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the objection and have assessed the same upon the principle that he is to be allowed the amount which, as landholder, his property will be affected by the action of the United States in taking same for canal purposes.

In submtting this report, it may not be deemed amiss to congratulate all parties concerned that these complicated and difficult questions have been conclusively determined by the unanimous action of the commission and the rights of all in interest, as we believe, fully and amply protected. It is also proper to add that we have been greatly aided in coming to determination by the zeal and ability displayed by counsel of the United States Government, as well as by counsel who represented some of the claimants.

EDWIN DENBY, Chairman,
EVERETT C. BUMPUS,

Commissioners on behalf of the Government of the United States.

GIL PONCE J.,
JULIO J. FRabega,

Commissioners on behalf of the Government of the Republic of Panama.

EXPROPRIATION PROCEEDINGS.

Cases determined: Juan Diaz Cabellero, containing 83,618 hectares; Gavilan and Gavilancito, containing 17 hectares; San Lazaro, containing 1 hectare.

FINDINGS OF EDWIN DENBY, UMPIRE.

The question of title does not arise in any of these cases, as the titles of claimants are undisputed. Claimants challenge the right of the Government of the United States to abandon a portion of a tract once noticed for expropriation and concerning which a trial has been had before commissioners, but no agreement reached.

I find that the United States has the right to abandon before final judgment, but must give fair compensation to owners for occupation, actual or presumed, of the land and pay any incidental damages accruing therefrom.

I find the United States is liable in damages as follows: To Mr. Francis Schuber for the occupation and use for four years of the property known as Corozal, situatd on the estate of Juan Diaz Cabellero, for the damages done by the occupation and subsequent abandonment of 75 hectares, more or less, of the said estate, and for the value of 83,816 hectares of land now expropriated, $45,000 gold, with interest at the rate of 6 per cent per annum from the date of this report.

To Maria Concepcion, Sosa, for the expropriation of 17 hectares of the estate known as Gavilan and Gavilancito, $15,000 gold, with interest at the rate of 6 per cent per annum from the date of this report.

To Mr. Gabriel Duque, for the occupation for one year of 11 hectares of the estate known as San Lazaro and subsequent abandonment of the same, and for the expropriation of 1 hectare of the said estate, $1,000 gold, with interest at the rate of 6 per cent per annum from the date of this report.

EDWIN DENBY, Umpire.

JURISDICTION OVER WATERS OF MANZANILLO BAY.

[Interpretation of Article II of the treaty of 1903 between the United States and

File No. 312/62.

No. 24.]

Panama.]

The Minister of Panama to the Secretary of State.

[Translation.]

LEGATION OF PANAMA, Washington, July 22, 1907. EXCELLENCY: In the middle of the year 1905, the concern styled "The Central & South American Telegraph Co.," with headquarters in the city of New York, submitted to the Government of

Panama, through its agent, propositions for the continuance of the contract the company had made with the Government of Colombia, or for a renewal of the contract or the signing of a new contract on bases similar to those found in existing contracts between the concern and the Government of Colombia and the other South American countries.

The Government of Panama, heeding the interests of the country and the prohibition contained in the organic law of the Republic, found itself constrained to deny the petition of the cable company, and, in turn, offered to its representative the draft of a liberal contract, the only objections to which on the part of the company were the terms of duration offered by the Government and the defect that it was not granted an exclusive privilege.

From that time until now the company has been treating with your excellency's Government about the matter, and information has reached the department of foreign relations of my country to the effect that the said Government has granted the Central & South American Telegraph Co. permission to lay its cable as far as Colon or some point in the Panama Canal Zone.

As my Government has no positive knowledge of the fact and as the cable would have to cross Panaman waters, the secretary of foreign relations of my country directs me respectfully to apply to your excellency for information on the subject, and closes his instructions by asking me to say to your excellency that under the narrowest limit recognized by international law-three marine leagues-the whole of the Bay of Limon, within which, according to the HayBunau Varilla treaty, the canal begins, is part of the territorial waters of Panama; and that this makes it appear that the cable company proposes to ignore our rights, notwithstanding Panama's liberal offers to the said company and to the American Government itself; and, as this seems unlikely, I should address the Department of State and request an explanation of what has been or may be done in this very delicate matter and ask that until the two Governments reach a mutually satisfactory agreement that will adjust the difficulty, orders be issued to suspend all operations for the laying and landing of the telegraphic cable, as it is proposed to do.

I am asked by my Government to communicate by cable to Panama the result of this inquiry. I beg that your excellency will deign to let me know as soon as possible the circumstances of the case to enable me to comply with my Government's wishes.

If your excellency should wish to have an interview with me respecting this matter, I shall be very glad to place myself at your excellency's disposal.

I avail, etc.,

File No. 312/62.

J. A. ARANGO.

The Acting Secretary of State to the Minister of Panama.

No. 55.]

DEPARTMENT OF STATE, Washington, August 3, 1907.

SIR: I have the honor to acknowledge the receipt of your note of the 22d ultimo referring to the negotiations between the Central & South American Telegraph Co. and the Government of Panama for

the landing of the company's cable and to a report that this Government had granted permission to the company to land in the Canal Zone.

You ask to be advised what has been done in this matter.

In reply I have the honor to say that a copy of your note has been transmitted to the Secretary of War. As soon as the department receives his reply a further response will be made to your note.

Accept, etc.,

File No. 312/65.

ALVEY A. ADEE.

The Acting Secretary of State to the Minister of Panama. No. 56.]

DEPARTMENT OF STATE, Washington, August 24, 1907.

SIR: Referring to your note of the 22d ultimo and the department's reply of the 3d instant in regard to the landing of the cable of the Central & South American Telegraph Co., I have the honor to say that the department, as stated in its note of August 3, transmitted a copy of your note to the Secretary of War, who, under date of August 16, advises me as follows:

Under the terms of the treaty [between the United States and Panama] and under the provisional delimitation agreement of June 15, 1904, the waters of Manzanillo Bay below mean low-water mark should be regarded as territory of the Canal Zone, and therefore subject to the jurisdiction of the United States. The cable of the Central & South American Telegraph Co. was laid pursuant to a permit granted by the President of the United States, and has been laid through the waters of Manzanillo Bay beyond the mean low-water mark, and landed within the city of Cristobal.

As will be seen from this statement of the Secretary of War, the cable of the Central & South American Telegraph Co. has been laid in waters which, by the terms of Article II of the convention of November 18, 1903, are comprised in the grant to the United States for its use, occupation, and control.

Accept, etc.,

File No. 312/71-73.

No. 78.]

ALVEY A. ADEE.

The Acting Secretary of State to Minister Squiers.

DEPARTMENT OF STATE, Washington, January 2, 1908.

SIR: I inclose copy of a letter from the President transmitting one from the chairman and chief engineer of the Isthmian Canal Commission, stating that the Panaman Government construes Article II of the treaty of November 18, 1903, in such a way as to deprive the United States of jurisdiction over the waters of Manzanillo Bay and over the waters affording entrance to the canal.

I also inclose a copy of my reply to the President.1

You will advise the Government of Panama that this Government holds that Panama has no jurisdiction whatever, of any kind, over the waters through which ships must pass in entering the Panama Canal.

1 Not printed.

The department on August 24 last advised the Panaman minister at this capital, touching the right of the Central & South American Cable Co., to lay a cable through Manzanillo Bay beyond mean lowwater mark, that "the cable has been laid in waters which by the terms of Article II of the convention of November 18, 1903, are comprised in the grant to the United States, for its use, occupation, and control."

A copy of that note is also inclosed.1

I am, etc.,

ROBERT BACON.

1 Supra.

PERSIA.

MURDER OF REV. BENJAMIN W. LABAREE.

[See also Foreign Relations, 1904, 1905, 1906, and 1907.]

File No. 5931/171.

No. 33.]

Minister Jackson to the Secretary of State.

[Extract.]

AMERICAN LEGATION, Teheran, February 12, 1908. SIR: I have the honor to confirm the telegram sent you on the morning of the 9th instant, as follows:

Dasht Kurds, dissatisfied with Turkish treatment, are willing to return to Persian allegiance and obey orders of the Persian authorities, provided the Shah pardons and gives promise that there will be no further prosecution because of murdered missionary. In presenting letter of recall, my predecessor is said to have expressed satisfaction that the Labaree case was satisfactorily settled. I have been requested to confirm the settlement formally and to state that no further demand for punishment of accessories will be made by the American Government. Please instruct as soon as possible.

I have also to confirm the text of your reply, which was received yesterday, as follows:

We have already relinquished demand for punishment of accessories to murderers of Labaree, leaving Persian law to take effect if the murderers return to Persian jurisdiction. If the Persian Government believes high consideration of national welfare counsel nonprosecution, we will not raise objection.

To-day I called on the minister of foreign affairs (the Musher-edDowleh) at his weekly reception, and left with him a note in which I stated that "the American Government will not raise any objection if the accessories to the murderers of Mr. Labaree should be pardoned "; that "my Government considers the case closed and it has already relinquished its demand for the punishment of these men, but it was anticipated that the Persian Government would punish them as a matter of course if they returned to Persian jurisdiction"; and that "if the Persian Government is of the opinion, however, that their pardon is advisable because of considerations of national welfare, no objection will be raised by the United States." The minister. thanked me warmly for this communication.

I shall now inform Mr. Doty, our consul at Tabriz, that the incident is closed and that no further demand for punishment of the men in question is to be made.

It is improbable that at this date any particular person could be proven to have been an accessory, and in view of the death of the actual murderer (in regard to which there can be no reasonable doubt) and the reparation already made, I think that we have acted wisely in relinquishing all further demand for punishment.

I have, etc.,

JOHN B. JACKSON.

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