Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-03
u. S. TO POSTPONE
PANAMA DECISION
Recognition Question Awaits
Study of Special Inter-
ests, Stimson Says:
By the Associated Press.

BY the Associated Press.
Secretary Stimson indicated today
| the State Department would refrain
4 from any immediate decision on recog-
milton of q new administration in Pan
anna.
The Secretary said that, while the
question Of the ability Of the new
regime to fulfill international obliga-
lions entered into the problem, other
considerations involving the special in
terests OF the United States must be
| considered,
These special interests involve the
waterway of the Panama Canal and
certain rights accorded the United
States by treaty.
These questions viii be considered be-
fore deciding on recognition.
Consultation Another Factor.
| The constitution Of Panama, which
directly mentions the United States,
/ viii be another factor.
There were no indications as to now
the State Department looked upon the
designation of Minister Alfaro as pro-
visional President He had been IN
conference at the department.
Similarly, the question of the recog-
milton of Guatemala win be delayed
pending receipt of further information
as to the c0nstitutionality OF the regime
| Of Provisional President Andrade.
The State Department was informed
| by the legation at Guatemala City that
| former President Chacon had resigned
and his successor by q coup d'etat, Gen.
Orellana, was preparing TO leave the
country.
DIR. Alfaro began winding UP his af-
fairs as Minister to the United States
prior to assuming his new ONCE.
The young head of the new regime In
Panama, who owes his new position to
/ yesterdays succession Of events In Pam
anna City, was undecided as to just
when he would sail.
The Supreme Court of Panama late
yesterday decreed that DR.. Alfaro
was the constitutional immediate sue
cessor to President Arosemena. The lat
| ter resigned his ONCE after yesterdays
coup detat. ~,
Immediate Plans Uncertain.
Uncertain as to his immediate plans,
| DR.. Alfaro was clear cut in his attitude
| toward the call issued by his country.
He. said his course had been determined
| by the constitution of Panama, and he
would unhesitatingly follow its dictates.
DR.. Alfaro announced last night he
would not hesitate to accept the call.
DR.. Alfaro was informed that he had
been confirmed acting President by the
| Supreme Court Of Justice OF Panama
late yesterday. The cable said the Su-
preme Court had accepted the resig-
nation Of President AroSemena and,
considering unconstitutional" the cleo
ton of designates by the Assembly last
| October had decided to call upon the
Minister, in his capacity as first desig-
| nate, to assume the executive power.
/ Although have made no actual
plans" said Dr.. Alfaro, II have had no
hesitation as to my course and I am
| ready here to answer the call of my
country whatever it may be, and am in
complete accord with the aims and pur-
poses Of this movement"
Has Held Post Eight Years.
DR.. Alfaro has served his country as
/ Minister to the United States for the
4 past eight years. Prior to that time he
had, served as minister Of foreign
affairs and minister of justice.
Meanwhile, financial circles in this
country were interested in the Panama
political upheaval to the. extent OF
approximately $4,000, 900 in direct in
vestments or security holdings.
The latest Department of Commerce.
| figures for the end Of 1920 showed
total direct investments Of United States
capital In Panama of $2S,450, 900. Al
though complete late ngureS were not
available on the bonds investments
these were understood TO approximate
another $4,000. 900, the bulk OF which
are held by United States investors.
Miscellaneous direct investments, in
Guiding those in petroleum, fruit and
other interests; were credited with $20,-
029. 900 Of the direct investments, end
selling investments accounted for $780,
900. No railway or manufacturing in
vestmentS were included In the % ma
jor investment units accounting for the
total.
Unofficial sources show the United
States direct investments In Panama
to be distributed among q number OF
interests, including such concerns as
the United Fruit Co., Chir1qui Land
Co., American d Foreign Power Co.,
Panama Railway, with stock held by
the United States Government; All
4 American Cables, Inc; Panama Prod
Iucts Co., Panama Sugar Co., Pan-Amer-
tcan Fruit & Sugar Co. and others
Some Of investors are credited with
land and mining rights and TIE like.
| Today's manifesto declaring Pana-
mas obligations would be met and
property rights respected was an en-
couraging indication TO the holders OF
4 Panama's bonds and to the concerns
operating in the republic.