819.51/980: Telegram
The Secretary of State to the Minister in Panama ( Corrigan )
71. Your 130, November 21, 2 p.m. The Department is not unmindful of the possibility that an attempt might be made to connect the present financial difficulties with the delay which has occurred in final consideration by the United States Senate of the General Treaty of 1936. However, irrespective of the fact that it is very problematical whether the United States could voluntarily make available as an advance the accumulated credit either directly or through the Export-Import Bank, the Department is doubtful of the wisdom of such a move.
This Government has on at least two occasions informally suggested to the Government of Panama that the Guaranty Bond Bill and other recent legislative measures might well affect adversely the future economic development of the Republic, and later informed the Panamanian Government that before the Guaranty Bond Bill was adopted time should be afforded for full consideration of its implications.
These suggestions have apparently been without effect, and in consequence it might well be considered in this country that any financial assistance extended to Panama at this time could only facilitate the carrying into effect of the very legislation in question.
The Secretary, who is familiar with the background of the whole situation, is prepared to discuss the matter with appropriate Panamanian officials on arrival at Colón.26
- The Secretary of State while en route to the Lima Conference called on the President of Panama on November 30.↩