New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-01
PANAMA OFFERS TO PAY.
COLOMBIA NEEDS MONEY.
Canal Republic Ready TO Gire
81. OOJ 900 To5card Foreign Debt.
IRON Tbs tribune Bureau !

Iron The Tribune Bureau
washington Sept 3U.-The Republic Of Pan
ana is prepared TO offer to Colombia sL0oO,ooO
as settlement in full of any liability which she
may bear IN connection with the s15.0O0OoO for
eicn debt which Colombia contracted while Pan
ANA was a member OF the Colombian Fedora
ton In q word. Panama agrees TO make this
rsyrnent as the price Of her Independence. She
desires moreover, to establish amcable rela-
lions with Colombia and 10 enter into CONNER
cal relations with her. and. rather than contest
the legality Of Colombias claims. makes this
proposition on her own initiative.
Negotiations have been entered into looking 10
n settlement Of tho question OF foreign indebted
pess on this basis. and the agreement, if reached,
viii be made in Washington between the repre-
.entatives of Colombia and Panama the United
States acting practically in the role OF mediator.
The Panaman Minister 10 Washington has re-
ceived instructions from his government TO make
every proper effort to reach agreement with
Colombia. As soon as the Colombian Minister,
who is still at his summer home. reaches Wash
ington. a conference viii be held, in which the
whole question viii be gone over, and President
Roosevelt may be asked TO aid in settlement of
the difficulties.
The vital interest of the United States in the
transaction lies I'm the fact that certain foreign
countries are the holders of Colombian bonds.
and have been bringing pressure 10 bear TO
force the almost bankrupt country to meet at
least part of her obligations. Panama's offer
10 help in this regard viii. il is thought serve
TO appease foreign creditors for the time being
and 90 avert crucial situation. The factor
most likely to insure the acceptance Of Panama's
offer is Colombia's desperate financial condition,
which makes it Imperative that she should be
relieved Of some Of her obligations and should
profit by the increased revenues which would
follow from the establishment Of commercial re-
lations with the canal republic.
CLAIMS AND CoUNTERCLAIMs
Colombia has. however. other claims to bring
against Panama besides what she maintains is
Psnamss share of the foreign debt. She wants
certain trade privileges in connection with the
building OF the Panama Canal. and would like
20 force Panama 10 pay part OF the internal debt
which the two countries shared before Panama
gained her independence; but both Of these
propositions it can he stated authoritatively.
viii be rejected by Panama The latter
elders herself free Of all obligations except the
foreign debt.
Regarding trade concessions Panama takes
the position that she is practically without
Jurisdiction over matters pertaining the
canal. and a. concerns the internal debt Pan
anna claims tina: Colombia is in reality debtor
navy which it is alleged was never paid by
tn federal government to the provincial Off
GERS Two million dollars altogether is the
amount which Panama says Colombia owes her,
COLOMBIA 1NSISTENT.
tierctofore The Colombian government has
taken AN obstinate stand in its insistence upon
Psnanls's obligation To pay share OF both the
foreign ana the internal debt. Early last sum
iner an agent Of the Colombian government,
Senior Enrique Cortez. came to Washington
charged with the special mission of presenting
10 the State Department a statement Of Co
iombia's grievances against Panama, his pur-
pose. doubtless. being to induce this government
10 exert its influence in Colombias benaif
The time OF the arrival OF he agent was I'M
fortunate. as it WAS just before President Roose-
velts departure for the summer. Through the
Colombian Minister. however tho President was
made acquainted With the mission Of Senior Cor
tez and his statement regarding the indebted
ness Of Colombia and the pressure of outside
bondholders vas made matter Of record in the
State Department
Minister Mendoza asked for a conference
along the same lines al that time and. together
with the newly appointed American Minister to
colombia. the Colombian representatives were
given a hearing by the President. The attitude
~ Colombia n that time was not calculated TO
satisfactory settlement possible II Was
"'aiy decided 10 postpone consideration Of the
subject until Tho fail. when the President should
nave returned TO Washington
PANAMA MAKES AN OFFER
Recent developments have all seemed to tend
toward an agreement. Panama has come for
ward "lth an offer 10 defrsy a portion OF the
Foreign Indebtedness without a contest. and
colombia has found her financial condition such
as TO lead 10 her assuming a more receptive
iAooa. An indication Of more amicable feel
ing between the two countries is found in the
act that during his recent visit to New York
senior Obaiais the Minister from Panama made
irlendlS call on of the officials OF the
soiombian Legation Moreover Senior Obsdl
hss recently carried on a correspondence OF a
,rfnoty character with General Reyes, the
resident OF Colombia whom he knows person
slE Whlch seems 20 indicate that President
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