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Conservation Resources 
 I,iff-Frec® Tvoe I 
 
1566 
 
 Congress, |^ SENATE. f Document 
 
 iSession. j t No. 248. 
 
 A NEW AGREEMENT WITH PANAMA. 
 
 COMMUNICATION 
 
 FKOM 
 
 THE PRESIDENT OF THE UNITED STATES, 
 
 TRANSMITTING 
 
 A COPY OF A LETTER FROM THE ACTING SECRETARY OF STATE 
 RECOMMENDING THE AUTHORIZATION OF CONGRESS TO THE 
 ABROGATION OF THE SO-CALLED TAFT AGREEMENT AND THE 
 NEGOTIATION OF A NEW JVGREEMENT WITH PANAMA. 
 
 September fi, 1922. — Read; referred to the Committes on Foreign Relations and 
 
 ordered to be printed. 
 
 n "^ o i » I I The White House, 
 
 /. W C^{o ^ If WasMnr/ton, Seplemher 2, 1922. 
 
 My Dear Mr. President : I am sending to you herewith copy of 
 a letter addressed to me by the Acting Secretary of State setting 
 forth the desirability of terminating the present treaty arrangement 
 with Panama and the negotiation of a new treaty with that Govern- 
 ment. This is a matter which has been under consideration by the 
 State Department for some time and the recommendation of the 
 Acting Secretary has been forecasted by developing events for several 
 months. It is altogether desirable that the temporary agreement 
 whieh has [governed our relations with the Government of Panama be 
 superseded by a new covenant. As soon as the Congress grants the 
 authority to abrogate the existing agreement it will be possible to 
 proceed with the negotiation which is desired on the part of both the 
 Ciovernment of the Unitetl States and the Go^'(>rnmont of Panama. 
 1 am addressing a like communication witli similar inclosure to the 
 Speaker of the House. 
 
 Very truly yours, 
 
 W^ARREN G. Harding. 
 Hon. Calvin Coolidge, 
 
 Pref-ident of the United States Senate, 
 
 Washington, D. C. 
 
 Department of State, 
 Washington, September 1, 1922. 
 The President: 
 
 In 1904 Mr. Taft, then Secretary of War, visited Panama in an 
 effort to adjust certain difhculties which had arisen in connection 
 
A NEW AGKEEMEKT WITH PANAMA. 
 
 r I ^ b ^ 
 
 with the execution of the treaty of 1903 with that country. After 
 discussion with the officials of the Panaman Government a temporary 
 agreement was formulated to serve as a modus operandi during the 
 period of the construction of the canal. This agreement was em- 
 bodied in executive orders issued by the Secretary of War on Decem- 
 ber 3, December 6, and December 30, 1904, January 10, 1905, and 
 January 5, 1911. By the Panama Canal act of August 24, 1912 (37 
 Stat. 560), these orders, together with all other orders and regulations 
 promulgated in the Canal Zone by order of the President for the gov- 
 ernment and sanitation of the Canal Zone and construction of the 
 Panama Canal, were ratified and confirmed as valid and binding until 
 Congress should otherwise provide. 
 
 The Taft agreement was intended as a temporary arrangement to 
 cover the period of construction of the canal. As such it has served 
 its purpose, since the canal has for some time been formally open to 
 commerce. It no longer provides an adequate basis for the adjust- 
 ment of questions arising out of the relations between the Canal Zone 
 authorities and the Government of Panama, and it is the opinion of 
 this department, and, I am informed, of the War Department also, 
 that the agreement should be replaced in the near future by a more 
 permanent arrangement. 
 
 I have the honor, therefore, to recommend that Congress be 
 requested to authorize the abrogation of the executive orders above 
 mentioned, which comprise the so-called Taft agreement. When this 
 authorization is granted it will be possible to terminate the agreement 
 with Panama and to proceed at once with the negotiation of a new 
 treaty. 
 
 Respectfully submitted. 
 
 William Phillips, 
 Acting Secretary of State. 
 
 The President, 
 
 The White House. 
 
 To the Senate and House of Representatives: 
 
 I transmit a report by the Acting Secretary of State in which he 
 recommends that the Congress be requested to authorize the abroga- 
 tion of the executive orders comprising the so-called Taft agreement 
 with Panama. These executive orders, by the Panama Canal act of 
 August 24, 1912, were confirmed as valid and binding until Congress 
 should otherwise provide. Consequently it would appear that an 
 act of Congress is required to abrogate them. 
 
 I commend the request to the favorable consideration of the 
 Congress, since I am convinced that the abrogation of the so-called 
 Taft agreement and the negotiation with Panama of a new agreement 
 in its place are advisable; but as it may be found desirable to con- 
 tinue these executive orders in effect temporarily pending the con- 
 clusion of the new agreement, I suggest that the authority if granted 
 by Congress shall leave the time for their abrogation optional with 
 the President. 
 
 The White House, ^^ 
 
 -, 1922. ^<^ 
 
 O ^<^C 
 
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