Foreign Relations of the United States, 1961–1963, Volume XII, American Republics

392. National Security Council Report¹

NSC 6102

Washington, January 10, 1961.

U.S. POLICY ON THE PANAMA CANAL AND A FUTURE INTER-OCEANIC CANAL IN CENTRAL AMERICA

[Here follows discussion of general considerations concerning the Panama canal, a possible sea-level canal and the impact of such a canal on U.S.-Panama relations, and possible solutions.]

Objectives

19. Maintenance at a suitable site of an inter-oceanic canal adequate to meet world-wide commercial and Free World military requirements, as invulnerable to attack as possible, under a form of control adequately protecting U.S. interests and preferably organized on a self-financing basis.

20. A Panama which is politically stable, internally secure, progressing toward sound economic growth, and capable of taking an increasingly constructive role within the Inter-American system.

21. Preservation of at least the present measure of U.S. influence in Panama, and if possible increased influence, so as to (a) deny hostile influence over the region to any other power (especially a non-hemispheric power), (b) exert a constructive influence on radical nationalism and on social evolution in the area, and (c) promote the growth of democratic institutions.

22. Development of U.S. interests in the Isthmian region in a manner which will strengthen the Inter-American system, keep Panama securely therein, and create conditions necessary to successful negotiations for and subsequent operations of a sea-level canal.

23. Maintenance of a U.S. military base complex in Panama for so long as it is in the U.S. strategic interest.

Major Policy Guidance

24. Take steps, as outlined below, which hold the greatest hope for assuring the primary U.S. interest in the region—an adequate inter-ocean sea-level canal under conditions of control which are acceptable and advantageous to both the U.S. and the host country.

25. Recognizing that the present Canal will be inadequate in approximately 20 years, proceed on the basis that a sea-level canal should be constructed, that it should be completed by 1980, that a decision as to its preferred location and a construction plan must be made soon and that preferably it should be self-financed.

26. Undertake a comparative study of the economic feasibility of alternate sites for a sea-level canal, giving particular attention to the fact that the present Canal Zone represents territory over which the United States exercises sovereign rights, and to the economic impact upon the Republic of Panama of eventual replacement of the present Canal.

27. Proceed, as consistent with U.S. nuclear testing policy, with a program of research, development and testing to improve nuclear explosives available for excavation purposes; establish as accurately as possible the physical, biological and psychological effects of nuclear explosives under conditions to be encountered at the canal site; and determine the safety and over-all costs of the use of such explosives for a canal project.

28. Formulate promptly a comprehensive program for discussion with the Congress to create the most promising framework for the accomplishment of long-range U.S. objectives in the Isthmian region without relinquishing control of the Zone under existing treaty arrangements.

29. Continue programs to improve community relations between the residents of the Canal Zone and the Republic of Panama.

30. Continue to impress strongly upon the Panamanian Government the urgent necessity, in its own self-interest and the interests of the Panamanian people, of initiating a program of political and socio-economic development utilizing Panamanian resources to fullest possible extent in such fields as (a) land tenure and increased agricultural productivity, (b) housing, (c) taxation, (d) diversification of the economy, (e) public education and administration, (f) political reform, and (g) industrial development.

31. Manage our relations between Panama and the Canal Zone in a manner calculated to establish the politico-psychological framework in which to negotiate satisfactorily for a new canal and for ceasing the operation of the present canal.

32. In seeking to assure the accomplishment of long-range U.S. objectives in the Central American region and of keeping that region securely within the Inter-American systems and susceptible to U.S. influence, continue to contribute to the cost of favorably influencing socio-economic change in Panama.

33. With respect to the present canal:

a. Pending completion of a new canal, maintain in force to the fullest extent feasible, all the rights, power and authority granted the United States by the Convention of 1903 with Panama, as modified by the Treaties of 1936 and 1955.²

b. Continue the current Canal improvement program with a view to completing it by 1968.

34. Permit no hostile or lawless actions by individuals or groups within the Canal Zone, and assure that the Government of Panama is made aware that the Zone authorities will take prompt, effective and continuing measures to prevent such disturbances from moving from the Panamanian territory into the Canal Zone and that their full cooperation is desired. To this end be prepared to use U.S. military forces to preserve order in the Canal Zone.

35. Continue to develop the Canal Zone as a center for Inter-American civil and military cooperation.

[Here follow annexes A-D, concerning various aspects of a possible inter-oceanic canal.]

1. Source: National Archives and Records Administration, RG 59, S/S-NSC Files: Lot 63 D 351, NSC 6102. Secret. A January 10 note from NSC Executive Secretary James S. Lay, Jr., to the National Security Council, attached to the source text, states that at the 473d NSC meeting on January 5, the Council adopted the statement of policy in NSC 6026 subject to the amendments set forth in NSC Action No. 2368-b and that on January 10 the President had approved the statement as amended, which was enclosed as NSC 6102. NSC 6026 was dated December 29, 1960. (Ibid., NSC 6026) A memorandum of the NSC discussion on NSC 6026 is in the Eisenhower Library, Whitman File, NSC Records; NSC Records of Action are in Department of State, S/S-NSC (Miscellaneous) Files: Lot 66 D 95.
   A note dated January 22, 1963, from NSC Executive Secretary Bromley Smith to all holders of NSC 6102, attached to the source text, indicates that the President had authorized the rescission of NSC 6102.
2. For text of the Isthmian Canal Convention signed at Washington November 18, 1903, see 10 Bevans 663. For text of the Treaty of Friendship and Cooperation signed at Washington March 2, 1936, see 10 Bevans 742. For text of the Treaty of Mutual Understanding and Cooperation signed at Panama January 25, 1955, see 6 UST (pt. 2) 2273.