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

26. Briefing Memorandum From the Assistant Secretary of State for Inter-American Affairs (Kubisch) to the Deputy Secretary of State (Rush)¹

Washington, December 4, 1973.

Ambassador Bunker’s Treaty Talks with the Panamanians

Ambassador Bunker’s initial visit to Panama (November 26–December 2) to hold informal, exploratory treaty talks with high-level Panamanian officials, including Foreign Minister Tack and Chief of State General Omar Torrijos, was very cordial and productive (Tab A).²

Ambassador Bunker used for discussion purposes the U.S. version of the eight principles which Foreign Minister Tack had originally proposed to Secretary Rogers. The Panamanians reportedly adopted a moderate stance which permitted a large measure of agreement on principles one through seven with only “inconsequential variations” from the approved U.S. text (See Tab B for Panamanian and U.S. versions of these principles).³ While there was some Panamanian resistance to principle eight involving an option for the U.S. to expand the canal, Ambassador Bunker believes that language acceptable to both sides can be drafted.

Ambassador Bunker’s Acting Deputy S. Morey Bell remained in Panama to receive Panama’s written counter-proposal to the U.S. version of the eight principles. In a cable today (Tab C)⁴ Mr. Bell characterizes the Panamanian version as tending to confirm the GOP’s flexibility and desire for accommodation, adding that Panama seems to have made an important concession on U.S. jurisdictional rights to operate and defend the canal. Mr. Bell will return to Washington this evening with the Panamanians’ version of the eight principles.

While in Panama Ambassador Bunker suggested, and the Panamanians eagerly accepted, the possibility of turning an agreement on principles into a Joint Declaration of Presidents.

During the latter part of the visit, General Torrijos participated personally in the talks. For domestic political reasons, he expressed a desire to give his people some tangible indication of negotiating progress which would go beyond a declaration of principles. To assist General Torrijos in managing his domestic problem, Ambassador Bunker has recommended that the Secretary, with Defense’s concurrence, ask the President to announce before January 9, the 10th anniversary of Canal Zone riots, the U.S. Government’s intention to seek legislation transferring to Panama title and jurisdiction over two pieces of abandoned Canal Zone land.⁵ These consist of two airstrips called Old and New France Fields, neither of which are required for operation and defense of the Canal. Their transfer would benefit Panama significantly in economic terms, contribute to consolidating the improved atmosphere for negotiations which has developed during the Bunker visit and help counteract international criticism of our “colonialist” posture in Panama. With support from the Defense Department, Ambassador Bunker believes that a majority of Congressional moderates would approve such a transfer despite some resistance by hard-line opponents. Ambassador Bunker has also endorsed the Canal Zone Governor’s earlier recommendations that legislation be sought to permit the Panamanian lottery to operate in the Zone.⁶

If agreement can be reached, Ambassador Bunker believes that prompt announcement of our intention to seek this legislative package together with a joint declaration of principles before the end of the year could catalyze speedier conclusion of a new treaty than heretofore envisaged and at a minimum would sustain the negotiating momentum generated during the visit. ARA has been in contact with Defense Department officials, and we understand that a Defense working group will meet on December 6 to consider Ambassador Bunker’s recommendations.

In sum, Ambassador Bunker’s visit to Panama appears to represent a very positive step toward creating an atmosphere of mutual confidence and understanding indispensable to the negotiating process.⁷ Panamanian reaction to the visit has been uniformly positive. Depending on the USG’s ability to follow through on Ambassador Bunker’s recommendations and the degree to which Panama continues to demonstrate new flexibility toward the negotiating issues affecting major U.S. interests, the Bunker visit will represent a tentative but significant step toward breaking the long-standing impasse in Canal treaty negotiations.

1. Source: National Archives, RG 59, Central Files 1970–73, POL PAN–US. Secret. Drafted by Howard.
2. Tab A, telegram 6482 from Panama City, December 2, is attached but not printed.
3. Tab B, “U.S. and Panama’s Versions of Principles,” is attached but not printed. See Tab B of Document 13.
4. Tab C, telegram 6519 from Panama City, December 4, is attached but not printed.
5. Nixon approved the submission of the legislation. See Document 28.
6. Parker’s account of Bunker’s meetings in Panama is in the National Archives, RG 185, Subject Files of 1979 Panama Canal Treaty Planning Group, Box 10, Action Plan Part 3 (Rush memo).
7. In a December 27 memorandum to Kissinger, Colby stated: “General Torrijos requests that the canal treaty negotiations not be conducted below the level of Ambassador Ellsworth Bunker. Ambassador Bunker has inspired confidence.” (Central Intelligence Agency, Office of the Director of Central Intelligence, Job 80M01048A: Subject Files (1961–1977), Box 7, Folder 22: P–17: Panama)