711F.1914/9–1847: Telegram
The Acting Secretary of State to the Embassy in Panama
us urgent
412. Urtel 518, Sept 18, 1947. Emb is authorized to inform Acting Fonmin that the changes proposed by Panama to Draft G of Defense Sites Agreement and as modified in conversations between Panamanian authorities and Emb are acceptable to this govt.
This leaves two important points unresolved: (a) amount of rent to be paid for sites and (b) duration of leases. Emb has already been requested to discuss point (a) with Panamanian authorities. (Deptel 403 Sept 2346).
As re point (b) you should inform Filós that absolute minimum period acceptable this Govt is lease of 15 years for Rio Hato with option to renew additional 15 years. Five year period for other sites is acceptable.
In discussing Rio Hato you should inform Acting Fonmin that this Govt fully appreciates that period specified by it is considerably [Page 917] longer than that contemplated by Panama. While we would like to meet Panama’s wishes in this regard we are unable to do so because of enormous sums which we must invest in area and which cannot possibly be justified for lease of shorter duration. You should point out further that if Panamanian Govt is not disposed to grant lease for period indicated no useful purpose would appear to be served by further negotiations. You should be careful not to convey impression that we are “threatening” Panama but rather to convey idea that this point is so basic that no agreement which omitted it would be of any use to this Govt.
You may also inform that in event they do not feel able to grant this request Dept of Army is disposed to withdraw in near future from all sites in Panamanian territory now occupied by our forces.
49 Francisco A. Filós, Panamanian Minister of Government and Justice; in the absence of the Minister, he acted as Minister of Foreign Relations.
- Not printed.↩