the Panama route ever will be selected. Therefore, it is contended, and generally believed, that there is no immediate necessity of confirming the Hay-Herran convention; that the negotiations can be safely prolonged, in the end securing very much better terms for Colombia. The public discussion is largely along the lines of the loss of the national honor by the surrender of sovereignty; that the clause in the convention guaranteeing sovereignty means nothing, because the lease is perpetual; that the whole contract is favorable to the United States and detrimental to Colombia. Private discussion, which perhaps more clearly reflects the real situation, is to the effect that the price is inadequate; that a much greater sum of money can be obtained, and that the United States can be obligated to guarantee the sovereignty of Colombian ports outside the department of Panama against the invasion or seizure by foreign enemies. The one great determining point, however, is the belief that the price can be greatly augmented. The Congress has not been called, but it is still thought that the session will commence about the 1st of July. I am, sir, your obedient servant, A. M. BEAUPRÉ. No. 18.] Mr. Beaupré to Mr. Hay. LEGATION OF THE UNITED STATES, SIR: I have the honor to advise you that information has reached me through a private source to the effect that within a week or two the Colombian Government will send Gen. Marcellano Vargas, a sonin-law of Vice-President Marroquín, to Washington, to negotiate for better or different terms in connection with the Panama Canal convention. I am, sir, your obedient servant, A. M. BEAUPRÉ. Mr. Beaupré to Mr. Hay. [Telegram.] UNITED STATES LEGATION, May 7, 4 p. m.: Special session of Congress has been called for June 20. BEAUPRÉ. No. 19.] Mr. Beaupré to Mr. Hay. LEGATION OF THE UNITED STATES, Bogotá, May 7, 1903. SIR: I have the honor to advise you that in the course of a conversation I had yesterday with one of the ablest and most distinguished of Colombians, who is in close touch with the vice-president and his administration, the question of the Panama Canal convention opportunely and confidentially arose. His views are interesting and entitled to consideration, and from them I gather that the tremendous tide of public opinion against the canal treaty is appalling to the Government, and there is, in consequence, a diversity of opinion among its members as to the proper course to pursue. Some are in favor of forcing confirmation through Congress, while others, dreading the effect of such action in the present state of the public mind, counsel moderation and delay, and the adoption of measures to change public sentiment into a more favorable channel. All of the enemies of the Government are united in an onslaught upon the canal convention. Many of them are sincere, of course, in their opposition to the proposed treaty as such, but many more, regarding it as an administration measure and at present unpopular, are assailing it with the indirect object of undermining the Government. My informant is of the opinion that the convention may eventually be confirmed, but only after much discussion and maneuvering in Congress. The probabilities are that when the measure is presented to Congress there will be a lengthy debate and an adverse vote. Then the representatives of the coast departments of the Cauca, Panama, and Bolivar will ask for a reconsideration, and urge a ratification of the convention as the only means of preventing the secession of those departments and the attempt to constitute of their territories an independent republic. The debate will be resumed and in the end the friends. of the Government and of confirmation will prevail. My informant is on such intimate terms with the chief officers of the Government that I deem it best to transmit his statements for your consideration. I am, sir, your obedient servant, A. M. BEAUPRÉ. No. 24.] Mr. Beaupré to Mr. Hay. LEGATION OF THE UNITED STATES, SIR: In my No. 17, of the 4th instant, I referred to the abuse which the authors of the Panama Canal convention were receiving at the hands of the press of the country. Apropos of this, I have the honor to give you an extract from an article written by Dr. Juan B. Perez y Sota, a senator in the coming Congress from the Department of Panama, which appeared in El Correo Nacional of yesterday. The article is long, abounds in vituperation, and closes as follows: The Herran treaty will be rejected, and rejected by a unanimous vote in both chambers. That is what I hope, since there will not be a single representative of the nation who will believe the voice of people who have sold themselves; who have had the brazenness to recommend the shameful compact. The insult, however, which Herran has cast upon the Colombian name will never be wiped out. The gallows would be a small punishment for a criminal of this class. I am, sir, your obedient servant, A. M. BEAUPRÈ. Mr. Beaupré to Mr. Hay. [Telegram.] UNITED STATES LEGATION, Bogotá, May 28, 1903. (Received 9.28 p. m., 29.) May 28, 10 a. m. Am informed that the President has received a telegram relating to large number United States employees lately arrived at Isthmus. If explanation should be asked, what answer shall I make? If it is true, it will intensify opposition to the ratification of the convention. BEAUPRÉ. Mr. Beaupré to Mr. Hay. No. 37.] LEGATION OF THE UNITED STATES, SIR: Referring to my telegram of this date, elsewhere confirmed, I have the honor to advise you that there was considerable excitement about the Government palace yesterday upon the receipt of news that about 150 employees of the United States had arrived at the Isthmus, and a cable was sent to the Governor of Panama asking for information. While the better informed seemed to understand that such employees were but necessary to the commission in the work it was engaged upon, others were disposed to take a more unfriendly view, and all were of the opinion that in the present excitable condition of the public mind the news, if it proved true, would have an unfavorable effect upon the ratification of the canal convention. I am, sir, your obedient servant, Mr. Hay to Mr. Beaupré. [Telegram.] A. M. BEAUPRÉ. DEPARTMENT OF STATE, The report that there is a large number of United States officials or citizens on isthmus absolutely false. Deny it promptly and emphatically. This Government has three engineers there inspecting canal work. Also there may be a few engineers sent by private contractors. No. 15.] HAY. Mr. Hay to Mr. Beaupré. DEPARTMENT OF STATE, SIR: I have to acknowledge the receipt of your No. 6, confidential, of April 15, last, in regard to the Panama Canal Convention. Your report has been read with much interest. FR 1903-10 The Department expects you to keep it fully informed respecting the situation in Bogotá and Colombia, so far as the ratification of the treaty is concerned. From your long residence there you ought to be in a position to be in close touch with every phase of the situation and to know and understand the intricacies of Colombian politics as they may bear upon the very important question at issue. The Department desires all of the pertinent, accurate information that it can obtain, and wants it promptly. You should, when the time seems opportune, in so far as you discreetly and properly may, exert your influence in favor of ratification. It is also expected that you will know what hostile influences, if any, are at work against the ratification of the treaty, and whether or not there is opposition to it from European sources. The situation is seemingly a grave one, but the Department has confidence that you will rise to the full measure of its requirements. I am, sir, your obedient servant, Mr. Hay to Mr. Beaupré. JOHN HAY. [Telegram.] DEPARTMENT OF STATE, The Colombian Government apparently does not appreciate the gravity of the situation. The canal negotiations were initiated by Colombia, and were energetically pressed upon this Government for several years. The propositions presented by Colombia, with slight modifications, were finally accepted by us. In virtue of this agreement our Congress reversed its previous judgment and decided upon the Panama route. If Colombia should now reject the treaty or unduly delay its ratification, the friendly understanding between the two countries would be so seriously compromised that action might be taken by the Congress next winter which every friend of Colombia would regret. Confidential. Communicate substance of this verbally to the minister of foreign affairs. If he desires it, give him a copy in form of memorandum. Mr. Beaupré to Mr. Hay. HAY. No. 44.] LEGATION OF THE UNITED STATES, Bogotá, June 10, 1903. SIR: Referring to the Department's No. 6 of April 28, 1903, concerning the request of the Colombian Government to the Panama Canal and Railroad companies for the appointment of agents to negotiate the cancellation of present concessions, etc., and considering that the subject had arisen, as reported in my No. 10 of April 24, 1903, I have the honor to report that I have this day addressed a note to the minister for foreign affairs pursuant to the Department's instructions. Herewith I transmit a copy of said note. I am, sir, your obedient servant, A. M. BEAUPRÉ. His Excellency LUIS CARLOS RICO, [Inclosure.] LEGATION OF THE UNITED STATES, Minister for Foreign Affairs of the Republic of Colombia. Bogotá, June 10, 1903. SIR: Referring to the note which I had the honor to address to your excellency on April 24, 1903, concerning the requests of the Colombian Government to the Panama Canal and Railroad companies for the appointment of agents to negotiate the cancellation of present concessions, etc., I now inclose to you copies of the notice given by the minister of hacienda of the Republic of Colombia to the New Panama Canal Company and the Panama Railroad Company. Your excellency 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. Your excellency will also note that, as a preliminary to this permission, the companies are expected to enter into agreements with Colombia for the authorization and cancelling of all obligations of Colombia to either of them contracted by Colombia under the concessions. Such action on the part of Colombia or on the part of the companies would be inconsistent with the agreements already made between my 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 of the United States 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 Salgar-Wyse 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. She 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. 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. My 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 of the United States would be unable to consummate the proposed purchase from it, for it would have surrendered to Colombia 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 of the United States, if he should make the purchase of the New Panama Canal Company, to acquire its "rights, privileges, and franchises and concessions." This act is annexed to the treaty, and the provisions of Article I of the treaty are framed expressly so as to enable this part |