Evening star., 1947-12-23
Hines SaysU.S 5.
Panama Will
Agree on Bases
Talks With Truman;
Assembly Turns Down
Request for Leases
BY the Assoeioted Press

Brig. Gen. FRANK L. Hines,
Ambassador to Panama, said
after a conference with Presi-
dent Truman today that he be-
lieves an agreement will be
reached with Panama for the
United States to have military
bases there.
The Panama Assembly last night
rejected an agreement for the
United States to lease IA military
bases on Panamanian soil.
Gen. Hines told reporters he is
returning to his post Immediately.
He has been in the United States
on vacation.
Even before the Panama Assem-
bly's action, he said he had planned
to leave tomorrow.
Gen. Hines first said he preferred
not to comment on the assembly,
action, but then said he imagines
new plans will be made "at the
proper time" looking to new
agreement.
He added that he feels certain
that eventually I'VE will get to-
gether."
Refuses to Discuss Conference.
Gen. Hines said he had discussed
the situation with Mr.. Truman but
refuses to give details of their talk.
He recalled that the United States
has turned back 100 bases which it
operated on Panamanian soil during
the war, and said:
We feel that these other bases are
necessary for us to have in connec-
ton with any well-planned defense
of the Panama Canal"
Government officials said earlier
that the United States will con-
tjnue to use the IA bases for de-
tense of the Canal Zone under a
1912 defense agreement with Pan
anna which the United States insists
holds good until after a definite
peace treaty with Japan is signed.
Might Wind Up in U. N.
The Panama ASSembly's action
was interpreted in Panama as clos
ing the door to future negotiation
Informed sources there, the Asso-
ciaced Press reported, expressed be-
lief the issue might wind up in the
lap of the United Nations or some
international arbitration tribunal.
Meanwhile, Representative Engel
Republican. of Michigan suggested
that the United States construct a
new Atlantic Pacific canal outside
Panama If that nation insists on
denying defense bases there.
Mr.. Engel chairman of the House
Appropriations Subcommittee on
Defense, told reporters:
There is no doubt in my mind
but what the act Of the Panama
National Assembly was Influenced at
least in part by the Communist
movement in the Canal Zone"
Rejection Touches Off Celebration.
Rejection of the new agreement
voted 81 to 0, touched off wile
celebration in the Panama capital
Thousands of persons marched
through the streets shouting glee-
fully: 1T did not pass" In the
midst of the demonstrators was
former Foreign Minister Ricardo ]
Alfaro, who resigned December
because of opposition to the pact.
Mr.. Alfaro's successor. FlorenciC
Arosemena, quit yesterday, few
hours before the Assembly voted
because of his party's opposition tt
the agreement.
Any further action by the United
States, officials here said, will await
the outcome of the presidential elec-
ton in Panama next May 9, or any
new move by Panama.
Canal Zone Not Involved.
The Canal Zone proper is not in
volved in the argument. Ten miles
wide, it is granted forever to the
United States, which exercises all
rights, powers and authority as il
it were sovereign.
The rejected accord, signed early
this month, would have given the
United States use of the huge B-2e
airbase at Rio Hato in Panama fol
10 years with an option to renew
for 10 more.
Wartime built Rio Hato is the
only air base anywhere near the
canal that can accommodate the
big bombers. 1t is 70 miles north
west of Panama City.
The 13 other defense sites Of
various types would have beer
leased for five years. Title woulo
have remained with Panama.
The bases are the remainder Of
l134 defense sites which the United
States used during the war. The
Army Department considers then
vital to defense of the Canal.
Formal Notice Awaited. u
The State Department today Off
cially was awaiting formal notif1ca.
ton by the Panamanian govern.
(see PANAMA, Page A-6)
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