711F.1914/2–1347
Memorandum by Mr. W. Tapley Bennett of the Division of Central America and Panama Affairs to the Director of the Office of American Republic Affairs ( Briggs )
I believe you will be interested in the following paragraphs from a memo of conversation with Acting Foreign Minister Sucre (also Minister [Page 891] of Government and Justice and one of the two men in the Cabinet closest personally to President Jimenez). …
“Sucre also pointed out very firmly that it was Panamá’s intention to negotiate an agreement whereby the United States would be responsible for all costs of expropriation, damages, etc., etc, arising out of the occupation of defense sites. Sucre said that he understood that the actual suit by the individual would be against the Government of Panamá but that the United States must be ultimately responsible. …”
“The next point discussed by the Ambassador was the question of rentals. He pointed out to Minister Sucre that Rio Hato had at the present time a special rental rate of $10,000 for the entire 7,000 hectares and that if Rio Hato were rented at $50.00 per hectare per year the annual rental would be $350,000 rather than $10,000. He pointed out that any scheme whereby all lands to be occupied and paid for at $50.00 per hectare would, because of the fact that we desired to take over the entire Island of San José, raise the annual compensation a great deal and make it probably unacceptable to the War Department and Congress. Sucre said he could not understand why we were not willing to pay the regular rate for all of Rio Hato as Rio Hato was our most important base and that he still hoped to make some arrangement whereby all lands used as defense sites would be expropriated by the Government of Panamá and then we would pay $50.00 per hectare for public and private lands. There was considerable discussion on this point. An effort was made to convince Sucre that any raising of the rentals to this extent each year would meet with Congressional disapproval and cause a great deal of trouble. This point of the actual rental rate will have to be adjusted.”