711F.1914/10–247: Telegram
The Ambassador in Panama (Hines) to the Secretary of State
us urgent
565. Embtel 563 October l.51 Following note number 476 delivered personally last night to De Diego:
“I have the honor to refer to your note number DP 2103 of September 13, 1947 enclosing a draft counter proposal52 of a new defense sites agreement which document has received the most careful study and consideration on the part of my Government.
I am pleased to state that, with the exception of articles I, III, IV, the US Government accepts textually the proposal made by the Foreign Office. However, in order to permit effective compliance with its obligations relative to the defense of the Panama Canal, my Government deems essential that some modifications for the Panamanian draft of the above-mentioned articles be made. The Embassy has discussed these modifications on various occasions with His Excellency the President, with Your Excellency, and with the First Secretary of the Ministry of Foreign Relations and, as a result of such conversations, I submit herewith the form which I consider such changes should take and which I understand is acceptable to the Government of Panama.
Article I. The two Governments agree that the defense sites referred to in the present agreement will be regulated by the conditions set forth in the following articles.
Article III. To assure the efficient and mutually satisfactory functioning of the defense sites as well as to assure the exercise of the sovereign rights of the Republic of Panama, the Government of the Republic of Panama designates the Ministry of Government [Page 918] and Justice as its representative and the Government of the US of America designates the local Commander of its armed forces, or his designated representative, as its representative to form a joint commission whose members, the above-mentioned representatives, shall consult on all matters relating to the use of the defense sites, 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 US. Following such consultation, the two Governments, carrying out the stipulations of this agreement, shall adopt by an exchange of notes the recommendations of the above mentioned representatives.
Article IV. The Republic of Panama accords to the US the powers and authority necessary to assume full military, technical, and economic responsibility for the defense sites. The US shall exercise, therefore, all the rights and authority within defense sites, and the air space thereover, which are necessary to make effective such responsibilities. The Government of the US of America may employ contractors and other personnel in the exercise of such rights.
Two important questions still require solution. The first relates to the compensation to be paid by the US for the use of the defense sites and the amount to be contributed by my Government as its share of the cost of maintenance of roads in the Republic. This is now under active consideration by officials of the Foreign Office and of the Embassy and, while no difficulty in reaching an understanding on this matter is anticipated, it is hoped that this may be effected at an early date.
The second point involves the period of occupancy of the defense sites, prescribed in the enclosure to my note number 456 of August 25, 194754 as 30 years for Rio Hato and 10 years for each of the other defense sites described therein. Since these periods seemed unduly long to Your Excellency, your oral objections thereto were communicated to my Government which, after careful consideration, has instructed me to inform you that the minimum periods of occupancy acceptable to it are of 20 years for Rio Hato and of 5 years for the other defense sites under discussion.
My Government fully appreciates that the period specified for Rio Hato is considerably longer than that contemplated by Panama. While the United States would wish to meet the Republic’s desire in this regard, it is impossible to do so in view of the enormous expenditures which my government contemplates making in that area in order that such defense site may adequately serve the purposes for which it is intended, and which outlay cannot in any manner be justified for a lesser period. Indeed, this minimum period is considered to be of such vital importance, that no agreement embodying a shorter period of occupancy would be of any practical value to my Government.
The return to Your Excellency of the Panamanian proposal, with the incorporation of the modifications found necessary by my Government, is made in a spirit of full and frank cooperation, with the greatest [Page 919] regard for the needs and requirements of Panama, and is indicative of the desire of the United States to meet as fully as possible the views of the Panamanian Government. It is based on the joint responsibility of the United States of America and the Republic of Panama to provide adequate protection for one of the invaluable assets of the hemisphere. I believe that steps should now be taken promptly to draw up the final agreement for signature.
As will be appreciated, our proposal as amended represents the minimum requirements of the United States. It is hoped that it also meets the requirements of Panama. During the 13 months that this matter has been under discussion, both Governments have evidenced every wish to reach a mutually satisfactory solution. It is believed that each thoroughly understands the considerations which have motivated the other. In view of the above, should the Government of Panama not find the present proposal acceptable, it is the opinion of my Government that no useful purpose would be served in attempting further negotiations for a new defense sites agreement at this time.”