Mr. Barrett to Mr. Hay.

[Telegram.—Paraphrase.]

(Mr. Barrett reports that President Amador in replying to Mr. Barrett’s presentation address protested against the tendency to contradict the spirit as well as the letter of the canal treaty, referring to the imposition of the Dingley tariff and the establishment of customs ports of entry at Ancon and Crystobal in conformity with the President’s order of June 24, 1904. (Printed below.))

The following order of the Secretary of War is published for the information and guidance of all concerned:

War Department,
Washington, June 24, 1904.

To the Chairman of the Isthmian Canal Commission:

By direction of the President it is ordered:

Section 1. The territory of the canal zone of the Isthmus of Panama is hereby declared open to the commerce of all friendly nations. All articles, goods, and wares, not included in the prohibited list, entering at the established customs ports, will be admitted upon payment of such customs duties and other charges as are in force at the time and place of their importation.

Sec. 2. For the purposes of customs administration in said canal zone, there are hereby established two collection districts, as follows:

First. The district of Ancon, comprising the southern half of said canal zone, more particularly described as follows:

The port of entry in said district shall be Ancon.

Second. The district of Crystobal, comprising the northern half of said canal zone, more particularly described as follows:

The port of entry in said district shall be Crystobal.

Sec. 3. There is hereby created and shall be maintained in the government of the canal zone a subdivision of the executive branch to be known as the customs service; the general duties, powers, and jurisdiction of the customs service shall be to administer the customs laws and tariff regulations in force in said zone. The governor of the canal zone shall be the head of the customs service. There shall be a collector of customs for each collection district, who shall receive an annual salary of $2,500 in gold, payable in monthly installments. It shall be the duty of the collector to collect all revenues derived from the enforcement of the customs laws and tariff regulations in the district subject to his jurisdiction and to perform such other service in the administration of such laws as is ordinarily performed by a collector of customs or as he may be required to perform by the governor of the canal zone. The collector of customs shall be appointed by the governor, with the advice and consent of the Isthmian Commission. The governor of the canal zone is hereby authorized to appoint and fix the compensation of deputy collectors, surveyors of customs, and such other subordinates and employees as may be necessary for the efficient administration of the customs laws and service.

Sec. 4. The governor of the canal zone is hereby authorized and empowered to prescribe and enforce rules and regulations for the administration of the customs laws and service of said zone, and report the same to the chairman of the Commission, and said rules and regulations shall have the force and effect of law until annulled or modified by legislative act of the Isthmian Canal Commission or other competent authority.

Sec. 5. Until otherwise provided by competent authority duties on importations into the canal zone are to be levied in conformity with such duties as Congress has imposed upon foreign merchandise imported into other ports of the United States.

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Sec. 6. Goods or merchandise entering the canal zone from ports of the United States or insular possessions of the United States shall be admitted on the same terms as at the ports of the States of this Union.

Sec. 7. All goods or merchandise, whether free or dutiable, entering the canal zone by water, by rail, or otherwise, for transportation across said zone must be entered at the custom-house of the collection district wherein the point of entrance is situated. Violation of this requirement shall subject the goods to seizure and forfeiture by the customs officials.

Sec. 8. The governor of the canal zone is authorized to enter and carry out an agreement with the President of the Republic of Panama for cooperation between the customs service of the canal zone and that of the Republic of Panama to protect the customs revenues of both Governments and to prevent frauds and smuggling.

Sec. 9. The governor of the canal zone is hereby authorized to enter upon negotiations and make a tentative agreement with the President of the Republic of Panama respecting reciprocal trade relations between the territory and inhabitants of the canal zone and appurtenant territory and the Republic of Panama; also a readjustment of customs duties and tariff regulations so as to secure uniformity of rates and privileges and avoid the disadvantages resulting from different schedules, duties, and administrative measures in limited territory subject to the same conditions and not separated by natural obstacles. The governor shall report as to such negotiations and proposed agreement to the chairman of the Isthmian Canal Commission for submission and consideration by the Commission and such action by competent authority as may be necessary to render said agreement effective in the canal zone.

This order will be proclaimed and enforced in the canal zone at Panama.

(Signed) Wm. H. Taft,
Secretary of War.

This order will be duly published and enforced.

(Signed)
J. G. Walker,
Chairman Isthmian Canal Commission.