719.001/1–1152

Memorandum by the Secretary of State to the President

secret

Subject:

  • Situation in Panama

With reference to the question which you raised with me last Friday,2 the United States Embassy in Panama has reported a marked increase in recent weeks of communist activity in the Republic of Panama. This report comes at a time of severe economic depression and increasing political tension arising from the developing campaign for presidential elections in May. It has created concern regarding the possible impact of these developments on United States interests in Panama. Ambassador Wiley has proposed, as a counter-measure, immediate United States economic assistance to Panama with a view to alleviating the current widespread unemployment there.

The Department is alert to the situation and has requested on an urgent basis a National Intelligence Estimate.3 This estimate will be directed primarily toward an assessment of the current and potential communist strength and capabilities in Panama and of the factors there which are conducive to communist penetration and influence. It will be used as a basis for determining whether in fact the communist threat is sufficiently serious that emergency measures should be taken by this Government in Panama and in the Canal Zone to safeguard our national interests on the Isthmus. An anti-communist propaganda campaign of significant proportions has already been launched by the Department.

Dean Acheson
  1. President Truman questioned Secretary Acheson in his Cabinet meeting on Jan. 11, 1952, about reports of Communist activity in Panama and requested him to prepare a report on recent developments (memorandum by Special Assistant to the Secretary of State Battle, dated Jan. 11, 1952, 719.001/1–1152).
  2. Infra.