711F.1914/453
Memorandum by the Chief of the Division of the American Republics (Bonsal)32
The Panamanian Ambassador came in this morning at his request. He stated that his Government does not consider acceptable our proposal to have the amount to be paid to Panama for road maintenance by this Government subject to further discussions. The Panamanian Government wishes to have the figure set at this time and proposes $100,000 per annum as the appropriate figure. The Ambassador said that in part the attitude of the Panamanian Government arose from a fear that unless the road maintenance matter was specifically presented to our Congress at this time, together with the defense sites arrangement and the other items which Panama is to receive, it might be difficult for us to secure the funds. In reply I said that in our judgment we would have no difficulty in obtaining the necessary funds to fulfill any commitment which we might make to Panama, and that this was a matter which we had of course examined before making the proposal in the form which he had received it last week.
However, I stated that I would be glad to have a check of the situation made to determine whether we could enter into a commitment [Page 603] to pay Panama $100,000 annually for road maintenance. Please arrange to consult the appropriate people in the War Department and in The Panama Canal in order to get their views urgently on this subject. I should think that Governor Edgerton would be the best-informed person on this subject. If we do agree upon a specific amount, I think we would wish to obtain a specific commitment from Panama as to the type of maintenance envisaged. This point was one which I hoped would be covered in the subsidiary agreement between the appropriate authorities of the two countries.
Please endeavor to expedite the clearing of this point.
- Addressed to Mr. Daniels and Mr. Wise of the Division of the American Republics.↩