38. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon1 2

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SUBJECT:

  • Pan American Highway and the Darien Gap

Attached at Tab A is a report from the Under Secretaries Committee on the possibilities of accelerating the construction of the Darien Gap Highway. The findings of the Under Secretaries Committee are as follows:

  • —It is technically feasible to complete an all-weather highway closing the Darien Gap in five years. It is not technically feasible to complete a paved highway in five years. However, a paved highway could be completed in a period of seven years from the start of construction.
  • —Overall costs of completing the Darien Gap link under the accelerated schedule would be no higher than the $150 million estimated for the present ten-year schedule barring unforeseen construction problems or funding delays.
  • —The accelerated schedule would constitute a definite financial strain for the Governments of Panama and Colombia. Panama would probably have to receive financial assistance from us exceeding that already contemplated to enable it to meet its one-third share of the construction costs. No assistance to the Government of Colombia it contemplated under the ten-year schedule, but some assistance would probably be necessary on the accelerated schedule.
  • —The Panamanian and Colombian Governments will probably be agreeable to the accelerated schedule providing they are guaranteed the necessary financial assistance to meet their one-third portions of the costs, but consultations to establish this point are clearly necessary.
  • —The accelerated schedule will require an accelerated pay-out of the $100 million already authorized by Congress to cover the two-thirds portion of the financing which is the U.S. commitment. Consultations with Congress to assure this accelerated pay-out and also whatever assistance Colombia and Panama require are necessary.
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The Under Secretaries Committee identifies a number of other technical, managerial, and financial problems, but judges them solvable if the major problems listed above can be licked. It requests your approval on two recommendations if you determine it is in our interests to complete an all-weather highway in five years and a paved highway in seven years. Its recommendations are that:

  • —You authorize the Department of State to undertake consultations with Colombia and Panama to obtain their approval and cooperation in the accelerated schedule.
  • —Consultations be undertaken with the Appropriations Committees of the Congress to obtain their cooperation on pending and future appropriations requests connected with the project.

Obtaining additional or accelerated appropriations from the Congress will be difficult. (The House Appropriations Committee did not approve the $5 million supplemental for the Darien Gap project which we requested for FY 1971; we are seeking to restore this amount in the Senate, but the prospects are not good.) However, I assume that you will wish to make every effort to proceed with accelerated construction of the Darien Gap Highway. I therefore suggest that you authorize me to direct the agencies to give priority attention to accelerating construction, and to inform them that you have approved the Under Secretaries Committee’s recommendations to begin consultations with the Congress and the Governments of Colombia and Panama. Timmons concurs.

RECOMMENDATION:

That you authorize me to direct priority attention to the accelerated construction of the Darien Gap Highway, and that you approve the Under Secretaries Committee’s recommendations to consult accordingly with the Congress and the Governments of Colombia and Panama.

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–224, NSDM files, NSDM 109. Secret. Sent for action. Nixon approved the recommendation. The memorandum bears Nixon’s stamped signature. Tab A, a May 5 report of the NSC Under Secretaries Committee, has not been found. The NSC Under Secretaries Committee produced a revised version of the May 5 report on July 16. (Ibid., Department of State, S/S files: Lot 81 D 309, NSC–U/SM 100C)
  2. President Nixon approved a recommendation that Kissinger direct priority attention to completing the Darien Gap portion of the Pan American Highway.