Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

164. Letter From the Acting Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Ambassador in Panama (Harrington)¹

Washington, October 5, 1956.

Dear Julian: I refer to your letter of September 11 addressed to Henry Holland in which you further discussed the subject of the Nicaraguan Canal.² Henry has now left the Department and since I have assumed his duties and inherited his problems, I take the liberty of replying to your letter and bringing you up to date on the status of the thinking here.

Since the idea was originally proposed there have been several joint discussions between State and Defense, and the Secretary and President have expressed their interest in the matter, both from the point of view of (1) a propaganda ruse for the purpose of causing the Panamanians to pause and give serious thought to revision of their present head-strong policy of non-cooperation and of (2) actual construction of a canal across Nicaragua. Tentatively, favorable consideration was given the first point and somewhat less serious consideration accorded the second; however, in a recent meeting at which State and Defense officers were present it was the consensus to defer action and temporarily hold in abeyance use of the plan for purposes of propaganda ruse or construction of a Nicaraguan Canal due to the following considerations: (1) the death of Somoza, (2) the difficult problem with which the new Government of Nicaragua would be confronted were a request made to send a survey team, or more difficult, the Bryan–Chamorro Treaty invoked, (3) the inauguration of the new Panamanian President, it being the thought that his administration should be given a fair opportunity to demonstrate its policy and the course of action it intends to pursue in its relations with the United States Government, (4) nationalistic elements in Central America and elsewhere would be expected to raise a hue and cry against the project and (5) the Government’s present policy toward Panama, in the light of existing circumstances, and at the direction of the White House, is one of considerable tolerance in the inessentials but of holding fast where our jurisdictional rights are challenged. The five points are not listed in the order of discussion or necessarily in order of importance. It was also the feeling here, particularly in Defense, that to include Governor Potter in the survey team would put him in an impossible position vis-à-vis the Panamanians.

Here the matter stands at the moment for use at such time in the future when circumstances warrant. Should you care to advance any argument to the contrary, please feel free to do so.

Sincerely yours,

Roy R. Rubottom, Jr.³

1. Source: Department of State, ARA Files: Lot 60 D 667, Nicaraguan Canal Route 1956. Secret; Official–Informal. Drafted by Price.
2. In this letter, attached to the source text but not printed, Ambassador Harrington indicated that he was delighted to learn that the idea of reviving discussion of a canal across Nicaragua had been well received. He suggested that if a survey team were to be sent to Nicaragua, the Department of State and the Department of the Army might consider the inclusion of Governor Potter on it.
3. Printed from a copy which bears this typed signature.