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718.1915/735 Supp. : Telegram

The Secretary of State to the Minister in Panama (South) 38

[Paraphrase]

WASHINGTON, December 11, 1925-9 p. m.

82. Department's telegram number 70 dated November 10, 3 p. m." and number 71 dated November 11, 4 p. m.1

40

The Panaman Minister has advised the Department that Fabrega has recently conversed with Casorla "1 and he feels very hopeful that Costa Rica might be willing to settle the boundary dispute by establishing the line as set forth in Department's telegram number 71 dated November 11, 4 p. m. The Panaman Government, therefore, has instructed him to make a formal proposal to President Jiménez to that effect.

From conversations with the Costa Rican Minister-who is uninformed regarding Fabrega's conversations with Casorla and other Costa Ricans on this point-it appears that this proposal would not be acceptable to Costa Rica, and if it should be accepted, Congress would probably not ratify it because it would not ratify any instrument giving up territory unless Costa Rica received other territory of approximately the same area in return. It would be most unfortunate if Costa Rica and Panama were to conclude another agreement which would not be ratified; this would leave the matter in a worse state than at present. Oreamuno 42 has received instructions from Costa Rica that it would be willing to conclude a convention providing for the demarcation of the boundary in accordance with the awards and would suggest as Arbitrator the Chief Justice of the Supreme Court of the United States. According to Oreamuno this means a submission to arbitration of the claims of each side against the other. As stated by Alfaro, Panama would be willing to settle the boundary on the lines stipulated in the awards, and to arbitrate the amount of the indemnity due Panama from Costa Rica. In short, Costa Rica would have to agree in principle to an indemnity. Oreamuno says that this is out of the question, but that should he be informed that Panama would accept, he would be willing to employ all his influence-and he thinks he would succeed-to induce Costa Rica to accept a solution on the basis of the convention providing for the demarcation of the boundary according to the awards, the matter of indemnity to be submitted to arbitration, Costa Rica

Repeated to Costa Rica as the Department's telegram No. 27 of the same date (file No. 718.1915/741).

20 See footnote 34, p. 477.

40 See footnote 37, p. 478.

"Buenaventura Casorla, confidential agent of Costa Rica in Panama. 42 J. Rafael Oreamuno, Costa Rican Minister in the United States.

agreeing, so as to secure a settlement of the boundary. Should the Arbitrator find Panama to be at fault, Costa Rica would agree to waive, in advance, all claims for indemnity. Should Costa Rica be at fault, the Arbitrator would set the amount of the indemnity.

On its face this offer seems reasonable, conciliatory, and eminently fair. Discuss the matter orally and informally with the President and the Foreign Minister and determine if some such arrangement cannot be agreed upon as affording once for all a satisfactory settlement of this long-drawn-out dispute. Telegraph results.

KELLOGG

718.1915/747: Telegram

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

[Paraphrase]

PANAMA, December 18, 1925—1 p. m.

[Received 7 p. m.]

121. Department's telegram number 82 dated December 11, 9 p. m. I discussed in detail with Foreign Minister Department's suggestion; but my promised interview with the President was put off from time to time for trivial reasons until it became evident that he was unwilling to discuss the matter at the present time. I then took up the question again with the Foreign Minister. He finally said that Panama was unwilling to accept the Department's suggestion at present because they still hope Costa Rica will accept Fabrega's proposition for straightening the boundary line. He let me see Fabrega's latest letter which was moderately optimistic although at the time of writing Fabrega had not presented his proposition.

Although I believe that Panama would finally accept any solution which involved a concession by Costa Rica sufficient to enable the Government of Panama to defend publicly its complete change of politics regarding the White award, nevertheless, it especially wants a territorial concession which would protect Panamans owning property on the Costa Rican side of the boundary line. I doubt if the Government of Panama would seriously consider any other solution until it is convinced that a territorial concession is impossible. I think it would be more profitable to take up the Department's suggestion when Costa Rica has definitely rejected Fabrega's proposition. Despatch will follow.43

"Not printed.

MUNRO

718.1915/748 : Telegram

The Minister in Costa Rica (Davis) to the Secretary of State

SAN JOSÉ, December 18, 1925-4 p. m.

[Received December 19-12:41 a. m.]

54. My 50 and 53, Dec. 15, 9 a. m., and December 16, 11 a. m., respectively; and Department's 22 and 27, November 11, 3 p. m., and December 11, 9 p. m., respectively.

[Paraphrase]

Panaman proposal outlined in Department's telegram number 22 was rejected by the leaders of Congress in confidential conference reported in my telegram number 50. President Jiménez has formally notified the Panaman representative that the proposal is unacceptable to Costa Rica. He has, however, submitted to the Panaman representative the following counterproposal.

1. Demarcation of boundary to be made according to the Loubet and White awards.

2. Costa Rica to accept land titles given by Panama to private persons on territory coming under the sovereignty of Costa Rica.

3. To be submitted to arbitration: The question as to whether Costa Rica owes Panama any indemnity for expenses incurred by the Panaman Government in 1921 during the conflict of Coto and whether Panama is indebted to Costa Rica on account of expenses incurred during that period for the reason expressed.

4. Panama to return to Costa Rica the arms, vessels, and flags seized by the forces of Panama upon signing the agreement.

5. Should the Arbitrator decide that Panama, not Costa Rica, owes the indemnity Costa Rica will renounce its demand for payment, except that stipulated in the above proposal.

Article 2 of counterproposal seemingly grants a concession to Panama because article 3 of the Anderson-Porras convention of 1910 simply provides for the recognition of titles granted prior to that date.

Casorla says it is his impression that the President will waive the demand for the return of the vessels mentioned in article 4 of the counterproposal, if necessary, but that the President thinks the return of the trophies is necessary in order to create a public sentiment in favor of his proposal.

The exception which is mentioned in the last clause of article 5 of the counterproposal refers to the items in article 4.

My information is that the Panaman representative has indicated that he is not willing to accept the President's proposal even if Panaman Government should send him instructions to do so.

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The above information should be considered confidential until the Costa Rican Minister at Washington informs the Department. Repeated to the American Legation in Panama.

DAVIS

718.1915/754: Telegram

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

[Paraphrase]

PANAMA, December 27, 1925-10 a. m.
[Received 6 p. m.]

123. Yesterday Foreign Minister informed me that Fabrega had flatly rejected the Costa Rican proposal as was reported in telegram dated December 18 from the American Legation in Costa Rica, but that at the request of President Jiménez had made a counterproposal for a rectification of the boundary which would leave a small section southeast of Cañas Gordas to Panama. Fabrega stated that President Jiménez appeared willing to consider this proposal and took it under advisement. Fabrega asked to be permitted to return to Panama if the proposal were accepted or if the Government of Costa Rica would consent to postpone further negotiations until May when there would be a new Congress in Costa Rica more favorable to the Government. This was granted and today Fabrega returns to Costa Rica. From this fact the Foreign Minister infers that Costa Rica either has accepted Panama's last proposal or has consented to a delay.

The inclusion in the Costa Rican proposition of a stipulation for the return of the arms and flags appears especially objectionable to Panama since the Panaman Government would prefer to return them as a spontaneous gesture upon the resumption of relations. Panama also objects to the return of the vessels upon which much money has been spent, it is said, for repairs.

I believe that if these two stipulations were to be eliminated the Costa Rican proposal might ultimately be accepted, but not as long as Costa Rica appears willing to receive counterproposals which involve territorial concessions or to agree to a delay in the negotiations.

MUNRO

718.1915/754: Telegram

The Acting Secretary of State to the Minister in Costa Rica (Davis)

[Paraphrase]

WASHINGTON, December 29, 1925-7 p. m.

29. The following cable dated December 27, 10 a. m. from Panama is sent for your information.

[Here follows text of telegram printed in paraphrase, supra.] Endeavor to find out whether Costa Rica has accepted counterproposal of Fabrega for rectification of the boundary or has agreed to put off further negotiations until May. If Costa Rica has agreed to a postponement until May it is important that you secure, if possible, a statement to that effect, in the form of a note or memorandum from the Foreign Minister.

GREW

718.1915/758: Telegram

The Minister in Costa Rica (Davis) to the Secretary of State

[Paraphrase]

SAN JOSÉ, January 7, 1926-10 a. m.
[Received 1:53 p. m.]

2. Department's telegram number 29 dated December 29, 1925, 7 p. m.

Costa Rica has rejected Fabrega's counterproposal for rectification of the boundary and his proposal to postpone the negotiations until May.

I shall forward on January 9 a memorandum on the final conference between President Jiménez and Fabrega."

DAVIS

EXTENSION OF THE SOVEREIGNTY OF THE UNITED STATES OVER SWAIN'S ISLAND BY JOINT RESOLUTION OF CONGRESS, APPROVED MARCH 4, 1925

811.0141Q/26

The Secretary of State to President Coolidge

THE PRESIDENT: I have the honor to invite attention to the anomalous status of Swain's Island (otherwise known as Quiros, Gente Hermosa, Olosega, or Jennings Island), an isolated atoll in the Pacific Ocean, lying in Latitude 11° 3' South, Longitude 170°

"Not printed.

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