711F.1914/6–1347
Memorandum of Telephone Conversation, by the Assistant Chief of the Division of Central America and Panama Affairs (Wise)36
Colonel Lutes37 called to say that a letter has now been drafted in answer to our request that a decision be reached immediately concerning requirements for defense sites in Panama. He said that the [Page 905] letter would be addressed to the Secretary of State and signed by the Secretary of War.
The letter will say that the less formal Panamanian proposal has been found acceptable to the War Department provided that:
- (a)
- in the basic agreement itself there be a statement that the Commanding General will have exclusive military control over the sites;
- (b)
- in either the basic agreement or in the accompanying notes there be a provision specifying that the Army can abandon a site by giving prior notification to Panama but without Panamanian approval; and,
- (c)
- we accept a new proposal for Annex “A” to the agreement.
Colonel Lutes said that the new proposed Annex “A” is rather specific in requesting certain rights which, from past experiences in these negotiations, Panama may not be willing to accept. He says that the Army is asking for Rio Hato and only 13 additional sites. The latter are for small air warning stations. Rio Hato is being requested on a 50–99-year basis or a 30-year basis with our option to renew. The smaller ones are being requested for ten years with our option to renew. The letter goes on to say that if Panama is not willing to accept this proposition, then the War Department suggests breaking off negotiations. If negotiations are broken off the War Department will withdraw from the 36 sites now in use with the exception of Rio Hato and the 13 to be listed in the new proposed Annex “A”. If this procedure does not bring Panama around to agreement then the War Department probably will begin to release the remaining sites.