File No. 711.21/234.
The Secretary of State to Minister Thomson.
Washington, March 13, 1914, 7 p.m.
Your March 7, 9 p.m. Department, for reasons stated in its telegram of February 28, is obliged finally to decline to include merchant ships in exemption from tolls.
Department agrees to add after word “occupied” in Article II, Paragraph 4, the word “convenient” for “necessary.” [sic] The phrase which Colombia asks thus to change was inserted at her request and in the precise terms submitted by her.
In Article III the Department will raise the offer to twenty-five million dollars if Colombia will agree in advance to accept it. This is to be considered final as to amount. Department cannot add an annuity.
The Department regrets that it is unable to accept the proposed insertion in Article IV. The question of reciprocal releases from liabilities and obligations would naturally form a part of the negotiations which Colombia and Panama are to undertake for a treaty of peace and friendship. It could not be dealt with by the United States and Colombia in the present negotiations without virtually making Panama a party to them. It would also import into these negotiations a subject which might give rise to extended discussions and indefinite delays.
It is hoped that Colombia will treat the contents of this telegram as a satisfactory and final response to her demands. The proposals which she has from time to time put forward have all been carefully considered with a view to make every possible concession to her [Page 152] desires. This has been done even when concessions previously made were understood to meet her wishes fully. The Department cannot help feeling that a continuation of the policy of constantly putting forward new proposals and requesting the alternation [alteration?] of proposals already accepted will lead the two Governments away from what has heretofore been conceived to be the essential basis of settlement and put in jeopardy the entire negotiation. The interests of both Governments will be subserved by the immediate signature of a treaty embodying the proposals on which they accord.