163. Memorandum of a Conversation, Department of State, Washington, October 3, 19561

SUBJECT

  • Radar Sites in Panama

PARTICIPANTS

  • Mr. Finucane, Under Secretary of the Army
  • Mr. Bacon, Deputy Assistant Secretary of the Army
  • Col. Hanford, Director of Western Hemisphere Affairs, Dept. of Defense
  • Mr. Rubottom, Acting Asst. Secretary for Inter-American Affairs
  • MID—Mr. Wollam
  • MID—Mr. Sowash

Advantage was taken of the call of Mr. Finucane and Mr. Bacon to raise the subject of our future course in the controversy with Panama regarding the United States request for radar sites in Panama. While Mr. Bacon seemed to believe that these sites eventually would be needed, Mr. Finucane expressed great doubt that sites in Panama are needed. He said that technical developments in this field are taking place with such rapidity that the plans on which the United States request was based probably already are obsolete. It was pointed out to Mr. Finucane and Mr. Bacon that the United States request and our subsequent pressure for it were made at the request of the Army who assured us that the sites were essential to the defense of the Canal. This issue, it was further stated, had gravely affected our relations with Panama and probably had some influence on the attitude assumed by Panama with respect to the [Page 316] Suez issue. Furthermore, by bringing out Panama’s adamant attitude regarding Article II of the 1936 Treaty, this issue has jeopardized this Government’s future use of Article II in obtaining defense sites in Panama. It was, therefore, disturbing to learn now that the Army probably will conclude that it does not really need these sites.

It was agreed that State would await the pending decision of the Joint Chiefs of Staff on this matter and would then decide, in the light of that decision, how best to extricate this Government from the position into which it has been forced by the Army’s volte-face.2

  1. Source: Department of State, Central Files, 711.56319/10–356. Confidential. Drafted by Sowash.
  2. At a meeting of the Secretary’s Staff on October 4, the subject of the proposed Nicaraguan canal survey was discussed. The following portion of the unsigned notes of that meeting summarizes the discussion as follows:

    “Mr. Rubottom reported that he had a meeting with Under Secretary of the Army Finucane yesterday and that the Defense Department opposes any survey for a Nicaraguan Canal at this time. He added that studies by the Department’s legal staff of the records of fifty years ago revealed a great interest of Costa Rica and El Salvador in such a project, and that their interest will complicate matters. Mr. Rubottom noted that the Secretary had answered a question regarding the Nicaraguan Canal at his press conference and that Rep. Bonner of the House Maritime Committee had expressed an interest in the project. In view of the public and Congressional interest, he recommended that we not push the Nicaraguan Canal survey at this time since it could embarrass President Luis Somoza.” (Ibid., Secretary’s Staff Meetings: Lot 63 D 75)