711F.1914/12–247
Memorandum of Conversation, by Mr. W. Tapley Bennett of the Division of Central America and Panama Affairs
| Participants: | Norman Armour, Assistant Secretary of State |
| J. J. Vallarino, Ambassador of Panama | |
| W. T. Bennett, CPA |
Ambassador Vallarino opened the conversation by saying that, while he had talked with Ambassador Hines last week on defense sites matters, he was glad for the opportunity to come in to discuss the problem once again with Mr. Armour. He reiterated to Mr. Armour, as he has on numerous occasions to other officers of the Department, that he had returned to Washington from Panama solely with the hope of bringing about a solution to the impasse on the defense sites negotiations. He repeated that he is desirous of rendering any possible assistance.
The Ambassador again broached the question of a change in phraseology in the agreement with respect to continued occupation of the Rio Hato site following the initial 10-year period. He said that Foreign Minister Alfaro is still unwilling to agree to more than five years [Page 930] for Rio Hato but that he himself is convinced of the necessity for a longer period and is willing to work for the acceptance of the 10–10 period by the National Assembly of Panama. He said, however, that the Assembly would not be disposed to ratify the signed accord in the absence of some written expression of this Government’s willingness to grant “compensations” following signature of the agreement. He said that the Panamanian people, with the example of the twelve-points accord65 signed at the same time as the 1942 Defense Sites Agreement, would expect certain concessions (he mentioned roads as the principal field of interest of his Government and also suggested an Executive Order restricting the Canal Zone commissaries to the handling of goods produced in the United States or Panama) and that he is doubtful of ratification by the Assembly without such assurances. The Ambassador said that President Jimenez under present circumstances would not be prepared to present the agreement to the Assembly.
Mr. Armour replied that, while this Government would view with regret such a decision by the Government of Panama, we are unable to make further changes in our position relative to the defense sites agreement. He reiterated the view of this Government that the matter of economic concessions must be kept separate from the defense of the Canal, which is a mutual obligation of the two Governments under the 1936 Treaty. He said that he was glad to repeat again our previously given assurances of willingness to discuss economic matters following conclusion of the defense sites agreement.
Mr. Armour pointed out that we have made repeated concessions in an effort to meet the viewpoints of Panama and that we have reached a point beyond which we can go no farther. He mentioned that Secretary Marshall has followed the course of the negotiations personally and with a great deal of interest and that our position is the result of detailed consideration of the problem in the Department and with officials of the Army, Navy and Air Force Departments. Mr. Armour offered the opinion that the members of the Panamanian Assembly should be able to understand that our requests are based on defense needs of the Canal, defense of which is of vital interest to the entire Hemisphere, and to recognize the numerous concessions we have made from our original proposals.
Ambassador Vallarino showed considerable disappointment at Mr. Armour’s remarks. At one point he declared that he had been a failure here as his country’s representative and that, therefore, he did not want to retire and return home at the present time. He said that he regretted not having been given a larger part by his Government in [Page 931] the conduct of the negotiations and pointed out that he had not been brought in to the problem until the very end of the discussions. He expressed confidence that a more satisfactory solution would have been found had he been in charge of the negotiations on the Panamanian side. He then said that he had been advised by his doctor of the necessity for a thorough physical check-up and that under the circumstances he was not desirous of entering the presidential race for next year’s elections in Panama. He asked what would be the result of failure to reach agreement and inquired whether it would mean evacuation from all bases in Panamanian territory of United States troops. Mr. Armour replied that it would.
Mr. Armour took occasion once again at the end of the conversation to assure the Ambassador that our present position must be considered firm and that it remains as presented by Ambassador Hines last week and by him today. He said that if Ambassador Vallarino wished he would be glad to review the matter once again with the Acting Secretary but that he desired to express in all frankness his opinion that there will be no change in our position.
Ambassador Vallarino said that he appreciated Mr. Armour’s courtesy in offering to take up the matter with the Acting Secretary and that he would await word as to the results of that conversation. He seemed aware of the small likelihood of any change in our position.
Note: Mr. Armour talked with Ambassador Vallarino at the President’s reception to the Diplomatic Corps on the evening of December 2 and informed him that Mr. Lovett had confirmed this Government’s position on the defense sites agreement as expressed by Mr. Armour earlier in the afternoon and by Ambassador Hines on November 25. Mr. Armour explained to Ambassador Vallarino that our position had been determined through study and consultation among all the Departments concerned. He said that if the latter were sending a message on the matter he should inform his Government that this was our final position.
- Department of State Executive Agreement Series No. 452.↩