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

PM–44. Memorandum from John H. Stutesman, Jr., to the Assistant Secretary of State for Inter-American Affairs (Rubottom)¹

Washington, May 2, 1960

Isthmian Canal Plans—1960, A Report of the Panama Canal Company Board of Directors

Attached for your information and appropriate action is an excerpt from a draft record of action of the cabinet meeting of April 29, 1960. This record of action has not yet been approved by the President.²

4. Isthmian Canal Plans, 1960 (CP–60–108)

ACTION: a) Subject to the further consideration mentioned in sub-paragraph b(i), and taking into account, in addition to the points raised in the Cabinet paper,

i) the relatively diminished importance, in the long run, of the estimated differences in costs, when judged against other considerations, and

ii) the possibility of higher tolls because of full-speed transit,

the President indicated his favorable inclination to the Recommendations of CP - 60 - 108, with the proviso that the nuclear excavation of a trans-Mexican route be included as one of the most likely alternatives—this in view of:

—the friendliness of the Mexican Government;

—the savings to shippers in the lessened coast-to-coast distance.

b) The President requested the staff of the Department of State to prepare for use upon the return of Acting Secretary Dillon materials on the basis of which he may advise the President as to

i) the diplomatic considerations involved in negotiating respectively a Mexican, Colombian or Panamanian route, this matter being scheduled for a subsequent meeting of the National Security Council;

ii) the recommendation of Secretary Brucker, i.e. that favorable consideration should be given to releasing the text of CF – 60 – 105 and/or a related interim statement in the very near future, and thus ensuring that the Administration receives the credit for the new proposals which its initiative deserves.

With respect to paragraph (b) (ii) above, the subject report was transmitted to the Department by the Secretary to the Cabinet, Mr. Robert Gray, on April 12 under cover of Cabinet Paper 60–100. As noted, the President requested that the Acting Secretary of State advise him whether a recommendation by Secretary of the Army Brucker, that “the text of Cabinet Paper 60–108 and/or a related interim statement be released in the very near future”, was agreeable to the Department of State.

ARA, in consultation with S/AR and S/P, is requested to determine whether, in the Department’s view, this document might now be released. A memorandum for the President should be prepared for the signature of the Acting Secretary outlining the Department’s views on this matter.³ This memorandum should he received, under cover of an appropriate memorandum to the Acting Secretary⁴ by 3:00 p.m. today, May 2.

John H. Stutesman
Cabinet Assistant

1. Source: Department of State, Presidential Cabinet Meetings, Lot 68 D 350, CP-9. Cabinet Paper-Privileged. Stutesman was the Special Assistant to the Deputy Under Secretary of State for Administration. The source text is an unsigned carbon copy.
2. According to a memorandum dated May 6 from John A. Calhoun, the Director of the Executive Secretariat, to Secretary of State Herter, the President on May 5 approved the referenced draft record of action. (Presidential Cabinet Meetings, Lot 68 D 350, CP–9)
3. For the Acting Secretary of State’s memorandum of May 4 to the President, see Document PM–45.
4. Rubottom’s memorandum of May 2 to the Acting Secretary of State is in the Rubottom-Mann Files, Lot 62 D 418, “Panama 1960.”