Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

134. Memorandum of a Telephone Conversation Between the Assistant Secretary of State for Inter-American Affairs (Holland) and the Panamanian Ambassador (Vallarino), Washington, May 26, 1956.¹

Washington, May 26, 1956.

SUBJECT

• Various Matters Discussed with the Ambassador of Panama

On Saturday, May 26, the Ambassador called me to express his satisfaction at the news that the Department of Defense was going to eliminate advertising from TV films shown in the Zone. I told him that the news had caused us much satisfaction.

He then complained somewhat emotionally about an order for Coca Cola that was being placed by the Zone authorities. He complained that this would cause an adverse reaction which would detract from the success of the Panama gathering of Presidents.² I said that I would ask that the facts on the case be forwarded to me.

I said that, while on the subject of things which could prejudice the Panama meeting, did he have any news on the matter of radar sites. I said that the refusal by Panama of the sites had astounded me. If the decision is to be controlled by the terms of the treaty, then, clearly, the sites should be granted. However, in my judgment, a much more impelling reason for granting the sites is the added protection that they would give for Panama itself as well as the Zone. I said that the decision placed the Department in an impossible position as regards passage of legislation to implement the treaty. We have been pressing for passage of the legislation. If we reveal Panama’s decision on the radar sites the legislation will not have the slightest chance of passage. If we continue for passage of the legislation, but without revealing the Panamanian decision on radar sites, the Department will be bitterly and justly criticized when the fact finally becomes known. I pointed out the great difficulty that any representative of the Department of State would encounter in testifying before Congressional committees on this legislation, since we could not well testify without disclosing the existence of the radar problem.

The Ambassador said that he was doing everything that he could to bring about a reconsideration and a decision granting the sites.

On the subject of legislation he said that Senator Green³ had offered a draft in substitute for that proposed by the Administration. Panama prefers Senator Green’s draft and hopes that it will pass. I told him that I was unfamiliar with the Green draft.

1. Source: Department of State, Central Files, 919.50/5–2656. Confidential. Drafted by Holland.
2. See vol. vi, Documents 109 ff.
3. Theodore F. Green (D–RI). The administration’s bill was one of a series introduced by the Eisenhower administration during the 2d Session of the 84th Congress in order to implement the 1955 Treaty with Panama. The proposed enabling legislation concerned the establishment of a uniform wage scale in the Canal Zone (S. 1850 and H.R. 6708), the transfer of certain lands from the United States to Panama (S. 1730 and H.R. 6709), and the construction of a bridge or tunnel at Balboa (H.R. 9801).