Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

PM–22. Memorandum from the Secretary of State to the President¹

Washington, October 28, 1959

SUBJECT

• Recommendation That You Sign A Letter To President de la Guardia of Panama.

In view of the decisions taken at your October 12 meeting on United States-Panamanian relations, which has resulted in revisions in certain operating policies of the Canal Zone authorities, I recommend that you approve the enclosed letter addressed to President Ernesto de la Guardia of Panama.

The proposed message refers to a meeting on September 1, 1959 of United States and Panamanian representatives² in which President de la Guardia actively participated. At that time steps were discussed which would help minimize certain sources of friction between our two countries. As a result of your October 12 meeting, the Canal Zone authorities have begun to take the necessary action to implement the steps discussed at the September 1 meeting, i.e. that the Zone revise the third country purchasing practices, and that luxury item sales through Zone outlets be limited insofar as possible. This information would be conveyed orally to the Panamanian President at the time of delivery of your letter by our Ambassador. Information on other contemplated actions would be communicated to the Panamanian Government at the appropriate time.

Moreover, I feel it important for us to have a communication setting forth your personal interests in our relations with Panama, for should Panama [illegible in the original] its allegations of our non-compliance with the 1955 Treaty before the International Court of Justice continue in the future, the United States would have a written record of our good faith in cooperating with Panama in the efforts to increase its participation in the [illegible in the original] and [illegible in the original] of the Canal Zone.

In order to derive appropriate [illegible in the original] from our [illegible in the original] the bar of world public opinion, [illegible in the original] what this message, if approved, be released as soon as it has been delivered to President de la Guardia. If this is agreeable, the Department will instruct Embassy Panama to report delivery so that immediate public release may be made by the White House.³

Christian A. Herter

[Enclosure]

SUGGESTED LETTER TO PRESIDENT DE LA GUARDIA⁴

Dear Mr. President:

Since receiving your letter of March seventh, I have given careful consideration to the course of relations between our two countries. I have been particularly encouraged to receive recent information that our representatives have been making progress toward reducing points of divergence in the application of the Treaty of Mutual Understanding and Cooperation of 1955.

The pending issues between our two countries arising in the course of implementation of that Treaty have been and are under continuing study by the responsible officers of this Government, including myself. It is clear to me by now that further discussion of the intent and meaning of certain aspects of our Treaty undertaking is unlikely to bring about full agreement. However, I do not think that this should deter our efforts to achieve over-increasing understanding between one and two countries. For my part, accordingly, I have approved a number of revisions in operating policies of the Canal Zone authorities which result from a meeting of representatives of our two Governments in which you actively participated. I trust that these actions, the substance of which will be communicated to you by Ambassador Harrington, will redound to the benefit of the people of Panama.

I am confident that it is your desire, as it is mine, that our two countries should continue their traditionally close cooperation to insure the efficient operation of the Panama Canal for the benefit of the entire world.⁵

Sincerely,

1. Source: Department of State, Central Files, 611.19/10–2859. Confidential. Drafted by Sharp.
2. In a letter dated September 4, 1959, Ambassador Harrington informed Deputy Assistant Secretary of State William P. Snow of the details of the meeting on September 1 and the decisions taken. (ARA/OAP Files, Lot 64 D 67, “Panama Relations. August–September 1959”)
3. According to a typewritten note on the source text, Goodpaster informed officials of the Executive Secretariat on October 29 that the President had approved without change the suggested letter to President de la Guardia. An additional handwritten notation on the source text indicated that the signed original of this letter had been received from the White House on November 2 and had been transmitted.
4. Drafted by Sharp on October 21, approved in draft by Assistant Secretary of State Rubottom and Assistant Secretary of the Army Roderick, and approved in substance by Ambassador Harrington.
5. In view of the riots that occurred in Panama City on November 3, 1959, Ambassador Harrington, in the course of a telephone conversation on November 4 with C. Allen Stewart, the Director of the Office of Central American and Panamanian Affairs, recommended against delivery on November 5 of President Eisenhower’s letter to President de la Guardia. Stewart accepted Harrington’s recommendation and advised the Ambassador that the Department would furnish the Embassy with instructions as to further action concerning delivery of the President’s letter. (Memorandum of Telephone Conversation, by Frederick D. Sharp III, November 4; 719.00/11–459) on November 4, the Department instructed Harrington to return the President’s letter to the Department via air pouch. (Telegram 151 to Panama City; 719.11–459) For additional information concerning the riots in Panama City on November 3, see the editorial note, in Document PM–23.