In this connection I desire to incorporate herein the following paragraph from my Foreign Office note No. 68 of June 9, 1914:

It is believed that it will be considered beyond debate, also, that the ability to main tair order consists not alone in the restoral of quiet after a debacle of passion, but also in the visitation of punishment upon those involved so swiftly and so severely that they themselves and others will be given such warning and restraint thereby that like violations of the laws of God and man will not be repeated, and intimate and affectionate feelings between two Governments wounded and subjected to strain.

In other words, needed measures in dealing with offenses of this kind are those of prevention as well as redress, and the Panaman Government, by its failure to adopt such measures of prevention, is charged now all the more heavily with a large degree of respoùsibility for whatever excesses the policemen may have indulged in upon the recent deplorable outbreak.

Respectfully soliciting the attention to the importance to which this communication attains, and to the firmness of resolve of my Government, which has given expression to the specific instructions herein which I have been charged so emphatically to communicate to your excellency's Government,

I avail [etc.]

File No. 419.11D29/87.

No. 476.]

WM. JENNINGS PRICE

Minister Price to the Secretary of State.

AMERICAN LEGATION,

Punama, April 17, 1915. SIR; I have the honor to report that on Wednesday last, Sr. Lefevre, Panaman Secretary for Foreign Affairs, asked me to come to this office for a conference. He began by stating when I arrived, that they were going to settle the Cocoa Grove riot of July 4, 1912, with our Government and pay damages and even before their Supreme Court acted in the matter; that before the week was over he would transmit to me a note to this effect. I responded to him that it would be advisable to make his note as full and satisfactory as possible; that our Government felt that if there had been an earnest prosecution in this affair, the last two deplorable happen ings might not have taken place; and that my last note to him in the matter was at the express direction both by mail and cable from the Department of State. He made reference, as usual to their dif ficulty in controlling the action of their courts and again repeated that before the week was over he was going to send a note that he believed would conclude the whole affair. I have not yet received the note.

He then proceeded to say that they had concluded, for the purpose of avoiding further clashes between the soldiers and their police, to propose that the red-light districts of Colon and Panama, respectively, be put in charge of American policemen. He took particular occasion to say that they should be under the command of the Panama Commandante of Police and observe Panaman jurisdiction but would be placed directly under an American police officer who would be subject to their chief; that Panama would pay them the same salaries now being paid the Canal Zone policemen, and remark ing that [as] all troubles arose in these districts they felt this would remedy the situation. He asked directly whether I did not think this would be the solution of the problem. I replied that I did not feel prepared to express an opinion until the Department of State might be consulted, and that the War Department, more directly con cerned, would want to be heard in the matter. I expressed gratification that he and his fellow officials were giving serious thought to

the situation and remarked to him that conditions at their police headquarters and in connection with their arrest and treatment of civilians (claims regarding which I reminded him I had before him now) should also bo considered by them.

I asked him why the abolishment of these districts was not also considered and he replied that he did not believe it possible now. He remarked further that our police officer in charge of our men could also aid their police as an instructor and the example of our policemen's conduct would be helpful to theirs.

I have [etc.]

File No. 419.11D29/88.

WM. JENNINGS PRICE.

Minister Price to the Secretary of State.

[Telegram.]

AMERICAN LEGATION,

Panama, April 26, 1915.

Minister for Foreign Affairs late Saturday transmitted six-page note in the matter of Cocoa Grove affair of Fourth of July 1912. He refers to the consideration expected by Panama from America: charges that our soldiers and marines began the trouble; that good faith in their court proceedings had been shown already when the criminal court last April held that a Panaman was subject to prosecution in the matter except for the fact of dying within a month after the trouble happened and that Panaman police acted throughout within their duty. He then offers that the [omission in transmission]. Panama will continue to urge their courts to as prompt action as possible in the matter and that without waiting longer and in view of our insistence Panama will pay money indemnities. In view of the foregoing, however, he proposes that a disinterested party be selected to value the damages and requests this proposal submitted to the Secretary of State of the United States:

That one of the diplomatic agents of one of the friendly nations accredited in Panama, chosen freely by the Government of your excellency, shall be constituted and shall decide the amount of the indemnity which Panama should pay for each one of the murdered citizens and for each one of those who suffered wounds in the riot of July 4, 1912. If the Government of your excellency accepts the formula of settlement, which is equitable, it could be put in writing and the respective arbitral agreement signed binding the parties to respect and fulfill the deci sion which may be rendered.

Note and its translation will be forwarded by mail Wednesday.

PRICE.

CLAIMS: DAMAGES CAUSED BY RIOT

Protocol signed at Panama November 27, 1915

Entered into force November 27, 1915

Terminated December 9, 19161

Treaty Series 62

PROTOCOL

The Government of the United States of America and the Governmen of the Republic of Panama, through their respective Plenipotentiaries, H Excellency, William Jennings Price, Envoy Extraordinary and Ministe Plenipotentiary to Panama, on the part of the United States, and His Excel lency, Ernesto T. Lefevre, Secretary of Foreign Affairs, on the part of th Republic of Panama, being duly authorized thereto, have agreed upon an concluded the following protocol:

WHEREAS, the Government of the United States claims indemnities fo the death and injury of American citizens in a riot which occurred in Coco Grove, Panama City, July 4, 1912, and

WHEREAS, the Government of Panama has agreed, in principle, to th payment of such indemnities irrespective of the circumstances affecting th riot; and

WHEREAS, the two Governments have been unable to agree upon th amounts of such indemnities, and have concluded to submit to arbitration the determination of the amounts to be paid by the Republic of Panama, i is, therefore, agreed as follows:

ARTICLE I

The High contracting parties agree to submit to His Excellency W. L. F.C van Rappard, Envoy Extraordinary and Minister Plenipotentiary accredited by the Government of the Netherlands to the Governments of the United States and Panama, the determination of the amount of damages to be paid for each one of the American citizens killed and for each one injured as a re sult of the riot, and agrees that he shall award the amounts so determined against the Government of Panama.

'On payment of award by Panama (1916 For. Rel. 918).

ARTICLE II

His Excellency W. L. F. C. van Rappard shall determine the amounts of such damages upon such papers as may be presented to him by the Secretary of State of the United States and the Envoy Extraordinary and Minister Plenipotentiary of the Republic of Panama at Washington, respectively, within five months from the date of the signing of this agreement, but it is expressly understood and agreed that such papers shall relate only to the amount of damages to be paid.

The case shall then be closed unless His Excellency shall call for further documents, evidence, correspondence, or arguments from either Government, in which event, such further documents, evidence, correspondence or arguments shall be furnished within sixty days from the date of the call. If such documents, evidence, correspondence or arguments are not furnished within the time specified a decision in the case shall be given as if they did not exist. The entire case of cach Government shall be presented in writing.

ARTICLE III

A reasonable honorarium to His Excellency W. L. F. C. van Rappard shall be paid by the Government of Panama.

ARTICLE IV

The decision of His Excellency W.L.F.C. van Rappard shall be accepted as final and shall be binding upon the two Governments.

IN WITNESS WHEREOF, the undersigned have hereunto signed their names and affixed their seals.

Done at Panama the 27th day of November 1915."

#91. United States Insistence in 1921 That Panama Accept the Loubet and White Arbital Awards in the Boundary Dispute With Costa Rica*

718.1915/368a ; Telegram

The Secretary of State to the Minister in Panama (Price) WASHINGTON, March 15, 1921—8 p.m. 28. You are instructed to communicate the following note at once in writing to President Porras:

The Government of the United States has been advised by the American Legation in Panama of the receipt from the Government of Panama of a note dated March 4" in which, after referring to the efforts of the Costa Rican Government to evict Panama from its possession of Coto and to the invasion by Costa Rica of the territory on the east of the Sixaola River, the Government of Panama requests a declaration of the manner in which the Government of the United States understands its obligations toward Panama in relation to these events and in the light of the first Article of the Hay-Bunau Varilla Treaty. The Government of Panama states that the territorial and political integrity of the Republic has been affected by what it terms the acts of illegal warfare committed by the Government of Costa Rica.

By Article 1 of the Hay-Bunau Varilla Treaty, it is provided that the Government of the United States "guarantees and will maintain the independence of the Republic of Panama". The Government of the United States fully recognizes the obligation thus assumed, and its recent communications to the Governments of Panama and Costa Rica have been dictated not only by its manifest interest in the maintenance of peace but by its recogition of its duty in the circumstances disclosed. The Government of Panama cannot fail to realize that in order that the Government of the United States may fully perform its obligation under the treaty it must advise itself as to the extent of the sovereignty of the Republic of Panama and hence of the territorial limits of Panama. It follows that the Government of the United States deems it necessary to inquire fully into the merits of a controversy which relates to the boundary of the Republic of Panama. This Government has no doubt that the Government of Panama will also recognize that there is implicit in the provisions of the HayBunau Varilla Treaty an undertaking on the part of Panama to observe faithfully its international obligations. The guaranty given to the Republic of Panama by the United States is obviously conditioned upon that performance.

It appears that the question which has been raised by the Government of Panama with respect to the boundary between Panama and

Foreign Relations of the United States, 1921, pp. 184-189, 224-226.

See telegram no. 52, Mar. 4, from the Minister in Panama, p. 180.