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

PM–53. Telegram from the Secretary of State to the Embassy in Panama¹

Washington, September 6, 1960, 8:50 p.m.

120. No Distribution Outside Dept. Eyes Only for Ambassador.

Re DEPTEL 111.²

Following for your personal information only is summary of decisions reached Sept 1 at White House meeting attended by President, The Secretary, Secretary of Army and others:

1. President approved Dept State representation on Board of Governors of Panama Canal Company at Under Secretary of State level, the first appointment to be made when next vacancy occurs. Each nomination is to be matter for consultation between Secretary of State and Secretary of Army.

2. President decided that no decision would be made at this time on establishment of principle that future governors should be civilians, both Secretaries having indicated their agreement it neither necessary nor desirable so to determine at this time.

3. President approved concept of establishment of primacy of Ambassador over Governor in foreign affairs matters and agreed that relationship of Ambassador to CINCARIB was a matter to be worked out promptly between Secretary of State and Secretary of Defense in consultation with him. FYI Draft letters on these two items are now in preparation. End FYI

4. With respect to the Panamanian flag, the President determined as follows:

(a) The Panamanian flag should be flown together with the U.S. flag at Shaler’s Triangle on such days as November 3 and on other days of public significance to Panama and to the U.S. U.S. flag would not fly there except on days the Panamanian flag was flown. Two flag poles would be erected (the source of funds was left undecided) but no elaborate steps at this time would be taken to create a formal plaza.

(b) This decision should be announced as late in the fall as it was deemed possible to do without risking the building up of public pressures in Panama for agitation on the issue. September 20 was suggested as the general time period in which this condition might be met.

(c) The announcement should be made by the Governor in a statement to the press to the effect that the President had approved the flying of the Panamanian flag with the American flag on holidays and other days of special significance to the two countries. Panamanian Govt would be informed by formal note of this forthcoming statement two hours or so before it was given to press. An announcement before October 1 was desirable in order avoid implication that this was an action directly tied to inauguration of new Panamanian president (Theodore Roosevelt’s birthday on October 27 was incidentally mentioned as one day suitable for first flying the flag).

5. President also approved the practice of flying U.S. flag daily in front of Chancery without reference to or other connection with impending action on the Panama flag.

You are requested not to take any action on 1 through 4 above decisions until further instructions. We shall soon be transmitting to you for comment drafts of a press release and note on the flag.

You should not consult with Governor or CINCARIB on these matters until further notice.³

Herter

1. Source: Department of State, Central Files, 719.04/9–660. Top Secret; Eyes Only. Drafted by Merchant and Long, approved by the Secretary, and initialled by Merchant.
2. Not printed; 719.04/9–160.
3. On September 8, Ambassador Farland expressed his concern that the Department of State’s proposals contained in paragraph 4 (c) would, if carried out, enable the Communists and ultra-nationalists to characterize the decision to restrict the flying of the Panamanian flag with the American flag at one designated Canal Zone location as a half measure adopted begrudgingly. Farland believed that the proposal failed to meet the official Panamanian request for a regular display of the flag in the Canal Zone and would only serve to aggravate the situation and to perpetuate the issue as a source of agitation. (Telegram 132 from Panama City; 719.04/9–860)
   On September 9, Maj. John Eisenhower telephoned Merchant to express his concern with the contents of telegram 132 from Panama City. He stated his belief that Ambassador Farland’s arguments were persuasive, and that he intended to show the telegram to the President. (Memorandum of Telephone Conversation, by Merchant, September 10, 1960; 719.04/9–1060)