711F.1014/460: Telegram
The Secretary of State to the Ambassador in Panama (Wilson)
321. Your telegram 362, April 25, 2 p.m. You are authorized to submit the following proposals to the Government of Panama regarding Article XII of the proposed defense site contract referring to rentals:
- 1.
- The United States to pay an annual rental of one balboa for all publicly-owned lands covered by the defense site agreement;
- 2.
- The United States to pay an annual rental of fifty balboas per hectare for all privately-owned lands covered by the defense site agreement other than the Rio Hato tract, the Government of Panama to assume all expropriation expenses, indemnities and reimbursements;
- 3.
- The United States to pay an annual rental of 10,000 balboas for the entire Rio Hato tract, commencing January 1, 1943, this payment to be included in a separate contract for a period which would extend until such time as the two Governments agree that conditions no longer warrant the use of Rio Hato as a base necessary for the protection of the Canal. If, however, the Government of Panama prefers that the annual rental for Rio Hato be determined by experts appointed by both Governments, you are authorized to accept the procedure outlined in the Panamanian note of March 6, 1942 for treating Rio Hato separately.
Please telegraph your views and those of the Panamanian Government regarding the foregoing proposals. If there should still be any question regarding the fair rental value for the defense sites, please likewise telegraph your views as to whether it would serve any useful purpose for a representative of the State Department to make a brief trip to Panama to assist in arriving at a fair valuation of the lands with a view to reaching a mutually satisfactory agreement on the rentals.