611.1913/8–2854:Telegram
The Ambassador in Panama (Chapin) to the Department of State
priority
67. This morning I delivered President Eisenhower’s letter and Secretary’s memorandum to Remon.1 He read them with deep concentration nodding his head in comprehension passing sheets to Guizado who was present.
President expressed general approval of terms of memorandum and indicated that he would like to proceed promptly with next phase. I told him that I had originally planned to fly to Washington to report and then go on leave, but that in circumstances I was not only willing but anxious to postpone leave indefinitely if I could expedite prompt settlement. I told him that telegram received this morning indicated Department desired drafting of final agreements be carried out here and that we had partial draft ready in Washington. He stated that he was in accord with this procedure and hoped I would ask that draft be sent down immediately so that work could begin.
I then told him that Secretary had suggested to Fabrega2 that he would approve increasing annuity to total of $1,930,000 in lieu of Economic Aid Program.3 Remon said that he inclined to feel this [Page 1459] second additional increase in annuity preferable to economic aid. He rapidly got point that part of this increased annuity might be used as pledge for loan for housing and other purposes.
President then said that occasion called for glass of champagne. In ensuing conversation Remon stressed desirability of winding up negotiations quickly adding that he would give me official view Wednesday morning September 1.
In this connection he said coming Assembly would be less inclined to play partisan politics than following session which would immediately precede elections. I believe in fact Remon desires speed conclusion negotiations so as to present signed treaty and completed agreements act at opening of Assembly October 1. Meeting extremely cordial throughout and Remon appears impressed and delighted with President’s letter and Secretary’s memorandum.