59 STAT.] PANAMA-GENERAL RELATIONS-MAY 18, 1942 Panama including the station, yards and other appurtenances. This agreement, however, is subject to the making available without cost to the Government of the United States by the Republic of Panama of a new site deemed suitable for the purpose by the two Governments. 11. Desire of the PanamanianGovernment for an indemnity in case traffic is interruptedon account of our troop movements. The Government of the United States is not prepared at this time to enter into any formal agreement regarding indemnities for the interruption of traffic on the highways of the Republic of Panama. If, however, serious interruptions of traffic should occur, the Gov- ernment of the United States will be pleased to examine in a friendly spirit any claims advanced by the Government of the Republic of Panama. 12. The desire of the PanamanianGovernment for three gasoline or oil tanks at Balboa. The Government of the United States will make available to the Republic of Panama a right-of-way beginning in the port of Balboa and ending at the Canal Zone-City of Panama boundary at a point to be agreed upon by the two Governments for the construction of a petroleum pipeline. It will also agree that the facilities of the Panama Canal for discharging bulk petroleum products from ships berthed at Balboa and for the direction of such products into the pipeline above-mentioned would be made available in regular turn to the Republic of Panama at a reasonable cost. It should be understood that the Republic of Panama would bear the cost of the construction of the pipeline as well as pay for any damage which might accrue to the property of the United States as the result of the construction or maintenance thereof. The cost of pumping such petroleum products from Balboa to the Canal Zone-City of Panama boundary would be borne by the Republic of Panama which would install and maintain the necessary pumping facilities for the purpose. I should appreciate it if Your Excellency would confirm my under- standing of the agreement reached as set forth above. Accept, Excellency, the renewed assurances of my highest con- sideration. CORDELL HULL His Excellency Sefior Don ERwESTO JAEN GUARDIA, Ambassador of Panama. The PanamanianAmbassador to the Secretary of State EMBAJADA DE PANAIA WASHINGTON, D.C . No. D-291 MAYO 18 de 194/ SENOR SECIETARIO: Con suma y honrosa complacencia acuso a Vuestra Excelencia recibo de su Nota fechada hoy, 18 de Mayo de 1942, en relacion con el Memo- randum que el entonces Embajador de Panama ante el ilustre Gobierno 1295
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