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

PM–24. Memorandum from the Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Secretary of State¹

Washington, December 1, 1959

SUBJECT

• Note from Panamanian Embassy Seeking United States, Agreement to Fly Panamanian Flag in Canal Zone on Regular Basis.

Discussion:

Panamanian Ambassador Arias, on November 26, handed as a note dated November 25² expressing his Government’s purpose to have the Panamanian national flag flown on a regular basis in the Canal Zone and stating that it would be desirable that the local authorities on both sides agree as to detailed procedures.

The note continues by saying that Panamanians have long desired this action, and that this is based in the fact that Panama has never transferred nor ceded its sovereignty over the Canal Zone, but merely has granted to the United States, according to existing treaties, the rights, power and authority which the United States requires for the maintenance, operation, sanitation and protection of the Canal.

The note continues that, notwithstanding the opposing positions held by the two governments on flying the flag, the United States has not denied the title of sovereignty which Panama has over the territory of the Canal Zone. The then Secretary of War William Howard Taft’s 1906 statement on titular sovereignty³ is cited and quoted, as is the reference in Mr. Merchant’s departure statement of November 24.⁴ The note states that since the United States recognizes Panama’s titular sovereignty over the zone it is natural and logical to fly the Panamanian flag on a regular basis in the zone. The note further states that such action would have a favorable impact in Panama and throughout the world especially in Latin America. The note closes with the reiteration that it is desirable that the local authorities of both governments in Panama reach agreement as to places and procedure for flying the Panamanian flag in the Zone.

Ambassador Arias told me when he handed me the note that while he realized what our reply would be, he had to present his government’s position on flying the flag in the Canal Zone.⁵

1. Source: Department of State, ARA/OAP Files, Lot 64 D 67, “Panama Relations December, 1959.” Official Use Only. Drafted by Sharp on November 30. The source text is a carbon copy.
2. Not printed; 719. 00/11–2559.
3. For William Howard Taft’s statement on the theory of titular sovereignty that he made to the Senate Committee on Interoceanic Canals, see U.S. Congress Senate, Committee on Interoceanic Canals, “Hearings Related to Panama Canal,” S. Doc. 401, 59th Cong., 2d sess., 1906, vol. III, p. 2526.
4. See Document PM–25, footnote 7.
5. In a Note delivered to the Panamanian Embassy on December 10, the Department of State informed the Government of Panama that the appropriate agencies of the United States Government had taken the matter of flying the Panamanian flag on a regular basis in the territory of the Canal Zone under consideration and that the Department of State would communicate further with the Government of Panama when a decision was reached. (719.00/11–2559)