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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.

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[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.

This clause was altered as below. Mr. Root mentions the intervention of the American commissariat, who is charged to supply provisions for the laborers in the canal. It was agreed as follows:

Second. Colombian products, such as provisions, cattle, etc., will enter free of any special duty to the Canal Zone, with the exception of the duties paid by similar American products in equal conditions.

The Colombian laborers employed in the zone, who may desire that their own families supply them with provisions for their personal use, shall declare them before the commissariat in order to obtain a previous permit of entry, and will enter free of any duty, provided it should be a bona fide operation, to the discretion of the commissariat.

The above clause refers to provisions that may be furnished by their families to laborers who are natives of the Colombian coasts. This clause is intended to give them opportunity for saving money. The bona fide clause is intended to prevent fraud.

Says the memorandum :

Third. Mails will have a free passage through the Canal Zone and through the post office of Ancon and Cristobal, paying only such duties as those paid by the United States mails.

In accordance with Mr. Root, this clause remains subject to the same proviso and remarks as the No. 1.

Says the memorandum :

Fourth. 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.

Mr. Root believes this clause may be accepted. but for the same. reasons it remains subject to the same proviso and remarks as clause No. 1.

Says the memorandum:

Fifth. 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.

Mr. Root thinks it is impossible to agree to any differential tariff. It will meet with great opposition in the United States and will be rejected by the Senate. Mr. Root fears the whole treaty might be rejected on account of this clause.

Says the memorandum:

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 Colombia has in the zone and materials of the canal. There will be a free commerce between Colombia and Panama for national products.

On the above clause of the memorandum, Gen. Vasquez Cobo writes as follows:

About the treaty with Panama it was agreed that the United States will interpose its good offices for the arrangement between Colombia and Panama. The treaty with Panama will be celebrated in Washington. The United States will exercise its good offices for a special customs tariff between Colombia and Panama without implying, however, any imposition from the United States on Panama.

PANAMA DEBT.

Respecting the payment to be made to Colombia by Panama as her share in the foreign debt of Colombia and for the value of the Panama Railroad that Colombia claims as her own, everything will be settled in Washington.

I (V. Cobo) spoke to Mr. Root of Colombia's labors to benefit the Isthmus, the considerable amount of expenses incurred to keep up a respectable army in Panama; the victory obtained by Colombia in succeeding to have the Panama route selected for the canal, a victory of which Panama has become the sole beneficiary; her efforts in the intricate boundary question with Costa Rica finally audited in favor of Colombia, all to the benefit of Panama in the end. In this action it must be understood that the extensive region conceded to Colombia was recognized, not on account of local boundaries with the State of Panama, but on the lines of the general boundaries of the Virreinato de Nueva Granada.

Mr. Root said that the Panamenos mention payment of the debt on the basis of population. I objected, founded on the theory of the Argentine jurist, Carlos Calvo, which Mr. Root considered acceptable and appropriate to this particular case. He (Mr. Root) mentioned the amount of the Colombian debt, and when I mentioned $5,000,000 as a proper share for Panama, he did not appear to consider it exaggerated.

I heard in Cartagena that Colombian laborers on the zone are paid lower wages than other nationalities. He seemed surprised and said it should be determined that Colombian laborers should be paid on the same basis as other nationalities, all circumstances being equal.

THE CHERRY BUSINESS.

I spoke to Mr. Root before Mr. Barrett on this matter. Neither of the two seemed to remember details. I explained the whole thing,

adding that the railway was being worked now by an American company, Mason & Co.

Mr. Root said he would instruct Mr. Barrett to treat the point with the creditors, and that he would endeavor to bring them to accept payment in foreign bonds (valis de estrangeros), as proposed by the Government.

I gather that Mr. Root is very favorably disposed toward us, as may be perceived by the speech he delivered in Cartagena.

Confidential memorandum for the consideration of Mr. Root and Mr. Buchanan on the subject of pending arrangements with Panama and the United States.

LEGACIÓN DE COLOMBIA,
Washington, January 3, 1907.

The most important items between Panama and Colombia have been the subject of my previous exposé de motif, which I had the honor to send you some time ago. There are other points connected also with the secession of Panama and the incidents connected with it previous and posterior to it. These incidents require a rearrangement of our relations with the United States, on the basis of certain stipulations, which have been presented to Mr. Root by the minister of foreign affairs in Cartagena. The whole train of stipulations between the three entities interested are so closely interdependent that I have dwelt on the idea of celebrating a tripartite treaty, embodying those stipulations referring to the three contracting parties which bear on the secession of Panama. I venture to suggest this idea for your consideration, as I believe it will have great weight on the final approval of the treaty by Panama and Colombia, the United States being a party to it.

Following, I beg to mention the points that should be included in the tripartite treaty, referring to Panama and Colombia. I leave out for further consideration all matters relating to commerce, navigation, etc., which may be the subject of long discussion. I believe that the urgent point for us all is to bring about an arrangement on the vital points, the recognition of the independence of Panama, and our position toward the United States.

Should this idea of a tripartite treaty be accepted, I would present a memorandum on this subject, stating the stipulations that, in my opinion, should be included in it, referring to our relations with the United States. Among these I will mention the matter relating to the islands of San Luis and San Andreas de Providencia, which I have reason to believe might be favorably considered by the United States.

POINTS TO BE INCLUDED IN THE ARRANGEMENT WITH PANAMA.

A. Boundaries between Colombia and Panama.

We take it that there is no other authority to follow in this matter than the Colombian law of June 9, 1855, which fixed the line of boundaries between the State of Cauca and the State of Panama,

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