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to continue in the business, so I suggested that it could probably buy those of the Pacific Mail now; he said that for various reasons the Government could not do this now, but that he would try to persuade some of the merchants to do so; however, he would like to know what he was to do with the seized lighters, and when I said to lay them up, he declared that the Germans would immediately complain, and that he had already received a telegram from the Spanish Minister in Guatemala transmitting a message from the German Government to the effect that Honduras would be held strictly accountable for its acts regarding the lighters, to which he had replied by a mere acknowledgment.

The President has shown considerable interest recently in the success of the National Agency and I feel sure that our placing it on the enemy trading list will result in his forbidding the operation of any but its lighters and the consequent total closure of the port of Amapala. If these results can be avoided at all it seems to me that an attempt should be made to arrange for the purchase by the Honduranean Government of the lighters of the Pacific Mail agency; however, the owners may not be willing to sell and the Government has no money except what it has borrowed, which it does not wish to touch.

CURTIS

File No. 763.72112Am1/81

The Chargé in Honduras (Curtis) to the Secretary of State

[Telegram]

TEGUCIGALPA, May 2, 1918, 1 p. m.
[Received May 3, 5.45 a. m.]

Supplementing my April 30, 12 p. m. I find that owing to the delays and mismanagement of the National Agency the Pacific Mail agent is constantly obtaining more and more of the business which was not given him at first; that the National Agency is allowing its lighters to fall into bad condition so that in a few months it will probably have to retire from business; and that it is losing money rapidly owing to internal confusion and failure to send out bills. Under these circumstances, I wish to withdraw my recommendation in favor of the Government buying the Pacific Mail lighters.

If the Government discontinue [does continue] there is always danger that it will so hinder the operations of its competitors that it will secure much, if not all, the business.

Anything in the nature of an ultimatum, such as blacklisting the National Agency, should be avoided if another solution can be found...

I shall await your answer to this cable before acting on any further instructions regarding this matter.

CURTIS

File No. 763.72112/9398

The Chargé in Honduras (Curtis) to the Secretary of State

[Telegram]

TEGUCIGALPA, July 11, 1918, noon.
[Received July 12, 7.26 a. m.]

Your July 1, 3 p. m.' The President informs me that he has sent positive instructions to the National Agency to abstain from all business with parties on the enemy trading list. He also promises the appointment immediately of a new manager and complete separation from the customary course [sic] and absolute equality of treatment for the De Hart agency. He further repeats his assurances that the Government has sequestrated the lighters without paying for them or making any agreement of any kind to pay and that they will have to be returned after the war; and he expressed the opinion that it was not fitting that the Government be engaged in such business under ordinary circumstances. He asked my consent to telegraph to the Minister at Washington to correct his understanding and I made no objection. Regardless of any instructions he may give I feel sure that some favoritism will be shown, but I recommend that the Trading with the Enemy Act be not enforced.

The enforcement of that act would remove a source of pressure which can be used at any time but its enforcement would cause great ill-feeling, and I consider that it is much more important to secure what you recommend in telegram of July 5, 6 p. m.2

I have already protested against the freedom of movement allowed to the Germans, whose leaders held a well-attended meeting at Sabanagrande on the 5th instant, and the President appears to be disposed to issue orders requiring them to obtain permission each. time that they desire to move from one place to another. I shall endeavor to secure the issuance of such orders.

CURTIS

'Not printed.

2

Supplement 1, vol. II, p. 1031.

File No. 763.72113/684

The Chargé in Honduras (Curtis) to the Secretary of State

[Telegram]

TEGUCIGALPA, September 16, 1918, 3 p. m.

[Received September 17, 6.45 p. m.]

Department's instruction No. 252, July 31.1 The President at noon said that the Honduranean Government was studying what steps could be taken against the Germans without violating the provisions of the Constitution, but that no one of the measures discussed had been considered to such an extent that it could be spoken of as contemplated. He said that the Government would be most pleased to have an expert of the War Trade Board and Alien Property Custodian come here so that Honduras might copy such parts of the laws of the United States as might be appropriate to the conditions existing in this country. He added that he considered it advisable that this expert come immediately so that laws might be drafted for presentation to the Congress when it reassembles at the beginning of January.

It is of the utmost importance to send a man who is familiar with conditions in Latin America, if an expert with such qualifications is obtainable, and he should be instructed to keep in close touch with the Legation. Would moreover refer to my despatch No. 809. August 31,3 and show it to the person who is appointed.

CURTIS

Panama

File No. 763.72112/10103

The Chargé in Panama (Greene) to the Secretary of State

No. 2066

PANAMA, August 26, 1918.
[Received September 10.]

3

SIR: With reference to my telegram of May 29, 12 noon, to the Department's telegram of June 3, 4 p. m.,3 and to previous despatches to the Department on the subject of the promulgation of a trading with the enemy decree and of a decree on the subject of espionage by the Government of Panama, I have the honor to transmit herewith enclosed (enclosure No. 13) translation of a note dated August 22, received from the Panaman Secretary for Foreign Affairs, stating that these two measures cannot be promulgated in the form of decrees, but that they will be urged upon the National Assembly at one of its first meetings in September, in order that they can be adopted as the

See footnote 1, ante, p. 367.

See footnote 2, ante, p. 372. 8 Not printed.

laws of Panama, as originally drafted by Maj. Ira K. Wells, Judge Advocate General of the Panama Canal Department. These original drafts have already been submitted to the Department in previous correspondence.1

The question of persuading the Government of Panama to adopt these laws has been one of constant negotiation between this Legation and the Foreign Office of Panama, since April last. . .

I now no longer have any reason to doubt that early in September these two measures so long urged upon the Government of Panama, will become laws.

I have [etc.]

ELBRIDGE GERRY GREENE

File No. 763.72112/10167

The Minister in Panama (Price) to the Secretary of State

[Telegram]

PANAMA, September 18, 1918, 2 p. m.
[Received 8.30 p. m.]

Legislative action on our trading with the enemy proposal, referred to in Legation's despatch No. 2066 of August 29 [26], has been withheld at our suggestion until we might have the opinion of the Department as to adding to our proposal an article authorizing land holdings of alien enemies in Panama to be sold and title conveyed. Those mainly in mind are the holdings of a German syndicate on Puerto Piñas Bay under management of Augusto Dzuik, now interned. See Legation's despatch No. 1456, July 5, 1917.1 We would like to get rid of this German ownership if deemed proper by the Department. I presented the matter while in Washington and have the impression that an expression was obtained by the Latin American Division from the Counselor. Information and instructions are respectfully solicited.

PRICE

File No. 768.72112/10167

The Secretary of State to the Minister in Panama (Price)

[Telegram]

WASHINGTON, October 18, 1918, 9 p.m.

Your September 18, 2 p. m. It would seem desirable for best interests of Panama that an article authorizing land holdings of alien enemies in Panama to be sold and title conveyed, should be incorpo

[blocks in formation]

rated in the Panaman legislation. American Alien Property Custodian has power under Enemy Trading Act to sell real property in United States belonging to persons defined as enemies by section 2 of act, or proclamations issued thereunder, but the disposition of the proceeds of such sales is left for the decision of Congress. As yet Congress has not determined the disposition of such proceeds.

LANSING

File No. 763.72112/10814

The Minister in Panama (Price) to the Secretary of State

No. 2158

PANAMA, November 5, 1918.
[Received November 20.]

SIR: In accordance with the Department's cablegram of October 18, 9 p. m., that it would seem advisable that in the trading with the enemy act under consideration by Panama provisions be included authorizing land holdings to be sold and title conveyed, I have submitted to the Panaman Foreign Office an amended bill, containing these provisions. Maj. Ira K. Wells, Judge Advocate on the staff of Brig. Gen. R. M. Blatchford, commanding the Panama Canal Department, had charge of drawing the amendments after my presentation of the matter to him. I have the honor to enclose (enclosure No. 11) a copy of my note to Secretary Lefevre submitting them. I enclose also (enclosure No. 21) a copy of the proposed bill, including said additions. They are incorporated as sections 5, 6, 7, 8, 9, 10, 11, 12, 13, and 14 in the draft of the bill which constitutes a part of enclosure No. 1 with my despatch No. 1923 of April 24, 1918, which was corrected by the incorporation of the subsection. reported in my despatch No. 2109 of September 30, 1918.1 With these additions inserted under the section numbers mentioned, section No. 5 in the draft accompanying said despatch No. 1923 becomes section 15 in the present draft.

I now refer to another despatch in this mail1 relating to the steps being taken to sell for taxes and lawyers' fees the lands on Puerto Piñas Bay, which have been owned by Germans under the name of the Balboa & Pacific Estates Co., Ltd., and managed by Augusto Dzuik, now an inmate of an internment camp in the United States. With the very satisfactory progress of the war in late weeks the question has presented itself as to whether further steps along the line of this bill were worth while, but in view of the protracted length of time required to put through any measure like this in Panama, it seemed just as well to submit it, and, if passed, to decide 'Not printed.

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