718.1915/550: Telegram
The Secretary of State to the Minister in Panama ( Price )
65. Your 132, August 20, 10 p.m.19
In reply to memorandum you are instructed to hand the following memorandum to the Government of Panama.
“The Government of the United States has received the memorandum addressed by the Government of Panama on August 20, to [Page 226] the American Minister in Panama, making an inquiry with regard to the note transmitted by the American Government through the American Minister at Panama, dated the 19th instant. In the memorandum the Government of Panama states that it feels the Department’s note can be construed as meaning that the United States has stepped aside in the Panama-Costa Rica conflict and will allow hostilities to be reopened and points out that the reopening of hostilities would be contrary to the notification made by the Department under date of its telegram of April 16, 1921.21
In answer, the Department wishes to point out that through the reference in its last note to the note of this Government of May 2, this Government meant to indicate that its present attitude towards Panama and Costa Rica is the same as that announced in the note of May 2, in which it was clearly stated that if, upon the expiration of a reasonable time the steps indicated in that note had not been taken ‘the Government of the United States will find itself compelled to proceed in the manner which may be requisite in order that it may assure itself that the exercise of jurisdiction is appropriately transferred’.
In view of the fact that the United States as friendly mediator regards as just the claims of Costa Rica to the lawful possession of the territory on the Pacific awarded to her by President Loubet it cannot, because of its special treaty relations to Panama, permit a renewal of hostilities by Panama against Costa Rica by reason of Costa Rica’s now taking peaceful possession of that territory.”