711F.1914/456
The Secretary of State to the Ambassador in Panama (Wilson)
Sir: Reference is made to your telegram no. 331 of April 20, 1942, stating that the Minister of Foreign Affairs inquires whether “there would be any objection to stating in Article VIII of the defense site agreement that the responsibilities of the United States for repairs and maintenance are fixed at one third the total annual maintenance costs.”
In principle the Department perceives no objection to the Panamanian proposal but suggests, rather than add a new sentence at the end of paragraph four, that the thought be incorporated into the [Page 607] last sentence of the paragraph as has been done in the quotation below. If the foregoing is taken into consideration, as well as the agreement expressed in the first sentence of the Department’s telegram no. 245 of April 9, 1942; namely, that the section in Article VIII referring to the maintenance of roads should be general and include all roads, then it is the Department’s understanding that paragraph four of Article VIII of the defense site agreement as amended would read as follows:
“Upon the completion of these highways the Government of the United States will assume the responsibility for any necessary post construction operations, that is, the performance of work necessary to protect the original construction until such time as the roads become stabilized. The respective responsibilities of the two Governments with respect to the execution of subsequent repairs and maintenance of these roads as well as all Panamanian roads used periodically or frequently by the armed forces of the United States shall be determined by the appropriate authorities of the two Governments, it being understood that the United States will bear one third of the total annual maintenance costs in order to cover the expense of any wear or damage to roads caused by movements related to defense activities as set forth below.”
Please ascertain whether this phraseology is acceptable to the Panamanian authorities.
Very truly yours,