711F.1914/12–547

Memorandum of Telephone Conversation, by the Chief of the Division of Central America and Panama Affairs (Newbegin)

confidential

Mr. Hall66 telephoned to state that the Panamanian authorities called him in at one o’clock today to say that the Cabinet had taken a definite decision to accept the final draft of the defense sites agreement. [Page 932] He said that the President wished to sign it on Tuesday or Wednesday, and that he planned to call the Assembly into session on Friday. Mr. Hall stated that he hoped the Ambassador could return by Tuesday if possible, so that the signing could be completed. He said that he would receive a note from the Foreign Office probably in the course of the day, accepting the agreement. The draft of the note had been shown to him, as had another note which would accompany it. The other note refers to the question of economic assistance from the U.S. Mr. Hall was informed orally that this note should not give us much concern, that it was written essentially for its political effect in the Assembly. However, if we were in a position to answer before the Assembly met, it would undoubtedly help in obtaining approval from the Assembly. It was pointed out by Mr. Hall that the note regarding economic assistance was not intended to have any connection with the defense sites agreement as such. If I understood him properly, I gathered that we should not be too concerned about the debate and probable charges which would be made in the Assembly.

Mr. Hall added that Alfaro was returning on Monday and would undoubtedly resign.

I, of course, congratulated Mr. Hall sincerely for his very good work in connection with the agreement.

R. N[ewbegin]
  1. Carlos C. Hall, First Secretary of Embassy in Panama.