Foreign Relations of the United States, 1947, The American Republics, Volume VIII

711F.1914/8–1947

Draft “G” of the Defense Sites Agreement Between Panama and the United States⁴⁰

confidential

[Washington,] 8 July, 1947.

Preamble

The Governments of the Republic of Panama and of the United States of America have consulted together to consider all the phases of the existing situation as well as to discuss the experiences of the last war in relation to the defenses of the Panama Canal and the Republic of Panama; and, after an exchange of information with relation to the present needs, have reaffirmed their joint interest in providing for, and their mutual determination to assure the continued and effective protection of the Panama Canal and of the Republic of Panama as stipulated in the General Treaty of 2 March 1936 and the exchange of notes relating thereto; and, have come to the conclusion that a limited number of defense sites in territory under the jurisdiction of Panama should be maintained; in virtue of which the undersigned, Dr. Ricardo J. Alfaro, Minister of Foreign Relations of the Republic of Panama, and His Excellency, Frank T. Hines, Ambassador of the United States of America, representing their respective Governments by which they have been duly and legally authorized, have agreed as follows:

Article I

The High Contracting Parties, coincident with the entering into effect of this agreement, declare ended the occupation of all the defense sites now in use under the terms of the Agreement of May 18, 1942 and agree that hereafter the defense sites in territory under the jurisdiction of Panama will be regulated by the conditions set forth in the Preamble and the stipulations of the following articles of this agreement.

Article II

The Republic of Panama designates the areas specified in Annex “A”⁴¹ attached to this Agreement and of which it forms an integral part, to serve as sites to be used by the armed forces of the United States for the defense of the Panama Canal and of the Republic of Panama, for the limited period specified for each one.

Article III

The Republic of Panama retains its sovereignty over the areas used as defense sites and over the air spaces corresponding to the same, as well as jurisdiction in civil matters, it being understood, nonetheless, that the United States will have exclusive jurisdiction over its civilian and military personnel, when employed or engaged in any manner whatsoever in connection with the operation of a defense site, and their families. The United States will have the right to arrest, try, and punish all persons who, in any defense site, wrongfully commit any act against the safety or security of the site, of the military installations therein, or of the personnel situated thereon, provided, however, that any Panamanian citizen arrested or detained on any charge will be delivered to the authorities of the Republic of Panama for trial and punishment. National authorities of both governments will be accorded adequate facilities for access to the defense sites but the military authorities of the United States may exclude from the defense sites such other persons as they see fit.

Article IV

The Republic of Panama accords to the United States the powers and authority necessary to assume full military, technical and economic responsibility for the defense sites. The United States will exercise, therefore, all the rights and authority within defense sites and the air space thereover, which are necessary for occupation, use, operation and defense thereof or appropriate for their maintenance and control, and rights essential for access to, security and proper functioning of the defense sites, such as the right to improve or use roads, territorial waters, air spaces, subterranean waters, and waters of rivers and streams adjacent to or in the vicinity of defense sites. The Government of the United States may employ contractors and other personnel in the exercise of such rights as exist under this agreement.

Article V

To assure the efficient and mutually satisfactory functioning of the defense sites as well as to assure the exercise of the Republic of Panama’s sovereign rights, the Government of the Republic of Panama designates the Minister of Government and Justice as its representative and the Government of the United States of America designates the local Commander of the Armed Forces as its representative to form a joint commission. The above-mentioned representatives will consult on all matters arising from the use of the defense sites and which are not specifically provided for in this agreement, provided, however, that all matters of a military nature or involving in any way the exercise of military command are to remain within the exclusive responsibility and jurisdiction of the military authorities of the United States. Following such consultation, the two Governments will adopt by an exchange of notes, which shall become an integral part of this agreement, the recommendations of the mentioned representatives.

Article VI

The Government of the United States will pay to the Government of Panama on the first day of February of each year or before an annual compensation of __________________ balboas per hectare for all the lands used as defense sites during the preceding calendar year in accordance with the terms of this Agreement. The payment will be reduced proportionately in the case of periods of less than a year. There will be expressly excepted from the above provisions of this article:

(a) The piece of land in the township of Rio Hato designated as No. ________________ in Annex “A” for which the Government of the United States will pay to the Government of the Republic of Panama an annual compensation of ________________ balboas.

(b) The entire area of the Island of San José, in the archipelago of Las Perlas, in the Bay of Panama, designated as No. ________________ in Annex “A” for which the Government of the United States will pay to the Government of the Republic of Panama an annual compensation of ________________ balboas.

The Government of the Republic of Panama with respect to the lands used as defense sites will assume all the expenses of expropriation as well as the indemnifications and reimbursements for installations, cultivated lands, or other improvements which may exist thereon saving the United States harmless from all claims arising therefrom or incident thereto.

The compensations established in this article will be paid in Balboas as they were defined in the exchange of notes effected on March 2, 1936, to which Article VII of the Treaty of that date between the United States and Panama refers, or the equivalent in dollars, and will be paid for each defense site listed in Annex “A” from the effective date of this agreement.

Article VII

When a defense site or part of the same is no longer required for the defense of the Panama Canal and the Republic of Panama, its use will be discontinued on a date set by the United States. The Republic of Panama will be notified of the contemplated discontinuance no less than 90 days prior to the date set, unless the two Governments agree to a shorter notice.

All the buildings, constructions, installations, or accessories which may have been erected or placed by the United States on a defense site may be removed by the United States at any time prior to the date set for discontinuing the use of the site. The buildings, constructions, accessories, crops, cultivated areas, or other improvements existing at the time a defense site is first occupied by the United States may be used by the United States without obligation to pay for damages caused in any manner to the same. The Republic of Panama will not be obligated to pay compensation to the United States for improvements made on a defense site or for the buildings, constructions, or assets left thereon by the United States, all of which will become the property of the Republic of Panama when the use of the defense site is discontinued in accordance with this agreement.

Article VIII

Government owned and/or operated aircraft of the Republic of Panama will be authorized to land at and take off from air bases established within defense sites in accordance with regulations established by the joint commission created pursuant to the provisions of Article V.

In case of flight emergency or in time of national emergency, Government-operated aircraft of the United States will be authorized to use all airports established in the Republic of Panama.

Civil aircraft and aircraft of governments other than those of the Republic of Panama and the United States will not be authorized to land at or take off from any defense site established by the terms of this agreement, except in the case of emergency, or for strictly military purposes under supervision of the Armed Forces of the United States.

The Republic of Panama will not permit the erection or existence of obstacles which may constitute hazards to the safe operation of air bases established on defense sites. If it is necessary to alter or remove and/or relocate any existing structures the United States will bear all costs involved.

Article IX

The Republic of Panama agrees that all roads under its jurisdiction used for movements by the armed forces of the United States from one defense site to another, and between defense sites and the Canal Zone, will be well and properly maintained at all times. The Republic of Panama may ask for the assistance of the United States in the performance of repair or maintenance work on the said roads whenever such assistance is necessary to fulfill the aforesaid undertaking. In the case of emergencies or other situations which require prompt remedial action, the United States may voluntarily undertake the necessary emergency repairs, immediately notifying the Republic of Panama of its action. For normal or routine maintenance requirements the United States may offer assistance for the performance of repair and maintenance work whenever it appears to be appropriate.

The United States will pay annually to the Republic of Panama on on before the first day of February of each year ________________ balboas or the equivalent in dollars as its contribution to the preceding calendar year’s cost of repair or maintenance work on the roads used by the armed forces of the United States for movement from one defense site to another and between defense sites and the Canal Zone. First of such payments shall be made on or before the last of February 1948 to cover the calendar year 1947. In the event that in any calendar year the United States performs repair or maintenance work in accordance with the provisions of the first paragraph of this Article, the expenses incurred by the United States in so doing will be subtracted from the next annual payment made by the United States to the Republic of Panama. If the expense incurred by the United States in any calendar year is greater than the annual payment for that year, the annual payment will be cancelled and no claim will be made by the United States as a result of the amount spent in excess thereof.

In consideration of the aforementioned contribution by the United States to the cost of maintaining roads in the Republic of Panama, the United States is granted free right of transit on all roads under the jurisdiction of the Republic of Panama. The foregoing free right of transit shall be applicable to the routine, or tactical movement of members of the armed forces of the United States and civilian employees of such armed forces, and, their families, as well as animals, animal-drawn vehicles and motor vehicles, employed by the armed forces, or by contractors employed by the armed forces, or by others whose activities are related to the defense of the Panama Canal.

The United States will maintain and permit the free use of any existing public roads which cross the defense sites or may relocate such roads in accordance with the recommendation of the joint commission.

Article X

The Republic of Panama accords to the United States, free of charge, right of ways for the maintenance, operation and use of such aerial telegraph and telephone lines, submarine cables, subterranean cables, and aerial cables, as are presently established.

The United States will, under such regulations as may be recommended by the joint commission and insofar as military requirements permit, share with the Republic of Panama the use of existing military telegraph and telephone lines and cables and any similar additional facilities of the armed forces of the United States which hereafter may be constructed in the Republic of Panama.

Article XI

The Republic of Panama accords to the United States the authority to install, operate, and maintain within defense sites such radio communication facilities as may be required by the armed forces of the United States to provide for the defense of the Panama Canal and the Republic of Panama. Similarly, the United States may use radio communication facilities with any elements of its armed forces: in territory and territorial waters of the Republic of Panama.

Article XII

The Government of the Republic of Panama agrees that neither it nor its political subdivisions will impose any duty, tax, or charge on civilian or military personnel of the United States, employed in connection with the operation and defense of the defense sites, and their families, nor will any duty, tax or charge be levied on property belonging to or destined for this personnel, for any agency of the Government of the United States, or for a contractor employed by the United States in connection with a defense site.

Article XIII

The Republic of Panama accords to the United States the right to operate its naval vessels into, through and away from the territorial waters of the Republic of Panama, including the Perlas Islands, and to anchor such vessels in these areas without restriction. In exercising these rights, the United States will have the following attendant rights:

(1) To refuel, take on supplies, and/or effect repairs.

(2) To contract with persons, companies, or government agencies for services and supplies locally required.

(3) To permit military and naval personnel to enter the Republic of Panama for recreational liberty.

Article XIV

This Agreement may be terminated by the Contracting Parties by mutual accord even prior to the expiration of the periods stipulated in Annex “A”.

Article XV

This Agreement will enter into effect upon the signature of the representatives of the Republic of Panama and of the United States of America duly and legally authorized.

In faith of which the plenipotentiaries of the High Contracting Parties have signed this Agreement, in duplicate, in English and Spanish, both texts being of equal authenticity, and have fixed their respective seals.

40. Transmitted by the Acting Secretary of State (Lovett) to the Secretary of War (Royall) in communication of August 19, 1947, not printed. This draft originated with lit Gen. Willis D. Crittenberger, Commanding General, Caribbean Defense Command. It was informally turned over to the Department of State in mid-July.
41. Not printed.