Foreign Relations of the United States, 1947, The American Republics, Volume VIII

819.74/9–347

Memorandum by Mr. William E. O’Connor of the Telecommunications Division to the Assistant Chief of That Division (Otterman)

confidential

[Washington,] September 3, 1947.

The question of the regulation of radio communications in the Republic of Panama, a subject of recurrent controversy since the Canal was built, was revived last November in the form of a request from the Chief Signal Officer⁸ and the Canal Zone authorities that the regulation of Panamanian radio should be made the subject of a treaty. This proposal, which is concurred in by Ambassador Hines at Panama City, involves the revising and renegotiating of the unratified Radio Communications Convention of 1936. A summary of the historical background of this problem follows:

The Treaty of 1903⁹ between the United States and the newly organized Republic of Panama, which provided for the perpetual use and control by the United States of the Canal Zone, granted to the United States certain rights and privileges over the Republic of Panama, especially as related to the operation and security of the Canal. No mention of radio was made in the Treaty, since at that time radio was largely in an experimental stage. In 1914, under pressure from the United States, the Panamanian President issued a decree¹⁰ giving the United States full control over radio communications throughout the Republic of Panama; this decree stated that the general provisions of the Treaty of 1903 gave the United States the right to demand such a prerogative. From 1914 on, regulation was in the hands of the United States Navy. In 1926 an executive agreement was drawn up which would have put radio regulation back in the hands of Panama, at least in appearance, but the United States would have retained the rights:

1. To veto any license application for radio operation;

2. To insist upon enforcement of license provisions;

3. To resume full control over radio in Panama in the event of actual or impending hostilities.

This agreement, however, was never put into effect.

In December, 1930 the Panamanians suddenly abrogated the decree of 1914. Panama contended that its adherence to the International Radio Convention of 1927¹¹ made it responsible for the regulation of its own radio matters. For over a year discussions were held by the State, War, and Navy Departments as to what attitude the United States should take towards this abrogation. Finally the Panamanians were formally advised that the United States claimed the right to regulate Panamanian radio activities as a right deriving from the Treaty of 1903, but that we would not insist on the exercise of this right if some adequate measure of control could be set up agreeable to Panama and at the same time providing for the efficient protection of the Canal. Along with this statement there was submitted to the Panamanians a proposed agreement similar to the agreement drawn up in 1926. This agreement went so far as to specify that the Panamanian Government should, upon request by the United States, close without delay any radio transmitter which in the opinion of the United States was detrimental to the safety and operation of the Canal.

In 1936, along with a series of treaties on other subjects negotiated with Panama, there was drawn up a Radio Communications Convention¹² which was ratified by Panama but which did not receive the consent of the United States Senate apparently due largely to the opposition of Senator White¹³ (to whom many Senators look for advice on radio matters). Senator White was particularly opposed to the provision turning regulation of the mobile services over to Panama with only partial supervision being retained by the United States. It seems that opposition to the Convention was also voiced by United States Naval authorities who were apparently concerned at possible ambiguities which could conceivably result in leaving the military authorities powerless to cope with interference or illegal operation in Panama in an emergency. The problem consequently seemed to resolve itself to keeping the United States in a position to prevent any undesirable radio operation anywhere in the Republic of Panama, but to do this with the minimum possible infringement on Panamanian sovereignty and with careful regard for Panamanian sensibilities.

Ever since the Panamanian abrogation, in 1930, of the Decree of 1914, no formal arrangement has existed between the United States and Panama regarding the regulation of radio communications. In practice an informal cooperation has been maintained by a Mr. Richard D. Prescott, a United States citizen, who has worked for many years for the Panamanian Government as telecommunications adviser. Besides being an employee of the Panamanian Government, Mr. Prescott is also a Reserve Officer in the United States Army, and from 1940 until shortly after the end of the War he served as a Colonel on active duty with the United States Army, at the same time keeping his status as an employee of Panama. This extremely informal arrangement appears to have worked satisfactorily through the War but it is, of course, undesirable since a Panamanian Government could terminate Mr. Prescott’s services at any time. It should also be remembered that Mr. Prescott is an old man and in the event of his death or resignation there is no assurance whatever that the Panamanians would appoint an American to handle radio matters. Consequently, there is an urgent need for a formal arrangement.

A summary of the principal points in the proposed revised convention follows:

This Convention would require the Panamanian Government to license all transmitters in its territory and to license all radio operators. Licenses would be granted only to Panamanian citizens and companies (and, if Panama wishes, to United States citizens and companies). Two Boards would be established—one an agency of the United States Government, the other an agency of the Panamanian Government. All actions by one government affecting the licensing and operation of any privately owned radio station would have to be submitted for study to its Board, and “in matters concerning the common interests of the two Parties”, both Boards would have to be consulted. If either government “submits substantial reasons in writing” to the other that the present or proposed operation of a specified private station is endangering or would endanger the security of the Canal or the security of the Republic of Panama, the government responsible must require suspension of operations.… It is, of course, uncertain who would be the judge of what constituted a “substantial” reason, but this is about as strong phraseology as we are likely to get the Panamanians to accept. The Division of Central American and Panamanian Affairs (CPA) agrees that while this wording is vague, it would not be advisable to try to make it stronger and we shall have to depend upon a reasonable amount of good faith on the Panamanian side.

It is also provided that whenever either of the two Boards so recommends, either government must inspect any private radio station under its jurisdiction to ascertain whether the approved licensing regulations are being complied with. Members of both Boards may accompany the inspecting authorities. (In effect, this provision would permit the United States to require an inspection of any Panamanian private station and to send United States technical personnel along on the inspection.)

In case of war or threat of aggression, the 1936 Convention stated that the two governments would act jointly and the two Boards unite into a joint Board. The wording of this section was rather vague and its effective operation would appear to have depended entirely on the voluntary cooperation of the Panamanian authorities. The Convention now proposed would allow the United States in case of war or threat of aggression to “exercise the degree of control deemed by it to be necessary regarding everything relating to radio communications” throughout the Republic of Panama. The United States, however, in such a case would “consult” Panama before acting, except in an emergency, in which event it would “consult” as soon as possible after taking the required action. The significant difference in this regard between the presently proposed Convention and the 1936 Convention should be noted. Whether Panama will accept this change remains to be seen.

Other minor provisions of the Convention provide for the reciprocal free emergency use of radio facilities for official business of the two governments and for the reciprocal training by each country of ten men as radio operators.¹⁴

. . . . . . .

8. Letter from Brig. Gen. W. O. Reeder to Francis Colt de Wolf of the Telecommunications Division, November 8, 1946, not printed.
9. Department of State Treaty Series No. 431.
10. Foreign Relations, 1914, p. 1051.
11. Department of State Treaty Series No. 767.
12. See bracketed note, Foreign Relations, 1936, vol. v, p. 855.
13. Senator Wallace H. White, Jr., Chairman of the Senate Interstate and Foreign Commerce Committee.
14. The proposed agreement was not acceptable to Panama, and the bilateral approach to the Communications problem was dropped. Panama subscribed to the multilateral telecommunications agreement of October 2, 1947, for which see Department of State, Treaties and Other International Acts Series No. 1901.