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DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) SECRET Dept. of State letter, Aug. 9, 1973 By NLT- HC NARS Date 7-15-75 -3- apprised Alfaro that the United States was approaching its limit of concessions in its effort to reach a satis- factory defense sites agreement and emphasized the possi- bility of a withdrawal of our armed forces entirely from all sites in Panama outside the Canal Zone. The Army Department for some months had been making preparations for evacuation of the defense sites, parti- cularly the Rio Hato air field. The Army Department felt that the major and costly installations which were contemplated in that field in the event of continued occupation could be justified only if the period of the lease were at least ten years, with the option of a ten- year renewal, having in mind that it would be difficult to obtain appropriated funds for this purpose on the basis of a relatively short and insecure tenure. The position taken by Alfaro, a thesis not adopted by the Panamanian Administration, led to his resignation prior to the signature on December 10, 1947 of the pro- posed new defense sites agreement. The signature of this agreement caused significant demonstrations in the streets of Paname and resulted in a heated debate in the Panamanian National Assembly which on December 22 voted against ratification by a vote of 51-0. A few days previously the Jimenez Administration was confident of 41 votes for the agreement. The unanimous vote of the National Assembly of Panama against ratification can be attributed to several last minute factors: a wave of nationalistic hysteria which followed police action in quelling a student demonstration; an actual physical fear which resulted from student threats against the lives of those Deputies who might vote in favor of the agreement; highly voci- ferous gallery demonstrations in the Assembly, and backstage maneuvering by influential newspaper publisher, ex-President Harmodio Arias, Alfaro and others. In view of the rejection by the Panamanian National Assembly of the agreement of December 10, we announced our intention to abandon all defense sites in Panama and confine the immediate Canal defenses to the ten-mile-wide Zone under our jurisdiction. This action was taken within 24 hours

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    "ocrText": "DECLASSIFIED\nE. O. 11652, Sec. 3(E) and 5(D) or (E)\nSECRET\nDept. of State letter, Aug. 9, 1973\nBy NLT-\nHC\nNARS Date 7-15-75\n-3-\napprised Alfaro that the United States was approaching\nits limit of concessions in its effort to reach a satis-\nfactory defense sites agreement and emphasized the possi-\nbility of a withdrawal of our armed forces entirely from\nall sites in Panama outside the Canal Zone.\nThe Army Department for some months had been making\npreparations for evacuation of the defense sites, parti-\ncularly the Rio Hato air field. The Army Department\nfelt that the major and costly installations which were\ncontemplated in that field in the event of continued\noccupation could be justified only if the period of the\nlease were at least ten years, with the option of a ten-\nyear renewal, having in mind that it would be difficult\nto obtain appropriated funds for this purpose on the\nbasis of a relatively short and insecure tenure.\nThe position taken by Alfaro, a thesis not adopted\nby the Panamanian Administration, led to his resignation\nprior to the signature on December 10, 1947 of the pro-\nposed new defense sites agreement. The signature of\nthis agreement caused significant demonstrations in the\nstreets of Paname and resulted in a heated debate in\nthe Panamanian National Assembly which on December 22\nvoted against ratification by a vote of 51-0. A few\ndays previously the Jimenez Administration was confident\nof 41 votes for the agreement.\nThe unanimous vote of the National Assembly of\nPanama against ratification can be attributed to several\nlast minute factors: a wave of nationalistic hysteria\nwhich followed police action in quelling a student\ndemonstration; an actual physical fear which resulted\nfrom student threats against the lives of those Deputies\nwho might vote in favor of the agreement; highly voci-\nferous gallery demonstrations in the Assembly, and\nbackstage maneuvering by influential newspaper publisher,\nex-President Harmodio Arias, Alfaro and others.\nIn view of the rejection by the Panamanian National\nAssembly of the agreement of December 10, we announced\nour intention to abandon all defense sites in Panama and\nconfine the immediate Canal defenses to the ten-mile-wide\nZone under our jurisdiction. This action was taken within\n24 hours"
}