152. Letter From the Ambassador in Panama (Harrington) to the Assistant Secretary of State for Inter-American Affairs (Holland)1
Dear Henry: In casting about for a sedative to curb the current upswing of Panamanian emotions arising from their disappointment over the benefits of the single wage scale provisions of the 1955 Treaty, I can think of nothing that would have a more sobering effect than a revival of talk in Washington about the possibility of a sea level canal across Nicaragua. Assuming that there soon will be a need for more adequate canal facilities it seems unwise to me, purely from a military point of view, to put all our eggs in one basket by considering a sea level canal across Panama. Perhaps now is not the time to introduce the idea of another canal but it behooves us to take a careful look before considering any such move in Panama.
Perhaps you can suggest a better palliative but the possibility of a canal across Nicaragua would soon bring about a realization among Panamanians that they would do well to accept gracefully the many benefits they are now reaping. I, for one, am glad that these issues have come out into the open. They have been coloring all of our negotiations, to our disadvantage, ever since I arrived here a year ago.
Sincerely yours,