59 STAT.] PANAMA-GENERAL RELATIONS-MAY 18, 1942 1289 Agreement between the United States of America and Panamarespecting May 18,1942 general relations. Effected by exchange of notes signed at Washington [E. A.S. 452] May 18, 1942. The Secretary of State to the PanamanianAmbassador DEPARTMENT OF STATE WASHINGTON May 18,1914 EXCELLENCY: I have the honor to refer to the memorandum which the Ambassador of Panama left with the President of the United States on February 18, 1941[1 ] and to the Department's memoranda of July 8, July 18, and December 2, 1941[1] in reply thereto, regarding twelve points in the relations between Panama and the United States with respect to which positive action by this Government was requested. Subsequent negotiations have happily led to agreement between our two Governments on all these points, I understand, in the form set forth below: 1. The Waterworks at Colon and Panama. When the authority of the Congress of the United States shall have been obtained therefor, the Government of the United States will transfer to the Government of the Republic of Panama free of cost all of its rights, title and interest in the system of sewers and water- works in the cities of Panama and Colon. At that time the United States will renounce the right which it obtained in the first paragraph of Article VII of the Convention between the United States and the Republic of Panama signed at Washington, November 18, 1903, as modified by Article VI of the 33 Stat. 2236. Treaty between the United States and Panama signed at Washington March 2, 1936, to acquire lands, buildings, water rights or other 53 stat.1817. properties necessary for purposes of sanitation such as the collection or disposal of sewage and the distribution of water in the cities of Panama and Col6n. The United States, likewise, will renounce the authority contained in Article VII of the above-mentioned conven- tion of 1903 to impose and collect water rates and sewerage rates in those cities which shall be sufficient to provide for the payment of interest and amortization of the principal of the cost of said works. It is understood that there will be no refund to Panama of amortiza- tion and interest payments or charges of any kind based on the Con- vention of 1903 and on the contracts of September 30, 1910. If the Panamanian Government so desires, the cities of Panama and Col6n may continue to receive supplies of water from the Canal Zone [Not printed.] 66347 -47--PT. II -39
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