sider the explanation therein established as reasonable and just. In fact, I consider it indispensable.

Articles V, VI, and VII of the protocol, no change.

Article VIII of the protocol is suppressed, as its existence in the treaty seems irrelevant in so far as its purport remains binding on both parties as a part of the protocol for a future period. However, if it is not considered out of place in the treaty we are willing to accept it.

Article IX of the protocol, no change.

NEW ARTICLES OF MY DRAFT.

Article X, providing for submittal to ratification by the respective Governments. No difficulty should arise on this.

Article VIII: This article refers to the acceptance by Panama of our line of boundaries. Although no provision on this head appears in the protocol I consider that its insertion in the treaty is advisable for the mutual benefit of the parties concerned, and this for the reasons submitted by myself to Mr. Root, and by Messrs. Guzman and Pasos to Messrs. Amador and Arosemena in the New York conference. Briefly they are summarized thus:

First. The general convenience to avoid future complications and misunderstandings, it being a well-known fact in history that uncertainty in the demarcation of boundaries between adjoining nations is the most fruitful source of trouble in their relations.

Second. Because the danger of friction in the present instance has become apparent by the recently developed incident of the occupation of Jurado, which has produced considerable excitement in both countries, showing at measurable distance the possibility and danger of friction and even rupture.

Third. Because the respective positions in the matter of boundaries of the two countries, which at one period of the negotiations appeared impossible to conciliate, has been, in my opinion, completely simplified by the declaration of the United States embodied in the letter of Mr. Secretary Root to Mr. Cortes, of the 26th of August last, recognizing as boundaries between Colombia and Panama the same as upheld by Colombia. This declaration, throwing as it does the weight of the United States opinion on the side of Colombia, should be decisive as far as argument is concerned. Besides, it practically solves the problem as far as Colombia is concerned, since, for obvious reasons, the United States could not become a party, in its character of protector of Panama, by reason of any dispute as to boundaries.

It will therefore materially assist in cementing future friendship, not only between Colombia and Panama themselves, but likewise between these two nations and the United States, as it will forever dispose of a knotty situation and one which, as far as Colombia is concerned, is considered by all the Colombian Nation as of paramount importance.

WASHINGTON, December 28, 1907.

[Treaty-English text.]

ENRIQUE CORTES.

The Republic of Colombia and the Republic of Panama, being equally animated by the desire to remove the obstacles to a good

understanding between them, to adjust their pecuniary and other relations, and to mutually receive the benefits of amity and accord, have determined to conclude a treaty for the attainment of those objects, and have appointed their respective plenipotentiaries:

The President of Colombia, Senor Don Enrique Cortes, Envoy Extraordinary and Minister Plenipotentiary of Colombia in Washington; and

The President of the Republic of Panama, Senor Don Jose Agustin Arango, Envoy Extraordinary and Minister Plenipotentiary of Panama in Washington;

Who, after having exhibited their respective full powers, and having found the same to be in good and due form, have agreed upon the following articles:

ARTICLE I.

The Republic of Colombia recognizes the independence of the Republic of Panama and acknowledges it as a sovereign and independent state.

ARTICLE II.

There shall be mutual and inviolable peace and friendship between the Government of Colombia and its citizens on the one part, and the Government of Panama and its citizens on the other part.

ARTICLE III.

The Republic of Panama agrees to assign and transfer to the Republic of Colombia and its assigns and nominees, the first ten annual installments of two hundred and fifty thousand dollars each in gold coin becoming due to Panama from the United States of America on the 26th day of February in the year 1908 and annually thereafter on the 26th of February up to the year 1917 inclusive, under Article XIV of the treaty between the United States of America and the Republic of Panama exchanged February 26, 1904, and under and pursuant to the amendment of said article embodied in a treaty of even date herewith made and entered into between the United States and Panama whereby said Article XIV is amended by substituting the words four years for the words "nine years," so that the first annual payment therein provided for shall begin four years instead of nine years, from the exchange of said treaty of February 26, 1904, in such manner that the said ten annual installments shall be paid for account of Panama by the United States of America directly to Colombia, its assigns and nominees, beginning on the 26th day of February, 1908.

In consideration of the payments and releases by Panama, Colombia recognizes and agrees that Panama has no liability upon and no obligation to the holders of the external and internal debt of Colombia, nor to Colombia by reason of any such indebtedness. Colombia recognizes and agrees that it is itself solely obligated for such external and internal debt; it assumes the obligation solely to pay and discharge the same; and it agrees to indemnify and hold harmless the Republic of Panama, if occasion arises, from any liability towards the holders of such external and internal indebtedness. It is under

stood that the external debt herein referred to is that which was recognized and set forth in the agreement signed in London April 20th, 1905, between the Government of Colombia and the Council of Foreign Bondholders, by the terms of which it was agreed that the Government of Colombia assumed the exclusive responsibility for the payment of principal and interest of the said external debt.

ARTICLE IV.

Each of the contracting Republics releases and declares the other free from all pecuniary claims and indebtedness of every character, including the external and internal debt of Colombia, the one upon the other, existing on the third day of November, 1903; it being understood that such mutual release relates to national claims and indebtedness only and not to individual rights and claims of the citizens of either republic. It is understood that such individual claims and rights as may have had their origin in occurrence anterior to the third of November, 1903, shall be adjusted in accordance with the legislation of the republic to which they may be presented and by the tribunals or authorities of the same, so that in no case the claimants may enjoy greater privileges and advantages than the citizens of the Republic against which the claim is made.

ARTICLE V.

The Republic of Panama recognizes it has no title or property in the fifty thousand shares of capital stock of the New Panama Canal Company standing on the books of that Company in Paris in the name of Colombia; and Panama confirms the renunciation of all claims and title thereto heretofore made by it in legal proceedings pending in the courts of France.

ARTICLE VI.

The citizens of either of the two contracting Republics residing in the other shall enjoy the same civil rights from time to time as are accorded by the laws of the country of their residence, respectively, to citizens of any other nation, it being understood, however, that the citizens of the two republics residing in the other, shall be exempt from military service imposed upon the citizens of such republics.

ARTICLE VII.

Both of the contracting Republics agree that neither of them shall admit to form a part of its nationality any portion of the territory of the other which may separate from it by force.

ARTICLE VIII.

It is hereby agreed and declared by the contracting parties that the dividing line between the Republic of Colombia and the Republic of Panama shall be that fixed as the boundary between the States of Panama and Cauca by the law of New Granada of June 9, 1855, in its article 7 as follows: "Por el Este desde el Cabo Tiburon hasta la

cabecera del rio de la Miel y siguiendo la cordillera por el cerro de Gandi a la sierra de Chugaigun y la de Mali a bajar por los cerros de Nigue a los altos de Aspave y de alli al Pacifico entre Cocalito y la Ardita."

ARTICLE IX.

It is expressly understood and agreed that the present treaty shall not become operative nor its provisions obligatory upon either party hereto until and unless treaties between the Republic of Colombia and the United States of America and between the United States of America and the Republic of Panama of even date herewith are both duly concluded and their ratifications are exchanged simultaneously with the exchange after ratification of the present treaty.

ARTICLE X.

The present treaty shall be submitted for ratification by the respective Governments and the ratifications shall be exchanged at Washington at the earliest date possible.

No. 293.1

Colombian Minister to Secretary Root.

LEGATION OF COLOMBIA, Washington, January 26, 1908. DEAR SIR: In reference to my communications of the 20th and 28th of December ultimo and my memorandum of same date accompanying a draft treaty with Panama, I have the honor to inform your excellency that I have received to-day a letter from the minister of foreign affairs dated Bogota, 31st December, the pertinent part of which I beg to inclose in separate copy, both in Spanish and English.

In my letter to you above quoted I have mentioned the extreme importance that my Government gives to the line of demarcation of boundaries with Panama, in accordance with the New Granada law of 9th June, 1855. The letter from the minister of foreign affairs herein referred to is, as you will perceive, so explicit and conclusive in the matter as to preclude my entertaining any stipulation in the treaty referring to boundaries other than the recognition of our line. Allow me to express my hope that, joining efforts, we may come to a definite and satisfactory agreement with Panama on this all-important question.

The situation is such that unless our line is accepted no alternative would be left to me but to suspend the negotiations. This lame conclusion would be a source of great mortification to me personally, and would be compelled to adopt it with the deepest regret. I could not help it, however, in view of my instructions, feeling convinced, moreover, that a treaty without the acceptance of our line would have no chance of its ratification by the legislative body in Colombia. I have the honor to present to your excellency the expression of my high consideration.

The Hon. ELIHU ROOT,

(Signed)

Secretary of State, State Department.

ENRIQUE CORTES.

[Copy of paragraphs from a letter of the minister of foreign affairs dated Bogota, the 31st December, 1907.]

JANUARY 26, 1908.

The Government of Colombia is in an absolute impossibility to accept any negotiation with Panama which is not based on the total recognition of the boundaries of the department of Panama, as fixed by the law of June, 1855, of which you have a copy. Any other line or any alteration whatever on the one fixed by said law, no matter how slight it may be, would be rejected almost unanimously by the public opinion in Colombia, and the Government believes that there is neither justice nor convenience in deviating from our right and would prefer not to enter into any treaty with Panama, rather than doing it with a line of boundaries differing from the one above stated.

I call your attention to a letter I wrote to the El Correo Nacional newspaper of this city, dated 25th November last, which I suppose you have seen, as it was reproduced by almost all the Colombian newspapers, in which, after expressing the line of conduct of the Government on these important matters, I added, "Such are the ideas which rule the conduct of the Government in the negotiations initiated by Dr. Mendoza Perez, and in accordance therewith would not on any consideration agree to the slightest alteration on the line fixed by the law of 9th June, 1855."

The above contains a solemn promise made by the undersigned to the Republic, in accordance with his excellency the president, and the government has the firm will not to deviate from it. You will be good enough to inform Mr. Root of the above at the nearest opportunity you have.

If you obtain the acceptance of the line stated, without alteration, this being the only case in which, as I have mentioned, the celebration of a treaty with Panama is made possible, you may accept definitely the payment of two and a half millions dollars in the terms. agreed. The Government of Colombia gives to the monetary question a greatly inferior importance compared to the question of boundaries.

Secretary Root to Colombian minister.

JANUARY 28, 1908.

No. 48.] SIR: I have the honor to acknowledge the receipt of your note of the 26th instant, in which you refer to your notes of December 20 and 28 last and to your memorandum submitting a draft treaty between Colombia and Panama, and invite my attention to an extract from instructions, dated December 31 last, from the Colombian minister of foreign affairs to you, under which instructions you are advised that a treaty with Panama can stipulate no other boundaries than those established by the New Granada law of June 9, 1855.

I have the honor to say in reply that it seems unnecessary to enter upon any further consideration of the views of the United States regarding the boundary line between Colombia and Panama further than those contained in my letter to you of August 26 last.

The subject matter of your note will be communicated to Mr. Arango immediately after his arrival here.