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

35. Memorandum of Conversation¹

Washington, March 21, 1974, 2 p.m.

SUBJECT

• Ambassador Bunker Visit

PARTICIPANTS

• The Vice President
• John O. Marsh, Jr.
• U.S. Ambassador at Large Ellsworth Bunker
• Mr. S. Morey Bell, Director, Office of Panamanian Affairs

Ambassador at Large Bunker met with the Vice President to discuss the Panama situation. He said the atmosphere in Panama was better, but could recognize lines were being drawn on Capitol Hill with strong opposition from Dan Flood and his followers.

The Vice President urged that there be no further announcements about Panama this year, and can shoot for 1975 as the year of decision and implementation.

Bunker said that DODhad been very helpful, but agreed there were problems ahead.

Reference to the negotiations he said we were asking for 50 years on the Canal but Panama wanted a termination end of 1999. By termination, this means they will get the Canal and the Zone. In the meantime, there will be a phasing-in of Panama jurisdiction. As a part of the arrangements, we are seeking to build a new sea level canal or to expand the old canal, but with an extension of time for operations.

Sea level canal through Nicaragua or Colombia is not practical, but it is necessary to have a new facility or a modernized old facility since the present canal will not accommodate some of the larger vessels.

A sticking point in the negotiations is the Colombian right under the 1914 agreement to transit the canal with their warships.²

Any agreement with Panama will require that the canal be open for international shipping.

Approval for implementation is necessary in both houses of the U.S. Congress and Bunker has talked to Albert, Morgan, Scott and Mansfield.³

In response to a question, Bunker said that the present canal is breaking even financially.

1. Source: Ford Library, Vice Presidential Papers, Files 1973–1974, Box 65, Vice Presidential Meetings with Foreign and Diplomatic Officials. No classification marking. Drafted by Marsh. The meeting took place in the Old Executive Office Building.
2. The Thomson-Urrutia Treaty, signed in April 1914, awarded Colombia $25 million as compensation for its loss of Panama in 1903. It also provided Colombia with free access to the Canal.
3. Speaker of the House Carl Albert (D-Oklahoma), Congressman Thomas E. Morgan (D-Indiana), Senator William L. Scott (R-Virginia), Senator Michael Mansfield (D-Montana).