LATIN AMERICA: Panama-Colombia

At the invitation of U. S. Secretary of State Charles E. Hughes, a meeting was held in Washington between the Secretary of State, Dr. Enrique Olaya, Colombian Minister to the U. S., and Dr. J. Alfaro, Panaman Minister to the U. S.

Excerpts from the procés-verbal of the meeting:

"Mr. Hughes said it would be most gratifying indeed for the two neighboring Repupblics of Colombia and Panama to enter into regular diplomatic relations and he, therefore, asked the Minister of Colombia whether it would please the Government of Colombia to receive the representative that the Government of Panama would accredit. . . . He further inquired whether Colombia would also be prepared to accredit a Minister to Panama.

"Dr. Olaya said that he was authorized by his government to state officially to the Panaman Minister that the Republic of Colombia recognizes Panama as an independent nation and that his Government would be pleased to receive the duly accredited agent whom the Republic of Panama would despatch. . . . He added that the Government of Colombia would also be pleased to accredit a Minister to the Republic of Panama.

"Mr. Hughes expressed the hope that the Panaman Government was ready to enter into diplomatic relations with the Government of Colombia.

"Dr. Alfaro replied that he was authorized by his Government to express its gratification at the recognition of Panama by Colombia as an independent nation and added that his Government would despatch a duly accredited agent. . . . He added that his Government would be pleased to receive the Minister accredited by the Government of Colombia.

"Mr. Hughes asked if Drs. Olaya and Alfaro had instructions concerning the appointment of ministers.

"Dr. Alfaro stated that he was authorized by his Government to inquire, in case the Minister of Colombia should have been instructed to answer, whether Nicolas Victoria, J., would be persona grata to the Colombian Government.

"Dr. Olaya replied that he was authorized by his Government to accept as persona grata anyone whose name should have been suggested by the Government of Panama, and he added that he was authorized by his Government, in reciprocation, to inquire whether Doctor José Maria Gonzlez Valencia would be persona grata to the Government of Panama.

"Dr. Alfaro replied that he was authorized by his Government to accept as persona grata anyone whose name should have been suggested by the Government of Colombia."

Thus were diplomatic relations established between the two Republics for the first time since 1903 when Panama obtained her independence.

The significance of the establishment of diplomatic relations between Colombia and Panama is embedded in the history of the Panama Canal.

In 1899 the U. S. Congress created the Isthmian Canal Commission to investigate a route for a canal. The Commission reported in the following year and an agreement with the interested parties was reached in 1903.

The Republic of Colombia was to receive gold to the extent of $10,000,000 and $250,000 a year rent for a strip of land covering the proposed canal route. At the last moment the Colombian Senate, undoubtedly hoping to get more money, refused to ratify the agreement with the U. S.