711F.1914/448a: Telegram

The Acting Secretary of State to the Ambassador in Panama (Wilson)

227. The Panamanian Ambassador came in yesterday to reiterate his proposal previously made to the Under Secretary that an annual sum be fixed to cover this Government’s share of the cost of repairs to Panamanian roads caused by troop movements. He referred in particular to the inadequacy of the phraseology of Item 5 of the Department’s memorandum of July 8, 194130 covering the negotiations on the twelve points. The Ambassador recently sent a memorandum to the Department31 stating that detailed studies regarding the conservation of Panamanian roads had revealed that the expense incurred yearly in road maintenance amounted to approximately $300,000 and suggested that this Government contribute one third of this amount or an annual sum of $100,000.

The Ambassador was apprised of the phraseology of Article VIII of the Department’s most recent draft of the defense site agreement and was informed in the sense of the second paragraph of the Department’s telegram no. 162 of March 19, 1942 to the effect that it does not seem feasible at this time to endeavor to determine the extent of wear and damage to Panamanian roads which will be caused yearly by troop movements, and that it would therefore seem preferable to retain the phraseology submitted by this Government. The Ambassador was informed that the Department agreed that this Government’s responsibility should be designated in the form of a fixed sum [Page 602] or of a proportionate share of the total maintenance cost of Panamanian roads but that in the interest of bringing these negotiations to a prompt conclusion, the details concerning maintenance responsibilities should be the subject of subsequent consultations and a subsidiary agreement to be worked out by local road experts of the two Governments.

The Ambassador has now been handed a copy of the Department’s proposal for Item 5 of the twelve point memorandum and has promised to consult his Government immediately concerning the Department’s proposal. The phraseology submitted to the Ambassador is identical to that of Article VIII of the defense site agreement with the exception that in paragraph 4, second sentence, there is inserted after the word “maintenance” the following expression “of these roads as well as all Panamanian roads used periodically or frequently by the armed forces of the United States.” This has the effect of making the article on roads in the twelve point memorandum general while the article on roads in the defense site agreement remains specific referring only to those roads which are enumerated.

Welles