ESCOBAR ON CANAL PANAMA'S OBLIGATION TO KEEP CANAL OPEN PERMANENTLY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00803R000400030006-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Document Release Date: June 10, 2008
• Sequence Number: 6
• Publication Date: September 29, 1977
• Content Type: CABLE

CA?LE sEC etas Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
REPRODUCTIpN BY pTHER 'T
ADMIN INTERNAL USE D ~ ISSUING OFFICE IS PRpHiBI
PERSON/UNIT NOTIFIED _______
STAT
o R 2 E 17 ~ 5 ~ SE F 77 ~-~~TO~~ ~' Q~ n~C'I~
B AS
A
Y P
r
ME M
5
FM
AN AMA
TO RUE HC/SEC ST ATE WASHDC IMMEDIATE 368 ~~~....._..~
INFO RULPALJ/PANCANAL
R U LP AL J/ u S C I N C s 0 ~yf~~~, I,'r. ~'c
BT
UN CL AS PANAMA 7fG 14
FOR A.RA/PAN - AM 6A SS AD OR JORDEN AND KEITH GUTHRI E
E, 0. 11652: N/A
TAGS ; PB OR , PN
SUBJECT ESCOEAR DN CANALe PANAMA'S OBLIGATION TD KEEP CANAL
OP EN PER MA NE NT LY
1. -THE FOLLOWING IS AN EXCERPT OF THE SPEECH MADE gY NEGOTIATOR
ES COEAP AUGUST 20 BEFORE THE NATIONAL ASSEMaLY.
2. PANAMA "COULD-NOT PROf~fISE Tp MAINTAIN THE C-ANAL PERMANENTLY
OPkN E"OR THREE HEASDN~: FDR NATURAL CAUSES. WE EXPLAINED TO
TH EM THAT TH ERE CD UL D BE AN EA FiT ~ UAKE - FDR EXAM PL E- W HI CH
WOULD CLOSE Th' E CA NA L AND PA NA MA COULD NOT B E DB L I GA TED T O
M A IN TA IN I T OPEN ? WE E kPL A I~! ED T H4 T THERE .COULD gE T EM PD RA RY
CAUSES--THERE COULD BE LANDSLIDES AND I1' WOULD BE NECE-
SSARY TO CLOSE IT TD REPAIR THOSE LANpSLIDES? AND THIRDr IT
COULD HAPPEN THAT THE CANAL WOULD NDT BE PROFITABLE PDR
PANAMA AND T HqT PANAMA COULD NOT HAVE THE OBLI GA TI ON DF
KEEPING OPEN k CANAL WHICH DID NOT MAKE ANY MONEY, THEY
ACCEi'TED T H_ F IkST TWD POINTS, NATURAL CAUSES AND TEMPORARY
CAUSES, BUT DID NOT AGCEpT THE THIRD CAUSE, .LACK OF
PROFITABILITY, THAT ALSO HELD UP THE NEGOTIATIONS
FDR A LONG T IME?
3. "THEY SAID THAT IN CASE IT WERE NDT PROFITABLE
PANAMA COULD GET MONEY FRAM THE UNITED STATES TO KEEP
IT OPEN--OR PROM THE OTHER USER COUNTRIES, WE TOLD
TH ~M THAT WHEN THE' T RE AT Y WITH THE UNITED 5T AT ES ENDS ,
WE DID NOT WANT AN pBL IGAT IO N, EITHER .DIRECT D R INDI RECT,
OF GOING TO THE UNITED STATES TD ASK FDR MONEY OR TO ANY
OTHER COUNTRY, IN ORDER TQ MAINTAIN THE CANAL OPEN?
'i~;E TWO COUNTRIES MAINTAINED THEIR POSITIONS -FIRM UNTIL
WE ARRIVED AT THE FOLLOWING AGREEMENT: THEY 5AIDr WE
CANNOT PRi=SENT TO OUR CONGRESS AN ARTICLE WHICH SAYS
THAT Y 0 U CAN C LD 5E THE CANAL BECAUSE O F LACK O F PRO -
FITABILITY. AND WE TOLD THEM THAT WE COULD NOT PRESENT
State Dept. review completed.
ADMIN INTERNAL USE ONLY
Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
 GABLE SEC D~SSE Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
REPROLIUCTION BY OTHER TH;
A D M I N INTERN AL U 5E p NL ISSUING .OFFICE IS PROHIE3ITE
n~.5 r.....~.w~.r .enTi r~vn _.
T 2~u 771.1
EI A0 56
PAGE 0 2w ~2
TORt ~1~~~ SEP 77
AN ARTICLE WHICH PERMANENTLY OBLIGED US TO MAINTAIN OPEN
A CANAL WHEN WE DID NOT KNOW I F THAT CANAL SOME DAY
MIGHT NOT BE PR OF ITABLE, WE ARRIVED AT AN AGREEMENT T 0
ELIMINATE THE ARTICLE, 50 THAT PANAMA GOT RID
OF THAT OBLIGATION, THAT IS OF MAINTAINING THE-CANAL
PERMANENTLY OPEN. THE NEGOTIATIONS THEN CONTINUED
E X CL US I V EL Y ON THE PRO BL EM O F NE UT RA L I T Y ,"
4. THE A90VE IS OUR TRANSLATION FROM ~~MATUTINO" Of
AUGUST 20. ~.BIS/PANAMA HAS AGREED TO TRANSMIT TO
WA SH I N GT O hJ ALL O F ~A~: 0 IONS O F TH I5 S PE EC H WH iC H
WERE LEFT OUT OF-THEIR EARLIER TRANSMISSION. GgNZALEZ
AD M I N I N TE RN AL USE "0 NL Y
Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
STATE
NC ~&449
 Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
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Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
 Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
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Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6
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Approved For Release 2008/06/10 :CIA-RDP82-008038000400030006-6