FOREIGN RELATIONS, 19 4 2, VOLUME VI



Cabinet said to me last night that this matter planted squarely the
question of the Good Neighbor policy, whether it was to be merely a
matter of pleasant words on the part of our Government, or whether
it was to be a reality. Tato Fabrega has informed a friend of mine
that if ratification of the Three Points is delayed indefinitely because
of these private claims,49 he will resign from the Cabinet.
  You know the fine cooperation we have been steadily receiving up
to now from the Government of Panamai. They have never delayed
action on any of the defense sites which we have requested. Sub-
sequent to signature of the Defense Sites Agreement on May 18 last
we have requested nine additional sites and enlargements of three
old sites. The Panamanian Government acted immediately and
favorably on these requests. I have just recently presented two
additional requests for defense sites at the urgent request of General
Andrews, one for an airplane detector station and one for a beach
observation post, and Dr. Fabrega has informed me that it will now
be necessary to have these requests considered by technical repre-
sentatives of both governments to determine the advisability of grant-
ing them. I fear that we shall now encounter delay and difficulties
in obtaining much needed action in the defense effort. I shall of
course make every effort possible to convince the Government that
action on defense matters here must not be delayed because of the
developments in Washington, and that I believe that the Department's
point of view regarding the private claims will prevail and Congres-
sional approval be obtained within a reasonable time. Nevertheless,
I feel that I must let you know that there is a real chance of our
running into serious trouble of this nature here until the matter of
Congressional action is settled in Washington.
  President de la Guardia said to me the other day that he had
confidence that this matter would eventually work out satisfactorily,
because he was confident that President Roosevelt would himself
intervene.
  With all best wishes,
      Yours, as ever,                          EDWIN C. WILSON
711P.1914/583
The Chief of the Division of the American Republics (Bonsal) to
               the Amvbassador in Panamra (IVilson)

                                    WASHINGTON, October 13, 1942.
  DEAR MR. AMBASSADOR: It has been most helpful to receive your
airgrams and telegrams regarding the reaction in Panama to the
49 The private claims of Panamanians against the United States for damages
due to military traffic which the United States agreed to consider in the
eleventh
of the twelve points was not included here. It was one of the eight points
not submitted to Congress.



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