Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

819.154/699

Memorandum of Conversation, by Mr. John M. Cabot, Assistant Chief, Division of the American Republics

[Washington,] January 12, 1944.

Participants:	Mr. MacDonald, PRA
	Mr. Curtiss, PRA10
	Major Debardeleben, U. S. Army Engineers, War Department
	John M. Cabot, RA

Mr. MacDonald and Major Debardeleben came to my office at Mr. McGregor’s request to discuss the completion of the Panamanian Highway Program, provided by the exchange of notes of May 18, 1942.¹¹ After I had briefly outlined the situation and mentioned the Panamanian Government’s inquiry, a long and desultory discussion followed. The upshot of it was that the following was agreed:

(1) Major Debardeleben would seek War Department funds of $2,331,252 to complete the Madden Dam bypass, the P–8 Highway from Roque to Pueblo Nuevo and thence to Panama, and the Pacora Road. Mr. MacDonald said that the $900,000 estimate for the latter highway was tentative and probably high.) To get these funds the roads would be declared projects of military necessity.

(2) He would also seek to have the War Department declare the roads access roads to [be?] military installations, which would permit their maintenance by the PRA from special funds appropriated by Congress.

(3) The PRA wishes to exchange the general obligation of paying one-third of the maintenance on Highways used periodically or frequently by the armed forces for an obligation to maintain, entirely for its own account, the Trans-Isthmian Highway, including the P–8 and bypass highways, the Chorrera-Rio Hato Highway and the Pacora Road. I agreed that I would ascertain whether the Department would be willing to present this proposal to the Panamanian Government.

In connection with the last-named point, Mr. MacDonald pointed out that the PRA had no real control over the accounts for maintenance expenditures which the Panamanian authorities might present (as yet they have not presented any). The Trans-Isthmian Highway was also being fully maintained by the PRA on the excuse that it was still under stabilization rather than maintenance. None of these Highways would be properly maintained by the Panamanian authorities, whereas it is militarily essential that they be maintained in excellent condition. Mr. MacDonald believed that article 8 of the Agreement of May 18, 1942¹² could be interpreted to make the above proposal comply with our suggestions if the Panamanian Government accepted. I said that I was somewhat doubtful whether the Panamanian Government would permit a United States Government agency to maintain roads on its national territory; Mr. MacDonald pointed out that it had long accepted very similar activities of the PRA. I then said that I saw no harm in putting the matter up to the Panamanians and would ascertain whether the Department would accept this viewpoint. Major Debardeleben said that he would let me know in a day or two whether the War Department would go along with this proposition.

10. C. D Curtiss, official of the Public Roads Administration.
11. The Defense Sites Agreement.
12. Article 8 provided for the construction by the United States of certain named roads until their stabilization, and the maintenance by Panama, with the cooperation of the United States, of those roads frequently used by the Armed Forces of the United States.