819.154/697

The Secretary of State to the Secretary of War ( Stimson )

My Dear Mr. Secretary: I have delayed acknowledging the receipt of your letter of March 17, 1944 in order that the matter of the amendment of the Agreement for the Lease of the Defense Sites in the Republic of Panama suggested by you could receive the most careful consideration.

You will recall the difficulties encountered by our respective Departments in effecting this Agreement. I believe you will agree with me that this arrangement constitutes a vital link in the system built up for the defense of the Canal. I therefore feel it would be a mistake for the Government to disturb an arrangement that is working as smoothly as this one is; I fear that if the Agreement were opened up to amendment, the Panamanian Government would have suggestions to make to which I am certain we would not want to accede. I am therefore very reluctant to approach the Panamanian Government in the sense of the suggestion contained in the last paragraph of page 1 of your letter under reference.

As your Department is aware, certain propositions have been under consideration by the Public Roads Administration for the construction of what has become known as the Pacora Road. The latest communication from the Commissioner of Public Roads to this Department18 describes an altogether different proposition than any heretofore under consideration. It is my understanding that this proposition has not been brought to the attention of your Department by either the Commanding General of the Canal Zone, despite the fact that he participated in discussions concerning it, or by the Public Roads Administration.

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The Department of State stands ready to assist in any way possible in this matter. It is perfectly willing’ to enter into discussion with the Panamanian Government over any proposition that may enhance the value of the Canal and does not infringe upon any commitments this Government may have toward the Panamanian Government. It is essential however that there be unanimity of views as between the various Government Departments and agencies concerned. It is suggested, with specific regard to the Pacora Road project, that your Department may desire to reach an agreement with the Public Roads Administration regarding its alignment, construction and financing. When informed that such an agreement has been reached this Department will be very glad to undertake such negotiations with the Panamanian Government as may appear appropriate to implement this project.

In this connection I feel that I should refer to the statements in your letter indicating that this matter has been informally discussed by the Commanding General of the Canal Zone directly with authorities in the Republic of Panama. I assume that the Embassy is advised in advance and is kept informed of these discussions. If this were not so we could easily reach a situation in this particular connection when several different proposals were presented to the Panamanian Government by different agencies of the United States Government. I am confident you will agree that this should, be avoided.

Sincerely yours,

Cordell Hull
  1. Dated May 5, 1944, not printed.