FOREIGN RELATIONS, 19 4 2, VOLUME VI



  . . . all of which shall become the property of the Republic of
  Panama upon the termination of the use by the United States, of the
  areas where the structures have been built . . ."
  This amendment is for the purpose of preventing the inference that
Panama would dispossess itself completely of its jurisdiction over the
said areas during the period of their use for defense purposes.
  In Article VIII, my Government proposes that, in the 6th line of
the third paragraph, the phrase which says:
     The respective responsibilities of the two Governments with re-
spect to the execution and costs of subsequent repairs and maintenance
shall be the subject of consultation between the appropriate authorities
of the two Governments, it being understood that the United States
will bear the expense of any wear or damage to roads caused by move-
ments related to defense activities as set forth below . .
be replaced by the following:
'K . . The respective responsibilities of the two Governments with
respect to the execution and costs of the subsequent repairs and main-
tenance shall be the subject of consultation between the appropriate
authorities of the two Governments, it being understood that the
United States will bear the expense of any wear or damage to roads
caused by movements related to defense activities as set forth below,
Which costs are at this time fixed at the annual sum of B......
which the Government of the United States will pay annual7y to the
Go vernment of Panama."
  This change is due, as Your Excellency is undoubtedly aware, to
the fact that my Government, through our Ambassador in Washing-
ton, has been making representations, in order to prevent future
disagreement regarding the estimate of the wear and damage caused
to our roads by the North American military forces, that there be
established at this time the annual cost agreed upon by the parties
in this respect.
  My Government proposes that Article XII read as follows:
  "Taking into account that of the lands whose use is granted by
means of this Agreement, some are the property of the Government
of the Republic of Panama while others are privately owned, it is
agreed that the annual rental fee which the Government of the
United States will pay to the Republic of Panamai for the use of the
said lands, shall be the following:
  "Regarding those lands which are now privately owned and which
the Government of Panaman must acquire from the owners in order
to grant the use thereof to the Government of the United States, the
rental fee shall be one hundred balboas or dollars of the weight and
fineness of the present balboa or dollar, for each hectare, per annum.
  "Regardtng those lands which are at present the property of the
Panamanian Government, the rental fee shall be one balboa or dollar
for each hectare, per annum.
  "There is expressly excepted the land situated in the Corregimiento
of Rio Hato and indicated by No. . . in the attached Memorandum,



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