The Acting Secretary of State to the Ambassador in Panama ( Hines )
520. Embs despatch 2712, Sep 14. Second paragraph of Article 2 of 1936 Treaty clearly envisages an agreement between the US and Panama for jurisdiction over additional lands and waters when necessary to insure maintenance, sanitation, efficient operation, and effective protection of the Canal. Negotiation of Defense Sites Agreement of May 18, 194213 is evidence of the understanding of both Govts of the joint obligations under the Treaty to insure the protection and continuous operation of the Canal. Dept therefore concurs with Emb, Governor and Foreign Minister that Article 4 second paragraph of the proposed Panamanian constitution would not restrict rights of US through negotiation to obtain from Panama additional areas in case of unforeseen contingency.
With respect to Articles 9 and 210 Dept concurs with Emb and Commanding General that an additional paragraph similar to that under Article 4 should be included. Accordingly Dept approves delivery to Panamanian Govt of memorandum dated Sep 14.14