Evening star., 1942-05-18
Panama LET'S
U. 5. Occupy
Part Of Republic
American Soldiers
To Evocuote Areas
YeorAfterWor

The United States and the
Republic OF Panama signed a
treaty at Panama today cover
Ing the use of defense areas in
the republic by armed forces of
the United States, which already
have occupied them, it was an
nounced by the State Depart
ment.
Described as IAN important con-
tribution" to the security of the
Panama Canal and Western Hemi-
sphere defense generally, the agree
ment will 60 into effect when ap-
proved by the National Assembly
Of Panama.
Practically. however, it is already
IN effect, since Panama has per-
mitted American military forces to
develop the areas involved pending
negotiation Of the formal agree
ment.
Declaration Recalled.
The largest development involved
Is the Rio Hato air base about 30
miles southwest of the Panama
Canal, the State Department said.
Other areas have been occupied
and developed as gun implacements,
airplane detector stations, bombing
ranges and auxiliary air fields.
The State Department recalled
that Panama declared war on Japan,
Germany and Italy Immediately
after the Japanese attack on Pearl
Harbor, and since then has taken
numerous steps demonstrating its
Willingness to assume promptly and
whole -heartedly its responsibility as
a partner in the defense Of the
Panama Canal"
The agreement was signed in Pan
ANA today by Edwin c. Wilson,
United States Ambassador, and Oc-
tavio Fabrega, Panamanian foreign
minister.
Hull and Envoy Exchange Notes.
At the same time, Secretary of
State Hull and Ernesto Jaen Guar
dia. Panamanian Ambassador here,
exchanged notes settling outstand-
ing problems in relations between
the two countries. Principal points
provide for withdrawal of the United
States-owned Panama Railroad Co.
from real estate operations in the
cities of Panama and Colon; turn
ing over to the government OF Pan
anna of water works and sewage
systems within its Jurisdiction. and
liquidation of Panana's indebted
ness arising out of construction of
the strategic Rio Hato-Chorrera
highway.
These agreements will be submit
ted to Congress for approval, the
department said.
The military agreement signed in
Panama provided that the United
States shall evacuate the territories
it is being permitted to occupy with
in one year after end of the war.
In the meantime it is given power
to exclude such persons as it sees
fit without regard to nationality"
from the defense areas.
Reciprocal Use of Bases.
The United States is obligated by
the agreement to bear one-third of
the cost of maintaining all Pana-
manian roads used by its forces in
defense activities, and to complete
construction of certain strategic
highways at its own expense.
Reciprocal use by United States
and Panamanian military aircraft
of the air bases established by the
United States and Panama also IS
provided in the agreement.
Panama agreed to charge the
United States an annual rental of
only one balboa or dollar for all pub
lie lands being occupied by this
country's forces except the Rio
Hato base, for which the rent Is
$4,000 year. An annual rental of
so balobas per hectare is provided
for all private lands involved, Pam
anna assuming all costs of expro-
priation from the private owners.
The signing of the treaty came
as American negotiators at Mar
Unique we're continuing their discus
sion with French authorities on
measures to safeguard French Car
ibbean possessions against possible
Axis moves.
In its announcement of the new
treaty with Panama the State De-
partment asserted the pact was an
other significant landmark inc tn
history of relations between the
United States and Panama anG con-
stitutes an important contribution
to the security of the canal and the
defense of the hemisphere.