Foreign Relations of the United States, 1969–1976, Volume XXII, Panama, 1973–1976

142. Telegram From the Department of State to the Embassy in Panama¹

Washington, November 9, 1976, 0056Z.

275270. From the Secretary. Subject: Panama Canal Negotiations: Bombings. Ref: Panama 7529.²

1. I share your concern about the potentially tragic and far-reaching consequences of the harassment program which Torrijos appears to have adopted on the mistaken assumption that bombs will somehow speed the course of the negotiations. I am particularly concerned by the potential for loss of life which, if it should occur, could cause a rupture in our relations and seriously delay the negotiating process.

2. I believe that the option set forth in the first portion of para 3C reftel comes closest to my thinking in presenting the matter to Torrijos. A variation of it has the greatest potential for eliminating the threat to lives and property while at the same time preserving our flexibility for the future.

3. Suggest therefore that you proceed in the following manner:

(A) Arrange for a meeting with Torrijos. We believe that there is considerable value in working through Lakas who may be a moderating influence. You may wish therefore to ask Lakas to arrange the meeting and join with you. Assuming that you agree, you should ask that the meeting be private with only the three of you present. Make certain that both Torrijos and Lakas understand you are seeking this appointment on my personal instruction and that I consider it a matter of highest priority.

(B) Inform Torrijos that we have the gravest suspicions—difficult as it is for us to believe—that recent bombings in the Canal Zone have been the work of members of the National Guard. While we assume these developments have occurred without Torrijos’ knowledge, we thought he should be aware of our very grave concern about the implications of Guard involvement. Surely Torrijos perceives the serious ramifications that would result throughout the entire range of our bilateral relationship should any evidence of Guard involvement in this matter be confirmed. If such an action occurs again, we would have no choice but to end all negotiations.³

(C) If Torrijos should react as you have predicted by attempting to blame Canal residents or U.S. intelligence agencies, you should hear him out and then reply firmly that we were aware of this possibility, have examined it thoroughly and have reluctantly concluded that it does not allay our suspicions of involvement by members of the Guard.⁴ In a low key manner, you should also point out that while the perpetrators of these incidents apparently were careful not to cause personal injuries, this was no guarantee that injuries or deaths could not have occurred.

(D) Prior to the meeting you may wish to consult with [less than 1 line not declassified] to discuss best method of protecting sensitive sources.

Kissinger

1. Source: Ford Library, National Security Adviser, Presidential Country Files for Latin America, Box 6, Panama—State Department Telegrams from SECSTATE—NODIS. Secret; Immediate; Nodis. Drafted by Becker, Wyrough, and Chester; cleared by Bunker, Luers, Bell, and in S/S; approved by Kissinger.
2. See footnote 3, Document 140.
3. In a November 5 memorandum to Kissinger, Bunker and Luers added a fourth option, endorsed by Jorden: “Follow option 3 but tell Torrijos that we are suspending the negotiations pending receipt of his assurance that no further acts of terrorism will occur.” (National Archives, RG 59, Central Foreign Policy File, P84015–1473)
4. In telegram 7680 from Panama City, November 10, Jorden reported on his November 9 meeting with Torrijos. The Panamanian leader stated he had been expecting a démarche on this issue, but demanded proof that the National Guard was behind the bombings, emphasizing that the démarche “could be interpreted as threatening and domineering.” (Ford Library, National Security Adviser, Presidential Country Files for Latin America, Box 6, Panama—State Department Telegrams from SECSTATE—NODIS) On November 29, Torrijos sent a letter to Kissinger formally denying National Guard involvement in the bombings. (National Archives, RG 84, American Embassy, Panama, Classified and Unclassified Political and Economic Files 1976–78, Lot 80F162, Box 3, POL 23.8, Demonstrations, Riots, Terrorism, 1977)