711F.1914/11–147: Telegram
The Secretary of State to the Embassy in Panama
us urgent
niact
493. Dept received Embdesp 4387 on Nov 1, 194763 this afternoon. Panama should be aware now we are unable make further alterations our position regarding terms proposed defense sites agreement. Further concession on Rio Hato base along lines suggested by Panama as reported Embtel 637 Oct 31, 1947 is unacceptable both to State and Army Depts.
Inasmuch as note and aide-mémoire delivered to Emb Oct 31, 1947 by Panamanian Fonmin suggest further modifications of proposal submitted Panama by Emb on Aug 25, 1947,64 Emb is instructed transmit note in reply to Panamanian communication. Emb note should point out in friendly tone the following: Within framework of mutual obligation US and Panama under Article II 1936 Treaty to provide effective protection of Canal, US has endeavored consistently [Page 929] to coordinate its estimates defense necessities with Panama’s statements her national requirements. In effort reach agreement this Govt had prior to transmission its proposal of Aug 25 abandoned original estimate of need for 50–99 year term at Rio Hato in response Panama’s exposition her position in matter, and our formal request was for 30–year rights. Following presentation that note this Govt has, in effort to meet Panamanian desires and requirements, successively reduced its request for Rio Hato rights to 15–15 term, to straight 20–year period and finally now to 10–10 term. Occupancy rights requested for all other sites have been reduced from 10 to 5 years. Reasons for need of longer period at Rio Hato have been explained on numerous occasions by Emb and have been discussed by Secy Marshall personally with Fonmin Alfaro both at Petropolis and New York.
It is of course entirely within discretion of Panamanian Govt to accept our current proposal, which represents absolute minimum US requirements, or to reject if it does not consider it possible accept terms. While we would very much regret rejection our proposal, the Republic of Panama may nevertheless be assured this Govt’s continued desire maintain most friendly and cooperative relations.