711F.1914/581

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

Dear Sumner: I have sent the Department in the last few days a number of telegrams and airgrams regarding the reaction here to the discussion in the Senate Sub-committee of Foreign Relations on the injection of the Isthmian Timber Company claims into the hearing on the proposed legislation affecting the Government of Panamá. As of possible interest I attach hereto a leading editorial48 from the Panamá American of last night.

There is no question but that we have a serious proposition on our hands with this matter. Feeling is rising strongly about it, and I already note a difference in attitude on the part of some prominent Panamanians, including members of the Cabinet. A member of the [Page 614] Cabinet said to me last night that this matter planted squarely the question of the Good Neighbor policy, whether it was to be merely a matter of pleasant words on the part of our Government, or whether it was to be a reality. Tato Fábrega has informed a friend of mine that if ratification of the Three Points is delayed indefinitely because of these private claims,49 he will resign from the Cabinet.

You know the fine cooperation we have been steadily receiving up to now from the Government of Panamá. They have never delayed action on any of the defense sites which we have requested. Subsequent to signature of the Defense Sites Agreement on May 18 last we have requested nine additional sites and enlargements of three old sites. The Panamanian Government acted immediately and favorably on these requests. I have just recently presented two additional requests for defense sites at the urgent request of General Andrews, one for an airplane detector station and one for a beach observation post, and Dr. Fábrega has informed me that it will now be necessary to have these requests considered by technical representatives of both governments to determine the advisability of granting them. I fear that we shall now encounter delay and difficulties in obtaining much needed action in the defense effort. I shall of course make every effort possible to convince the Government that action on defense matters here must not be delayed because of the developments in Washington, and that I believe that the Department’s point of view regarding the private claims will prevail and Congressional approval be obtained within a reasonable time. Nevertheless, I feel that I must let you know that there is a real chance of our running into serious trouble of this nature here until the matter of Congressional action is settled in Washington.

President de la Guardia said to me the other day that he had confidence that this matter would eventually work out satisfactorily, because he was confident that President Roosevelt would himself intervene.

With all best wishes,

Yours, as ever,

Edwin C. Wilson
  1. Not reprinted.
  2. The private claims of Panamanians against the United States for damages due to military traffic which the United States agreed to consider in the eleventh of the twelve points was not included here. It was one of the eight points not submitted to Congress.