of rich coal mines, she will be of great importance to the United States, and this country ought to favor and forward the development of the great wealth of Colombia and make of her a firm and constant friend.

(b) From a commercial point of view the United States would find in Colombia a wide field to invest capital and give employment to her citizens; in the Magdalena valley for instance, rubber plantations can be established as rich as those on the borders of the Amazon river, and as to mineral wealth, it is as abundant on the bed of the iver Porce, in Antioquia, in the Province of Marmato, etc., etc., ast in the rich mines of the Transvaal, and it only wants railways to bring the necessary machinery to work the mines. Colombia can furnish to the United States all the tropical products she may want, (c) It is evident that the interests of the United States, Panama, and Colombia are closely connected and that the concessions that Colombia could obtain on the lines of the Herran-Hay Treaty would be more than compensated to the United States and Panama having in this country a firm ally and uniting their strength to the common welfare of the three countries.

[Translation of an important interview in the Correo Nacional, one of the principal newspapers of Colombia and the leading Government organ, with Dr. Ignacio Palau, one of the most prominent and influential men of the Republic and the editor and proprietor of the Correo del Cauca.]

After discussing the conditions of material and agricultural development in the Cauca, one of the richest provinces of Colombia and which borders on the Pacific Ocean and consequently has intimate relations with Panama, Dr. Ignacio Palau was asked by the reporter the following question:

What is the opinion in Cauca on the Panama question?

To this Dr. Palau replied as follows:

The bad economic condition in Cauca will be improved by a dignified and satisfactory arrangement of the Panama question, which neither can or ought to be held in indefinite suspension.

Many and grave are the injuries caused to the commerce of Cauca by the delay of this arrangement, not only for the obstacles which the passage of the Isthmus presents in our relations with the United States and Europe, but also for the market itself of Panama, which is important for the products of Cauca. For this reason the municipalities of Cali and Palmira, as well as thousands of citizens, at the time petitioned the Colombian Congress to approve the HerranHay treaty, and, later on, a large number of the principal inhabitants of Cali held the opinion that the country should arrive at an agreement by which it could obtain all the commercial advantages possible, such as facilities of transit and trade, giving up entirely the idea of pecuniary indemnity on account of such being undignified for Colombia, in view of what had previously occurred. The same identical advantages which would come to the Departments of Cauca and Narino by an arrangement of the Panama question would apply also to the departments of the Atlantic coast.

In Cauca, and I think also along the Atlantic coast, it was anxiously hoped that the mission of Messrs. Mendoza Perez and Cortes, whom our Government sent to Washington, would conclude, as above described, this question, which is one of life and death for us. It is known that Mr. Cortes retired from the mission and that it has remained entirely in charge of Mr. Mendoza Perez. As is well known, from now on closes all official negotiations in Washington, and that nothing definite will be done there until the month of November, in which month there will begin the consideration of these affairs in that capital.

If here in Bogota great importance is not given to settling the question of Panama, it does not follow that the same opinion prevails in our population of the coast of both seas, because for them it is an affair of life and death, and it is not prudent to exasperate the people of that section.

Secretary Root to Minister Barrett.

[Telegram.]

DEPARTMENT OF STATE,

Washington, June 14, 1906.

There is no movement whatever in Congress on the subject of arbitration, and no change of position taken in my note of February 10. Mendoza may have been talking with some malcontent in Congress.

Colombian Chargé to Secretary Root.

[Translation]

ROOT.

SIR: Referring to the interview which I had the honor to have with you this morning, and in compliance with an order by cable from my Government, I hereby send you a copy of the cable to which I referred, thus fulfilling the wishes expressed by you.

The cable is as follows:

COLOMBIAN LEGATION, Washington:

BOGOTA, June 30, 1906.

Notify the Department of State that a new treaty concerning the Panama matters has been begun here with Minister Barrett, on a basis of mutual respect and honor, the treaty to be completed next fall. Cortés has been appointed minister to continue negotiations.

VASQUEZ COBO. With sentiments of highest consideration and regard, I am, Mr. Secretary,

Your obedient servant,

EDUARDO PEREZ TRIANA, Chargé d'Affaires ad interim.

No. 27.]

Secretary Root to Minister Barrett.

DEPARTMENT OF STATE,
Washington, July 2, 1906.

SIR: I have to acknowledge the receipt of your confidential dispatch of May 23 last, concerning the plan for the settlement of all difficulties between the United States and Colombia with respect to Panama, which President Reyes submitted to you during the audience which you had with him on the date above mentioned.

The arrangement under which you are to meet me at Guayaquil and proceed with me to Cartagena renders it unnecessary to add, in

the meantime, anything on this subject to what is contained in the telegraphic messages which have already passed between us further than this:

It is evident that the negotiations will involve a very thorough knowledge of the debt of Colombia, its origin and history, and the relations of Panama to each class of debts. The preparation of this material should be begun immediately and prosecuted diligently. I am, sir, etc.,

ELIHU ROOT.

[Telegram-Paraphrase.]

AMERICAN LEGATION,
Bogota, July 14, 1906.

Reports action taken on that day by National Chamber of Commerce, which had assembled at Bogota, and which represented all parts of Colombia in unanimously passing a resolution introduced by the delegates of the six Pacific and Atlantic Provinces and approved by the Colombian Government favoring negotiations with the United States and Panama as begun by President Reyes and Minister Barrett. Telegram adds that Colombian minister for foreign affairs has announced that Colombia waives demand for money indemnity or arbitration.

The annexed paper was received by Minister Barrett from Mr. Vasquez Cobo, the minister of foreign affairs of Colombia, whose signature it bears, and was handed to me at Panama September 20, 1906. It was produced by me at an interview between Mr. Barrett, Mr. Vasquez Cobo, and myself, at Cartagena, Colombia, on the 24th of September, 1906, and was read, paragraph by paragraph, and made the subject of discussion between us as being the basis for a treaty proposed by Colombia.

Confidential memorandum.

ELIHU ROOT.

In the first place, a treaty similar to the treaty of 1846 will be celebrated with the United States-a treaty of peace, amity, commerce, and navigation.

Once the treaty with the United States has been celebrated, a treaty will be celebrated with Panama, and to this end Panama will send a confidential agent to Bogota to negotiate such a treaty.

BASIS FOR A TREATY WITH THE UNITED STATES.

1. The Government of Colombia will have at all times the right to convey through the canal its ships, troops, and materials for war, even in the case of an international war between Colombia and another country, without paying any duty to the United States.

While the interoceanic canal is in construction Colombia will have the right to transport on the railway between Ancon and Cristobal, or any other railway substituting that one, her troops, ammunitions,

42112-S. Doc. 474, 63-29

and materials for war at all times, even in the case of an international war between Colombia and any other country, under the same conditions that this service is rendered to the United States.

The national employees transmitting through the Isthmus will be entitled to a free passage in the railway.

2. Colombian products, such as provisions, cattle, etc., will enter free of any duty (except that paid by U. S. products 1) to the Canal Zone, where they can be sold, paying only the same duties paid by articles brought from the United States.

3. Correspondence and parcel mails will have a free passage through the Canal Zone and through the post offices of Ançon and Cristobal, paying only such duties as those paid by the United States mails.

4. Colombian products passing through the Isthmus railway from and to Colombian ports will pay a small duty, inferior or at most equal to the duty that Colombia used to pay before to the railway for the same service.

Sea salt exclusively produced in Colombia will pass through the railway free of charge whenever the Government of Colombia sends it, duly certified, from the Atlantic coasts to any Colombian port on the Pacific coast. Colombia will only pay shipment.

5. There will be a differential tariff favorable to Colombia, similar to that existing with Cuba, for Colombian molasses and sugar entering into the United States.

The United States will interpose its good offices in the arrangement between Colombia and Panama, Panama having to pay in a direct manner to Colombia its corresponding share of the foreign debt and the rights that Colombia claims for the sale made by Panama to the United States of the interoceanic railway and other rights that Columbia has in the zone and materials of the canal. There will be a free commerce between Colombia and Panama for national products.

A. VÁSQUEZ COBO.

(MEMORANDUM.-This paper was handed to me by Mr. Enrico Cortes, minister of Colombia, on Thursday, November 8, 1906.)

With reference to that part of the paper relating to the Panama debt, etc., I said to Mr. Cortes that Mr. Vasquez Cobo was mistaken in supposing that in the interview with him I had expressed any opinion whatever as to the application of the theory of the Argentine jurist, Carlos Calvo, to the case under consideration, or as to the amount of $5,000,000 being the proper share for Panama to pay. I had already said that for the discussion of those questions a more specific statement of the claims of Colombia would be necessary, and I carefully refrained from either assent or dissent, or expressing any opinion, either as to the principle to be applied, or as to the amount to be considered, for the reason that I was not sufficiently informed upon the facts to form such an opinion.

November 8, 1906.

E. R. [Elihu Root.]

1 Inserted in pencil.

[Confidential.]

[Copy of Gen. Vasquez Cobo's statement to Mr. Cortes.]

Statement of general terms agreed upon confidentially at Cartagena on September 24, 1906, between Mr. Minister Root and Gen. Vasquez Cobo, acting as Colombian minister of foreign affairs, for a treaty between Colombia and the United States.

Says the memorandum:

In the first place a treaty similar to the treaty of 1846 will be celebrated with the United States. A treaty of peace, amity, commerce, and navigation. Once the treaty with the United States has been celebrated, a treaty will be celebrated with Panama, and to this end Panama will send a confidential agent to Bogota to negotiate such treaty.

While the negotiations for these treaties are in course in Washington, where they will take place, Panama shall send a confidential agent to Bogota, provided the Government of Colombia signifies to Panama their acquiescence to receive him in the above-mentioned capacity. It is understood, however, that the said confidential agent shall not negotiate independently of the respective ministers who are to carry on this business in Washington.

The opportunity or convenience of sending the above-mentioned agent to Bogota is left to the decision of the Colombian minister in Washington.

Says the confidential memorandum:

First. The Government of Colombia will have at all times the right to convey through the canal its ships, troops, and materials for war, even in the case of an international war between Colombia and another country, without paying any duty to the United States.

While the interoceanic canal is in construction, Colombia will have the right to transport on the railway between Ancon and Cristobal, or on any other railway substituting that one, her troops, ammunitions, are materials for war, at all times, even in the case of an international war between Colombia and any other country, under the same conditions that this service is rendered to the United States.

The national employees transiting through the Isthmus will be entitled to a free passage in the railway.

Mr. Root thinks that the above clause No. 1 may be inserted in the treaty, but it should be necessary to treat the point between the United Sates and England on account of the stipulations of the Hay-Pauncefote treaty between the two Nations. Mr. Root believes that England will agree to this clause being stipulated between Colombia and United States.

Mr. Root will also see Mr. Taft, War Minister, on the matter, but thinks there is no reason to raise obstacles.

After writing the above, it was translated and read to Mr. Root, who agrees to its wording. In consequence, the above is to be considered as Mr. Root's genuine opinion.

Says the memorandum:

Second. Colombian poducts, such as provisions, cattle, etc., will enter, free of any duty, to the Canal Zone, where they can be sold, paying only the same duties paid by articles brought from the United States.