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

PM–43. Minutes of Cabinet Meeting, White House¹

Washington, April 29, 1960

• The following were present:
• President Eisenhower
• Vice President Nixon
• Mr. Loy Henderson for Sec. Herter
• Sec. Anderson
• Sec. Gates
• Mr. Lawrence Walsh for AG Rogers
• Mr. John McKibbin for PMG Summerfield
• Mr. Royce Hardy for Sec. Seaton
• Sec. Benson
• Sec. Mitchell
• Mr. John Allen (in part) for Sec. Mueller
• Sec. Flemming
• Amb. Lodge
• Gov. Hoegh
• Mr. Stans, BoB
• Mr. Staats
• Mr. John McCone, AEC
• Dr. Saulnier, CEA
• Sen. Morton, RNC
• Sec. Brucker, Army (in part) Mr. George Roderick (in part)
• Amb. Julian Harrington, Panama (in part)
• Dr. Edward Teller, AEC (in part)
• Dr. Gerald Johnson, AEC (in part)
• Mr. Merrill Whitman, Panama Canal Company (in part)
• Mr. Morgan
• Mr. Kendall
• Mr. Merriam
• Dr. Paarlberg
• Mr. Harlow
• Mr. McCabe
• Gen. Goodpaster
• Mr. Robert Gray
• Maj. Eisenhower
• General Bragdon (in part)
• Mr. Harr (in part)
• Mrs. Wheaton
• Mr. Patterson
• Mr. Minnich

[Here follows a discussion of the draft of the special message to the Congress that the President delivered on May 3; a consideration of budget and personnel questions; and a description of Project Ploughshare, the use of underground nuclear explosions for peaceful purposes.]

Isthmian Canal—Mr. Brucker picked up the subject of a sea level canal, which Dr. Teller had discussed in part.² He said that the plan for cleaning up the existing canal, approved in 1959, will continue through 1968, but the need remains for settling on a long range solution.

Mr. Roderick said that the 1947 study of requirements and of routes remains pertinent in all respects except for the possibility of using nuclear explosions. He then went over the various possible routes and their costs. He concluded that a sea level canal is best since it can handle the heaviest traffic, at the most economical rate, and would be less vulnerable to attack.

Mr. Roderick commented that the Panama Canal Company is now very experienced and could carry on with the new canal.

Mr. Roderick wanted to propose, subject to the President’s approval of the project, some public announcement of it, even though further nuclear development was required prior to actual initiation of the work.

The President said that the biggest problem now is the determination that will have to be made as to our foreign policy interests – that is, whether to stay with Panama or to consider switching to Colombia. He thought that the additional cost of routes other than those in Panama was a very secondary factor given the long term usage of any canal. Mr. Roderick thought that the financing could be similar to that of the St. Lawrence Seaway, and that even the more expensive canals could be paid off by using higher tolls than now charged. He noted that there had been no increase in tolls since 1916.

The President repeated that State should get to work now on its part of the problem. Sec. Anderson thought that State should also consider the fringe economic benefits that would accrue to whatever country that became the site of the new canal – for instance, Colombian economic development would be greatly advanced if the switch were made to it. Mr. McCone did not want the Mexican possibility dismissed lightly, even though much more costly, since it would save much time for ships traveling between the East and West coasts of the United States. Mr. Roderick said that a study showed various savings for various routes, but that Panama currently is on the direct line of the heaviest traffic–from Venezuela to the East Coast.

The President stated that anything that binds Mexico closer to the United States is in itself worth a billion. The Vice President added that the matter of stability of local government is a question with which State would have to be concerned and is of very great importance.

Sec. Benson asked if it was planned to discontinue the present canal. Mr. Roderick replied that this also is a question for determination through State Department.

Mr. Brucker inquired about informing Congressional Committees of this proposal and of publicizing it. Mr. Henderson asked that the question of publicity be deferred until Mr. Herter’s return on May 6th.³

Mr. Brucker felt some urgency with regard to Congressional hearings. The President thought that no great problem was involved in the basic report submitted by the Panama Canal Company, rather it was in the things the State Department needed to consider. He directed Mr. Henderson to take it under study and discuss it with Mr. Dillon in the absence of Mr. Herter.

1. Source: Eisenhower Library, Whitman File, Cabinet Series. Confidential. Minnich prepared and signed this memorandum. The meeting began at 9:04 a.m. and concluded at 11:15 a.m.
2. In the course of his presentation regarding Project Plowshare, Dr. Edward Teller of the Atomic Energy Commission stated that the excavation of a sea level canal through the Central American Isthmus provided the best example of how nuclear explosives could best be used for peaceful purposes.
3. Secretary of State Herter departed Washington on April 26, 1960, on a trip that took him to London, to Tehran for the CENTO Council meeting, to Istanbul for the NATO Council meeting, and to Athens. He returned to Washington on May 6, 1960. For the texts of the Department of State press releases concerning his trip, see Department of State Bulletin, April 4, 1960, p. 517, and May 23, 1960.