919.437/8–1451: Telegram

The Ambassador in Panama ( Wiley ) to the Secretary of State

secret

137. In conversation with FonMin today I reiterated US views re importance ban on Pan ships (Deptel 91, Aug 10)1 calling Commie ports. When FonMin requested my comment on text proposed decree (Embtel 107, Aug 6)1 I said drafting of text matter Pan Govt only cld decide repeating my personal view was that decree in present form might actually serve as blueprint for evasion of controls and might offer new life to unethical and illicit trade. FonMin greatly [Page 1557] interested and seemed fully sympathetic views US Govt re need for effective measures. He said present procedure Pan Govt entirely extralegal and manifested concern. However, he seemed reassure himself with afterthought observation that Pan commitments to UN were after all pretty clearcut and comprehensive.

Re subject possible legislation I merely mentioned fact that Pan Natl Assembly scheduled convene Oct 1 a date very imminent, and that shld Pan Govt desire further legislation for authority to issue adequate decree, delay involved to introduce bill wld apparently not be excessive. I said while expediency and nature any legislation Pan Govt might seek from Natl Assembly was question Pan Govt alone cld determine it seemed to me that legislation cld be readily justified by realities of situation, namely, that Pan Govt obviously cld not set up effective world wide controls to prevent smuggling contraband Commie ports if Pan ships authorized legally enter such ports. I repeated existing penalties under Pan law inadequate to deter contraband running to Commie ports. I stated that legislation requiring previous authorization of Pan Govt in each instance for Pan vessel call at Commie port appeared as minimum step to meet its commitments. FonMin supplemented my statement by adding there might also be grave danger that Pan ships, without calling at Commie ports, wld transship on high seas to small vessels and thus evade all control. He thought law shld cover this point.

FonMin however expressed considerable concern over possibility adverse publicity in US if publication decree postponed. I replied US press wld closely analyse text any published decree and to promulgate inadequate decree also might have unfavorable repercussions. I suggested he hold matter in abeyance pending study by us both and that we shld have further discussion at very early date.

FonMin stated local agents SS Marcar (Deptel August 6 quoting tel 16 from Kobe)2 made representations to him along lines reported by Kobe. I remarked it was lamentable that frequently reputable world shipping interest unable resist substantial profits illicit trade. However I expressed confidence Dept wld find means energetically to contact shipping firms involved. I said question Pan ships transporting wheat to India from Commie ports not a compelling reason to accept bona fides such traffic; that alleviation hunger in India might be merely subterfuge or means for propaganda. I pointed out if Commie world seriously interested plight India, Soviet cld easily have given much more substantial evidence. Moreover if Commies needed more vessels transport foodstuffs to India there were available hundreds US lend-lease ships stolen from US by Soviets.

In my conversation with FonMin nothing has been said to commit Dept or me in any way.

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Pending receipt of Dept’s further guidance and my next conversation with FonMin, present Pan procedures will presumably be continued. In view cooperative attitude FonMin I hope press can be encouraged show patient reticence.

Wiley
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