together with its cargo and passengers, under suitable regulations for the transit of the imported merchandise and passengers to and from the territory of the Republic of Panama, to use and enjoy the dockage and other facilities of the ports of Ancon and Cristobal, respectively, upon payment of proper dockage dues to the owners of said docks: Provided, however, that reciprocal privileges as to dockage and other facilities at Panama and Colon, together with suitable arrangement for transit of imported merchandise and passengers to and from the territory of the canal zone, shall be granted by the authorities of the Republic of Panama, when not inconsistent with its interests, to any vessel, together with its cargo and passengers, entered at or cleared from the ports of Ancon and Cristobal: provided, however, that nothing herein contained shall affect the complete administrative, police, and judicial jurisdiction of the two Governments over their respective ports and harbors, except as hereinafter provided in section 6. Provided, also, that vessels entering or clearing at the port of Panama shall have the absolute right freely to anchor and lade and discharge their cargoes by lighterage from and to Panama at the usual anchorage in the neighborhood of the islands of Perico, Flamenco, Naos, and Culebra, though included in the harbor of Ancon under the provisional delimitation as amended under section 5 hereinafter, and to use the said waters of said harbor for all lawful commercial purposes. SEC. 3. All manifests and invoices and other documents in respect to vessels or cargoes cleared or consigned for or from the ports of Panama and Colon shall, as heretofore, be made by the officials of the Republic of Panama. All manifests, invoices, and other documents in respect to the vessels and cargoes cleared or consigned for or from the ports of Ancon or Cristobal shall be made by officials of the United States. SEC. 4. No import duties, tolls, or charges of any kind whatsoever shall be imposed by the authorities of the canal zone upon goods, wares, and merchandise imported, or upon persons passing from the territory of the Republic of Panama into the canal zone; and section 5 of the executive order of June 24, 1904, providing that duties on importations into the canal zone are to be levied in conformity with such duties as Congress has imposed upon foreign merchandise imported into ports of the United States, is hereby revoked; but this order shall be inoperative unless the authorities of the Republic of Panama shall grant by proper order reciprocal free importation of goods, wares, and merchandise, and free passage of persons from the territory of the canal zone into that of the Republic of Panama. SEC. 5. The provisions of this order also shall not be operative except upon the condition that the delimitation of the cities and harbors of Colon and Panama, signed on the 15th day of June, 1904, by the proper representatives of the governments of the Republic of Panama and of the canal zone, shall be provisionally in force; and while the same shall remain in force, with the consent of both parties thereto, the provisional delimitation shall include not only the terms set forth in the writing thereof, but also the following, viz: That the harbor of Panama shall include the maritime waters in front of said city to the south and east thereof, extending 3 marine miles from mean low-water mark, except the maritime waters lying westerly of a line drawn from a stake or post set on Punta Mala through the middle island of the three islands known as Las Tres Hermanas, and extending 3 marine miles from mean low-water mark on Punta Mala, which waters shall be considered in the harbor of Ancon. SEC. 6. This order also shall be inoperative unless the proper governmental authorities of the Republic of Panama shall grant power to the authorities of the canal zone to exercise immediate and complete jurisdiction in matters of sanitation and quarantine in the maritime waters of the ports of Panama and Colon. SEC. 7. The executive order of June 24, 1904, concerning the establishment of post-offices and postal service in the canal zone, is modified and supplemented by the following provisions: All mail matter carried in the territory of the canal zone, to or through the Republic of Panama, to the United States and to foreign countries, shall bear the stamps of the Republic of Panama, properly crossed by a printed mark of the canal zone government, and at rates the same as those imposed by the Government of the United States upon its domestic and foreign mail matter, exactly as if the United States and the Republic of Panama for this purpose were common territory. The authorities of the canal zone shall purchase from the FR 1904 M- 41 Republic of Panama such stamps as the authorities of the canal zone desire to use in the canal zone at 40 per centum of their face value; but this order shall be inoperative unless the proper authorities of the Republic of Panama shall by suitable arrangement with the postal authorities of the United States provide for the transportation of mail matter between post-offices on the Isthmus of Panama and post-offices in the United States at the same rates as are now charged for domestic postage in the United States, except all mail matter lawfully franked and inclosed in the so-called penalty envelopes of the United States Government, concerning the public business of the United States, which shall be carried free, both by the governments of Panama and of the canal zone: provided, however, that the zone authorities may, for the purpose of facilitating the transportation of through mail between the zone and the United States in either direction, inclose such through mail, properly stamped or lawfully franked, in sealed mail pouches, which shall not be opened by the authorities of the Republic of Panama in transit, on condition that the cost of transportation of such mail pouches shall be paid by the zone government. SEC. 8. This order also shall not be operative unless the currency agreement made at Washington June 20, 1904, by the representatives of the Republic of Panama and the Secretary of War of the United States, acting with the approval of the President of the United States, for the establishment of a gold standard of value in the Republic of Panama and proper coinage, shall be approved and put into execution by the President of the Republic of Panama, pursuant to the authority conferred upon him by law of the Republic of Panama No. 84, approved June 20, 1904; and unless the President of the Republic of Panama, in order that the operation of the said currency agreement in securing and maintaining a gold standard of value in the Republic of Panama may not be obstructed thereby, shall, by virtue of his authority, conferred by law No. 65, enacted by the National Assembly of Panama on June 6, 1904, abolish the tax of 1 per cent on gold coin exported from the Republic of Panama. SEC. 9. Citizens of the Republic of Panama at any time residing in the canal zone shall have, so far as concerns the United States, entire freedom of voting at elections held in the Republic of Panama and its provinces or municipalities, at such places outside of the canal zone as may be fixed by the Republic and under such conditions as the Republic may determine; but nothing herein is to be construed as intending to limit the power of the Republic to exclude or restrict the right of such citizens to vote as it may be deemed judicious. SEC. 10. The highway extending from the eastern limits of the city of Panama, as fixed in the above-mentioned provisional delimitation agreement of June 10, 1904, to the point still farther to the eastward where the road to the "savanas crosses the zone line (which is 5 miles to eastward of the center axis of the canal), shall be repaired and maintained in a serviceable condition at the cost and expense of the authorities of the canal zone; and also in like manner the said road from the said eastern limits of the city of Panama to the railroad bridge in the city of Panama shall be repaired at the cost of the authorities of the canal zone. But this order shall not be operative unless the Republic of Panama shall waive its claim for compensation for the use in perpetuity of the municipal buildings located in the canal zone. SEC. 11. The United States will construct, maintain, and conduct a hospital or hospitals, either in the canal zone or in the territory of the Republic, at its option, for the treatment of persons insane or afflicted with the disease of leprosy, and the indigent sick, and the United States will accept for treatment therein such persons of said classes as the Republic may request; but this order shall not be operative unless, first, the Republic of Panama shall furnish without cost the requisite lands for said purposes if the United States shall locate such hospital or hospitals in the territory of the Republic, and, second, unless the Republic shall contribute and pay to the United States a reasonable daily per capita charge in respect of each patient entering upon the request of the Republic, to be fixed by the Secretary of War of the United States. SEC. 12. The operation of this executive order and its enforcement by officials of the United States on the one hand, or a compliance with and performance of the conditions of its operation by the Republic of Panama and its officials on the other, shall not be taken as a delimitation, definition, restriction, or restrictive construction of the rights of either party under the treaty between the United States and the Republic of Panama. (Signed) This order is to take effect on the 12th day of December, 1904. PANAMA, December 3, 1904. YOUR EXCELLENCY: After very full conferences with you and your advisers, 1 have drafted an executive order, which I have the authority of the President of the United States to sign and put in force, and which in its operation and conditions, if complied with, seems to me to offer a solution, honorable and satisfactory to both nations, of the differences between the United States and the Republic of Panama. I inclose a draft of the order. I understand that you and your advisers concur in the wisdom of this solution, but I should be glad to have an expression of your approval of it before formally signing the order and giving it effect. Your Excellency will observe that the order is drawn to take effect on the 12th of December. This delay is for the purpose of giving full publicity to all concerned. I have the honor to be, with the assurances of my most distinguished consideration, Your obedient servant, Secretary of War of the United States, at Panama. SIR: As the embodiment of the conclusions reached by our respective Governments, after the full and satisfactory conferences which have been had between you, myself, and advisers, I have the pleasure to express the concurrence of the Republic in the executive order of the Secretary of War made by direction of the President of the United States under date of this the 3d day of December, 1904. Aside from the wisdom and justice evidenced by this happy solution of the differences between the United States and the Republic of Panama, permit me to express, in behalf of the Republic and of myself and advisers, our gratitude for your gracious visit to Panama and your patient, judicial and statesmanlike considerations of the subjects involved. I have the honor to be, my dear Mr. Secretary, and with assurances of my highest esteem, sincerely yours, M. AMADOR GUERRERO, President of the Republic of Panama. SANTIAGO DE LA GUARDIA, Secretary of Government and Foreign Affairs. Mr. Barrett to Mr. Hay. [Telegram.-Paraphrase.] PANAMA, December 13, 1904. (Mr. Barrett reports that the new system of relations in the Canal Zone were successfully inaugurated and that the details are being perfected by Governor Davis, the minister for foreign affairs, and himself.) EXTRADITION OF HERMAN E. HAASS. Mr. Adee to Mr. Barrett. [Telegram.] DEPARTMENT OF STATE, Washington, September 8, 1904. Ascertain and report whether Government of Panama will entertain request for surrender as act of comity of a fugitive from the United States charged with embezzlement. While United States Government can not, until treaty becomes effective, promise reciprocity, the early ratification of treaty by our Senate will enable this Government to grant extradition. ADEE. Mr. Barrett to Mr. Hay. [Telegram.] PANAMA, September 8, 1904. Panama Government agrees as act of comity to entertain request for surrender of fugitive. BARRETT. Mr. Adee to Mr. Barrett. [Telegram.] DEPARTMENT OF STATE, Washington, September 12, 1904. Referring to your telegram of September 8, request as act of comity provisional arrest and detention of Herman E. Haass, charge embezzlement $20,000 of Corn Exchange National Bank, Chicago. Warrant of arrest issued. Formal papers being prepared. Supposed Haass is or will be at Gran Hotel Central, Panama City, to-morrow, under assumed name Frank Edwards. Description: Age 49, height about 5 feet 9, weight 155, hair brown, somewhat bald, eyes blue, very nervous, continually chewing gum. ADEE. Mr. Adee to Mr. Barrett. [Telegram.-Paraphrase.] DEPARTMENT OF STATE, Washington, September 13, 1904. (Mr. Adee informs Mr. Barrett that Haass has been in Panama for some time, and that it is expected that he will be at the Hotel Gran Central to-day.) No. 40.] Mr. Barrett to Mr. Hay. AMERICAN LEGATION, Panama, September 13, 1904. SIR: I have the honor to acknowledge and confirm telegrams received and sent by this legation. I beg to state that the police of Panama have been notified, and that every possible precaution has been taken by them and by this legation to apprehend the individual in question." I have, etc., JOHN BARRETT. Mr. Barrett to Mr. Hay. No. 41.] AMERICAN LEGATION, Panama, September 19, 1904. SIR: Referring to the Department's telegrams and those from this legation, I have the honor to advise you of the arrest and detention of Herman E. Haass (alias Frank Edwards), who defaulted from the Corn Exchange National Bank of Chicago with $20,000 gold. Immediately upon receipt of the Department's telegram of the 12th instant the Panama authorities were notified, and as a result of their efficient action Haass was captured at the Astor House, Colon, on the 14th. He had sent from there a note to the Hotel Central, Panama, with the request that letters arriving for him should be forwarded to the former place. The prisoner was brought to Panama with his effects, protesting violently that he had never been in Chicago, that he was not the man wanted, but "Frank Edwards," and that the whole affair was a case of mistaken identity. On the morning of the 15th he was visited by Mr. Lee, the secretary of this legation, who entered the prisoner's cell abruptly and addressed the man as Haass, and asked how long it was since he had left Chicago. The prisoner, taken unawares, faltered and replied that it had been some months since he had left that city, and he asked Mr. Lee how he knew that his (the prisoner's) name was Haass. Then the defaulter tried to retract what he had said and broke down, but identification had been established and was afterwards thoroughly proven when his papers were examined. In the meantime, however, another man, A. W. Rhude, about to sail for Central American ports, and whose appearance was somewhat similar to the Department's cabled description, was kept under surveillance but not under arrest, at my request, by the Panama police. He sails for his destination to-morrow, and I have settled with him for his hotel bill, which amounts to $30 silver ($14.28 gold), for which I inclose receipt in duplicate, with the request that the Department collect the same from the responsible parties so that I may reimburse myself. I have communicated the Department's thanks to the Panama authorities, and through them to Chief Arango for his able and successful action which resulted in the capture of Haass, who will be delivered to the officer about to arrive with formal papers. JOHN BARRETT. I have, etc., |