711F.1914/454a: Telegram
The Acting Secretary of State to the Ambassador in Panama (Wilson)
269. Since the present Rio Hato lease which expires December 31, 1942 was in existence before negotiations were begun for the use of the other defense sites34 and since the nature of the activities and installations at Rio Hato are such that an arrangement for a relatively long term tenure of that base is desirable (an arrangement which is not guaranteed under the provisions of Article I of the omnibus defense agreement) the Department feels that every effort should be made promptly to reach a separate agreement for the continued use of this [Page 604] area. Do you think that the Panamanian Government would consider the possibility of expropriating the Rio Hato property on the understanding that this Government would rent the area beginning January 1, 1943, at the rate of 10,000 balboas per annum for a 99 year period or for an indefinite period which would extend until such time as the two Governments would agree that conditions no longer warrant the use of Rio Hato as a base necessary for the defense of the Canal?
Please submit at your earliest convenience a draft proposal which you feel might be presented to the Panamanian Government.
- It appears that the United States rental of the Rio Hato area began in January 1935.↩