817.812/780

Memorandum of Conversation, by Mr. Gerald A. Drew of the Division of the American Republics

Participants: Brigadier-General George V. Strong, Assistant Chief of Staff, War Plans Division
Commander F. L. Lowe, U. S. N., Office of Naval Operations
Mr. Briggs6
Mr. Beaulac7
Mr. Chapin8
Mr. Drew

In accordance with arrangements made with the War and Navy Departments with the approval of Mr. Welles, a conference was held to discuss the proposed legislation for the construction of the Nicaraguan canal and the construction of additional facilities in the Canal Zone.

The representatives of the War and Navy Departments indicated that the reports of their Departments on the proposed legislation had not been prepared and that they were not therefore in a position to state the nature of the final recommendations on the legislation which would be made.

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General Strong pointed out that the estimated cost of the proposed Nicaraguan canal of approximately three-fourths of a billion dollars would probably reach a billion dollars if adequate defense arrangements were made. It had been roughly estimated, on the other hand, that the cost of an additional set of locks in the Canal Zone located a safe distance away from the present locks would be approximately $300,000,000. It was felt that the third set of locks and the connecting channels would in effect provide a new canal which in time of emergency could be reserved for the use of American public and merchant vessels, which would eliminate the danger of sabotage by a foreign or neutral merchant vessel while transiting the existing lock system.

The conversation also included discussion of the present and proposed defense system for the Panama Canal, with particular reference to the danger of attack from the air. The difficulties involved in the defense of a second canal through Nicaraguan territory were also discussed.

The officers present were asked their opinion with regard to the possible strategic value of the Nicaraguan project for the canalization of the San Juan River. General Strong did not appear to consider the project as of any great strategic value but agreed to go into the matter further.

After further general discussion of the strategic and financial considerations affecting the proposed legislation, it was agreed that a draft of the reply of this Department to Congressman Bland9 would be submitted informally to the War and Navy Departments in order to avoid any conflict in the recommendations submitted.

  1. Ellis O. Briggs, Assistant Chief, Division of the American Republics.
  2. Willard L. Beaulac, First Secretary of Embassy in Cuba, then on temporary duty in the Department.
  3. Selden Chapin, Assistant Chief, Division of the American Republics.
  4. Schuyler Otis Bland, Representative from Virginia.