819.52G31/7: Telegram

The Chargé in Panama ( Flexer ) to the Secretary of State

44. Referring to the Department’s No. 22, June 4, 2 p.m. Agent at Panama did not report that purchase was being supported by German Government but suggested that Wallenberg investigate possibility. Referring to Swedish Foreign Office inquiry, Wallenberg cabled agent May 30.

“My answer was ‘Am informed German authorities involved but emphasized impossible guarantee correctness this information.’”

It is not believed that investigation by Panamanian Government will be productive of information not otherwise obtainable particularly since the negotiation has been entirely in Sweden. Embarrassment [Page 824] of local agent, who has been extremely cooperative, should be avoided.

The Department’s support of Commanding General’s29 recommendations to the War Department contained in last paragraph despatch 369, June 4,30 is respectfully suggested.

  1. Maj. Gen. David L. Stone.
  2. Despatch not printed. The last paragraph reads as follows: “Since there can be no ground for lawful objection to alien purchase of a property which has been under alien ownership about thirty years, the suggestion is being considered by the military that the ‘Aurora’ and ‘Crepúsculo’ tracts be leased from the Elliott Shipping and Land Company, the long-term contract to contain an option of purchase, rental payments to apply to the purchase price. Such an arrangement would be similar to that under which the military occupy the bombing and artillery range at Rio Hato and the adjacent aviation field at La Venta.” (819.52G31/9)