REPRODUCED AT THE NATIONAL ARCHIVES DECLASSIFIED Authority Stateletter Inhz ay me, NARA Caº 24 18 on September 11, 1900, and the boundary as therein indicatua was accepted by both Panama and Costa Rica in the region of the Pacific (from Punta Burica to a point beyond Cerro Pando. This was stated in the Porras Anderson Treaty of March 17, 1910, under the terms of which the remaining portion of the bound ary line, on the Atlantic side, was submitted to arbitration by Chief Justice White of the United States, whose award was to be final, conclusive, and without appeal. having the effect of a perfect and compulsory treaty between the High Contracting Parties. The award of Chief Justice White dated September 12, 1914, has been accepted by Costa Rica, but in Panama that award has been déclared to be null and void by all the public powers called upon to express an opinion, on the ground that the arbiters exceoded their authority. Despite the fact that the line on the Pacific side was definitely accepted by Panama, it is on that side that most controversy of late years has taken placo because of claims by Costa Rica that Panama was endeavoring to extend its authority in the Coto region (on the Pacific side) which belongs to Costa Rica in accordance with the arbitral awards. In 1921, Costa Rican armed forces actually invaded Panana and it was only through the efforts of the United States that more serious consequences were not allowed to develop. The Department of State at that time took a definite stand upholding the white award and urged the Government of Panama to take steps to proceed with the marking of the line as therein indicatod. This, Panama has not yet done.
In 1928, diplomatic relations between the two governments were resumed through the good offices of the Government of Chile, leaving Costa Rica in possession of all the territory to which it seems to believe it is entitled under the White award. Conversations are being held intermittently between representatives of the two governments looking toward a settlement.
but little progress is apparont. Development of large tracts of land on the Pacific littoral, which appear to be ideally suited for growing of bananas, is being retarded by failure to settle the dispute. There is an ever present danger of difficulties, breaking out between the two countries as long as the frontier is not settled.
The most significant tendencies in Costa Rica today are the isolationist psychology mentioned above, a well defined nationalistic trend that sees imperialism in many acts of the American Government and American business interests, and growing dissatisfaction with the political and economic domination of the wealthy class of coffee growers, Various groups, including the Jorge Volio Reform Party and the Communists, are striving for a New Deal. even though their objectives are conflicting.