711F.1914/6–1647
Memorandum of Telephone Conversation, by the Assistant Chief of the Division of Central America and Panama Affairs (Wise)38
I called Colonel Lutes and brought to his attention the Embassy’s telegram no. 326 of June 16.39 It reports that we have now received through the Foreign Minister Panama’s agreement to state in the basic defense sites document that the United States will have exclusive military command of the areas. Colonel Lutes emphasized that this has been one of the main points for which the Army has been insisting. He added that General Crittenberger probably would be surprised that Alfaro made this move inasmuch as he (General Crittenberger) told the War Department in a recent letter that he did not believe the Foreign Minister would go so far.
[Page 906]Colonel Lutes said that the Secretary of War has now signed a letter to the Secretary of State accepting the Panamanian proposal provided it is modified to include certain basic minimum requirements of the Army. One of these is exclusive command as referred to above. The letter encloses a revised list of sites needed and a copy of General Crittenberger’s recent letter to the War Department arguing against acceptance of the Panamanian proposal.
General Eisenhower has been in on the discussion of the Panamanian problem and has pointed out that the War Department appreciates that it is primarily within the province of the State Department to determine how and when an agreement embodying the above is to be arrived at with the Republic of Panama.
Colonel Lutes said that a copy of the War Department’s letter and enclosures was being sent to General Crittenberger. He believes Crittenberger probably will not like it, but that there will be attached to the file sent to Crittenberger a strong indication that he should be pretty much guided by Washington’s position, although he has the War Department’s full powers to negotiate with Ambassador Hines.