611.19/11–1754
Memorandum by the Ambassador in Panama (Chapin), Temporarily in Washington, to the Assistant Secretary of State for Inter-American Affairs (Holland)
In the event of a breakdown in the treaty talks with Panama, should Remon decline to accept our global offer, it is possible that Panama may attempt some maneuver to galvanize Latin American opinion against the U.S. This might take the form of some appeal to the Organization of American States, to the UN, or World Court or a press campaign with or without organized mass demonstrations.
It is my understanding that we would counter any such propaganda attack with one of our own setting forth clearly and in detail the generous and understanding nature of our offers to Panama. I believe that even the most biased Latin American critic could find little fault with most of our concessions, but am somewhat concerned as to how much headway the Panamanians might make over old Article XII1 or the revised alternates thereto given to Dr. Arias. I do not suggest that we should in fact depart from our position which is well grounded. Rather do I feel that irrespective of the rights and wrongs of this position, we should explore what effect a strong Panamanian protest, which might enlist Latin American public opinion and which would undoubtedly be exploited by Communist and other unfriendly elements, might have on our general Latin American relations. Undoubtedly the effort would be made to have us appear as the brutal domineering colossus attempting to cower a small, peace-loving and deserving nation with all the lies and exaggerations of which such a campaign is capable and with which unfortunately we have been so familiar in the past.
Undoubtedly you have taken into consideration the above possibility which could result in a setback to our whole Latin American policy. However, it occurs to me that should Remon refuse the treaty on the grounds of Article XII or its alternatives, we might, rather than risk the showdown, proceed with the other alternative—namely that of striking such language and that providing for an increase in the annuity and of offering direct economic aid. In your conversation with Arias no mention was made of the amount of such aid and the only figure, so far as I know, given to the Panamanians was ten million over ten years. If, as I understand from another Departmental memo, we are in fact prepared to raise this to twenty million over ten years, it might be useful if I were authorized to come forth with such a figure should the necessity arise. I should be grateful for your views.
- Article XIII in the revised draft concerned the reopening of treaties, etc.↩