Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-04-13
u. S. BELIEVED
NEAR A BREAK
WITH PANAMA
Small Republic Refuses to
Accept Boundary
Award.
ULTIMATUM NEXT STEP

WASHINGTON, April 13.-The rela-
lions between the United States and the
Republic of Panama were brought to the
breaking point today when the Porras
government of the little republic ilatly
refused to comply with this Govern
ment's virtual demand that Panama ac-
cepU the White lwari as l basis of set
Element In her boundary dispute with
Costa Rica
The refusal of the Panama govern
ment to accede to this Governments
wishes in the matter "rls contained In Il
formal reply to Secretary Of State
Hughes recent note, receipt Of which
was announced at the State Depart
ment.
STATE DEPARTMENT
NOT CONCILIATORY.
While there was no official announce
ment as to the next step to be taken by
this Government to enforce it's demand. 1t
was indicated that the State Department
is not in a conciliatory mood in the
matter. The logical next step would be
for the United States to send an "ulti~
matum" setting a definite time limit for
the Panama government to comply and
in the event Of noncompliance to accept
the consequences. That those conse-
quences would embrace Intervention
there is little doubt.
1t was indicated also that the reply Of
this Government to the Porras govern
mont would be swift and to the point.
The dispute between Panama and
Costa Rica over their boundary has been
in progress for years. Ten years ago 1t
was put up to the chief justice Of the
United States Supreme Court for ad
Judlcation. The award of the chief jus
tice was accepted by Costa Rica, but
Panama has obstinarely declined to ac-
cept 1t.
EXCHANGE
OF NOTES.
Constantly growing more serious, the
differences between the two little repub
lies reached the stage of open hostilities
about the time the Harding administra-
ton came into Office. There has been an
interchange of notes between Secretary
Hughes and the Panama government
since March 4, eliminating three weeks
ago In the virtual demand by Secretary
Hughes that Panama cease Quiboling,
halt hostIlities and accept the White
award. That note called also for Pana-
mas notification to this Government Of
her intention to comply.
President Porrss then appealed to Pres
ident Harding over the head OF Secretary
Hughes and received a reply which viz
tually informed him that Charles L.
Hughes was Secretary Of state and that
Mr.. Hughes steps in the matter bad
the full Endorsement Of the White House.
Today's note from Panama forms her
reply TO both those communications.
PANAMA MAKES
WAR PREPARATIONS.
Information reaching Washington indi-
Gates that Panama has been making war
like preparations for some weeks. i'm
porting quantities of arms and ammuni-
ton, and keeping strong forces Of men
massed near the Costa Rican frontier.
Under the treaty concluded with the
United States at the time the canal was
built. Panama Is supposed TO have no
army, the American troops which guard
the canal assuming all the functions of
military police In the zone. Since the
Costa Rican dispute reached the boiling
stage.f however the Porras government
has been carrying on an intensive recruit
ing campaign, arming the men~thus OBJ
tained with her imported munitions.