, 1903, requesting the President "to communicate to the House if not, in his judgment, incompatible with the interests of the public service, all correspondence and other official documents relating to the recent revolution on the Isthmus of Panama," I transmit herewith copies of the papers called for. Theodoee Roosevelt. White House, Washington., November 16^ 1903. The President: The Secretary of State, to whom was referred a cop}^ of the resolu- tion of the House of Representatives of November 9, 1903, requesting copies of all correspondence and other official documents relating to the recent revolution on the Isthmus of Panama, has the honor to lay before the President copies of the correspondence from and to the Department of State on the subject. Respectfully^ submitted. John Hay. Department of State, Washington,^ November 13, 1903. 104 INTEROCEANIC CANAL. CORRESPONDENCE BETWEEN THE DEPARTMENT OF STATE AND THE UNITED STATES CONSULATE-GENERAL AT PANAMA. A press bulletin having announced an outbreak on the Isthmus, the following- cablegram was sent both to the consulate-general at Panama and the consulate at Colon: Department of State, Wasldngton^ Novemher 3, 1903. (Sent 3.40 p. m.) Uprising on Isthmus reported. Keep Department promptly and full}" informed. -LooMis, Acting. Mr. Ehimian to Mr. Hay. Panama, Novemher 3, 1903. (Received 8.15 j). m.) No uprising yet. Reported will be in the night. Situation is critical. Ehrman. Mr. Ehrman to Mr. Hay. TTelegram.] Panama, Novemler 3, 1903. (Received 9.50 p. m.) Uprising occurred to-night, 6; no bloodshed. Army and navy offi- cials taken prisoners. Government will be organized to-night, con- sisting three consuls, also cabinet. Soldiers changed. Supposed same movement will be effected in Colon. Order prevails so far. Situation serious. Four hundred soldiers landed Colon to-day Barranquilla. Ehrman. Mr. Loomis to Mr. Ehrman. [Telegram.] Department of State, Washington^ November 3., 1903. (Sent 11.18 p. m.) Message sent to Nashville to Colon may not have been delivered. Accordingly see that following message is sent to Nashville immedi- atelj^: Nashville, Colon: In the interests of peace make every effort to prevent Government troops at Colon from proceeding to Panama. The transit of the Isthmus must be kept open and order maintained. Acknowledge. (Signed) Darling, Acting. Secure special train, if necessary. Act promptly. Loomis, Acting, INTEROCEANIO CANAL. 105 Mr. Loomis to Mr. Elirman. [Telegram.] Department of State, Washington., Noveiiiher ^, 1903. (Sent 12.02 p. m.) Communicate with commander of gunboat Bogota and state plainly that this Government being responsible for maintaining peace and keeping transit open across Isthmus desires him to refrain from wan- tonly shelling the city. We shall have a naval force at Panama in two days, and are now ordering men from the Nashmlle to Panama in the interests of peace. Loomis, Acting. Mr. EJirinan to Mr. Hay. [Telegram.] Panama, Wovemher 4-, 1903. (Received 7.10 p. m.) Mass meeting held. Independence publicly declared. Three con- suls approved organize government, composed Federico Boyd, Jose Agustin Arango, Tomas Arias. Bogota in sight. Ehrman. Mr. Ehrman to Mr. Hay. [Telegram.] Panama, Novemher .^, 1903. (Received 9.50 a. m.) Cables Washmlle received. Nashville notified. Troops will not be moved. Last night gunboat Bogota fired several shells on city; one Chiiaaman killed. Bogota threatens bombard city to-day. Ehrman. Mr. Ehrman to Mr. Hay. [Telegram.] Panama, Novemler 5, 1903. (Received 12.60 p. m.) ^ Received an official circular letter from the committee of the provi- sional government saying that on 1th political move occurred, and the Department of Panama withdraws from the Republic of the United States of Colombia and formed the Republic of Panama. Requested to acknowledge the receipt of circular letter, Ehrman. S. Doc. 51 8 106 INTEROCEANIC OANAL. Mr. Loomis to Mr. JEhrman. [Telegram.] Department of State, Washington, Noveiiiber 5, 190S. - (Sent 3.15 p. m.) Acknowledge the receipt of circular letter and await instructions before taking any further action in this line. Loomis, Acting. Mr. Loomis to Mr. Ehrman. [Telegram.] Department of State, Washington., November 5, 1903. (Sent 5.09 p. m.) Keep Department informed as to situation. Loomis, Acting. Mr. Ehrman to Mr. Ha/y. [Telegram.] Panama, November ,5, 1903. (Received 9.42 p. m.) Colombian troops reembarked per Eoyal Mail for Carthagena. Bogota supposed at Buenaventura. Quiet prevails. Ehrman. Mr. Ehrman to Mr. Hay. [Telegram.] Panama, Wovemher 6, 1903.. (Received 11.55 a. m.) The situation is peaceful. Isthmian movement has obtained so far success. Colon and interior provinces have enthusiastically joined independence. Not any Colombian soldiers known on isthmian soil at present. Padilla equipped to pursue Bogota. Bunau Varilla has been appointed officially confidential agent of the Republic of Panama at Washington. Ehrman. Mr. Hay to Mr. Ehrman. [Telegram.] Department of State, Washington, JSFovemher 6, 1903. (Sent 12.51 p. m.) The people of Panama have, by an apparently unanimous movement, dissolved their political connection with the Republic of Colombia and INTEROOEANIO CANAL. 107 resumed their independence. When you are satisfied that a de facto government, republican in form, and without substantial opposition from its own people, has been established in the State of Panama, you will enter into relations with it as the responsible government of the territory and look to it for all due action to protect the persons and property of citizens of the United States and to keep open the isthmian transit in accordance with the obligations of existing treaties govern- ing the relation of the United States to that territory. Communicate above to Malmros, who will be governed by these instructions in entering into relations with the local authorities. Hay. Mr. Hay to Mr. ETirman. [Telegram.] Department of State, Washington, November 6, 1903. (Sent 2.45 p. m.) I send, for your information and guidance in the execution of the instructions cabled to you to-day, the text of a telegram dispached this day to. the United States minister at Bogota: The people of Panama having by an apparently unanimous movement dissolved their political connection with the Republic of Colombia and resumed their inde- pendence, and having adopted a government of their own, republican in form, with which the Government of the United States of America has entered into relations, the President of the United States, in accordance with the ties of friendship which have so long and so happily existed between the respective nations, most earnestly commends to the Governments of Colombia and of Panama the peaceful and equit- able settlement of all questions at issue between them. He holds that he is bound, not merely by treaty obligations, but by the interests of civilization, to see that the peaceable traffic of the world across the Isthmus of Panama shall not longer be dis- turbed by a constant succession of unnecessary and wasteful civil wars. Hay. Mr. Ehrman to Mr. Hay. [Telegram.] Panama, Noveniber 6, 1903. (Received 7.23 p. m.) Filippe Bunau Varilla has been appointed envoy extraordinary and minister plenipotentiary to the United States of America. Perfect quiet. Ehrman. Mr. EJirman to Mr. Hay. [Telegram.] Panama, JSFovemler 6", 1903. (Received 11.23 p. m.) It is reported that Colombian authorities have detained English steamers Manavi and Quito at Buenaventura. Supposed to be to bring troops to the Isthmus. Ehrman. 108 INTEEOOEANIO CANAL. Mr. JEhrman to Mr. Hay. [Telegram.] Panama, November 7, 1903. (Received 12.20 p. m.) I have communicated to Panama Government that they will be held responsible for the protection of the persons and property of citizens of the United States, as well as to keep the isthmian transit free in accordance with obligations of existing treaties relative to the isth- mian territory. Ehrman. Mr. Ehrman to Mr. Hay. [Telegram.] Panama, Wovemher 10, 1903. (Received 1.35 p. m.) Federico Boyd, a member of the Committee of the Government, Amador Guerrero, both delegates, on the way to Washington to arrange in satisfactor}^ manner to the United States the canal treaty and other matters. Pablo Arosemena, attorney, proceeds next steamer. English steamers were not held at Buenaventura. Gunboat Bogota has left Buenaventura. Ehkman. Mr. Loom.is to Mr. Ehrman. [Telegram.] Department of State, Washington, November 10^ 1903. (Sent 3.42 p. m.) Keep in touch with commander of United States naval forces at Panama, advising him concerning news bearing on militarj^ situation. LooMis, Acting. Mr. JEhrman to Mr. Hay. [Telegram.] Panama, November 11, 1903. (Received 5.32 p. m.) I am officially informed tnat Bunau Varilla is the authorized party to make treaties. Boyd and Amador have other missions and to assist their minister. Ehrman. utteeooeanio canal. 109 CORRESPONDENCE BETWEEN THE DEPARTMENT OF STATE AND THE UNITED STATES CONSULATE AT COLON. Mt. Malmros to Mr. Hay. [Telegram.] Colon, NovemBer 3, 1903. (Received 2.35 p. m.) Revolution imminent. Government force on the Isthmus about 500 men. Their official promised support revolution. Fire department Panama, 441, are well organized and favor revolution. Government vessel, Cartagena, with about 400 men, arrived early to-day with new commander in chief, Tobar. Was not expected until November 10. Tobar's arrival is not probable to stop revolution. Malmros. Mr. Loomis to Mr. Malmros. [Telegram.] Department of State, WasJiington., Novemher 3, 1903. (Sent 4 p. m.) Are troops from the vessel Cartagena disembarking or preparing to land? Loomis. Mr. Loomis to Mr. Malmros. [Telegram.] Department of State. Washington., November 3, 1903. (Sent 4.28 p. m.) Did you received and deliver to Nashville last night or early this morning a message % Loomis, Acting. Mr. Malmros to Mr. Say. [Telegram.] Colon, Novemher 3, 1903. (Received 8.20 p. m.) Troops from vessel Cartagena have disembarked; are encamping on Pacific dock awaiting orders to proceed to Panama from commander in chief, who went there this morning. No message for Nashville received. Malmros. 110 INTEROCEANIC CANAL. Mr. Loomis to Mr. Malmros. [Telegram.] Department of State, Washington., November =?, 1903. (Sent 8.45 p. m.) The troops which landed from the Cartagena should not proceed to Panama. Loomis, Acting. Mr. Loomis to Mr. Malm/ros. [Telegram.] Department of State, Washington., November 3^ 1903. (Sent 10.10 p. m.) An important message was sent at 6 Monday night in your care for the Nashville. Make all possible effort to get it. - Loomis. Mr. Say to Mr. Malmros. [Telegram.] Department of State, Washington., November 3, 1903. (Sent 10.30 p. m.) If dispatch to Nashville has not been delivered inform her captain immediately that she must prevent Government troops departing for Panama or taking any action which would lead to bloodshed, and must use every endeavor to preserve order on Isthmus. Hat. Mr. Malmros to Mr. Hay. [Telegram.] Colon, November .^, 1903. (Received 3.35 p. m.) Met captain of Nashville at 6 p. m. yesterday. Pleard that message had been delivered to captain boat alongside of wharf instead of to me. No rebels or invading force near Panama or Colon or line of transit. Panama intended revolutionary movement known here to few persons only, up to 8 a. m. to-da3^ Revolutionary committee of six in Panama at 6 p. m. took charge of revolutionary movement. General Tobar and five officers taken prisoners. Panama in possession of committee with consent of entire population. This fact appears not known as yet to conservatives in Colon. Panama committee expect to have 1,500 men armed by this time. State of affairs at INTBEOCEANIC CANAL. ll^l Panama not known by Colombian force at Colon as yet. Official in command of disembarked force applied for transportation this morn- ing Captain meanwhile communicated to committee about 10 p. m. laft niffht his refusal to allow train with force to be sent to Panama and the committee assented. This leaves Colon in the possession of the Government. Malmros. Mr. MaVmros to Mr. Ray. [Telegram.] Colon, JSfovember .5, 1903. (Received 11.50 a. m.) On arrival yesterdav morning's train Panama revolution and To bar's imprisonment became" generally known; 12.30 commander Colombian troops threatens to kill every American unless Tobar released by 2 p. m. Provisional Government informed these facts. JyashviUe landed 50 men; stationed in and near railroad office where Americans, armed, met. Negotiations Colombian commander and Panama Gov- ernment commenced and progressing. Hostilities suspended. Colom- bians occupy Colon and Monkey Hill. ^•^ Malmeos. Mr. Loomis to Mr. Malmros [Telegram.] Department of State, Washiiigton, Novemher 5, 1903. (Sent 5.10 p. m.) What is the situation this evening? , Loomis, Acting. Mr. Mahnros to Mr. May. [Telegram.] Colon, November 5, 1903. (Received 9.34 p. m.) All Colombian soldiers at Colon now, Y p. m., going on board Royal Mail steamer returning to Cartagena. Vessel, supposed to be JJixde, in sight. Malmros. Mr. Malmros to Mr. Hay. [Telegram.] Colon, November 6', 1903. (Received 1.50 p. m.) Tranquillity absolute in Colon. Porfirio Melendez appointed gov- ernor of this province. Proclaimed Republic of Panama at Colon pre- 112 IKTEROOEANIC CANAL. fectura at 10 o'clock a. m. English and French consuls present. I arrived after proclamation, and upon my sug-g-estion I told governor that presence of consuls must not be looked upon as recognition of revolutionary state by their respective Governments. Melendez sent steam launch to Bocas del Toro to proclaim independence. Malmkos. COMMUNICATIONS FROM THE PANAMA GOVERNMENT. [Telegram.— Translation.] Panama, N'ovemher .^, 1903. (Received 8.45 p. m.) Secretary of State, Washvngton: We take the liberty of bringing to the knowledge of your Govern- ment that on 3'esterday afternoon, in consequence of a popular and spontaneous movement of the people of this city, the independence of the Isthmus was proclaimed and, the Republic of Panama being insti- tuted, its provisional government organizes an (executive) board con- sisting of ourselves, who are assured of the military strength neces- sary to carry out our determination. Josi: A. Arango. Federico Boyd. ToMAS Arias. Telegram. — Translation . ] Panama, Novemler Jf., 1903. (Received 10.30 p. m.) A. Su Excelencia Presidente de los Estados Unidos, Washington: The municipality of Panama is now (10 p, m.) holding a solemn ses- sion, and joins in the movement of separation of the Isthmus of Panama from the rest of Colombia. It hopes for recognition of our cause by your Government. Demetro S. Brida. [Telegram. — Translation.] Panama, Wovemher 5, 1903. (Received 8.48 p. m.) Secretary of State, Washington: We notify you that we have appointed Seuor Philippe Bunau Varilla confidential agent of the Republic of Panama near your Government and Dr. Francisco V. de la Espriella minister of foreign affairs. Arango. Boyd. Arias. INTEROCEANIO CANAL. 113 [Telegram .—Translation . ] Panama, November 6", 1903. (Received 10.40 a. m.) Secretary of State, Washington: Colon and all the towns of the Isthmus have adhered to the declara- tion of independence proclaimed in this cit3\ The authority of the Kepublic of Panama is obeyed throughout its territory. Arango. Arias. Boyd. [Telegram. — Translation.] Panama, November 6", 1903. Secretary of '^TKirE^.^'WasMngton : The board of provisional government of the Republic of Panama has appointed Senor Philippe Bunau Varilla envoy extraordinary and minister plenipotentiary near your Government with full powers to conduct diplomatic and financial negotiations. Deign to receive and heed him. J. M. Arango, ToMAS Arias, Federico Boyd, Foreign Relations. [Telegram. — Translation.] New York, Novemher 7, 1903. (Received 1.40 p. m.) His Excellency John Hay, Secretary of State: I have the privilege and the honor of notifying you that the Gov- ernment of the Republic of Panama have been pleased to designate me as its envoy extraordinary and minister plenipotentiary near the Gov- ernment of the United States. In selecting for its first representative at Washington a veteran servant and champion of the Panama Canal, my Government has evidently sought to show that it considers a loyal and earnest devotion to the success of that most heroic conception of human genius as both a solemn duty and the essential purpose of its existence. I congratulate myself, sir, that my first official duty should be to respectfully request you to convey to His Excellency the Presi- dent of the United States on behalf of the people of Panama an expression of the grateful sense of their obligation to his Government. In extending her generous hand so spontaneously to her latest born, the Mother of the American Nations is prosecuting her noble mission as the liberator and the educator of the peoples. In spreading her protecting wings over the territoiy of our Republic the American Eagle has sanctified it. It has rescued it from the barbarism of unnec- essary and wasteful civil wars to consecrate it to the destiny assig'ned to it by Providence, the service of humanity and the progress of civili- zation. Phtleppe Bunau Varilla. 114 INTEROOEANIC CANAL. CORRESPONDENCE BETWEEN THE DEPARTMENT OF STATE AND THE UNITED STATES LEGATION AT BOGOTA. Mr. Beaujyre to Mr. Hay. [Telegram.] Bogota, Nonemher J^^ 1903. (Received November 6, 1903, 5 p. m.) Fourth, 5 p. m. Confidential. I have been shown telegram from reliable source in Panama to the efi'ect that Isthmus is preparing for secession and that proclamation of independence may be expected soon. The particulars carefully guarded. Reliable information hard to obtain. This Government is evidently alarmed and troops are being- sent to Isthmus. Repeat telegrams of importance from United States consul-general. His telegrams to me may be interfered with. BEAUPEi:. Mr. Hay to Mr. BeauprS. [Telegram.] Department of State, Washington., November 6, 1903. The people of Panania having by an apparently unanimous move- ment dissolved their political connection with the Republic of Colom- bia and resumed their independence, and having adopted a government of their own — republican in form — with which the Government of the United States of America has entered into relations, the President of the United States, in accordance with the ties of friendship which have so long and so happily existed between the respective nations,- most earnestly commends to the Governments of Colombia and of Panama the peaceful and equitable settlement of all questions at issue between them. He holds that he is bound not merely by treaty obligations but by the interests of civilization, to see that the peaceful traffic of the world across the Isthmus of Panama shall not longer be disturbed by a constant succession of unnecessary and wasteful civil wars. Hat. Mr. BeoMjpre to Mr. Hay. [Telegram.] Bogota, Wovemher 6", 1903. (Received November 8 — 11.05 p. m.) November 6, 6 p. m. Knowing that the revolution has already com- menced in Panama, ■ says that if the Government of the United States will land troops to preserve Colombian sovereignty, and the transit, if requested by the Colombian charge d'affaires, this Gov- ernment will declare martial law, and by virtue of vested constitutional authority, when public order is disturbed, will approve by decree the ratification of the canal treaty as signed; or, if the Government of the United States prefers, will call extra session of Congress with new and INTEROCEANIC CANAL. 115 friendly members next May to approve the treaty. General Reyes has the perfect confidence of Vice-President, he says, and if it Ijecomes necessary will go to the Isthmus or send representatives there to adjust matters along above lines to the satisfaction of the people there. If he goes he would like to act in harmony with the commander of the United States forces. This is the personal opinion of Reyes, and he will advise this Government to act accordingl3^ There is a great reac- tion of public opinion in favor of the treaty, and it is considered cer- tain that the treaty was not legall}^ rejected by Congress. To-morrow martial law will be declared; 1,000 troops will be sent from the Pacific side; about the same number from the Atlantic side. Please answer by telegraph. , Beaupee. Mr. Beawpre to Mr. Hay. [Telegram.] Bogota, Noveinb&r 7, 1903. (Received November 10 — 7.30 p. m.) November 7, 2 p. m. General Reyes leaves next Monda!y for Pan- ama, invested with full powers. He has telegraphed chiefs of the insurrection that his mission is to the interests of Isthmus. He wishes answer from you, before leaving, to the inquiry in my telegram of yesterda}^, and wishes to know if the American commander will be ordered to cooperate with him and with new Panama Government to arrange peace and the approval of canal treaty, which will be accepted on condition that the integrity of Colombia be preserved. He has tele- graphed President of Mexico to ask the Government of the United States and all the countries represented at the Pan-American confer- ence to aid Colombia to preserve her integrity. The question of the approval of the treaty mentioned in my telegram of yesterday will be arranged in Panama. He asks that before taking definite action you will await his arrival there, and that the Government of the United States in the meantime preserve the neutrality and transit of the Isthmus and do not recognize the new Government. Great excite- ment here. Martial law has been declared in the Cauca and Panama. Answer. BEAUPKii. Mr. JBeaupre to Mr. Hoy. [Telegram.] Bogota, N'ovember 7, 1903. (Received November 10, 7.55 p. m.) November 7, 6 p. m. As the Government of the United States has war vessels at Panama and Colon, minister for foreign afl^airs has requested me to ask, Will you allow Colombian Government to land troops at those ports to fight there and on the line of railwa}^ ? Also if the Government of the United States will take action to maintain Colombian right and sovereignty on the Isthmus in accordance with article 35, the treaty of 1816, in case the Colombian Government is entirely unable to suppress the secession movement there? 116 INTEROCEANIC CANAL. I am entirely unable to elicit from minister for foreign affairs con- firmation of the promises made by . Beaupr^;. Mr. JBeaupre to Mr. Hay. [Telegram.] Bogota, November 5, 1903. (Received November 11, 12.30 a. m.) November 9, 9 a, m. I am desired to inform you by General Reyes that Gen. Bedronel Ospina and Lucas Cabellero, prominent party leaders, accompany him on his mission. Ver}^ great excitement here. Large crowds paraded streets yester- day, crying "Down with Marroquin." Mass meeting denounced him; called for a change of government. Hundreds gathered at the palace, and their orator, a prominent national general, addressed the Presi- dent, calling for his resignation. Troops dispersed gathering, wound- ing several. Martial law is declared here, and the city is being guarded by soldiers. Legation of the United States under strong guard, but apparently no indications of hostile demonstration. The residence of Lorenzo Marroquin attacked with stones. Referring to the questions presented by minister for foreign affairs in my telegram of Yth, 1 have preserved silence, but bear in mind page 678, Foreign Relations, part 3, 1866, and instructions 131 to minister to the United States of Colombia, 1865. BEAUPRi;. Mr. Hay to Mr. Beawpre. [Telegram.] Department of State, Washington., November 11., 1903. (Sent 12.12 p. m.) Earnestly desiring an amicable solution of matters at issue between Colombia and Panama, we have instructed our consul-general at Panama to use good offices to secure for General Re5''es a courteous reception and considerate hearing. It is not thought desir ble to per- mit landing of Colombian troops on Isthmus, as such a course would precipitate civil war and disturb for an indefinite period the free tran- sit which we are pledged to protect. I telegraphed you on November 6 that we had entered into relations with the provisional government. Hay. CORRESPONDENCE BETWEEN THE SECRETARY OF STATE AND THE CHARG:^ D'AFFAIRES OF COLOMBIA. Mr. Hay to Doctor Herran. Department of State, Washington., November 6, 1903. Dear Dqctor Herran: I inclose copy of a dispatch which has to- dsLy been sent to our minister at Bogota. Very sincerely, yours, John Hay. INTBEOCBANIC CANAL. 117 [Inclosure.] Mr. Hay to Mr. Beaupre. [Telegram.] November 6, 1903. Beaupee, Bogota: The people of Panama having by an apparently unanimous movement dissolved their political connection with the Republic of Colombia and resumed their inde- pendence, and having adopted a government of their own, republican in form, with which the Government of the United States of America has entered into relations, the President of the United States, in accordance with the ties of friendship which have so long and so happily existed between the respective nations, most earnestly commends to the governments of Colombia and Panama the peaceful and equitable settlement of all questions at issue between them. He holds that he is bound not merely by treaty obligations, but by the interests of civilization, to see that the peaceable traffic of the world across the Isthmus of Panama shall not longer be dis- turbed by a constant succession of unnecessary and wasteful civil wars. Hay. Dr. Herran to Mr. Hay. [Translation.] Legation of Colombia, Washington.) D. C. , November 7, 1903. Excellency: I acknowledge tlie reception of your excellency's note of the 6th instant, inclosing a copy of the telegram sent on the same day to the legation of the United States at Bogota hj the Department of State. In that telegram your excellency refers to the relations already en- tered into by the Government of the United States of America with the Colombian rebels who on the evening of the 3d usurped the power in the capital of the Colombian Department of Panama and imprisoned the lawful civil and military authorities. Your excellency will undoubtedly receive the replj^ of the Colombian Government through the same channel that was used to forward the notice of which your excellency was pleased to send me a copy, but, in the meanwhile, I am discharging a duty by lodging in advance with your excellency, in the name of my Government, a solemn protest against the attitude assumed in the Department of Panama, by the Government of the United States to the injury of Colombia's rights and in disaccord with the stipulations of article 35 of the still existing treaty of 1846-1848 between Colombia and the United States of America. 1 reiterate, etc. , Tomas Heeran. Mr. Hay to Dr. Herran. No. 22.] Department op State, Washington.) November 11., 1903. Sir: 1 have the honor to acknowledge the receipt of your note of the 7th instant, in which, acknowledging my communication of the 6th instant, you are pleased, of your own motion and in the absence of instructions from your Government, to lodge a protest against the attitude assumed by the Government of the United States in respect to the situation on the Isthmus of Panama. Accept, sir, etc., John Hay. 118 INTEKOCEANIO CANAL. Mr. Tower to Mr. Hay. [Telegram.] Embassy of the United States, Berlin., November 10, 1903. (Received 5.40 p. m.) In regard to the report telegraphed from New York that the Colom- bian consul-general there had declared that Colombian citizens had petitioned the Colombian Government to send a deputation to thank the German Government for its offered protection and to make con- cessions of land to Germany therefor, I have just received the assurance of the German minister for foreign affairs that there is no truth what- ever in this report. He added that Germany has no interest in the Panama matter, and that the question of an interference on the part of Germany does not exist. Tower. Mr. PorteY to Mr. Hay. [Telegram.] Embassy of the United States, Paris, JSFovemher 11, 1903. (Received 3.50 p. m.) The French generally are much pleased with events in Panama and our attitude there. In conversation with minister for foreign affairs he expressed himself in very sympathetic manner. Has authorized French consul at Panama to enter into relations with de facto govern- ment. Recognition will no doubt follow in time, and it seems to be disposition of European powers to await formal recognition by the United States before acting. Porter. RECEPTION OE MINISTER OF PANAMA. Mr. Varilla to Mr. Hay. [Translation.] Legation of the Republic of Panama, Washington, November 11, 1903. Mr. Secretary of State: I have the very great honor to bring to your knowledge the fact that the Republic of Panama has designated me to fill, near the Gov- ernment of the United States of America, the post of envoy extraordi- udiYj and minister plenipotentiary with full powers to negotiate. While begging you, Mr. Secretary of State, to transmit to His Excellency the President of the Republic of the United States the substance of the present communication, I venture to ask you to solicit from his kindness the appointment of a date on which he will author- ize me to present to him my letters of credence. I have, etc. , P. Bdnau Varilla. INTEKOCEANIC CANAL. 119 Mt. Loomis to Mr. Varilla. No. 1.] . Department of State, Washington, Wovemher 12, 1903. Sir: I have the honor to acknowledge the receipt of your note of the 11th instant, in which you advise me that the Republic of Panama has appointed you to fill, near this Government, the post of envoy extraordinary" and minister plenipotentiary, with full powers to nego- tiate. You further ask that this information may be communicated to the President and that he will kindly fix a date at which you may present your letters of credence. In reply I have the honor to say that the President will be pleased to receive you for the purpose mentioned to-morrow, Friday, at 9.30 a. m. If you will be good enough to call at this Department shortly before the hour mentioned, the Secretary of State will be pleased to accompany you to the White House. Accept, etc., Francis B. Loomis, Acting Secretary. REMARKS MADE BY THE MINISTER OF PANAMA. Mr. President: In according to the minister plenipotentiary of the Republic of Panama the honor of presenting to you his letters of cre- dence 3^ou admit into the family of nations the weakest and the last born ©f the republics of the New World. It owes its existence to the outburst of the indignant grief which stirred the hearts of the citizens of the Isthmus on beholding the despotic action which sought to forbid their country from fulfilling the destinies vouchsafed to it by Providence. In consecrating its right to exist, Mr. President, you put an end to what appeared to be the interminable controversy as to the rival water- ways, and you definitely inaugurate the era of the achievement of the Panama Canal. From this time forth the determination of the fate of the canal depends upon two elements alone, now brought face to face, singularly unlike as regards their authority and power, but wholly equal in their common and ardent desire to see at last the accomplishment of the heroic enterprise for piercing the mountain barrier of the Andes. The highway from Europe to Asia, following the pathway of the sun, is now to be realized. The early attempts to find such a way unexpectedly resulted in the greatest of all historic achievements, the discovery of America. Cen- turies have since rolled by, but the pathwaj^^ sought has hitherto remained in the realm of dreams. To-day, Mr. President, in response to your smnmons, it becomes a reality. 120 INTEEOOEANIO CANAL. THE PEESIDENT's KEPLY TO THE EEMAEK8 MADE BY SENOE BUNAU VAEILLA ON THE OCCASION OF THE PEESENTATION OF HIS LETTEES OF CEEDENCE. Me. Ministee: I am much gratified to receive the letters whereby you are accredited to the Government of the United States in the capacity of envoy extraordinary and minister plenipotentiary of the Republic of Panama. In accordance with its long-established rule, this Government has taken cognizance of the act of the ancient territory of Panama in reas- serting the right of self-control and, seeing in the recent events on the Isthmus an unopposed expression of the will of the people of Panama and the confirmation of their declared independence by the institution of a de facto government, republican in form and spirit, and alike able and resolved to discharge the obligations pertaining to sovereignty, we have entered into relations with the new Republic. It is fitting that we should do so now, as we did nearly a century ago when the Latin peoples of America proclaimed the right of popular government, and it is equally fitting that the United States should, now as then, be the first to stretch out the hand of fellowship and to observe toward the new-born State the rules of equal intercourse that regulate the rela- tions of sovereignties toward one another. I feel that 1 express the wish of my countrymen in assuring you, and through you the people of the Republic of Panama, of our earnest hope and desire that stability and prosperity shall attend the new State, and that, in harmony with the United States, it may be the providen- tial instrument of untold benefit to the civilized world through the opening of a highway of universal commerce across its exceptionally favored territory. For yourself, Mr. Minister, I wish success in the discharge of the important mission to which you have been called. Navy Depaetment, Washingto?i, JVovemier 12, 1903. Sie: In accordance with the resolution of the House of Represent- atives of the 9th instant, calling for all correspondence and other official documents relating to the recent revolution on the Isthmus of Panama, I have the honor to transmit herewith all such matter on file in the Navy Department. Very respectfully, William H. Moody, The Peesident. Secretary. Navy Depaetment, Washington, D. C, Noveivher 2, 1903. [Translation.] Nashville, care American Consul, Colon :°' -Maintain free and uninterrupted transit. If interruption threatened by armed force, occupy the line of railroad. Prevent landing of any « Same order to commander of Dixie, at Kingston, Jamaica. INTEEOOEANIC CANAL. 121 armed force with hostile intent, either Government or insurgent, either at Colon, Porto Bello, or other point. Send copy of instructions to the senior officer present at Panama upon arrival of Boston. Have sent copy of instructions and have telegraphed i>*a?ie to proceed with all possible dispatch from Kingston to Colon. Government force reported approaching the Isthmus in vessels. Prevent their landing if in your judgment this would precipitate a conflict. Acknowledg- ment is required. Darling, Acting. Navy Department, Washington^ D. C. , November ^, 190S. Glass, Marblehead., Acajjulco: "■ Proceed with all possible dispatch to Panama. Telegraph in cipher your departure. Maintain free and uninterrupted transit. If inter- ruption is threatened by armed force occupy the line of railroad. Pre- vent landing of any armed force, either Government or insurgent, with hostile intent at any point within 50 miles of Panama. If doubtful as to the intention of any armed force, occupy Ancon Hill strongly with artillery. If the Wyoming would delay Concord and Marblehead her disposition must be left to your discretion. Government force reported approaching the Isthmus in vessels. Prevent their landing if in your judgment landing would precipitate a conflict. Darling, Acting. Navy Department, Washington., D. C. , JYovember 3, 1903. Cruiser Atlanta, Kingston., Jamaica: Proceed with all possible dispatch to Colon. Acknowledge immedi- ately. Wh en will you sail ? Darling, Acting. Navy Department, Washington., D. C. , November 3, 1903. Nashville, Colon: In the interest of peace make every effort to prevent Government troops at Colon from proceeding to Panama. The transit of the Isth- must be kept open and order maintained. Acknowledge. Darling, Acting. Navy Department, Washington., D. C, November 3., 1903. American Consul, Panama: Message sent Nashville to Colon may not have been delivered. Accordingly see that the following message is sent to Nashville immediately: «■ Same to commander of Boston at San Juan del Sur, Nicaragua. S. Doc. 51 9 122 INTEROOEANIO CANAL Nashville, Colon: In the interest of peace make every effort to prevent Government troops at Colon from proceeding to Panama. The transit of the Isthmus must be kept open and order maintained. Acknowledge. Darling, Acting. Secure special trains if necessary. Act promptly. LooMis, Acting. [Translation.] Navy Department, 'Washington^ D. C. , Novemher Jf-^ 1903. ]NASHYrLLE, Colon: Gunboat of Colombia shelling- Panama. Send immediately battery 3-inch field gun and 6-pounder with a force of men to Panama to com- pel cessation bombardment. Railroad must furnish transportation immediately. Darling, Acting. [Translation.] Washington, D. C. , November 5, 1903. Boston, care of American consul^ Panama: Prevent recurrence bombardment of Panama. Acknowledge. Moody. Nayy Department, Washington, D. C. , Wovemher 5, 1903. Nashville, Colon: Prevent any armed force of either side from landing at Colon, Porto Bello, or vicinity. Moody. [Translation.] Washington, D. C, November 6., 1903. Maine, Woods Hole, Mass.: Proceed at once to Colon, coaling wherever necessary to expedite your arrival. Acknowledge. Moody. [Translation.] Washington, D. C. , November 9, 1903. DiETiL^'Boston: Upon the arrival of the Marblehead sufficient force must be sent to. watch movements closely of the British steamers seized at Buenaven- tura and to prevent the landing of men with hostile intent within limits of the State of Panama. Protect the British steamers if necessary. Moody. INTEEOCEANIC CANAL. 123 [Translation.] Washington, D. C, November 10, 1903. Glass, MarbleJiead., Panmna: Reported that the British steamers at Buenaventura were not detained. Did they leave with Colombian troops aboard? Moody. [Translation.] Colon, October 15, 1903. Secnav, Washington, B. C. : Report is current to the effect that a revolution has broken out in the State of Cauca. Everything is quiet on the Isthmus unless a change takes place. On this account there is no necessity to remain here. Do not think it necessary to visit St. Andrews Island. Hubbard, Commanding Officer JJ. S. B. JVashviUe. [Translation.] Colon, November 3, 1903. Secnav, Washington, D. C: Receipt of your telegram of November 2 is acknowledged. Prior to receipt this morning about 400 men were landed here by the Gov- ernment of Colombia from Cartagena. No revolution has been declared on the Isthmus and no disturbances. Railway company have declined to transport these troops except by request of the governor of Panama. Request has not been made. It is possible that movement may be made to-night at Panama to declare independence, in which event I will * * * (message mutilated here) here. Situation is most critical if revolutionary leaders act. HUBBAKD. [Translation. I Colon, November If, 1903. Secnav, Washington: Provisional government was established at Panama Tuesday evening; no organized opposition. Governor of Panama, General Tobar, Gen- eral Amaya, Colonel Morales, and three others of the Colombian Government troops who arrived Tuesday morning taken prisoner at Panama. I have prohibited transit of troops now here across the Isthmus. HuBBAKD Colon, November 1^, 1903. Seceetaey of the Navy, Washington, D. C. : Government troops yet in Colon. Have prohibited transportation of troops either direction. No interruption of transit as yet. Will make every effort to preserve peace and order. Hubbard. 124 INTEROOEANIO OANAL. Colon, Noveiriber ^, 190S. Secnav, WasJdngton, D. C. : I have landed force to protect the lives and property of American citizens here against threats Colombian soldiery. I am protecting water front with ship. I can not possibly send to Panama until affairs are settled at Colon. HUBBAKD. AcAPULCO, Mexico, Wovemher Ji,, 1903. Secretary Navy, Washington^ D. C: Marhlehead and Concord to Panama to-day 4 p. m. ; Wyoming will follow to-morrow afternoon. If Boston is to go with squadron, I would suggest Department will order her to rendezvous off Cape Mala, Colombia, about 6 p. m. , on November 9. I have ordered Nero to Aca- pulco. I will leave sealed orders for her to proceed without delay to Panama unless otherwise directed. Glass. Colon, November 5, 1903 — 9.4.1 a. m. Secnav, Washington., D. C. : British man-of-war Amphion is protecting American interests at Panama. Reported bombardment much exaggerated. Hubbard. Colon, November 5, 1903 — 9.JiS a. m. Secnav, Washington D. C. : Have withdrawn force landed Wednesda}^ afternoon. No bloodshed. I do not apprehend difficult}^ of any serious nature. Hubbard. Colon, November 5, 1903. Secretary of the Navy, Washington., D. C. : Situation here this morning again acute. Have deemed advisable to reland force. Hubbard. [Translation.] Colon, Novemher 5. Secnav, Washington: Atlas Line's steamer, with large body of troops, reported sailing from Cartagena, Colombia. Hubbard. Navy Department, Washington., D. C. , Colon., Novemher 6', 1903. Secretary of the Navy, Washington., D. C: All quiet. Independents declare Government established as Repub- lic of Panama. Have withdrawn marines. Delano. INTEEOCEANIO CANAL. 125 Colon, Wovemher 6, 1903 — 9.16 a. m. Seonav, WasJvmgton: Arrived Thursday evening; landed force. Following conditions prevailing: Just before landing all the troops of Colombia have left for E. M. S. P. Company's steamer Orinoco for Cartagena. Inde- pendent party in possession of Colon, Panama, and railroad line. Nashville withdrawn force. Delano. [Translation.] Panama, Novemher 7, 1903 — '7.1iO p. m. Secnav, Washington: All quiet; traffic undisturbed; message to prevent received. DiEHL. Colon, November 5, 1903 — 7.05 p. m. Secnav, Washington., D. C. : Atlanta left yesterday for Bocas del Toro. Delano. Panama, November 9. Secretary of the Navy, Washingt07i : The British consul and the minister of war of the provisional gov- ernment fear seizure of two British steamers at Buenaventura to trans- port troops convoyed by gunboat. Prevailed upon minister to dispatch gunboat, fearing possible destruction British steamers. The landing of troops in the territory within the limit under my control will cause prolonged campaign. Instructions from the Department are requested. DiEHL. Panama, November 10, 1903. Secnav: Your telegram of the 9th of November to the Boston acknowledged. No interference British vessels yet. Report seems to be well founded that the steamship Bogota sailed from Buenaventura yesterday after- noon with 1,000 for Rio Dulce. Have sent Concord to patrol in that vicinity in order to prevent landing. Everything is quiet at Panama. Glass. 126 INTEROCEANIC CANAL. House Document No. 8, Part 2, Fifty-eighth Congress, first session. MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, TRANSMITTING ADDITIONAIi CORRESPOITDENCE RELATING TO THE RECENT REVOLUTION ON THE ISTHMUS OF PANAMA. November 27, 1903. — Eead; referred to the Committee on Foreign Affairs and ordered to be printed. To the House of Bepresentatives: In response to a resolution of the House of Representatives of November 9, 1903, requesting the President "to communicate to the House, if not, in his judgment, incompatible with the interests of the public service, all correspondence and other official documents relating to the recent revolution on the Isthmus of Panama," I transmit here- with copies of additional papers on the subject which have been received subsequent to the resolution referred to. Theodore Roosevelt. White House, Washington^ NovewiheT 27, 1903. The President: The Secretary of State, to whom was referred a copy of the resolu- tion of the House of Representatives of November 9, 1903, requesting copies of all correspondence and other official documents relating to the recent revolution on the Isthmus of Panama, has the honor to lay before the President copies of additional correspondence on the sub- ject received subsequent to the resolution referred to. Respectfully submitted. John Hay. Department of State, Washington, November 2Jf, 1903, INTEROCEAlSriC CANAL. 127 No. 464.] Consulate-General of the United States, Panama, Noveiiiber 9, 1903. Hon. Francis B. Loomis, Assistant Secretary of State^ Washington^ D. C. Sir: I have the honor to say that on the 5th instant I received from the Committee of the Provisional Government a circular letter (No. 1), dated November 4, 1903, informing me that Panama had dissolved its political relations with the Eepublic of Colombia and requesting me to acknowledge receipt of circular. Inclosed please find translation of circular letter, marked "A." 1 immediately cabled the Department the contents of said circular letter, and upon receipt of the Depart- ment's cable instructing me to acknowledge receipt of circular and await instructions, I wrote acknowledging same. Please find copy of my letter, marked "B." On receipt of the two telegrams from the Department in regard to entering into relations with the local authorities here, being satisfied that there was a de facto government established, and as there was no opposition to same in the State of Panama, I wrote on the morning of the 7th to the committee, informing them that thej'" would be held responsible for the protection of the persons and property of Ameri- can citizens, as well as responsible for carrying out treaty obligations, in accordance with treaties in regard to Isthmian territory. Inclosed please find copy of my letter, marked " C." On the afternoon of the 8th instant I received a letter from the min- ister of foreign relations, saying that the Republic of Panama would protect American citizens and their property, as well as to carry out all treaty obligations in regard to Isthmian territory. Inclosed find translation of letter, marked "D." I am, sir, your obedient servant, Felix Ehrman, United States Yice- Consul- Oeneral. [Translation.] CiKCULAKl Republic op Panama, Provisional Government, No. 1. J Panama, November 4, 1903. Sir: We have the honor of informing you, for your knowledge and that of tbe Government which you represent, that in this date a political movement has taken place bjr which the former department of Panama is separated from the Republic of Colombia, in order to constitute a new state under the name of ' ' Eepublic of Panama, ' ' and that those who subscribe themselves have received the honor of being designated to form the Committee of the Provisional Government of the Eepublic. _ We beg you to kindly acknowledge receipt and accept the sentiments of considera- tion, which it is pleasing to subscribe ourselves. Your attentive servants, J. ^. Abango. ToMAS Arias. Federico Boyd. The Consul-Geneeal of the United States op Noeth America, Pte. B. Panama, November 5, 190S. Messrs. J. A. Arango, Tomas Arias, and Federico Boyd, Committee of the Provisional Government, Panama. Sirs: I have the honor to acknowledge receipt of your circular letter No. 1, dated November 4, 1903. I am, sirs, very respectfully, yours, Felix Ehrman, United States Vice-Consul-Oeneral. 128 INTEROCEANIC CANAL. C. Panama, November 7, 190S. Messrs. J. A. Aeango, Tomas Arias, and Federico Boyd, Committee of the Provisional Government, present. Gents: As it appears that the people of Panama have, by unanimous movement, dissolved their pohtical connection with theKepublic of Colombia and resumed their independence, and as there is no opposition to the Provisional Government in the State of Panama, I have to inform you that the Provisional Government will be held responsible for the protection of the persons and property of citizens of the United States, as well as to keep the Isthmian transit free, in accordance with obligations of existing treaties relative to the Isthmian territory. I have the honor to remain, gentlemen, very respectfully, Felix Ehrman, United States Vice- Consul- General. [Translation.] iSTo. 2.] Republic op Panama, Panama, November 8, 1903. Sir: The Committee of the Provisional Government, informed of your communi- cation of yesterday, has requested me to inform you that the Republic of Panama shelters the most sincere determination of protecting, as it has so far protected, the lives and properties of the United States citizens, determination that involves for the Republic a sacred and pleasant duty, and that in regard to the obligations existing on account of treaties in connection with the isthmian territories heretofore with the Republic of Colombia are now with the Republic of Panama that has substituted the former in them and their rights. With the sentiments of the highest consideration, I beg to remain, Very attentive servant, F. V. DE la Espeiella. The Vice-Consul-General op the United States op America. No. 463.] Consulate-General of the United States, Panama, Moveonber 9, 1903. Hon. Francis B. Looms, Assistant Secretary of State, Washington, D. C. Sir: I have the honor to report that on the 3d of November, at about 6 p. m., there occurred an uprising in the city of Panama. It seems that everything had been prearranged with the officials of the army and navy, as there was practically accord among all the officers. Gen- eral Tovar, General Castro, and Commander Tovar of the gunboat Bogota, j&nding out about the movement just a short while before it occurred, rushed to the barracks in the hope of frustrating the plans, but on their arrival General Huertas, second in command of the troops stationed at Panama, and chief of the " Colombia Battalion," ordered the soldiers out and arrested the above-mentioned generals, together with Governor Obaldia. The movement was to occur at 8 o'clock, but as the people had assembled and everything in readiness they moved at 6 o'clock. At 8 o'clock a boat was sent oflP from the gunboat Bogota, saying that unless Generals Tovar and Castro were set at liberty im- mediately they would bombard the town. This note was not answered by the people on shore. ITTTEROCEANIO CANAL. 129 At about 10 o'clock on the night of the 3d the Bogota fired several shells, which were answered by the fort. These shots struck in differ- ent parts of the city, and one Chinaman was killed. After firing, the Boqota\o\s>\.^^ her anchor and steamed away. She was supposed to be behind some islands which are directly in front of Panama. On the morning of the 4th 1 received information direct from one of the chiefs of the movement, and he said that the Bogota had threatened to again bombard the city, and on this I immediately sent word by telegraph to the commander of the Nashville and cabled the Department, The consular corps met in this consulate-general and decided to send a protest to the commander of the Bogota^ protesting against the action of the commander. Inclosed please find copy of protest, marked "A." This letter was not sent, as the Bogota was not in sight and no boats were available at the time. The gunboat Twenty-first of Wovemher {Padilla) was lying off Panama all this time, but did not try to inter- cept or pursue the Bogota. On the morning of the 4th the Twenty- first of November came in and anchored near the fort, and in the after- noon of the same day hauled down the Colombian flag and hoisted the flag of Panama. In the afternoon of the 4th, at 3 p. m., there was a general mass meeting held in the central plaza, and the declaration of independence was read and signed. The following is a list of the Government officials, as given me by the Committee of the Provisional Government: Committee of Provisional Government, J. A. Arango, Tomas Arias, and Federico Boyd; minister of government, Eusebio A. Morales; minister of foreign relations, F. V. De la Espriella; minister of war and marine, Meaner A. De Obarrio; minister of justice, Carlos A. Mendoza; minister of finance, Manuel E. Amador; minister of public instruction, Julio J. Fabrega; chief of the division of Panama, Gen. Domingo Diaz; general in chief of the army of the Republic, Gen. Esteban Huertas; commander of civil batallion, Gen. Manuel Quin- tero; general treasurer of the Republic, Senor Albino Arosemena; commander of the gunboat Twenty-first of Novemter, Gen. H. O. Jeffries. I may say that the above mentioned are all men of high standing in Panama and men who have had wide experience in public affairs. During the recent troubles I am pleased to state that everything was carried on in an orderly manner, and I have not heard of a case where foreigners were threatened or molested in any way. Inclosed I send you clipping from the Star and Herald of this city containing a translation of the declaration of independence and mani- festo by the Committee of the Provisional Government, marked " B." We have heard several stories of the happenings in Colon, but I will leave that to be reported on from Colon, as we have received nothing definite. The declaration of independence was read and signed at Colon at 1.30 p. m. on the afternoon of the 5th instant. Telegrams have been received from different parts of the depart- ment of Panama, and all say that independence has been unanimously declared. I am, sir, your obedient servant, Felix Ehrman, United States Vice- Consul- General, 130 INTEROOEANIO CANAL. A. [Translation.] Panama, November 4, 190S. The Commander op the Bogota. Sir: The consular corps of this city considers the action of the steamship Bogota^ under your command, last night in bombarding a defenseless city without advice of any kind to the consuls is contrary to all rights and practice of civilized nations. Consequently the consular corps protests in the most solemn manner, and holda responsible for the consequences and responsibilities of this act whoever is to blame, furnishing account to their respective governments of the referred circumstance. Yours respectfully, Felix Ehrman, United States Vice- Consul- General, E. H. ROHRWEGER, Acting British Vice- Consul. Emile Grey, Agent of the French Consulate, Arthur Kohpcke, Consul of Germany and in charge of Italian Consulate. A. Jesurum, jr.. Consul of Holland. Ed. Jaramillo Aviles, Consul of Ecuador, J. F. Arango, Consid- General of Guatemala. Federico Boyd, Consul of Spain and of Salvador. Jacob L. Maduro, Consul of Denmark, B. D. FiDANQUE, Consul of Belgica. J. G. DUQUE, Consul of Cuba. B. Mendez, Consul of Mexico. Pedro Arias, Consul of Brazil. Jeronimo Ossa, Consul of Chile and Honduras. Juan Vallarino, Consul of Peru. B. Declaration of independence and manifesto. pHxtract from Star and Herald, Panama (Republic of Panama), Thursday, November 5, 1903.] Independence of Panama. "Viva la Republica de Panama!" " Viva la independencia! " At last the State of Panama has awakened from the torpor which appeared to have overpowered all branches of its population. The people have at last come to the conclusion that there was no hope for their future as long as they remained under the jurisdiction of the national Government as a department of the Republic of Colombia and have risen in a body to protest to the injustice meditated by the Bogota Government toward them in refusing its sanction to the Herran-Hay canal treaty, the passing of which treaty actually means life or death to the State of Panama. The cry of independence was started on the evening of the 3d and taken up by every Isthmian as one body, as well as all those in sympathy with the cause. Due to the celebrated Battalion Colombia, under the command of their intrepid and INTEROCEANIC CAISTAL. 131 universally-beloved commander, Gen. E. Huertas, being in sympathy with the move- ment and declaring themselves on the side of the "separatists," all bloodshed, fight- ing, etc., has been avoided, the greatest order and unity reigning on all sides. The populace repaired without distinction to the arsenal and were supplied with the necessary arms with which to uphold their independence. The movement had been planned to take place later on, but was precipitated by the arrival at Colon of 300 troops under command of Generals Tovar and Amaya on the Cartagena on the night of the 2d instant. The only deplorable incident has been the killing of two Chinamen and part destruction of two buildings in the city by some shells thrown from the cruiser Bogota, the commander of which refused his adhesion to the cause and threatened to bombard the city unless Generals Tovar and Amaya and their staffs, who were imprisoned on the afternoon of the 3d while attempting to take command of the garrison in this city, were released within three hours. This request was not acceded to, in consequence of which the threat was carried out, but as the ship has got very little coal and supplies there is no doubt that she will not be able to hold out long and will have to surrender to the SI de Noviembre, which is being gotten ready for giving chase. The consular corps met and signed the following formal protest: Panama, November 4, 1903. The Commander op the Bogota. Sir: The consular corps of this city considers the action of the steamship Bogota, under your command, last night in bombarding a defenseless city, without advice of any kind to the consuls, is contrary to all right and practice of civilized nations. Consequently the consular corps protests in the most solemn manner, and holds respon- sible for the consequences and responsibilities of this act whoever is to blame, fur- nishing account to their respective governments of the referred-to circumstance. Yours, respectfully, Felix Ehrman, ■ United States Vice- Consul- General. E. H. Eohrweger, Acting British Vice-Consul. Emile Grey, Agent of the French Consulate. Arthur Koehpcke, Consul of Germany and in charge of the Italian Consulate. A. Jesurum, Jr., Consul of Holland. Ed. Jaramillo Aviles, Consul of Ecuador. I. F. Arango, Consul- General of Guatemala. Federico Boyd, Consul of Spain and of Salvador. Jacob L. Maduro, Consul of Denmark. B. D. FiDANQUE, Consul of Belgica. J. G. DUQUE, Consul of Cuba. B. Mendez, Consul of Mexico. Pedro Arias, Consul of Brazil. Jeronimo Ossa, Consul of Chile and Honduras. Juan Vallarino, Consul of Peru. In compliance with an invitation stuck up and distributed all over the city by the municipal board, Demetrio H. Brid, president, a public meeting of all the corpora- tions, civilians, military and religious bodies took place at 3 p. m. yesterday at the Cathedral Park, where the act of independence was signed by the members of the municipality, the chiefs of the Provisional Government, etc., after which patriotic speeches were delivered in profusion. The Provisional Government has been composed of the following gentlemen: Jose Agustin Arango, Federico Boyd, and Tomas Arias, with the following ministers: State, E. A. Morales; treasury, M. E. Amador; justice, 0. A. Mendoza; foreign rela- tions, F. V. de la Espriella; war and navy, N. A. de Obarrio. 132 INTEROOEANIO OANAL. From latest information we regret to state that Colon doea not appear inclined to join the movement for sejiaration. A commission from that city arrived yesterday evening to consult with the chiefs of the Provisional Government here, and we sin- cerely hope that the differences of opinion existing may be amicably settled in order to avoid all disturbance. The manifesto and declaration of independence we have translated for the benefit of our English readers. We voice the sentiments of one and all, natives as well Jia foreigners, in wishing great prosperity to the new Eepublic. Hurrah for the Republic of Panama! Hurrah for the third of November! DECLAEATION OF INDEPENDENCE. < In the city of Panama, capital of the district of the same name, at 4 o'clock in the afternoon of the 4th day of November, 1903, the municipal council by its own right asseiDbled, there Toeing present the following members of the city council: A'bpuru, Eafael; Arango, Ricardo M.; Arias, F. Agustin; Arosemena, Fabio; Brid, Demetrio H.; Chiari, R. Jose Maria; Cucalon, P.; Manuel, J.; Dominguez, Alcides; Lewis, Samuel; Linares, Enrique; McKay, Oscar M.; Mendez, Manuel Maria, and Valla- rino, Dario, the mayor of the district and the municipal attorney, and having for its exclusive object to debate regarding the situation in which the country is at present, and to decide regarding what should be most convenient toward the tranquillity for the development and aggrandizement of the citizens that constitute the ethnographic and political entity denominated the Isthmus of Panama. Councilmen Arias, F., Arosemena, Chiari, Brid, Cucalon, B., Aizpuru, Lewis, and Linares carefully took under special consideration the historical facts by virtue of which the Isthmus of Panama, by its own free will and in hopes of procuring for itself the ample benefits of right and liberty, cut asunder, on the 28th of November, 1821, its ties from Spain, and spontaneously joined its destiny to that of the great Republic of Colombia./ Reflections were made tending to show that the union of the Isthmus with the old and modern Colombia did not produce the benefits that were expected from this act, and on mature consideration particular mention was made of the great and incessant injury that has been caused to the Isthmus of Pan- ama in its material and moral interests at all times by the governments of the nation which have succeeded each other during the intervals of the federation, as well as those of the centralization— injuries which, instead of being looked after and patri- otically remedied by those whose duty it was, were being augmented each day and increasing in importance with a persistency and ignorance that has exterminated in the cities of the Department of Panama the inchnations which were spontaneously felt for Colombia, thus demonstrating to them that, their cup of bitterness overflow- ing and all hope of the future being lost, the moment had arrived in which to dis- solve certain ties which were a drawback to civilization, which placed insurmoxmtable barriers to all progress, and which, on the whole, has produced unhappiness, upset- ting and undoing the ends of the political union in which they entered, moved by the necessity to satisfy the desire of prospering within the right respected and liberty assured. In view of the circumstances mentioned, the municipal council of the district of Panama, as a faithful interpreter of the sentiments of those they represent, declares in a solemn form that the people under their jurisdiction from to-day and henceforth sever their ties with Colombia in order to form, with the other towns of the Depart- ment of Panama that accept the separation and unite with them, the State of Panama, so as to constitute a republic with an independent government, democratic, repre- sentative, and responsible, that would tend to the happiness of the natives and of the other inhabitants of the territory of the Isthmus. In order to practically attain the fulfillment of the resolution of the peoples of Panama of emancipating themselves from the Government of Colombia, making use of their autonomy in order to dispose of their destiny, to establish a new nationality free from all foreign elements, the municipal council of the district of Panama, for itself and in the name of the other municipal councils of the department, places the administration, working, and direction of affairs, temporarily and while the new Republic be constituted, in a board of government composed of Messrs. Jose Agustin Arango, Federico Boyd, and Tomas Arias, in whom and without any reserve what- soever it gives powers, authorizations, and faculties necessary and suflBcient for the satisfactory compliance of the duties which in the name of the Fatherland are con- fided to them. It was ordered that the inhabitants of Panama be assembled to an open councilin order to submit for their approval the ordinance that the present minutes contain, and which was signed by the officers and members of the corporation present. INTEEOCBANIC CANAL. 133 DemetriO H. Brid, E. Aizpuru, A. Arias R, Manuel J. Cucalon P., Fabio Arose- mena, Oscar M. McKay, Alcidea Dominguez, Enrique Linares, J. M. Ohiari R., Dario Vallarino, S. Lewis, Manuel M. Mendez. The secretary of the council, Ernesto J. Goti. In our next issue we will publish the very extensive list of the signers of the above declaration. MANIFESTO. The transcendental act that by a spontaneous movement the inhabitants of the Isthmus of Panama have just executed is the inevitable consequence of a situation which has become graver daily. Long is the recital of the grievances that the inhabitants of the Isthmus have suf- fered from their Colombian brothers; but those grievances would have been with- stood with resignation for the sake of harmony and national union had its separation been possible and if we could have entertained well-founded hopes of improvement and of effective progress under the system to which we were submitted by that Eepublic. We have to solemnly declare that we have the sincere and profound con- viction that all the hopes were futile and useless, all the sacrifices on our part. The Isthmus of Panama has been governed by the Eepublic of Colombia with the narrow-mindedness that in past times were applied to their colonies by the European nations — the isthmian people and territory was a source of fiscal resources and nothing more. The contracts and negotiations regarding the railroad and the Panama Canal and the national taxes collected in the Isthmus have netted to Colombia tremendous sums which we will not detail, not wishing to appear in this exposition which will go down to posterity as being moved by a mercenary spirit, which has never been nor is our purpose; and of these large sums the Isthmus has not received the benefit of a bridge for any of its numerous rivers, nor the construction of a single road between its towns, nor of any public building, nor of a single college, and has neither seen any interest displayed in advancing her industries, nor has a most infinite part of those sums been applied toward her prosperity. A very recent example of what we have related above is what has occurred with the negotiations of the Panama Canal, which, when taken under consideration by Congress, was rejected in a summary manner. There were a few public men who expressed their adverse opinion, on the ground that the Isthmus of Panama alone, was to be favored by the opening of the canal by virtue of a treaty with the United States, and that the rest of Colombia would not receive any direct benefits of any sort by that work, as if that way of reasoning, even though it be correct, would jus- tify the irreparable and perpetual damage which would be caused to the Isthmus by the rejection of the treaty in the manner in which it was done, which was equivalent to the closing of the doors to future negotiations. The people of the Isthmus, in view of such notorious causes, have decided to recover their sovereignty and begin to form a part of the society of the free and inde- pendent nations, in order to work out its own destiny, to insure its future in a stable manner, and discharge the duties which it is called 'on to do by the situation of its territory and its immense richness. To that we, the initiators of the movement effected, aspire and have obtained a unanimous approval. We aspire to the formation of a true republic, where tolerance will prevail, where the la,w should be the invariable guide of those governing and those governed, where effective peace be established, which consists in the frequent and harmonious play of all interests and all activities, and where, finally, civilization and progress will find perpetual stability. At the commencement of the life of an independent nation we fully appreciate the responsibilities that state means, but we have profound faith in the good sense and patriotism of the isthmian people,, and we possess suflScient energy to open our way by means of labor to a happy future without any worry or any danger. At separating from our brothers of Colombia we do it without any hatred and without any joy. Just as a son withdraws from his paternal roof, the isthmian people in adopting the lot it has chosen have done it with grief, but in compliance with the supreme and inevitable duty it owes to itself — that of its own preservation and of working for its own welfare. We therefore begin to form a part among the free nations of the world, consider- ing Colombia as a sister nation, with which we shall be whenever circumstances may require it, and for whose prosperity we have the most fervent and sincere wishes. Jose Agustin Akango. Fedekico Boyd. ToMAs Arias. r-s t a tA5lf vl\t<4 S o>^ "^ rje^- . . 'o,. '" 'W^¥' • ""-^.*^ :'mk^'\^^' y^:i\^^' 'WMi^^-^'" -t ■^..s^ A^ ^AO* ^c^ _ _^^ '*^'»- ^°^^ii;:''% rf'^^i^'.S 0°^,^.^;^*/^ *• c< % ^ ^^^^- ■J n/^i?k\r fy H/^^Vr * \^^' ^^ ^. ^AO^ 0^ .■r