153. Memorandum of a Telephone Conversation Between the Secretary of State and the Assistant Secretary of State for Inter-American Affairs (Holland), Washington, August 29, 1956, 8:44 a.m.1

H. said he has a matter he does not want to handle in writing or at staff meeting. Another agency has received from a usually reliable [Page 302] source a report that the outgoing and incoming presidents of Panama met and agreed on a policy for the next administration to harp on the similarity to the Panama Canal of the Suez Canal. H. has a corresponding report from the local Time man. H. thinks we should ask the Nicaraguan Govt, confidentially if we can quietly send a 3-man team from Defense down to go over the course of the Nicaraguan Canal and compare conditions on the ground with plans, maps and studies we have and then leak it to the Panamanians. The Sec. said he is inclined to agree, but does not want to settle it on the phone. H. will ask for an appointment.

  1. Source: Eisenhower Library, Dulles Papers, General Telephone Conversations. Prepared in the Office of the Secretary of State.