819.154/6–344

Memorandum of Conversation, by the Director, Office of American Republic Affairs (Duggan)

Participants: Dr. Augusto Boyd, former President of Panama;
Señor Don Enrique A. Jimenez, Ambassador of Panama;
Laurence Duggan

Dr. Boyd said that the President had asked him while he was in Washington to mention to the Secretary the desire of the Panamanian Government to construct the Inter-American Highway of cement rather than of macadam. Owing to the brevity of his conversation with the Secretary Dr. Boyd said he had not had an opportunity of discussing this with the Secretary and would appreciate my informing him.

Dr. Boyd went on to explain that Panama’s experience with roads indicated that it was better to construct at the outlet a road of cement that required a minimum of upkeep rather than a road; of [Page 1432] macadam which required continuing upkeep at a rather substantial cost. The Inter-American Highway had already cost Panama $20,000,000, yet the road was a very poor one. Moreover, the heavy United States Army trucks that used the roads of the Republic usually cut them up badly. Although the United States Government paid for the repair of roads injured as a result of such use, nevertheless it meant that the roads were continuously in a state of disrepair since they could not stand up against the treatment accorded by heavy trucks.

Dr. Boyd stated that Panama would, of course, pay the difference between the cost of a road of macadam and one of cement. The President hoped that either the Export-Import Bank or the War Department could loan the money. About $4,500,000 would be necessary.

In our subsequent conversation Dr. Boyd stated very clearly that the President wanted to have a cement road all the way to the Costa Rican border, so that once the road was constructed there would be nothing but minor upkeep.

I told Dr. Boyd that this was quite a new idea, at least to me. I wondered whether there would be enough traffic, at least over the northern part of the road, to warrant making it of cement. I said that the whole matter would be gone into at once and a reply conveyed directly to the President.19

I said that I would immediately inform the Secretary and would also advise him of the results of our studies.

  1. No record of such a reply has been found in Department files.