711F.1914/3–1747

Memorandum by Mr. W. Tapley Bennett of the Division of Central America and Panama Affairs15

The following paragraph is quoted from a personal letter from Second Secretary Lansing Collins16 at Panamá under date of March 11:

“We have not been able to get the Army to agree to certain features of this draft and we have not come to any final conclusions with the Army as to the most important question which is how much to pay. I feel that the atmosphere is fairly favorable, and I have gotten word from a number of sources in Panama that it is now becoming politically expedient for the President to settle the defense sites question. For example, I was informed several days ago that every effort will be made to postpone the national convention of the Liberal party until this fall because of two factors: (1) the fact that selection of a nominee will result in four or five disappointees who will be fed up with the [Page 892] present regime; and (2) the fact that politicos do not dare to hold any kind of a convention with the defense sites question unsolved. General Crittenberger is meeting with us today and promises to have an answer to all the unanswered points in the draft agreement. A miracle might take place and we may make some rapid progress.”

Aside from the amount of compensation to be paid for site acreage, the principal question at issue now is the inclusion of the term “joint authority” in the agreement. General Crittenberger continues adamant that language of the agreement must not interfere with exclusive U.S. military responsibility on the defense sites; to meet his objections, Ambassador Hines has been attempting to get Panamanian acceptance to removal of the reference to joint authority from the body of the agreement to the preamble, where it would serve to emphasize the mutual obligation aspect of the agreement. Meanwhile, War Department General Staff sources have indicated to Mr. Wise that Crittenberger undoubtedly will eventually accept the inclusion of “joint authority”.

Ambassador Hines and General Crittenberger met with Foreign Minister on Saturday morning, March 15, at which time the Ambassador stressed the urgency of arriving at an agreement, per the Department’s telegram no. 79 of March 12.17 In that connection, the Embassy concurs in the Department’s view that Ambassador Vallarino’s18 recent statements have been motivated by his personal political aspirations.

The pressures of internal politics in Panama, along with the Embassy’s urgent representations, combine to present a fairly optimistic picture now as regards agreement on the defense sites problem.

  1. Addressed to Messrs. Wise and Newbegin of CPA; Mr. Briggs of ARA; and to Mr. Braden, A–Br.
  2. Not printed.
  3. Not printed.
  4. J. J. Vallarino, Ambassador of Panama in the United States.