Panama City Convention

The **Panama City Convention** (**PCC**) is an international organization established to promote Pan-American dialogue, commerce, defense, and infrastructure. The Convention was first held in Panama City, then the capital of Panama, from March 5th through March 12th, 1950. The Convention is held every two years in various cities. The signatories included representatives from every independent country as well as participants from some of the Caribbean colonies. The PCC established the American Dollar as the sole currency of the organization's members, and oversaw the union of several groups of countries. For instance, Venezuela united with the continental colonial possessions of the United Kingdom, Netherlands, and France, establishing a country with a very long official name.

The PCC's first military action came when Argentina, a signatory, invaded the Falkland Islands, an overseas territory of the United Kingdom, in 1953. Since the US and several other PCC members were locked in conflict on 5 fronts in Europe and Asia, the CIA launched a coup d'etat against the Argentine government. The coup was successful, and Argentina was placed under military rule for the next 5 years to purge radicalist sympathizers and de-propagandize the population. The Falklands were given independence by a referendum on June 1st, 1954, and joined the PCC on July 8th. The PCC is currently providing support to Ecuador in its war with Peru. However, the forces of Brazil and the US are weakened from nearly 20 years of wars and occupations, and only Colombia is providing military assistance.

## Background

The idea of a Pan-American organization had been brought up as early as 1790, when US President George Washington's foreign secretary, Thomas Jefferson, suggested a "continental economic system" that would directly compete with European trade in the Americas. However, this never came to fruition, and the idea was scrapped in 1794 by Edmund Randolph, Jefferson's successor. In 1823, President James Monroe declared that Europe may not interefere in the politics of the Americas any longer. This doctrine was violated by the French intervention in Mexico and Spanish warships patrolling sealanes outside of Spain's territorial waters. The Spanish-American War solidified U.S. preeminence and ended colonialism in the Americas. Theodore and Franklin D. Roosevelt were also avid proponents of Pan-Americanism.

## History

In 1947, Brazil, Argentina, and Chile signed the Articles of Latin American Unity (ALAU), which created a system of open borders between Brazil and Argentina, open border checkpoints between Chile and Argentina, and a shared economic system and currency. Brazil approached the United States with the idea for a Pan-American organization in 1949. Harry Truman didn't want to involve the US in any more wars, but Dwight D. Eisenhower, who was quickly rising to fame in politics, was very supportive of the idea. When it became obvious that Harry Truman's popularity was sliding, he made a last-ditch effort to save face in the wake of increased Soviet aggression and organized the Panama City Convention. Panama City was selected as the location of the convention due to its location between the Atlantic and Pacific Oceans and North and South America. The convention took place at the specially-constructed Exhibition Center of the Americas.

### 1950 Convention

The week-long convention kicked off with a bilateral meeting between the US and Mexico and several other bi-and multi-lateral meetings between other American countries. Mexico agreed to cede Baja California to the US in exchange for five trillion dollars in infrastructure investment, including a new airport for Mexico City and improved electricity and clean water access. The Caribbean islands, led by the Dominican Republic, agreed to unite and form a federation. The capital was chosen to be San Juan, in Puerto Rico. The countries of Central America agreed to unite and form a federal republic, with its capital in Managua. The United States also agreed to build a canal through Nicaragua to provide the new capital with direct ocean access.

The second day of the convention resulted in Venezuela and the three American Guyanas uniting under the then-popular Bolivarian system of government. The official name of the federation was slected to be "United Bolivarian Republics of Venezuela and the Guyanas". Ecuador obtained defense funding and training from the US and Brazil, and Colombia received assistance from the US and Canada with suppressing communist movements. The ALAU group merged directly with the new PCC in a unanimous agreement.

The third day of the convention was mostly taken up by a soccer tournament, but when a thunderstorm rolled in at noon, the delegates moved back indoors. Cuban delegates finally arrived, having been delayed by an assassination rumor. Brazil won 2 games that day, while Argentina, Chile, Venezuela, Guatemala, and Panama each won one.

The fourth day of the convention began with tragedy, as one of the Costa Rican delegates got drunk during the night and fell off a 3rd-floor balcony and died. However, Costa Rica's president declared that the country would not be leaving the convention. The signing of the Panama City Covenant began.

On the fifth day of the convention, the debate on the economic system was finalized, and all countries signed the American Monetary Union clause. The delegates from the Dutch Caribbean walked out after signing, believing themselves to be done. By the time they were told to come back, they were already on their way to Amsterdam to meet with their Prime Minister.

On the sixth day, the final draft was completed and signed. The Dutch delegates signed posthumusly, sending a telegram with excessive apologies. The Covenant was sent to the United Nations for review. The funeral of the Costa Rican diplomat was held in private and the body was taken back to Costa Rica shortly thereafter. The leaders of all the countries arrived at the convention and had a roundtable discussion for 3 hours about currency issues, the gold standard, debts, and defense contracts.

On the seventh day, the Covenant was accepted by the United Nations despite protest from the Soviet Union. The leaders of the countries held a photo op and the convention was wrapped up by noon. The soccer tournament continued until sunset. Brazil and Chile tied for 1st place, with 7 wins; Colombia and Guatemala followed close behind.

### 1952 Convention

The convention was held in Havana, Cuba. The 1st and 2nd amendments were added to the Covenant:

The first amendment consisted of a revision to the monetary union, specifically adding a clause that prevented foreign banks from artificially raising the value of the currency of their home country to get more gold-backed American dollars. This came after the Bank of England lowered prices for two months in order to gain nearly 5 trillion British Pounds worth of American dollars. The resulting lawsuit and settlement case resulted in the Marshall Plan being ended in the UK except for defense purposes. The British Parliament was so angry at the humiliation that they abolished the Bank of England and created a new bank, the Bank of Britain.

The second amendment added a clause to the defense article, specifically adding the clause "An attack on any naval vessel, or merchant marine, or the hostile occupation or takeover of any member, shall be considered an attack on all of the members." This was to reflect the NATO charter. Ecuador did not ratify the clause, citing the likelihood of a costly war with Peru. Thus, Ecuador is the only member of the PCC that does not have full membership.

### 1954 Convention

The convention was held in Asuncion, Paraguay. The convention mostly focused on countering Peruvian and Bolivian communism.

### 1956 Convention

The convention was held in Natal, Brazil. The convention coincided with the Natal Conference, which decided the borders of post-war Europe.

### 1958 Convention

The convention will be held in Cancun, Mexico in 1958.