711F.1914/10–3147: Telegram
The Ambassador in Panama (Hines) to the Secretary of State
urgent
niact
637. In note delivered to me this afternoon Foreign Minister accepts unchanged our counterdraft of Articles 1, 3 and 4 of draft G and expressed confidence there would be no difficulty in reaching agreement on rentals and road maintenance, going on to state “My Government cannot accept the request of Your Excellency’s Government that a period of 20 years be fixed for the operation of the Rio Hato sites; [Page 927] but conscious of its responsibility for the defense of the security and neutrality of Panama Canal and on behalf of continental solidarity, it is willing that a fixed period of 10 years be indicated for Rio Hato, this period being renewable up to 10 more years, if the periodic consultations to be made by the joint commission, created in conformity with Article 3 of the proposed agreement, determine that circumstances justify a renewal”.
He adds that this proposal does not imply the intention of initiating new negotiations and is offered in spirit of conciliation and good will.
Above note was approved by Cabinet this morning to be supplemented by new consideration embodied in aide-mémoire also presented this afternoon and planned to cover our objection that short period would not justify heavy investment we intend to make at Rio Hato. They propose that Panama expropriate or buy the Rio Hato lands and, through an agreement which Foreign Minister assures me would meet with approval of Assembly and of Panamanian people, at the end of shorter period proposed air base would become property of the Republic, to be maintained in good condition so that in case of international conflagration it could be used by US Armed Forces in accordance with provisions of 1936 treaty. “The above-mentioned air base would thus remain converted in a defense installation of the Republic under its exclusive jurisdiction, and the maintenance of its efficiency and utility could be assured through the technical and economic cooperation of the US. This measure would assure that, for the mere reason that a shorter period for Rio Hato is suggested, there would not be lost to the defense of the Republic, the Canal and the whole continent, the costly improvements which the Government of the US proposes to make thereat. An arrangement such as suggested would permit Panama to own an additional air field for its aerial services and at the same time assure Panama and the US, interested in and committed to the defense of Panama and the Canal, an adequate air base which could be rapidly utilized in case of an international conflagration.”
Questioned whether the President still proposes to present the agreement to the Assembly, Foreign Minister replied affirmatively, but only if signed in the form last proposed. This would indicate possibility that, if we do not accede, President may dismiss Assembly and then sign as proposed by US. Filós said his Government is certain Assembly would not approve straight 10–10 for Rio Hato and feels rejection would leave President in worse position than if no agreement whatsoever is signed.
[Page 928]Department’s telephonic reply to Embtel 631, October 29,63 was communicated to President yesterday afternoon.
Copies of note and aide-mémoire will be forwarded by first available courier. Newbegin should see letter from Hall arriving tomorrow night’s air pouch.
- Not printed.↩