611.1913/7–754: Telegram
The Ambassador in Panama (Chapin) to the Department of State
4. During call which Sowash and I made on him yesterday Guizado discussed with great frankness Panamanian attitude on present Washington negotiations. He expressed pleasure at great progress [Page 1453] made in recent informal talks and noted that material outstanding points had been narrowed to four—labor, annuity, commercial competition and economic assistance, upon which he was confident that given mutual understanding and cooperation agreement would be reached before long.
He figured conversations should be completed within two months and delegation would then return home for final instructions before drafting definitive text. Guizado said he inclined to belief he himself would at that point or sometime before finalizing go to Washington on a last exploratory visit.
Guizado then said that in addition to four points already mentioned there remained one more—that of sovereignty. Panama had its just aspirations for some recognition even if token in character in this matter. He referred to statements of Theodore Roosevelt, William H. Taft, Goethals, certain Supreme Court justices, etc. Panama by no means wished to put forward any claim to the exercise of sovereignty in zone or to anything which would interfere with operation and maintenance of canal but government felt it imperative that it should obtain in negotiations some minor concession which it could show to its people.
Both Sowash and I expressed disappointment that matter of sovereignty and jurisdiction should be brought up and stressed generosity of our offers to date in global sense, pointing out enormous value of concessions and material contribution to Panamanian economy and welfare. Guizado stated that US offers were generous, the land concessions he even described as “magnificent gesture”. Parenthetically he referred to plot of land across from Embassy chancery as being ceded to US (I did not correct him and stated he hoped we might landscape it as a beautiful little park).
We both stated opinion very firmly and frankly, that US could not cede one iota on sovereignty or jurisdiction.
Guizado however returned to point of sovereignty, indicating that some unimportant concession such as our acceptance of Panamanian exequaturs for foreign consuls as applying to zone or even the flying of the Panamanian flag jointly with US ensign by ships transiting the canal would be sufficient prestige sop on sovereignty issue.
Meeting which took place at his house was most informal and cordial. Guizado took no umbrage at our frank statements regarding US attitude on jurisdiction. Nevertheless it is apparent to me that quite aside from very real material concessions we are prepared make, and since it is my understanding that we are not prepared to concede any point even if minor on sovereignty, we might endeavor to manufacture some apparent concession, however empty, which can be used by Panamanian Government as point of national prestige.