718.1915/288: Telegram

The Minister in Panama ( Price ) to the Secretary of State

41. Pursuant to receipt last night of Department’s 15, February 28, 2 p.m., I have held personal and unofficial conference with Panaman President and Panaman Minister for Foreign Affairs in the course of which they have authorized me to say to Department that Panama is willing to halt further hostile action if Costa Rica will do so and hold forces where they are, discussing matter diplomatically; that Panaman President considers time opportune for opening negotiations for settlement of the boundary dispute; and Panaman President made suggestion of both countries holding plebiscites respectively in the Atlantic side disputed area and Pacific side disputed area agreeing to abide by result of plebiscite. It is agreed to exchange personal unofficial notes this afternoon setting forth above understanding.

Price