New-York tribune., 1921-08-24
Panama Gives
ln;Hands Coto
To Costa Rica
Admits She Would Have On.
posed Occupancy Of Dis
puted Area. but for
Action Taken by Hughes
Marines Not Needed Now
End of Long Quarrel Is Re.
garded as Triumph for
Harding's Administration

WASHINGTON, Aug. % Panama
will not resist further the, assumption
of control of the territory near Coto
adjudged to belong rightfully to Costa
Rica, the State Department was advised
from Panama City to-day BY American
Minister Price. The Panama Minister
of Foreign Affairs, after receiving the
sharp declination of the United States
government to delay further occupation
of the land by Costa Rica, at noon to-
day advised Minister Price that Panama
would make no resistance to Costa Rica
taking possession Of the disputed ter
ritory.
The Panama Foreign Secretary also
notified Mr.. Price that orders had been
issued withdrawing the Panama police
from Coto so that there would be no
possibility Of friction when the Costa
Ricans arrive to take possession
The Foreign Minister stated that the
policy adopted would not have been fol-
lowed III connection.with demand or ul-
timatum from Costa Rica alone, which
would have been rejected ~ the Pana-
man people by force Of arms, the mes
sage from Mr.. Price said.
Two Notes Forwarded
The capitulation by Panama was the
result Of a cecond rcte sent yesterday
By Secretary OF State Hughes in reply
to a telegram from Panama asserting
that Costa Rica woald be opposed.
The note, it developed to- day, vas in
response to a communication from the
Ianama government, indicating that if
Costa Rica should attempt to reoccupy
the disputed territory, force would be
used in resisting unless the United
States made II clear that the American
government would prevent it.
The American reply was handed to
the Panama foreign Office yesterday
by the American Minister. 1t reiter-
ated that part of the note of May 2,
in which the United States endeavored
to make it clear to Panama that the
White award must be respected.
''ln view Of the fact that the United
States as friendly mcdiator the
American note said, after having re-
ferrcd to the character OF the note Of
May 2, regards as just the claims Of
territory on the Pacific awarded to her
By President Loubet, it cannot, because
Of its special treaty relations to Pan
ANA. permit renewal of hostilities
by Panama against Costa Rica by rea-
son Of Gotta Plea now aking peaceful
possession Of that territory"
Marines May Not Land
It is now believed tina. the battalion
Of marines which started yesterday for
Central America aboard the battleship
Pennsylvania will not be landed.
The President and the Cabinet dis
cussed the Panama situation to-day, the
Secretary Of State setting forth the
various phases Of the controversy. The
Cabinet members for the most part are
we'll Informed on the Costa Rica- PAN
ANA dispute, as it has been brewing for
some time and Secretary Hughes has
kept the other secrctar es informed as
developments took place. 1t was stated
after the meeting that the entire group
is OK one mind N regard to the Admin
istration's policy in seeing that the
White award is enforced. 1t is felt
that a decision in this matter will have
far reaching effect on this country's
policy in regard TO all LatinAmcrican
nations.
In Panama's agreement to yield with
out hostiltics, ths Administration has
scored one Of its Important achieve
mente, in the opinion Of diplomats and
observers here.
This old boundary fight, which has
been going on since prior to the OPEN
ing Of the war in 1914, was concluded
according to the terms Of the White
{CcntlnJed on naco ttrN