103.91402/6
The Secretary of State to the Chargé in Panama (Muccio)
Sir: Reference is made to your despatch no. 5398 of April 22, 194421 reporting certain conversations which resulted from the visit to the Republic of Panama of officials of the Public Roads Administration in April 1944. The memorandum21 which accompanied your despatch describes a proposition which would appear to have the informal approval of the Embassy, the representative of the Public Roads, the Commanding General of the Canal Zone and certain high officers of the Panamanian Government and which concerns the so-called Pacora Road. If the Department’s understanding of this project is correct it involves an agreement that the United States pay one-half of the cost of the construction of a newly aligned road between a point on the P–8 Highway to La Joya No. 1 on condition that the Panamanian Government agree that the commitments of this Government under Article 8 of the Defense Sites Agreement are limited to payment of the maintenance of the Trans-Isthmian, Rio Hato Highways [Page 1434] and the Pacora Road as long as the Agreement remains in effect.
The Department considers that there is some merit in this proposition, provided that it may be accomplished by an interpretation of Article 8 of the Agreement and does not entail an opening of the Defense Sites Agreement for amendment. However in going into this matter here the Department has found cause for some very genuine concern.
It appears from correspondence with the War Department in regard to the Pacora project that high officers of that Department in the Canal Zone have been in direct, although informal contact with the highest authorities of the Panamanian Government. As a result of such discussions and reports upon them to the War Department last March, that Department made a specific proposal to the State Department which would have involved an amendment to Article VIII of the Defense Sites Agreement. At that time it became apparent that the view of the War Department and the Public Roads Administration were divergent in regard to the alignment and the cost of the Pacora road. It was decided to await the outcome of the visit of the Commissioner of Public Roads to Panama before replying to the letter of the Secretary of War.
The Department has now received a letter from the Commissioner in which he sets forth substantially the same proposition as is contained in the last paragraph of the memorandum enclosed with your despatch under reference. When this proposal was referred to the War Department the latter expressed considerable surprise. The War Department explained that it had had no word from the Commanding General in the Canal Zone that the ideas of the Public Roads Administration were acceptable to him and stated that in the absence of some very controlling reason it had the most positive objections to the costs involved in this newest proposal.
The Department, therefore, has written to the War Department and the Public Roads Administration stating that it stands ready to be of assistance at any time in approaching the Panama Government on any matter calculated to improve the defense of the Canal but that it cannot undertake to reconcile the divergent views of those responsible for the construction and maintenance of such roads. It was suggested that when a definite proposal that has the approval of these agencies is presented this Department will consider what approach, if any, should be made to the Panamanian Government.
You are desired to bear in mind in any subsequent discussions you may have on this general question that the Department is opposed to any alteration of the Defense Sites Agreement unless a change is found to be in the national interest. It is feared that the opening of the Agreement to amendment might easily result in the proposal of [Page 1435] amendments by the Panamanian Government to which this Government would have substantial objection. Furthermore, the Department must insist that all discussions or contacts between officials of this Government on official matters of this nature be conducted in Panama only through the Embassy. It was highly undesirable in connection with this particular project for the Panamanian Government to be requested to consider a proposition that had not previously been brought to the attention of this Department.
Very truly yours,