711.192/88: Telegram
The Minister in Panama (South) to the Secretary of State
[Received September 9—10:10 a.m.]
82. Department’s numbers 21617 and 217 of August 22, regarding treaty negotiations. Had purely informal conversation with President and Minister of Foreign Affairs. Both understood that I had no instructions from Department. President expressed desire to finish treaty and said that he would sign treaty and get it ratified before he went out of office on October 1 if questions of difference could be resolved in the following manner:
- 1.
- That waterworks and sewer construction debts be permitted to pend, but that about $1,250,000 be spent by United States in building road from Panama to Colon and thence to Porto Bello. In case the amount proved insufficient Panama would contribute balance. The conditions governing the maintenance and use of the road would be the same as those stipulated in article 3 of the draft treaty. I was recently informed by the commanding general of the Canal Zone that he considers it very desirable to build a road from Panama to Colon.
- 2.
- That the United States cede to Panama in addition to the small part of Cristobal abutting on Boca Chica an unoccupied strip of land about 400 meters long located near the club in Colon which is now owned by the Panama Railroad Company. This land is to be used entirely for docking purposes in connection with the coastwise trade. It is my opinion that the President will not insist upon this proposal.
- 3.
- That article 4, last paragraph, of draft treaty stipulate 30 years instead of 15. Dr. Morales was of the impression that the Department never declined to accept the 30–year limit. In case Department is opposed to 30-year term perhaps a compromise could be made by Department considering term of 22 to 25 years, and this compromise would have greater chance of success if subsequent terms were six or seven years instead of five years.
There seems to be little doubt that present Assembly would ratify treaty immediately. Both the Assembly and its committee on foreign relations would be favorably disposed. There will probably be only a short session. It is still uncertain whether Chiari will agree to accept treaty in its present form. The President appears enthusiastic over finishing the treaty and now seems to be the time to close the negotiations. If the Department should be of the opinion that an agreement can be reached along the line of the above-mentioned points or of any or all of them, I shall be pleased to convey Department’s views to the President in a purely informal way and without prejudice to the negotiations which the two commissions are conducting.
The President has not informed Alfaro of his latest views as to signing of the treaty, for reasons which were reported in my telegram no. 80 of September 2.18