Evening star., 1921-03-10
PANAMA REFUSES
WHITE AWARD AS
BASIS FOR PEACE
Demands Right to Keep Civil
and Police Authorities
in COt0.
u. S. WILL INSIST UPON
GRADUAL WITHDRAWAL
Indemnity. Will Be Demanded of
Costa Ricans, State Department
Is Informed,

Panama refuses to accept the White
award as a basis of peace with Costa
Rica it informs the American govern
the State Department.
The note is in reply to that sent to
Panama and Costa Rica last Saturda y
by the State Department demanding
immediate cessation of hostilities and
was made public without comment.
It.is understood, however, that the
Panama note is not regarded by, the
State Department as satisfactory and
that counter proposal has been
made by President Porras, which may
be made the basis of further nego-
tiations. He is understood to have
suggested mediation of the boundary
dispute by a board of South Ameri-
can members, representatives, chosen
by various universities, or some other
made up of disinterested men.
Panama agrees to the retirement of
it's troops sent to Coto after the ap-
pearance there OF Costa Rican forces,
put it announces its intention to keep
the civil and police authorities i'm
Coto, where they were prior to the
break between the two governments S
February 81
Costa Ricnn Troops Withdrawn.
Costa Rica already has withdrawn
her troops from the disputed terri
tory and has agreed to a settlement
on the basis of the White award.
Panama, by the withdrawal of its
troops, has restored the status quo,
but it is understood that the United
States will insist upon the gradual
withdrawal from the disputed terri
tory of the civil government in order
to clear the way completely for final
adjustment.
Panama states that whatever may
be the result of the mediation by the
American government in the armed
conflict between the two Central
American republics, it reserves the
right of demanding indemnity from
Costa Rica for the damage caused
and for the expenditures of the defen-
sfve expedition which we have seen
the necessity of equipping and organ
izing."
f'anama's Reply to I. 9.
Panamas reply as TRANSMITTED
through the American minister to Pana-
ma is as follows
My government authorizes me to
state to your exceilency that it has
given instructions already to our mil
itary forces TO retire from Coto: but
that our civil and police authorities
will remain there as before the Costa
Rican aggression Of the 21st of last
month: and that this act Of Panama,
inspired by the desire of putting an
end to the armed conflict which has
been imposed upon il against its will,
should not be interpreted in any case
as an implied recognition Of the
White award which the executive
power. the legislative assembly and
the public opinion Of Panama have
jointly refused to accept since 1914,
the year of which it was rendered.
Panama Demands IndemnitIes.
Il do not wish to close, Mr. Minis
ter, without having your excellency
to take note that the Republic of
Panama was enjoying the benefits of
internal and external peace. applying
itself to work. to the cultivation Of
the arts and sciences, and in friendly
relations with all the peoples of the
earth. when suddenly. like a thunder
bolt out of clear sky, fell the un-
expected and unjustified attack upon
il by the government of Costa Rica.
Whatever may be the result of
the mediation interposed by the gov
ernment of the United States in the
armed conflict which. to our grief,
COSTA Rica has imposed upon US.
Panama reserves the right of estab-
fishing and of making effective in
the course of the mediation the re-
sponsibilities which Costa Rica has
incurred by reason Of it's unuuaIj-
obligation of indemnifying us for
the damage caused and for the ex-
penditures of the defensive expedi- =
tion which by it's fault we have seen
the necessity of equippinS and or
ganizinS.'