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have great commercial interests in Panama, as it is a well known fact that, during the time that the French Company was working on the Canal, they were the principal purveyors of the workingmen of the Canal and derived many thousands of dollars from this trade each month.

B. It is well to remember the fact that when the Herran-Hay Treaty was about to be discussed, the Town Councils of Cali, Palmira, etc., etc., and a great many distinguished citizens, asked the Colombian Government, through Congress, to approve the said Treaty and to save thereby the commercial interests of those regions; but the political passion of the sectarians leading Congress at the time reached to such an extreme that they withheld those petitions from the public knowledge.

C. Public feeling at the time the question was dealt with had reached to a high degree of madness in the Capital and nobody can be held especially responsible as that feeling was almost general. Perhaps no more than three gentlemen were free from the contagion and had the civil courage to maintain firmly that the Treaty was good and convenient, that it favored Colombia more than it did the United States, and that they ought to approve it.

D. After the great misfortune of the dismemberment of the national territory and the irretrievable loss of Panama, light was made in the matter, the wave of madness had passed away, and, if the Treaty were to be considered again, there would not be many who would hold the same opinion, and ask the refusal of the treaty. The unanimous opinion of the inhabitants of the Departments of the two coasts is that a great error was committed in refusing the Treaty, and that, once we have lost such an important part of our territory, it is needful and convenient to settle now these questions with the United States and Panama, in a suitable and honorable manner to the Republic of Colombia, without either accepting or demanding any pecuniary indemnification which would stain the national honor, but recovering, for the benefit of our commerce and shipping, the advantages we would have derived from the Herran-Hay Treaty, which are mutually convenient for the three countries, if it is considered that Colombia is the country having more population and extensive lands on the two oceans near the Canal.

E. We hope Mr. Mendoza Perez, our Minister in Washington, has wisely interpreted this feeling and this national desire, and has well looked after the material interests of Colombia, and those, even more sacred, of its future navigation when the Canal becomes the obliged route of the human powers, and important towns have sprung on the Colombian coasts on the two seas. It cannot be denied that the Herran-Hay Treaty was disapproved through a patriotic feeling; the desire of avoiding the loss of the sovereignty on the Canal Zone, but now that it is irretrievably lost to us with the approval of the whole world, that we cannot get it back, and that the country wants the Canal because it will benefit Colombia more than it will any other nation, it is evidently necessary that Colombia should arrange,-without compromising its dignity, more valuable even than its own existence, and without either demanding or receiving pecuniary indemnification,-with the United States and Panama in such a manner as to enjoy the benefits of the Panama Canal, to which benefits Colombia is entitled.

F. It must be taken into consideration that, soon after the HerranHay treaty was refused, many of the principal citizens of Cali and other towns held a meeting with the object in view of asking the government to settle this question, consulting both the dignity of the nation and the interests of the Department of Cauca. The inhabitants of the Departments of the Atlantic and Pacific coasts are placed in identical position and it must be considered that it is not just for Bogota and the inland provinces to deny them their rights and drive them to despair which might bring great evils.

G. We have entertained the hope that our Minister in Washington would have negotiated a treaty with the United States, on the mentioned manner; but summer has arrived and it is well known that by this time they close up official business in Washington and do not begin them again until November, and as yet we have not heard of our Minister having negotiated such a treaty. We have been informed that he has been cabled to come home to hold a conference on the subject and we suppose he is under way.

H. We deem it convenient that, during the time we have from now to November next, the Press throughout the whole Nation should write on this subject, and, if it does not agree with us, give the reasons they have to think otherwise, and let them advise the means of attending to the interests of the Departments of the coasts and avoiding the lengthening of such an abnormal situation which every day becomes more and more painful and unfavorable to the general interests of Colombia.

I. We would be glad to see the Press of the Departments as well as the foreign press writing on this subject.

J. It is a well known fact that all the Spanish American Republics have invited the United States Secretary of State, Mr. Root, to visit their capitals or at least their principal ports on his return from the Brazilian Conference and that he has expressed his warm desire of establishing a policy of justice and mutual respect between the United States and these Republics. It would be seasonable and convenient that Colombia should also invite him so that he might be able to appreciate the importance of our Departments of the coasts and see for himself the convenience to the United States of the progress and development of Colombia, which with its five millions of inhabitants could be an important factor in the future development and conservation of the Panama Canal.

NOTE. A series of leading articles can be written on the above. subject developing them in different form and words as this memorandum will be sent to several persons with the same object.

NOTE. With reference to the interest that the United States may have in finishing in an honorable manner for Colombia the questions pending with Panama there are besides the above reasons the following ones:

(a) Bearing in mind the increasing development of the great Republic of the North and the possible future conflicts with Asia and Europe and even with South American countries, the situation of Colombia with her extensive lands on both coasts and her good harbors, such as Buenaventura and Cartagena, with the abundance

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., as 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.

LEGATION OF COLOMBIA, Washington, D. C., July 2, 1906.

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, 63-2- -9

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