711F.1914/12–1847: Telegram
The Chargé in Panama (Hall) to the Secretary of State
745. Principal feature of yesterday’s Assembly session was motion by Renovador Party to suspend discussion of agreement by Assembly [Page 945] and return same to executive for renegotiation “along lines more in accord with Rooseveltian spirit which inspired 1936 treaty”. Motion was defeated 24 to 9 but Renovadores, on whom President counted to swing to agreement, are now aligned against it. An informal poll yesterday by Panama-American believed by Embassy to be too optimistic showed 26 votes against ratification which would constitute one vote majority. (Embtel 743, December 17).75
1. Amazing development is actual physical fear which has seized most deputies. President of Assembly spoke of “10,000 boys with knives” which might await them, and several Colón deputies have stated privately that, while they promised Jimenez their votes, they did not promise to allow themselves to be shot at. This sentiment may be favorably affected by speech radioed by President last night, the first word yet spoken in defense of the agreement, and by admission to committee of Alfaro and Harmodio Arias76 that threat of agression definitely exists. Most political parties in their proclamations admit obligation of Panama to participate in defense of the Canal but all object to terms of agreement. Jimenez, president Supreme Court and members of Cabinet are bringing pressure on Harmodio Arias to elicit favorable comment his papers on President’s speech. For the second time in two days I have been asked … to exert Embassy’s influence on Harmodio, which I have refused to do for obvious reasons.
More demonstrations of students are in prospect. They have been urged by Roberto Arias not to relent in their endeavors. Efforts are reportedly being made to organize a general labor strike, beginning with chauffeurs’ union in Colón.
Octavio Vallarino informs me in strict confidence that, since Renovadores have failed him, President intends to ask for Florencio Arosemenas’ resignation, to be accepted at an opportune moment. He would be replaced as Foreign Minister by De Diego.