Office of the Historian

157. Letter From the Assistant Secretary of State for Inter-American Affairs (Holland) to the Ambassador in Panama (Harrington)1

Washington, September 6, 1956.

Dear Julian: The suggestion contained in your letter of August 24, 19562 of reviving discussion of construction of a sea level canal across Nicaragua definitely has propaganda possibilities and has been well received here.

If used judiciously as a propaganda measure in an effort to bring the Panamanians to their senses, it may well cause the Panamanian Government to pause and perhaps reflect upon the possible consequences of the course upon which it appears to have embarked. It did occur to me, however, that a reverse effect might result if instead the Panamanian Government should interpret the move as evidence of weakness or weariness on the part of this Government [Page 305] in the defense of our rights in Panama and thus inspire the Panamanian Government to redouble its efforts for control of the Panama Canal.

I have discussed the idea with the Secretary, Mr. Roderick, officers on my staff and others who I thought would be interested and they have endorsed it as a good idea. If it is decided to act, to make any activity on our part more authentic, I am considering asking the Nicaraguan Government permission, in accordance with the terms of Article I of the Bryan–Chamorro Convention of 1914, to send a three to five-man survey team to Nicaragua to travel over one or more of the proposed routes that have already been surveyed. I think that if word of this action is picked up in Nicaragua by the Panamanians through their own intelligence channels the desired effect may be obtained. The possibility does exist that this Government may actually undertake the construction of such an interoceanic canal through Nicaragua to satisfy growing commercial and military demands. There is deep concern here over the current trend in Panama.

If action is taken on your suggestion you will be informed immediately.

Sincerely yours,

Henry F. Holland3
  1. Source: Department of State, ARA Files: Lot 60 D 667. Secret; Official–Informal. Drafted by Price.↩
  2. Document 152.↩
  3. Printed from a copy which bears this typed signature.↩