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at Bogotá concerning the convention between the United States and Colombia for the construction of an interoceanic canal across the Isthmus of Panama.

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DEPARTMENT OF STATE,

Washington, March 18, 1903.

Inform Colombian Government Senate yesterday approved canal convention without amendment.

LOOMIS, Acting.

Mr. Hay to Mr. Beaupré.

[Telegram.]

DEPARTMENT OF STATE,

Washington, April 7, 1903.

Referring to requests of Colombia to canal and railroad companies for appointment of agents to negotiate cancellation of the present concessions, et cetera, if the subject arises inform the Colombian Government that the treaty covers entire matter, and any change would be in violation of Spooner law and not permissible.

Mr. Beaupré to Mr. Hay.

HAY.

No. 741.]

LEGATION OF THE UNITED STATES,
Bogotá, March 30, 1903.

SIR: The matter of the ratification of the Panama Canal convention is intensely interesting to the people of this capital, and there is much public discussion of it. Without question public opinion is strongly against its ratification, but, of course, public opinion in Colombia is not necessarily a potent factor in controlling legislation.

It is quite impossible to come to a definite conclusion as to the outcome until the result of the recent elections for members of Congress is known. It has been generally thought that the Government would be able to control the elections and that the members returned would be favorable to the administration's view on the canal question; but there has been serious disappointment to the governmental party in the result of some of the elections heard from, prominent and able members of the National party, opposed to the Marroquin administration and to the canal convention, have been elected. Ex-President Caro and Gen. Pedro Nel Ospina, Nationalists, are to represent the Department of Antioquia in the Senate. It seems altogether probable

that unless the Government is thoroughly in earnest in its desire to have the convention ratified, it will not be done; and there is a possibility that it may not go through in any event.

There is no public information as to the date at which the Congress will be called, but from private source I am given to understand that it will be about the 20th of May, owing to the slowness of returns from remote election districts.

It is apparent lately that the French Canal Company is to take a decided interest in securing the ratification of the convention, and that its influence to that end will be of much importance.

I am, sir, your obedient servant,

A. M. BEAUPRÉ.

Mr. Beaupré to Mr. Hay.

No. 6.]

LEGATION OF THE UNITED STATES,
Bogotá, April 15, 1903.

SIR: I have the honor to advise you that within the last month there has been such a sudden outburst of controversy, both in the Bogotá press and among the public in this city, with regard to the Panama Canal convention that I feel it my duty to report on what I regard as the chances for and against its passing Congress.

During the long revolution which has but lately come to an end the measures employed by the Government to prevent public discussion of affairs of state had the effect of destroying anything like public opinion. It may have been for this reason that when, in the early part of February last, news came of the signing of the canal convention complete apathy on the subject seemed to reign, as far as the general public was concerned. The financial crisis had, previous to this announcement, reached a most acute stage, and the only feeling expressed was that of relief at the prospect of receiving $10,000,000, which was then considered sufficient to put in reasonably good condition the finances of the country. I am convinced I am right in saying that the public had never expected better terms. The proof is that when the news of the signing of the convention came foreign exchange ran down from 10,000 per cent to 6,300 per cent, and when it was rumored that the United States Senate had refused its assent a panic immediately ensued on the market, and exchange at once rose again to over 10,000 per cent.

This was the state of affairs until General Fernandez, the minister of Government in charge of the ministry of finance, issued a circular to the Bogotá press (which had suddenly sprung into existence), inviting discussion on the canal convention. The circular was to the effect that the Government had no preconceived wishes for or against the measure; that it was for Congress to decide, and Congress would be largely guided by public opinion. At the same time what purported to be a translation of the text of the convention was published.

Since then a complete revolution in feeling has taken place. From approbation to suspicion and from suspicion to decided opposition have been the phases of change in public sentiment during the last month. The newspapers of the city are full of strongly worded articles denouncing the convention, and, in general, these articles show the most bitter hostility to a scheme which they represent as being the

attempt of a strong nation to take an unfair advantage of the crisis through which Colombia is passing, and, for a paltry sum, rob her of one of the most valuable sources of wealth which the world contains. So ridiculous are the facts brought forward by these journalists in support of their arguments that they are not even worth comment. As, for instance, I may mention that one of the most widely read of the newspapers states, and brings forward a whole collection of figures in support of its statement, that on the initial deal alone the United States starts with a clear profit of $180,000,000. Absurd as such statements are, they voice the opinions and convictions of the Bogotá public.

This fact is clear, that if the proposed convention were to be submitted to the free opinion of the people it would not pass. The Congress about to assemble has been elected under the supervision of Government officials, and a system of quite indigenous wire-pulling has undoubtedly been used; and yet, if Congress as now constituted were allowed to give a free vote, I feel convinced the convention would not be ratified.

This, then, is the present state of affairs. As to what will happen it is impossible to predict; yet this much seems certain to me, if it is the wish of the Government that the convention be ratified it will be done.

It now seems likely that Congress will be convened about the 25th of May next for twenty days.

I am, sir, your obedient servant,

A. M. BEAUPRÉ.

Mr. Beaupré to Mr. Hay.

No. 10.]

LEGATION OF THE UNITED STATES,
Bogotá, April 24, 1903.

SIR: I have the honor to refer to your telegram of the 7th instant, confirmed elsewhere, in regard to the negotiations for the cancellation of the present concessions of the Panama canal and railroad companies.

The subject had not arisen, within my knowledge, but I deemed it best, in two interviews with the minister for foreign affairs, to bring the conversation as cautiously as possible to a point that would enlighten me. I can not say that his excellency showed any disposition to be entirely frank in the matter, but sufficient was said to elicit from him the information that such negotiations were at least under the consideration of the Colombian Government, if not actually started. I then imparted to the minister the purport of your telegram of the 7th instant, whereupon he requested me to convey those instructions officially. This I did in a note, copy of which I herewith transmit. I am, sir, your obedient servant,

A. M. BEAUPRÉ.

[Inclosure.]

His Excellency Dr. LUIS CARLOS RICO,

LEGATION OF THE UNITED STATES,
Bogotá, April 24, 1903.

Minister for Foreign Affairs of the Republic of Colombia, etc.

SIR: Referring to the two interviews I have had with your excellency, in which the question of the negotiations for the cancellation of the present concessions of the

Panama Canal and Railroad companies and other matters were brought up, I have the honor to inform your excellency that I am in receipt of instructions from my Government on the subject.

I am directed to inform your excellency, should the subject arise, that the entire matter above referred to is covered by the recently signed convention between the Republic of Colombia and the United States on the 22d of January last. Moreover, that any change would be in violation of the Spooner law and therefore not permissible.

I avail myself of this opportunity to renew to your excellency the assurances of my highest consideration."

A. M. BEAUPRÉ.

No. 13.]

Mr. Beaupré to Mr. Hay.

LEGATION OF THE UNITED STATES,

Bogota, April 27, 1903.

SIR: I have the honor to advise you that it seems quite impossible to tell just when the Congress will be convened. Forty days' notice is required, and no notice has as yet been given.

In a conversation with the minister for foreign affairs I ascertained that the session would probably commence at some time between the middle of June and the 1st of July, but this is no more definite than the dates I have mentioned in my previous dispatches.

The Government is evidently "mending fences" in many election districts. It is said that owing to the disordered condition of the interior of the country, especially in the department of the Tolima, elections were illegally conducted, for which reason new elections were necessary. Hence the delay in calling Congress.

I am, sir, your obedient servant,

A. M. BEAUPRÉ.

Mr. Hay to Mr. Beaupré.

No. 6.]

DEPARTMENT OF STATE,
Washington, April 28, 1903.

SIR: I confirm to you my dispatch by cable of the 7th instant in the following terms:

AMERICAN MINISTER, Bogotá:

WASHINGTON, April 7, 1903.

Referring requests Colombia to canal and railroad companies for appointment agents negotiate cancellation present concessions, etc.

If subject arises, inform Colombian Government that treaty covers entire matter and any change would be in violation of Spooner law and not permissible. HAY.

and I now inclose to you copies of the notices given by the minister of hacienda of the Republic of Colombia to the New Panama Canal Company and the Panama Railroad Company, respectively.

You will observe that by these notices the Colombian Government contemplates the formal grant to these companies by the Colombian Congress of a further permission to transfer their concessions to the United States besides that contained in the treaty which is to be ratified by that Congress. You will also note that as a preliminary to this permission the companies are expected to enter into agreements with Colombia for the authorization and canceling of all obligations of Colombia to either of them contracted by Colombia under the conces

Such action on the part of Colombia or on that of the companies would be inconsistent with the agreements already made between this Government and the canal company, with the act of June 28, 1902, under the authority of which the treaty was made, and with the express terms of the treaty itself.

By the act of June 28, 1902, the President was authorized to acquire, at a cost not exceeding $40,000,000, the rights, privileges, franchises, concessions," and other property of the New Panama Canal Company, and an agreement to that end was made by him with the company. It was, of course, known to the President, to the company, and to the Government of Colombia that, by articles 21 and 22 of the SalgarWyse concession of 1878, the company could not transfer to the United States its "rights, privileges, franchises, and concessions" without the consent of Colombia. Therefore, and before entering upon any dealings with the New Panama Canal Company, the present treaty with Colombia was negotiated and signed.

The first article of that treaty provides as follows:

The Government of Colombia authorizes the New Panama Canal Company to sell and transfer to the United States its rights, privileges, properties, and concessions, as well as the Panama Railroad and all the shares or parts of shares of said company. The authorization thus given, it will be observed, covers expressly the rights, privileges, and concessions" of the company,

as well as its other property.

*

Colombia, now, by these notices, indicates a purpose not only of disregarding the authorization thus explicitly given (a matter to which I shall refer more at length later on), but to destroy a great part of the subject-matter to which it refers. She states an intention of requiring the company to cancel all obligations of Colombia to it, and thus to deprive the United States of the rights, privileges, and concessions which she has expressly authorized the company to transfer to them, and which the canal company has contracted to sell and convey to the United States.

This Government can not approve such a transaction either by Colombia or by the company. If the company were to accede to the demands of Colombia, the President would be unable to consummate the proposed purchase from it, for it would have surrendered to Colombía a material part of the property for which he is authorized to make payment. Nor could the treaty itself be carried out, inasmuch as the payments to Colombia for which it provides are, by the express terms of Article XXV of the treaty itself, to be made in compensation, not only for the right to use the canal zone and to indemnify Colombia for the annuity which she renounces and the greater expenses which she may incur, but also "in compensation for other rights, privileges, and exemptions granted to the United States." Among these other rights and privileges, one of the most important is the right of acquiring the rights, privileges, and concessions of the New Panama Canal Company, secured by Article I of the treaty, and if these rights, privileges, and concessions were to be canceled, it would fundamentally change the terms of purchase.

The act of June 28, 1902, requires the President, if he should maks the purchase of the New Panama Canal Company, to acquire ite "rights, privileges, franchises, concessions." This act is annexed to the treaty, and the provisions of Article I of the treaty are framed.

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