Foreign Relations of the United States, 1969–1976, Volume E–10, Documents on American Republics, 1969–1972

558. Memorandum From Ashley C. Hewitt of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)¹ ²

Washington, January 19, 1972

SUBJECT:

• Panama and the Canal Treaty Negotiations

Attached for your information are two intelligence reports [text not declassified] The first report (Tab A) indicates that the Panamanian Government is preparing to issue this week an official statement on the status of the treaty negotiations. The statement reportedly will not announce a break-off of the talks but will be critical of the U.S.

The second report (Tab B) substantiates an earlier report which I briefed to you and indicates that Torrijos has decided to slow the pace of negotiations until after the August National Assembly elections in Panama. The source also reports that General Torrijos, at a meeting of high government officials and the Panamanian negotiators, bitterly criticized the U.S. negotiating position. Torrijos was particularly unhappy with our position on the duration of a new treaty, the option for the U.S. to build a sea-level canal, and the provisions of the proposed status of forces agreement. At the meeting he posed the possibility of continuing under the present treaty until the moral pressure of the world forces the U.S. to grant greater concessions and come to terms with the Panamanian Government. Torrijos also commented it might be better to defer construction of a new canal until Panama could build the canal itself. (In mid-January Castro reportedly advised Torrijos that the U.S. world position was weakening and that Panama in the not too distant future would be able to build the canal itself utilizing an international loan.)

These reports contribute to growing indications that Gen. Torrijos may have decided to slow the negotiations. (The Panamanian negotiators have not yet returned to Washington following the Christmas holiday recess of the talks.) There are rumors that his decision has caused some of the present negotiators to resign and that Torrijos has decided to appoint persons who will be far less accommodating to replace them. I will keep you informed of any further developments.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 792, Country Files, Latin America, Panama, Atlantic-Pacific International Ocean Canal Study Commission, Vol. 2, 1972. Secret; Sensitive. Sent for information. Attached but not published are Tabs A and B. Tab A is a January 14 CIA memorandum titled “Plan of Panamanian Government to Issue Official Statement on Status of Canal Treaty Negotiations;” Tab B is a January 17 CIA memorandum titled “Criticism by General Omar Torrijos of the Position Taken by the United States in the Treaty Negotiations.”
2. Hewitt summarized two CIA reports regarding the Panama Canal treaty negotiations. The first report indicated that Torrijos criticized the U.S. stance in the Canal negotiations and the second that the Panamanian Government would slow the pace of negotiations until after the August National Assembly elections.