711F.1914/12–2046: Telegram
The Secretary of State to the Ambassador in Panama (Hines)
621. In discussing defense sites issue with Dr. Alfaro Dept found that he apparently has not changed his position that some “symbolic return” of bases now held or some form of joint trusteeship will be necessary before new definitive agreement can be negotiated. While no definite commitment was made to Alfaro it was suggested that perhaps Panamanian Minister Govt and Justice51 might serve with Gen Crittenberger as trustees on operation bases retained under an interim agreement whereby rights of 1942 accord wd be continued although 1942 agreement itself wd be terminated. Interim agreement wd remain in effect until new definitive agreement based on 1936 treaty entered into operation.
[Page 1138]It is assumed that Alfaro will have communicated the above to Pres Jiménez by this time. Dept informed that he will not return to Panama for approximately another week.
However, the proposal set forth in your 761 Dec 2053 seems preferable from every point of view, Dept therefore believes it desirable to present draft base agreement to Pres Jiménez now. While Dept has not yet received draft D (urtel 755 Dec 17)53 you are authorized to present it as basis of discussion provided it contains no substantial changes from draft C. Dept does not believe it desirable to discuss possible credit to Panama nor is it clear just what other assistance Panama wishes in connection with completion of connecting strip of inter-American highway between Panama and Costa Rica. You may however if Gen Crittenberger concurs discuss possibility of returning Paitilla Point and rerouting of road around Rio Hato base.
In view of Vallarino’s54 conversation with you it would not appear desirable for you to broach proposal of interim agreement. Nevertheless should Pres Jiménez do so, you may tell him that this Govt will be glad to consider such an arrangement. You should however refrain from making any further suggestions in connection therewith and limit yourself to ascertaining what he has in mind for reference to Dept.