711P.1914/446
The Ambassador in Panama ( Wilson ) to the Secretary of State
[Received March 31.]
Sir: I have the honor to refer to the Department’s telegram No. 162 of March 19, 9 p.m., regarding the negotiations for the defense sites and to report as follows:
As a result of conversations with Dr. Fábrega on March 20 and today, we have reached agreement on the text of the draft Agreement with the exception of that part of Article VIII which refers to the method of determining the amount to be paid by the United States to repair wear and damage to the roads of Panamá caused by troop movements, and with the exception of Article XII as it relates to the rental to be paid for privately owned lands. Copies of this text are enclosed herewith.28 It will be noted that Panamá accepts in Article I the insertion of “definitive” before “treaty”, and changing “state of emergency” to read “state of international insecurity”. Attention is also invited to the new wording of paragraph two of Article I; the changes made at the end of the second paragraph of Article VIII; and the new wording of Article XIII. Other changes from the Department’s draft of February 13, 194228 are very minor.
[Page 600]As regards Article VIII, Dr. Fábrega tells me that following our conversation on March 20 he placed before the Panamanian Cabinet and urged acceptance of the State Department point of view that the phraseology submitted in our draft of February 13, 1942, be accepted. Subsequently, however, a note was received from Ambassador Jaén Guardia dated March 20, stating that he had seen Acting Secretary Welles on March 19 and had requested that the Panamanian proposal that an annual sum be fixed in the Agreement to cover the cost of repairs to roads be accepted by the State Department. The Ambassador reported that Mr. Welles had said that there would be a meeting of some governmental Board on March 20 and that he would see that the Ambassador’s request was laid before this Board. Dr. Fábrega said that as this conversation had taken place on March 19, subsequent to the date of the State Department’s instructions to me on which our conversation in Panama had taken place on March 20, the Panamanian Government would prefer to await a report from Ambassador Jaén Guardia on the further talk which he expected to have with Mr. Welles following the meeting of the Board on March 20. Dr. Fábrega said that he hoped we might accept the Panamanian proposal, as the fixing of a lump sum payment would obviate protracted discussions over this point in the future. I reiterated to Dr. Fábrega that I had not been informed by the State Department of any conversations which Ambassador Jaén Guardia may have had in Washington on this matter, but that I would report to the Department what he told me concerning it. I request the Department’s instructions regarding this Article.
As regards Article XII, Dr. Fábrega told me today that Panama will accept an annual rental of B.100 for all the public lands. As regards the private lands, he handed me a confidential letter, a single copy of which I am attaching hereto.29 (There is no time before closing the air mail pouch to make a translation). It will be noted from this letter that the breakdown given can only be very approximate. This is because of various factors: only about half the defense sites have been accurately surveyed; moreover, there is considerable discrepancy between the figures of the Panamanian Commission and those of our Army Commission even as regards those sites which are supposed to be accurately surveyed; furthermore, as regards a number of the sites that have been recently requested and permission for occupancy of which has been given informally by Panama because of urgent need to begin preparation of the defense works, only a very rough description has been furnished the Panamanian Commission by our Army Commission and this, in many cases, does not permit the Panamanian Government to identify accurately the areas in question.
[Page 601]On the basis, however, of this very rough and approximate breakdown, it appears, according to the information furnished by Dr. Fárega, that some 2,312 hectares are public lands; some 5,515 hectares are private lands exclusive of Rio Hato; and 7,774 hectares comprise the privately-owned area of Rio Hato, which, as indicated in Dr. Fábrega’s letter, can, if desired, be treated for rental purposes on a basis different from that applied to the other private lands.
I should be glad to receive the Department’s instructions as to the question of rental for the private lands. My recommendations on this point were made in the last paragraph of my despatch No. 922 of March 9, 1942, and in my letter to Acting Secretary Welles of March 10, 1942.29a
Respectfully yours,