Papers relating to the foreign relations of the United States, 1929, Volume III

819.6341P19/30: Telegram

The Secretary of State to the Chargé in Panama (Muse)

Washington, June 4, 1929—4 p.m.

36. The Department has noted in your despatch No. 2009 of April 30¹⁸ that the concession recently granted to the Panama Corporation, Ltd., contains a provision authorizing the Company to establish radio stations. This provision should have been brought to the Department’s attention at once by cable.

The Department understands that no final reply has been received from the Panaman Government to the note presented by the legation on February 16, 1927 regarding the Tonosi contract.¹⁹ If this is the case, and unless you consider such action inadvisable for reasons of which the Department is not informed, you will present the following note:

“I am instructed to inform Your Excellency that the Government of the United States has noted that the concession recently granted to the Panama Corporation, Ltd., contains a provision authorizing that company to establish radio stations within the area of the concession. In this connection I have to remind Your Excellency that no final reply has as yet been received to this Legation’s note of February 16, 1927, referring to a similar provision in the concession granted to the Tonosi Fruit Company.

As stated in the Legation’s note above referred to, the Government of the United States assumes that the Panaman Government does not intend to permit private interests to establish radio telephone or telegraph stations in Panaman territory without the previous consent of the United States, since such action would be a direct violation of the existing agreements between the two governments as confirmed by the decree issued by the Panaman Government on August 29, 1914.²⁰ It is feared, however, that the failure to include in the concession granted to the Panama Corporation, Ltd., a specific reference to the necessity for the prior consent of the United States may cause subsequent misunderstandings, unless the Panaman Government has made it clear, or now makes it clear, to the interested company that any grant of the right to establish radio stations is subject to the decree of 1914.

I am instructed to reiterate on this occasion the view of the Government of the United States that the control by the United States of radio communication throughout the Republic of Panama is essential to the defense of the Panama Canal and consequently to the defense of the territory of Panama. It is not doubted that the Panaman Government, which accepted this view in enacting the decree of August 29, 1914, remains of the same opinion.”

Stimson

18. Not printed.
19. See telegram No. 21, February 17, 1927, 10 a.m., from the Minister in Panama, Foreign Relations, 1927, vol. iii, p. 501.
20. Presidential Decree No. 130, August 29, 1914, ibid., 1914, p. 1051.