819.154/709
The Chargé in Panama (Muccio) to the Secretary of State
[Received June 19.]
Sir: I have the honor to acknowledge the receipt of confidential instruction No. 3181 of June 3, 1944, concerning the Pacora Road project. I desire to assure the Department that the preliminary discussions regarding this project at no time contemplated an amendment to Article VIII of the Defense Sites Agreement. I shall bear this in mind in any future discussions and have also brought the Department’s opposition to any alteration of the Agreement to the attention of the Commanding General of the Panama Canal Department.
My despatches Nos. 5069 dated January 19, 1944, and 5398 of April 22, 1944,22 mentioned informal preliminary discussions regarding the Chepo road23 between United States and Panamanian officials. I should like to explain in this regard that it was made clear to the President and to the Minister of Health and Public Works24 of Panamá that all of the discussions were merely to bring about a meeting of minds as to what might be done and that the definite proposal of the Government of the United States of America would be submitted eventually by the Department of State through the Panamanian Embassy in Washington.
The possibility of having the proposal for the construction of the Pacora Road include a provision that in view of the very liberal attitude being taken by the United States in the construction of these roads—which will be of tremendous benefit to Panamá—and the maintenance by the United States of the Rio Hato, the Trans-Isthmian and the Pacora Roads entirely at its own expense during the period of the emergency might be considered to be in complete satisfaction of the [Page 1436] provisions of Article VIII of the May 18 Agreement was never mentioned in any way to the Panamanian authorities. I discussed the desirability of such an understanding with the Commissioner of Roads of the United States. I desire to go on record at this time as recommending that such an understanding or interpretation of Article VIII of the Defense Sites Agreement be given all possible consideration at the time the Pacora project is presented to Panamá. I am confident that the difficulty of ascertaining just what amount the United States should pay towards the annual cost of maintenance and repairs of all Panamanian roads used periodically or frequently by the armed forces of the United States will be so complicated that it may lead to difficulties and misunderstandings in the future.
Regarding the fourth paragraph of the Department’s instruction, it is my understanding that General Brett desires a good road to Pacora to provide adequate motor communication to the base at La Joya No. 1, and also to have this road tie-in with the P–8 Road. This would give him good road facilities for moving his forces from La Joya through to the Caribbean area, as well as tying in with the Zone road system which in turn connects on through to Rio Hato. General Fleming25 and Mr. MacDonald were in agreement that the tie-in road from the Trans-Isthmian (P–8) to Juan Diaz be built entirely at the expense of the Government of the United States and that from Juan Diaz to Pacora (La Joya No. 1) the Government of Panamá and of the United States share the cost equally. At that time the local representatives of the P. R. A. were instructed to make a survey and engineering study of these two sections, the results of which would be incorporated in the project to be submitted to Panamá through formal channels. It was further understood that the roads were to be built by P. R. A. from funds which the F. W. A.26 has available for access roads to military sites and General Brett was to certify to the War Department that this was to be an essential defense project.
Respectfully yours,