160. Telegram From the Ambassador in Panama (Harrington) to the Department of State1

211. During 2 hour private talk with President-elect De La Guardia today, I sought his assistance in reversing current trend in U.S.–Panama relations—a trend which can be expected to assume more serious proportions after the National Assembly convenes. I found De La Guardia to be equally concerned over present status our relations. The meeting was arranged at my request.

I pointed out that it has been consistently our national policy to improve Panama’s stability and economy and that, given the importance of the Canal Zone to Panama, it should be the announced policy of Panama to associate itself closely with the U.S. and to work harmoniously with the authorities of the Canal Zone. I expressed the view that such a policy enunciated by him and supported by deeds would do much to ward off anticipated irresponsible [Page 308] discussion in the new National Assembly and elsewhere, and that it would create an atmosphere of mutual respect and confidence, would go a long way to offset the unfavorable impression that Panamanian support for Nasser has created in the U.S. and would be of substantial assistance to us in obtaining early Congressional action to implement 1955 treaty. I expressed the view that the highly skilled lawyers now serving on the Foreign Relations Council, rather than statesmen, seemed to be formulating Panamanian foreign policy and developing legalistic position which inevitably would widen the breach between us and lead to bad feeling and acrimonious debate in the press. I told De La Guardia that I would welcome the opportunity of striving to achieve the sort of atmosphere I had in mind and that he could count on the whole-hearted support of the Governor and military authorities in the Zone. I said that the plight of Panamanian workers who will soon lose commissary privileges (a matter about which the President-elect is known to be gravely concerned) is being carefully and sympathetically considered by the Canal Zone authorities and that while no automatic compensatory wage increase was contemplated by the negotiators of 1955 treaty the best interests of the workers and of Panama will always be borne in mind. I stated that in an improved atmosphere Panama had much to gain and conversely had much to lose by a continuation of the present trend.

De La Guardia gave every evidence of welcoming my observations and said that they merited serious consideration. He promised to get in touch with me at an early date concerning them.

There is serious doubt in my mind that De La Guardia can persuade Harmodio Arias and Octavio Fabrega to alter their present course or whether he can restrain the members of the new National Assembly from making attacks against the U.S. and the failure of Congress to implement the treaty. Nevertheless the President-elect recognizes the need for improved relations and I feel reasonably confident that he will take advantage of his inaugural address to call for patience and understanding and possibly a neighborly approach to Canal Zone problems.2

Harrington
  1. Source: Department of State, Central Files, 611.19/9–1956. Confidential.
  2. Telegram 142 to Panama City, September 21, informed Ambassador Harrington as follows: “Department heartily commends your initiative and able presentation US viewpoint (Embtel 211) and is hopeful your plain-spoken approach will contribute to reversal present trend.” (Ibid.)