711F.1914/12–2347: Telegram
The Acting Secretary of State to the Embassy in Panama
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573. Following statement has been released to press:
“According to official reports the National Assembly of Panama has rejected the ratification of the defense sites agreement signed on December 10, 1947 by the Governments of the Republic of Panama and the United States of America. This agreement was reached in accordance with the 1936 Treaty of Friendship and Cooperation providing for joint responsibility of the two countries for the effective protection of the Canal.
Throughout the period of more than 15 months during which negotiations [Page 948] for a defense sites agreement have taken place the United States Government has endeavored at all times to share with the Government of Panama its estimates of the minimum defense needs of the Canal. It has been the constant aim of the United States negotiators to consult with the appropriate Panamanian authorities in all frankness with respect to the considerations underlying these estimates which have provided the basis for the recent defense proposals of this Government.
Substantial and repeated concessions were made during the lengthy negotiations on the agreement in an attempt to reconcile Panamanian desires with the defense requirements of the Canal. The negotiations were concluded on December 10 by the signature of the agreement in terms which were intended to take into account the legitimate interests of both countries.
In accordance with oral statements made to the Panamanian Government in the course of the negotiations, the necessary steps will be taken immediately with a view to evacuation of all sites in the Republic of Panama outside the Canal Zone where United States armed forces are now stationed. This withdrawal will be completed as quickly as possible consistent with the number of personnel and the amount of materiel involved.
Failure to conclude an agreement will not, of course, affect the normal friendly relations between the two countries.”