Foreign Relations of the United States, 1947, The American Republics, Volume VIII

711F.1914/12–1047

Defense Sites Agreement, Signed on December 10, 1947, But Not Subsequently Ratified Between Panama and the United States⁶⁷

December 10, 1947

The Government of the United States of America and the Government of the Republic of Panamá have consulted together to consider all the phases of the existing international situation as well as to discuss the experiences of World War II in relation to the defense of the Panamá Canal; and, after an exchange of information with relation to the present needs, have reaffirmed their joint interest in providing for that which is necessary for the continued and effective protection of the Panamá Canal and the security of the Republic as stipulated in the General Treaty signed at Washington March 2, 1936 and in the exchange of notes relating thereto; they have reached the conclusion that under present circumstances a limited number of defense sites in territory under the jurisdiction of Panamá should be maintained temporarily; in virtue of which they have decided to conclude an agreement in order to effectuate the foregoing objectives, and for that purpose have appointed as their respective representatives:

His Excellency Frank T. Hines, Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Panamá, and

His Excellency Doctor Francisco A. Filós, Acting Minister of Foreign Relations of the Republic of Panamá, who, having been duly authorized by their respective Governments, have agreed as follows:

Article I

The two Governments agree that the defense sites referred to in the present Agreement will be regulated by the conditions set forth in the following articles.

Article II

The Republic of Panamá designates the areas specified in the Annex attached^67a to this Agreement, and of which it forms an integral part, to serve as sites to be used for the defense of the Panamá Canal and of the Republic of Panamá, for the limited period specified for each site.

Article III

To assure the efficient and mutually satisfactory functioning of the defense sites as well as to assure the exercise of the sovereign rights of the Republic of Panamá, the Government of the United States of America designates the local Commander of its Armed Forces, or his designated deputy, and the Government of the Republic of Panamá designates the Minister of Government and Justice as its representative, to form a joint commission whose members, the above-mentioned representatives, shall consult on all matters relating to the use of the defense sites, provided, however, that all matters of a military nature or involving in any way the exercise of military command are to remain within the exclusive responsibility and jurisdiction of the military authorities of the United States. Following such consultation, the two Governments carrying out the stipulations of this Agreement, shall adopt by an exchange of notes, the recommendations of the above-mentioned representatives.

Article IV

The Republic of Panamá accords to the United States the powers and authority necessary to assume full military, technical, and economic responsibility for the defense sites. The United States shall exercise, therefore, all the rights and authority within defense sites and the air spaces thereover, which are necessary to make effective such responsibilities.

The Government of the United States of America may employ contractors and other personnel in the exercise of such rights.

Article V

The Republic of Panamá maintains its sovereignity over the areas used as defense sites and over the air spaces corresponding thereto, as well as jurisdiction with respect to civil and criminal matters in these areas, it is being understood, nonetheless, that the United States shall have exclusive jurisdiction over any offenses which may be committed within the defense sites by its civilian or military personnel employed or engaged in any manner whatsoever in connection with the operation of the defense sites and by members of their families. The United States, by virtue of the military responsibility which it assumes in conformity with Article IV, shall have the right to arrest, try, and punish, if necessary, all persons who, in any defense site, commit any act against the security of the site, of the military installations therein, or of the personnel situated thereon, provided, however, that any Panamanian citizen arrested or detained on any charge shall be delivered to the authorities of the Republic of Panamá. National authorities of both Governments shall be accorded adequate facilities for access to the defense sites, but the military authorities of the United States may exclude other persons from the defense sites.

Article VI

The Government of the United States of America shall pay to the Government of the Republic of Panamá on or before the first day of February of each year an annual compensation of seventeen thousand two hundred fifty Balboas (B/17,250.00) for all the lands used as defense sites during the preceding calendar year in accordance with the terms of this Agreement. The payment shall be reduced proportionately in the case of periods of less than a year. There shall be expressly excepted from the above provisions of this Article:

(A) The piece of land in the township of Río Hato designated as No. 1 in the Annex, for which the Government of the United States of America shall pay to the Government of the Republic of Panamá an annual compensation of ten thousand seven hundred and fifty Balboas (B/10,750.00).

(B) The entire area of the island of San José, in the Archipelago of Las Perlas, in the Bay of Panamá, designated as No. 2 in the Annex, for which the Government of the United States shall pay to the Government of the Republic of Panamá an annual compensation of fifteen thousand Balboas (B/15,000.00).

The Government of the Republic of Panamá shall assume, with respect to the lands used as defense sites, all expenses of expropriation as well as the indemnifications and reimbursements for installations, cultivated lands, or other improvements which may exist on those lands.

The compensations established in this Article shall be paid in Balboas as they were defined in the exchange of notes effected on March 2, 1936, to which Article VII of the treaty of that date between the United States of America and the Republic of Panamá refers, or the equivalent in dollars, and shall be paid proportionately for each defense site listed in the Annex, from the effective date of this Agreement.

Article VII

When a defense site or part thereof is no longer required for the defense of the Panamá Canal and the Republic of Panamá, its use shall be discontinued on a date set by the United States. The Republic of Panamá shall be notified of the contemplated discontinuance no less than 90 days prior to the date set, unless the two Governments agree to a shorter notice.

All the buildings, constructions, installations, or accessories which may have been erected or placed by the United States on a defense site may be removed by the United States at any time prior to the date set for discontinuing the use of the site. The buildings, constructions, accessories, crops, cultivated areas, or other improvements existing at the time a defense site is first occupied may be used by the United States without obligation to pay for damages caused in any manner thereto. The Republic of Panamá shall not be obligated to pay compensation to the United States for improvements made on a defense site or for the buildings, constructions, or assets left thereon by the United States, all of which will become the property of the Republic of Panamá when the use of the defense site is discontinued in accordance with this Agreement.

Article VIII

The United States and the Republic of Panamá reiterate their understanding regarding the temporary character of the occupation of the defense sites to which this Agreement refers. Consequently, the United States, recognizing the importance of the cooperation rendered by Panamá in making these temporary defense sites available, and also recognizing the burden which the maintenance of these sites signifies for the Republic of Panamá, expressly undertake to reach agreement with the latter upon the measures necessary in order that the evacuation of said sites will be effected no later than the date of expiration of the period stipulated with respect to each site in the Annex, or before, if in the opinion of the two Governments the causes and circumstances which have determined the maintenance of the defense sites should have ceased.

Article IX

Government owned or operated aircraft of the Republic of Panamá shall be authorized to land at and take off from air bases established within defense sites, in accordance with regulations to be established by the Joint Commission created pursuant to the provisions of Article III.

Civil aircraft and aircraft of Governments other than those of the Republic of Panamá and of the United States shall not be authorized to land at or take off from any defense site established by the terms of this Agreement, except in the case of emergency, or for strictly military purposes.

The Republic of Panamá shall not permit the erection or existence of obstacles which may constitute hazards to the safe operation of air bases established on defense sites. If it is necessary to alter, remove or relocate any existing structures, the United States shall bear the costs involved.

Article X

The Republic of Panamá agrees that all roads under its jurisdiction used for movements by the Armed Forces of the United States from one defense site to another, and between defense sites and the Canal Zone, shall be well and properly maintained at all times. In the case of emergencies the United States may undertake the necessary repairs, immediately notifying the Republic of Panamá of its action. For normal or routine maintenance requirements the United States may offer assistance for the performance of repair and maintenance work whenever it appears to be appropriate.

The United States shall pay annually to the Republic of Panamá on or before the first day of February of each year one hundred thirty-seven thousand five hundred Balboas (B/137,500.00) or the equivalent in dollars as its contribution to the preceding year’s cost of repair or maintenance work on the roads used by the Armed Forces of the United States. The first of such payments shall be made on or before the last day of February 1948 to cover the calendar year 1947. In the event that in any year the United States performs repair or maintenance work in accordance with the provisions of the first paragraph of this Article, the expenses incurred by the United States in so doing shall be subtracted from the next annual payment made by the United States to the Republic of Panamá. If the expense incurred by the United States in any year is greater than the annual payment for that year, the annual payment shall be canceled and no claim shall be made by the United States as a result of the amount spent in excess thereof.

In consideration of the aforementioned contribution by the United States to the cost of maintaining roads in the Republic of Panamá, the United States is granted free right of transit on all roads under the jurisdiction of the Republic of Panamá. The foregoing free right of transit shall be applicable to the routine or tactical movement of members of the Armed Forces of the United States and civilian employees of such Armed Forces, and their families, as well as animals, animal-drawn vehicles, and motor vehicles, employed by the Armed Forces, or by contractors employed by the Armed Forces, or by others whose activities are related to the defense of the Panamá Canal. The United States shall not obstruct the free use of any of the roads under the jurisdiction of the Republic of Panamá by virtue of the routine or tactical movement of United States Armed Forces, except in cases of emergency.

The United States shall maintain and permit the free use of any existing public roads which cross the defense sites or may relocate such roads in accordance with the recommendation of the Joint Commission.

Article XI

The Republic of Panamá accords to the United States the right to maintain and use such aerial telegraph and telephone lines, submarine cables, subterranean cables, and aerial cables, as are presently established.

The United States shall, under such regulations as may be agreed upon by virtue of recommendation by the Joint Commission and insofar as military requirements permit, share with the Republic of Panamá the use of existing military telegraph and telephone lines and cables, and any similar additional facilities of the Armed Forces of the United States which hereafter may be constructed in the Republic of Panamá.

Article XII

The Republic of Panamá accords to the United States the authority to install, operate, and maintain within defense sites such radio-communication facilities as may be required by the Armed Forces of the United States for the defense of the Panamá Canal and the Republic of Panamá. Similarly, the use of radio-communication facilities by the Armed Forces of the United States in territory and waters under the jurisdiction of the Republic of Panamá shall be permitted, in accordance with the regulations to be established by recommendation of the Joint Commission.

Article XIII

The civilian and military personnel of the United States functioning on the defense sites or employed in connection with the operation of said sites, including contractors working exclusively on the defense sites, and the families of such personnel, as well as the property and effects destined for the bases, shall be exempt from all taxes, contributions or imposts of any kind imposed by the Republic of Panamá or its political subdivisions, during the terms of this Agreement.

The authorities of the Government of the United States of America shall impede the sale or transfer of merchandise and articles imported into or sold in the defense sites for the use or consumption of civilian and military personnel employed thereon to persons having no right to buy such merchandise or articles. Said authorities shall, in addition to preventing the abuse of the exemptions conceded by this Agreement, cooperate with the authorities of the Republic of Panamá for the purpose of precluding the contraband of said merchandise and articles.

Article XIV

This Agreement may be terminated by the two Governments by mutual accord prior to the expiration of the periods stipulated in the Annex.

Article XV

This Agreement shall enter into force on the day on which each of the Governments notifies the other Government in writing of its approval of the same, if such notifications are given on the same day; and if the notifications are given on different days, the Agreement shall enter into force on the date of the notification later in time.

In faith of which the plenipotentiaries of the High Contracting Parties have signed this Agreement in duplicate in English and Spanish, both texts of equal authenticity, and have affixed their respective seals.

Done at the city of Panamá, the tenth day of December, 1947.

Frank T. Hines

Francisco A. Filós

[Annex]

Memorandum Describing the Defense Sites and Stipulating the Period of Occupancy of the Same, Annexed to the Defense Sites Agreement Between the United States of America and the Republic of Panamá, and Forming an Integral Part of that Agreement

The exact boundaries of the defense sites are shown in detail on the United States Army maps and drawings listed below, copies of which are in the possession of the Ministry of Foreign Relations of Panamá. For further identification, where possible, there are given the numbers under which said bases appeared in the Annex to the Agreement for the Lease of Defense Sites in the Republic of Panamá, of May 18, 1942.⁶⁸

Defense Site No. 1, Rio Hato, formerly known as No. 12, is located in the township of that name and Province of Coclé approximately 57 miles westward, along the National Highway from the Canal Zone and extends from the shore of the Gulf of Panamá northward across the National Highway for a distance of approximately 16 miles. The site consists of two parcels, one with an area of 7,675.96 hectares and the other of 12.32 hectares, or a total area of 7,688.28 hectares. The boundaries are shown on Department Engineer Drawings Nos. 5889 and 5889–1. Period of occupancy: Ten years, renewable for an additional period of ten years, at the option of the United States of America.

Defense Site No. 2, San José Island, comprises the entire island of that name and is located in the Bay of Panamá, in the Perlas Archipelago, approximately 55 miles S 40° E of Balboa, Canal Zone. Its area is approximately 4,460 hectares. Period of occupancy: Five years.

Defense Site No. 3, Taboga Island, located on the island of that name which lies in the Bay of Panamá approximately 11 miles due S of Fort Amador, Canal Zone. It comprises three parcels of land formerly known as No. 17 with an aggregate area of 26.79 hectares, the boundaries of which are described in Department Engineer Drawings 6020, 6026, 6073, 6075, 6077 and 6078; and of another parcel of 14.5 hectares, formerly known as No. 56 and described in Department Engineer Drawings 6020 and 6022; the total area of this site being 41.29 hectares. Period of occupancy: Five years.

Defense Site No. 4, Taboguilla Island, formerly known as No. 18, is located on the island of the same name, in the Bay of Panamá less than one mile E of Taboga Island which has been previously identified. The site comprises 132.06 hectares, the boundaries of which are described in Department Engineer Drawings 5311, 5820, 5821 and 5885. Period of occupancy: Five years.

Defense Site No. 5, Salud, is located in the Province of Colón on the Caribbean Sea, approximately 19 miles SW along the coast from Fort Sherman, Canal Zone, between the villages of Salud and Lagarto. It comprises 49.996 hectares and is delimited in Sheet 122, Terrain Map, Military Survey of Panamá, Scale 1:20,000. Period of occupancy: Five years.

Defense Site No. 6, Rey Island, is located on the southernmost part of the island of that name, the largest of the Perlas Archipelago, lying in the Gulf of Panamá approximately 69 miles S 40° E of Albrook Field, Canal Zone. The site, formerly known as No. 32, consists of two parcels with a total area 100.05 hectares and is shown on Department Engineer Drawing 5672. Period of occupancy: Five years.

Defense Site No. 7, Jaque, with a total area of 149.01 hectares, consists of one parcel of 9.02 hectares, formerly known as No. 20, located at Piñas Bay in the Province of Panamá, approximately 30 miles NW along the Pacific Coast from the Colombian border, and described in Department Engineer Drawing 5865; and of another parcel of 139.99 hectares, previously known as No. 21, located inland approximately 1 mile from the former and shown on Department Engineer Drawing 6039. Period of occupancy: Five years.

Defense Site No. 8, Pocri, formerly known as No. 7, is located in the Province of Los Santos peninsula, approximately 92 air-miles S 26° W of Albrook Field, Canal Zone and 10 miles E from the town of Las Tablas. It consists of two parcels with an aggregate area of 157.2 hectares and is shown on Department Engineer Drawings 2002–1 Revised, 6002–1–2 and 6002–3. Period of occupancy: Five years.

Defense Site No. 9, Cape Mala, is located in the Province of Los Santos at the SE extremity of Los Santos peninsula, approximately 108 air-miles S 16° W from Albrook Field, Canal Zone and comprises two parcels with a total area of 20.07 hectares. The first, of 15.03 hectares, formerly known as No. 8, is shown on Department Engineer Drawing 6061; while the other, previously known as No. 126, has an area of 5.04 hectares and is shown on Department Engineer Drawing 6356. Period of occupancy: Five years.

Defense Site No. 10, San Blas Point, formerly known as No. 24, is located in the Comarca of San Bias on the Caribbean Coast on a peninsula at the western end of the Gulf of San Bias and approximately 61 air-miles N 82° E from France Field, Canal Zone. It has an area of 23.87 hectares and is shown on Department Engineering Drawing 4781. Period of occupancy: Five years.

Defense Site No. 11, Isla Grande, formerly known as No. 96, is located in the Province of Colón, on a small island of that name on the Caribbean Coast, approximately 30 air-miles N 51° E of France Field, Canal Zone. It consists of two parcels having a total area of 8.66 hectares, the boundaries of which are shown on Department Engineer Drawing 6167–Revised. Period of occupancy: Five years.

Defense Site No. 12, Victoria, formerly known as No. 36, has an area of 5.4 hectares, lies approximately 5 miles NE of the town of Pacora in the Province of Panamá, and is shown on Department Engineer Drawing 6019. Period of occupancy: Five years.

Defense Site No. 13, Las Margaritas, formerly known as No. 127, is located near the village of the same name, in the Province of Coclé. The site has an area of 2.13 hectares and is shown on Department Engineer Drawing 6438-A-Revised. Period of occupancy: Five years.

In witness whereof, this memorandum is signed in duplicate in English and Spanish, in Panamá, this tenth day of December, A.D. 1947.

Frank T. Hines

Francisco A. Filós

67. Transmitted by the Ambassador in Panama in his despatch 4489, December 10, 1947, not printed.
68. Not printed.
68. For text, see Department of State Executive Agreement Series No. 859; 57 Stat. (pt. 2) 1232. For documentation on negotiations of this Agreement, see Foreign Relations, 1942, vol. vi, pp. 577 ff.