The Inter-American Relationship

* Reprint from <5 The DEPARTMENT of STATE BULLETIN ~ ~ §I SI'~TES O~ ~ Reprinted from The Department of State Bulletins of Octo­ ber 29, 1973; February 25, 1974; March 18, 1974; April 29, 1974; and May 13, 1974. The Bulletin, the official record of U.S. foreign policy, is published weekly and is available for subscription from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, at $29.80 a year, domestic.

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A Western Hemisphere Relationship of Cooperation Toast by Secretary Kissinger, October 5, 1973 1

U.S. and Panama Agree on Principles for Negotiation of New Panama Canal Treaty Address by Secretary Kissinger, February 7, 1974 2 Text of Joint Statement, February 7,1974 5

Countries of the Americas Endorse Continued Dialogue in Conference of Tlatelolco Statement by Secretary Kissinger, February 21, 1974 6 Text of Declaration Tlatelolco, February 24, 1974 11

Panama and the United States: A Design for Partnership Address by Ambassador Bunker, March 19, 1974 14

President Nixon Honors Foreign Ministers of Latin America and the Caribbean Exchange of Toasts between President Nixon and Foreign Minister Sapena, April 17, 1974 18

Latin American and Caribbean Foreign Ministers Meet at Washington Remarks by Assistant Secretary Kubisch, April 18, 1974 24 Text of Communique, April 18, 1974 26

Secretary Kissinger Outlines Good-Partner Policy Before the OAS General Assembly, April 19 and 20, 1974 27

- i - Shortly after assuming office in September 1973, Secretary of State Henry A. Kissinger called for "a new dialogue with our friends in the Americas." This Bulletin Reprint contains a collection of the significant policy pronouncements made since the Secretary, in October 1973, hosted a luncheon honoring the chiefs of the Latin American delegations to the U.N. General Assembly. A Western Hemisphere Relationship of Cooperation

Toast by Secretary Kissinger 1 Throughout much of our history, indeed throughout much of this administration, we President Benites [Leopoldo Benites, of used to believe with respect to agriculture, Ecuador, President of the 28th U.N. General for example, that our primary problem was Assembly], Excellencies, ladies and gentle­ how to get rid of seemingly inexhaustible men: There is a story of an Englishman who surpluses. We have now learned that we visited Sweden, and when he was going share the world's problem: how to allocate through passport control, he was confronted scarce food resources in relation to world with two lines. One was marked for Swedes; needs. the other one was marked for foreigners. When I came to Washington, the discus­ After a while an official came by and found sions with respect to energy concerned means him sitting between these two lines. And the of restricting production and allocating it official said, "Sir, will you please go into one among various allies. Today the problem is line or the other?" And he said, "That's just to find energy sources around the world that my problem. I am not a Swede, and I am ob­ can meet world needs. viously not a foreigner." [Laughter.] So we in this country are going through a I think that story is symbolic of our meet­ revolution of sorts, and the whole world is ing today. We obviously do not belong all to undergoing a revolution in its patterns. one country, but we obviously are also not And the basic problem we face is whether foreigners in this room. we will choose the road of nationalism or the I am grateful that you came and for this road · of cooperation, whether we will ap­ opportunity to tell you that we are serious proach it from the perspective of each party about starting a new dialogue with our trying to get the maximum benefit for itself, friends in the Americas. or whether we can take a common view based As we look back at the history of the rela­ on our common needs. And this is why our tionships of the United States to its neigh­ relations in this hemisphere are so crucial bors to the south, it has been characterized for all of us in this room and for all the rest by alternating periods of what some of you of the world as well. We in this room, with. have considered intervention with periods of all the ups and downs in our relationships, neglect. share a common history and similar values. We are proposing to you a friendship based and many similar experiences. The value of on equality and on respect for mutual human dignity is nowhere better understood dignity. than in the countries of our friends to the And such a relationship is needed for all south of us. of us, and I believe it is needed also for the So if the technically advanced nations can rest of the world. ever cooperate with the developing nations, In the United States in the last decade, if people with similar aspirations can ever we have experienced many dramatic changes. achieve common goals, then it must start here Throughout most of our history we could in the Western Hemisphere. overpower most of our foreign policy prob­ We in the United States will approach this lems, and we could also substitute resources dialogue with an open mind. We do not be­ for thought. Today, without understanding, lieve that any institution or any treaty ar­ we can do very little. rangement is beyond examination. We want to see whether free peoples, emphasizing and 1 Given at a luncheon hosted by Secretary Kis­ respecting their diversity but united by sim­ singer at the Center for Inter-American Relations at New York on Oct. 5 honoring Latin American ilar aspirations and values, can achieve great delegations to the U.N. General Assembly. goals on the basis of equality.

1 So we are starting an urgent examination And so as we form bUr policy, I would of our Western Hemisphere policy within our like to invite your suggestions, whatever government. But such a policy makes no form you think appropriate, as groups or sense if it is a U.S. prescription handed over subgroups or individual nations. to Latin Americans for your acceptance or And when our final policy emerges, we will rejection. It shouldn't be a policy designed all have a sense that we all had a share in in Washington for Latin America. should It its making, and we will all have a stake in be a policy designed by all of Latin America maintaining it. for the Americas. And so as we examine our own policy, So, President Benites and Excellencies, we must also ask for your help. We know I would like to propose a toast to what can that there isn't one Latin America, but many be an adventure of free peoples working to­ different countries. We know also that there gether to establish a new relationship that are certain subregional groupings. But it can be an example to many other nations. isn't for us to say with whom to conduct the I would like to propose a toast to Western dialogue. That has to come from our guests Hemisphere relationships, to our distin­ here in this room. guished guest of honor, President Benites.

u.s. and Panama Agree on Principles for Negotiation of New Panama Canal Treaty

On February 7 at Panama, Secretary Kis­ -a history which has profoundly changed singer and J'uan Antonio Tack, Minister of the course of human affairs. Four centuries Foreign Affairs of Panama, initialed a joint ago the conquistadors landed here bringing statement of pri:rwiples for negotiation of a faith and taking booty. They were represen­ new Panama Canal treaty. Following is an tatives of the traditional style and use of address made by Secretary Kissinger at the power. Seventy years ago, when the Panama ceremony, together with the text of the joint Canal was begun, strength and influence re­ statement. mained the foundations of world order. Today we live in a profoundly transformed environment. Among the many revolutions ADDRESS BY SECRETARY KISSINGER of our time none is more significant than the change jn the nature of world order. Power Press release 42 dated February 7 has grown so monstrous that it defies calcu­ We meet here today to embark upon a new lation; the quest for justice has become uni­ adventure together. Our purpose is to begin versal. A stable world cannot be imposed by replacing an old treaty and to move toward force; it must derive from consensus. Man­ a new relationship. What we sign today, kind can achieve community only on the basis hopefully, marks as well the advent of a new of shared aspirations. era in the history of our hemisphere and This is why the meeting today between thus makes a major contribution to the struc­ representatives of the most powerful nation ture of world peace. of the Western Hemisphere and one of the Meeting as we do on this isthmus which smallest holds great significance. In the past links North with South and Atlantic with our negotiation would have been determined Pacific, we cannot but be conscious of history by relative strength. Today we have come

2 together in an act of conciliation. We recog­ Omar Torrijos, Head of Government of Pan­ nize that no agreement can endure unless the ama] has said, a "philosophy of understand­ parties to it want to maintain it. Participa­ ing." Sacrificing neither interest nor self­ tion in partnership is far preferable to reluc­ respect, Panama and the United States have tant acquiescence. made a choice for partnership. Meeting in What we do here today contains a message, dignity and negotiating with fairness, we as well, for our colleagues in the Western have acknowledged that cooperation is im­ Hemisphere who, in their recent meeting in posed on us by our mutual need and by our Bogota, gave impetus to this negotiation. The mutual recognition of the necessity for a method of solution and the spirit of partner­ cooperative world order. Foreign Minister ship between Panama and the United States Tack and Ambassador Bunker [Ambassador as embodied in this agreement are an example at Large Ellsworth Bunker, U.S. chief nego­ of what we mean by the spirit of community tiator for the Panama Canal treaty] have in the Western Hemisphere; it can be the shown that Panama's sovereignty and the first step toward a new era which we believe vital interests of the United States in the will be given fresh hope and purpose when Panama Canal can be made compatible. They we meet again with the Foreign Ministers of have engaged in an act of statesmanship im­ all the hemisphere in two weeks' time. pelled by the conviction that we are part of a larger community in the Americas and in the world. 'The United States and Panama In that spirit of partnership the United The relationship between Panama and the States and Panama have met as equals and United States is rooted in extraordinary hu­ have determined that a .just solution must man accomplishment-the Panama Canal, a recognize: monument to man's ·energy and creative -First, that Panama and the United genius. But as is so often the case, man's States have a mutual stake in the isthmus: technological triumph outstripped his politi­ Panama in its greatest natural resource, and cal imagination: the United States in the use and defense of -For 60 years the safe, efficient, and equi­ the canal. table operation of the canal has given to -Second, that the arrangement which may Panama, to the United States, and to all have been suitable 70 years ago to both the nations benefits beyond calculation. United States and Panama must be adjusted -Yet the canal still operates under the to meet the realities of the contemporary terms of .a treaty signed in 1903, when the world. realities of international affairs were still -Third, that a n'ew treaty is required shaped by traditional precepts of power. which will strengthen the relationship be­ -The tensions generated by these contra­ tween us while protecting what is essential to dictions, the endless. debates over the costs each. A new agreement must restore Pan­ and benefits of the convention of 1903, have ama's territorial sovereignty while preserv­ jeopardized the ability of our two countries ing the interests of the United States and its not only to work together to meet future de­ participation in what is for us an indispensa­ mands upon the canal but also to develop a ble international waterway. constructive relationship as friends. We must assess the document we have just While we have taken a great stride for­ signed against this background. Above all, we ward, we must still travel a difficult distance must judgeit in the context of what it means to our goal. There is opposition in both our. for the peoples of the United States and countries to a reasonable resolution of our Panama and what it can mean for the people differences. Old slogans are often more com­ of the Western Hemisphere. forting than changes that reflect new reali­ The eight principles in this agreement ties. It is the essence of revolutions that to constitute, as General Torrijos [Brig. Gen. their contemporaries they appear as irritat-

3

------ing interruptions in the course of a comforta­ -Above all, to recognize that in the great ble normalcy. But it is equally true that those dialogue between the developed and the less who fail to understand new currents are developed nations, we cannot find answers inevitably engulfed by them. anywhere if we do not find them here in the We are determined to shape our own Western Hemisphere. destiny. Our negotiators will require wisdom, It is in this spirit that I shall meet my col­ purposefulness, tenacity. They will meet ob­ leagues in Mexico City later this month to stacles and disagreements. Yet they will suc­ deal with the issues posed by them in their ceed-for our relations and our commitments Bogota meeting. We attach particular sig­ to a new community among us and in this nificance to the fact that the meeting in Mexi­ hemisphere demand it. co City-its substance and its impetus-is In the President's name, I hereby commit the product of Latin American initiative. It the United States to complete 'this negotiation is a response to the necessities of the times successfully and as quickly as possible. such as the United States had hoped to achieve with partners elsewhere in the world. The Western Hemisphere Community The United States will not come to Mexico City with a program that presumes to have We are here today not just as two sov­ all the answers. Nor will we pretend that our ereign nations, but as representatives of our lost opportunities can be remedied by yet hemisphere. We meet at the place where another freshly packaged program labeled Simon Bolivar enunciated the concept of an "Made in the U.S.A." But we shall come with inter-American system. We meet at a point an open mind and, perhaps more importantly, of time between meetings of Foreign Min­ with an open heart. We are at a moment of isters in Bogota and Mexico City which can truth, and we shall speak the truth. mark a historic turning point in making We know that our neighbors are worried Bolivar's vision come true. about the blackmail of the strong. We want I know that many of my country's south­ them to know that we are sympathetic to this ern neighbors believe they have been the sub­ concern. At the same time, blackmail is no ject of too many surveys and too few policies. more acceptable from any other source. We The United States is accused of being better need each other. So let us all seek solutions at finding slogans for its Latin American free of pressure and .confrontation, based on policy than at finding answers to the prob­ reciprocity and mutual respect. In Mexico lems that face us all. City we c~m but lay the foundations for the Some of these criticisms are justified. At future. But building upon what we achieve in times rhetoric has exceeded performance. Mexico City we can, over the months and But the United States has been torn by many years ahead, erect an edifice of true partner­ problems; only from afar does it appear as ship, real trust, and fruitful collaboration. if all choices are equally open to us. We have Thus we approach the meeting in Mexico not been willfully neglectful. And in any case, with but one prejudice: a profound belief we have recognized that the .time for a new that the Americas, too, have arrived at a approach is overdue. moment of basic choice, a time of decision I have come here today to tell you on behalf between fulfillment together and frustration of our President that we are fully committed apart. Our choice will be found in the an­ to a major effort to build a vital Western swers we give to these critical questions: Hemisphere community. We understand our own needs: -Can we make our diversity a source of strength, drawing on the richness of our -To live in a hemisphere lifted by prog­ material and moral heritage? ress, not torn by hatreds; -To insure that the millions of people -In short, can the countries of Latin south of us will lead lives of fulfillment not America, the Caribbean, and the United embittered by frustration and despair; and States, each conscious of its own identity,

4 fashion a common vision of the world and of April 3, 1964, agreed to under the auspices this hemisphere-not just as they are, but as of the Permanent Council of the Organiza­ they are becoming and as we feel they should tion of American States acting provisionally be-so that we can move together toward·the as the Organ of Consultation.1 The new achievement of common goals? treaty would abrogate the treaty existing since 1903 and its subsequent amendments, We will conduct the broader dialogue we establishing the necessary conditions for a have all set for ourselves in Mexico City with modern relationship between the two coun­ the same commitment to reciprocity, the tries based on the most profound mutual same consideration of each other's interests, respect. that marked the negotiations between the Since the end of last November, the au­ United States and Panama. thorized representatives of the two govern­ For centuries men everywhere have seen ments have been holding important conver­ this hemisphere as offering mankind the sations which have permitted agreement to chance to break with their eternal tragedies be reached on a set of fundamental principles and to achieve their eternal hopes. That was which will serve to guide the negotiators in what was new about the New World. It was the effort to conclude a just and equitable the drama of men choosing their own desti­ treaty eliminating, once and for all, the ni!'!s. causes of conflict between the two countries. An American poet has written: The principles to which we have agreed, on We shall not cease from exploration behalf of our respective governments, are as And the end of all our exploring follows: Will be to arrive where we started And know the place for the first time. 1. The treaty of 1903 and its amendments Panama and the United States have now will be abrogated by the conclusion of an begun this exploration. Our sister republics entirely new interoceanic canal treaty. can make the same choice. Our creativity, 2. The concept of perpetuity will be elimi­ our energy, and our sense of community will nated. The new treaty concerning the lock be on trial. But if we are equal to the oppor­ canal shall have a fixed termination date. tunity, we will indeed arrive where we 3. Termination of United States jurisdic­ started-a hemisphere which again inspires tion over Panamanian territory shall take the world with hope by its example. Then we place promptly in accordance with terms shall indeed know the place for the first time, specified in the treaty. because for the first time we shall truly have 4. The Panamanian territory in which the fulfilled its promise. canal is situated shall be returned to the jurisdiction of the Republic of Panama. The Republic of Panama, in its capacity as terri­ TEXT OF JOINT STATEMENT torial sovereign, shall grant to the United JOINT STATEMENT BY THE HONORABLE HENRY States of America, for the duration of the A. KISSINGER, SECRETARY OF STATE OF new interoceanic canal treaty and in accord­ THE UNITED STATES OF AMERICA, AND ance with what .that treaty states, the right HIS EXCELLENCY JUAN ANTONIO TACK, to use the lands, waters and airspace which MINISTER OF FOREIGN AFFAIRS OF THE may be necessary for the operation, mainte­ REPUBLIC OF PANAMA, ON FEBRUARY 7, nance, protection and defense of the canal 1974 AT PANAMA and the transit of ships. 5. The Republic of Panama shall have a The United States of America and the just and equitable share of the benefits de­ Republic of Panama have been engaged in rived from the operation of the canal in its negotiations to c(lnclude an entirely new territory. It is recognized that the geographic treaty respecting the Panama Canal, negotia­ tions which were made possible by the Joint 1 For text of the joint declaration, see BULLETIN Declaration ~etween the t",o countries of of Apr. 27, 1964, p. 656.

5 position of its territory constitutes the prin­ 7. The Republic of Panama shall partici­ cipal resource of the Republic of Panama. pate with the United States of America in the protection and defense of the canal in 6. The Republic of Panama shall partici­ accordance with what is agreed upon in the pate in the administration of the canal, in new treaty. accordance with a procedure to be agreed upon in the treaty. The treaty shall also 8. The United States of America and the provide that Panama will assume total re­ Republic of Panama, recognizing the impor­ sponsibility for the operation of the canal tant services rendered by the interoceanic upon the termination of the treaty. The Re­ Panama Canal to international maritime public of Panama shall grant to the United traffic, and bearing in mind the' 'possibility States of America the rights necessary to that the present canal could become inade­ regulate the transit of ships through the quate for said traffic, shall agree bilaterally canal and operate, maintain, protect and de­ on provisions for new projects which will fend the canal, and to undertake any other enlarge canal capacity. Such provisions will specific activity related to those ends, as may be incorporated in the new treaty in accord be agreed upon in the treaty. with the concepts established in principle 2.

Countries of the Americas Endorse Continued Dialogue

in Conference of Tlatelolco

Foreign Ministers of 25 Western Hemi, this meeting. Personally, I have spent many sphere countries participated in the Confer­ happy days in this great country. And I ence of Tlatelolco at Mexico City February have had the privilege of the advice, wisdom, 18-29. Following is a statement made before and on occasion the tenacious opposition of the conference by Secretary Kissinger on your President and Foreign Minister. I look February 21, together with the text of the forward to an equally frank, friendly, in­ Declaration of Tlatelolco issued on February tense, but constructive dialogue at this con­ 24. ference. On a plaque in Mexico's imposing Museum STATEMENT BY SECRETARY KISSINGER of Anthropology are etched phrases which carry special meaning for this occasion: Preu release 62 dated February 21 Nations find courage and confidence to face the We owe our host country and its leaders future looking to the greatness of their past. Mexi­ a profound debt of gratitude for sponsoring ea!), seek yourself in the mirror of this . greatness.

6 Stranger, confirm here the unity of human destiny. of my colleagues and myself, let me stress Civilizations pass; but we will always reflect the that we are here to give effect to a new atti:­ glory of the struggle to build them. tude and to help shape a new policy. The We assemble in the splendid shadows of presence of so many distinguished leaders history's monuments. They remind us of from the U.S. Congress underlines the depth what can be achieved by inspiration and of of the U.S. concern for its neighbors and what can be lost when peoples miss their the determination of our government to im­ opportunity. We in the Americas now have plement our agreements through a partner­ a great opportunity to vindicate our old ship between the executive and legislative dream of building a new world of justice and branches. peace, to assure the well-being of our peoples, and to leave what we achieve as a monument The time has come to infuse the Western to our striving. Hemisphere relationships with a new spirit. In the 19th and early 20th centuries, the Our common impulse in meeting here is United States declared what those outside to fulfill the promi$e of America as the con­ this hemisphere should not do within it. tinent which beckoned men to fulfill what In the ~930's we stipulated what the United was best in them. Our common reality is the States would not do. Later we were prone recognition of our diversity. Our common to set standards for the political, economic, determination is to derive strength ~rom that and social structures of our sister republics. diversity. Our common task is to forge our historical and geographical links into shared Today we meet on the basis of your agenda purpose and endeavor. and our common needs. We agree with one of my distinguished colleagues who saiq In this spirit the United States offered a on arrival that the time had come to meet new dialogue last October. In this spirit as brothers, not as sons. Today, together, the countries of the Americas responded we can begin giving expression to our com­ in Bogota last November. mon aspirations and start shaping our com­ We meet here as equals-representatives mon future. of our individual modes of life, but united· In my view, our fundamental task at this by one aspiration: to build a new community. meeting, more important even than the spe­ We have a historic foundation on which to cifics of our agenda, is to set a common di. build. We live in a world that gives our rection and infuse our efforts with new pur­ enterprise a special meaning and urgency. pose. Let us therefore avoid both condescen­ sion and confrontation. If the United States On behalf of President Nixon, I commit is not to presume to supply all the answers, the United States to undertake this venture neither should it be asked to bear all the with dedication and energy. responsibilities. Let us together bring about a new commitment to the inter-American community. Let us use the specific issues The U.S. Commitment we discuss here as a roadmap for the future. One concern has dominated all others as Let us not be satisfied with proclamations I have met privately with some of my col­ but chart a program of work worthy of the leagues in this room. Does the United States challenge before us. really care? Is this another exercise of high­ Let us create a new spirit in our relations sounding declarations followed by long pe­ -the spirit of Tlatelolco. riods of neglect? What is new in this dia­ logue? An Interdependent World These questions-not unrelated to histori­ A century ago a U.S. President described cal experience--define our task. On behalf to the Congress the difficulties facing the

7 country: "It is a condition which confronts globe. It knows the afflictions and frustra­ us-not a theory." The condition we con­ tions of the impoverished. At the same time front today is a world where interdependence many of its members are leaders among is a fact, not a choice. modernizing societies. Much has been done to overcome high mortality rates, widespread The products of man's technical genius­ illiteracy, and grinding poverty. This hemi­ weapons of incalculable power, a global eco­ sphere uniquely includes the perceptions of nomic system, instantaneous communica­ the postindustrial societies, of those who are tions, a technology that consumes finite re­ only beginning to sample the benefits of sources at an ever-expanding rate-have modernization, and of those who are in mid­ compressed this planet and multiplied our passage. mutual dependence. The problems of peace, of justice, of human dignity, of hunger and The Americas reach out to other constella­ inflation and pollution, of the scarcity of tions as well. The nations of Latin America physical materials and the surplus of spirit­ and the Caribbean share much of the stir­ ual despair, cannot be resolved on a national rings of the Third World. The United States basis. All are now caught up in the tides of is engaged in the maintenance of peace on world events-consumers and producers, the a global basis. Pursuing our separate ways affluent and the poor, the free and the op­ narrowly, we could drift apart toward dif­ pressed, the mighty and the weak. ferent poles. Working together, we can re­ inforce our well-being and. strengthen the The world and this hemisphere can re­ prospects for global cooperation . . spond in one of two ways: There is the path of autarky. Each na­ So let us begin here in this hemisphere. tion can try to exploit its particular advan­ If we here in this room fail to grasp the tages in resources and skills and bargain bi­ consequences of interdependence, if we can­ laterally for what it needs. Each nation can not make the multiplicity of our ties a source try to look after itself and shrug its shoul­ of unity and strength, then the prospects for ders at the plight of those less well endowed. success elsewhere are dim indeed. The world But history tells us that this leads to ever community which we seek to build should more vicious competition, the waste of re­ have a Western Hemisphere community as sources, the stunting of technological ad­ one of its central pillars. vance, and most fundamentally, growing po­ President Echeverria foresaw the gather­ litical tensions which unravel the fabric of ing force of interdependence in 1972 when global stability. If we take this route, we he set forth his Charter of the Economic and our chil~ren will pay a terrible price. Rights and Duties of States as a guide for the conduct of relations among countries at Or we can take the path of collaboration. different levels of economic development. Nations can recognize that only in working Last September before the U.N. General As­ with others can they most effectively work sembly I endorsed that concept. At first, for themselves. A cooperative world reflects some were concerned because they saw the the imperatives of technical and economic charter as a set of unilateral demands; it necessity but, above all, the sweep of human has since become clear that it is a farsighted aspirations. concept of mutual obligations. In the emerg­ ing world of interdependence, the weak as The United States is pledged to this second well as the strong have responsibilities, and course. We believe that we of the Americas the world's interest is each nation's interest. should undertake it together. We can start by making the concept of This hemisphere is a reflection of mankind. the charter a reality in the Western Hemi­ Its diversity reflects the diversity of the sphere.

8 The U.S. View of the American Community Some of Ol.lr most troublesome problems The United States will do its full part have arisen over differences concerning the to see that our enterprise succeeds. We can respective rights and obligations of private make a major contribution, but it would U.S. firms operating in foreign countries be in nobody's interest if we raised impossi­ and the countries which host them. These ble expectations, leaving our peoples frus­ differences are based largely on differing trated and our community empty. We will conceptions of state sovereignty and state promise only what we can deliver. We will responsibility. make what we can deliver count. On the one hand, in keeping with the I have carefully studied the agenda for Calvo doctrine, most nations of this hemi­ this meeting you prepared in Bogota. I sphere affirm that a foreign investor has will respond in detail to its specifics in our no right to invoke the protection of his private sessions. But I will say here that I home government. On the other hand, the have come to a greater understanding of United States has held that nations have the the deeply felt motivations behind the right to espouse the cause of their investors phrases. You are concerned: if they believe they have been unfairly treated. This conviction is reflected in the -That the United States has put aside its legislative provisions of the Gonzalez and special commitment to the hemisphere. Hickenlooper amendments. -That we will allow old issues to go un­ Realistically, we must admit that these resolved while new ones are created. two elements cannot be easily or quickly rec­ -That we seek not community but dom­ onciled. But the United States is prepared inance. to begin a process to this end and to mitigate -That our relationship does not ade­ their effects. Even before a final resolution quately contribute to human welfare in ·the of the philosophical and legal issues, we are hemisphere, that it is often irrelevant to ready to explore means by which disputes your needs and an obstacle to their fulfill­ can be removed from the forefront of our ment. intergovernmental relations. In response let me outline the direction the United States proposes to its friends in In our private meetings I shall make spe­ rededicating itself to a new era of Western cific proposals to establish agreed machinery Hemisphere relationships. I look forward to which might narrow the scope of disputes. hearing your own views so that together we For example, we might consider the estab­ can make the Western Hemisphere commu­ lishment of a working group to examine nity a reality. various procedures for factfinding, concili­ The United States will do its utmost to ation, or the settlement of disputes. Other &ettle outstanding differences. During the approaches are possible, and I shall welcome past year, the United States and Mexico the views of my colleagues. Let me affirm solved the longstanding Colorado River salin­ here that a procedure acceptable to all the ity dispute. Two weeks ago Panama and the parties would remove these disputes as fac­ United States, taking account of the advice tors in U.S. Government decisions respecting of their partners at Bogota, signed a docu­ assistance relationships with host countries. ment that foreshadows a new relationship. We would be prepared to discuss with our And just 48 hours ago, Peru and the United Congress appropriate modifications of our States settled a dispute over compensation legislation. for the exercise of Peru's sovereign right to But we cannot achieve our goals simply nationalize property for public purposes. by remedying specific grievances or even by The United States is prepared to work creating mechanisms that will eliminate the with the other nations of this hemisphere sources of disputes. A special community can on methods to eliminate new disputes or to only emerge if we infuse it with life and mitigate their effect. substance.

9 We must renew our political commitment reciprocity, in the multilateral trade nego­ to a Western Hemisphere system. Thomas tiations. Macaulay once observed, "It is not the ma­ -The United States also recognizes a chinery we employ but the spirit we are of fundamental congruity of interests among that binds men together." We are here be­ the countries of the hemisphere in global cause we recognize the need for cooperation. monetary matters. We favor a strong voice Yet we can only cooperate if our people for Latin America in the management of a truly believe that we are united by common new monetary system, just as we favor its purposes and a sense of common destiny. effective participation in the reform of this The United States will be guided by these system. principles: -The United States is ready to undertake -We will not impose our political pref­ prior consultation in other international ne­ erences. gotiations such as the Law of the Sea Con­ -We will not intervene in the domestic ference, the World Food Conference, and the affairs of others. World PopUlation Conference. -We will seek a free association of proud The Western Hemisphere community peoples. should promote a decent life for all its In this way, the Western Hemisphere com­ citizens. No community is worthy of its munity can make its voice and interests name that does not actively foster the dig­ felt in the world. nity and prosperity of its peoples. The We realize that U.S. global interests some­ United States as the richest and most power­ times lead to actions that have a major effect ful country in the hemisphere recognizes a on our sister republics. We understand, too, special obligation in this regard. that there is no wholly satisfactory solution Let me sketch here the program which to this problem. President Nixon has authorized and which However, to contribute to the sense of I shall discuss in greater detail with my community we all seek, the United States colleagues this afternoon: commits itself to close and constant consul­ tation with its hemispheric associates on po­ -First, in trade. During the period of litical and economic issues of common inter­ great economic uncertainty arising from the est, particularly when these issues vitally energy situation, it is essential that nations affect the interests of our partners in the behave cooperatively and not take protective Western Hemisphere. or restrictive action. I pledge to you today In my view, the best way to coordinate that the United States will do its utmost to policies is to make a systematic attempt to avoid placing any new limitations on access shape the future. I therefore recommend by Latin America to its domestic market. that today's meeting be considered the first of a series. The Foreign Ministers assembled In the same spirit we renew our commit­ here should meet periodically for an informal ment to the system of generalized tariff review of the international situation and of preferences. We shall strongly Sllpport this common hemispheric problems. In the in­ legislation. Once it is enacted, we will con­ terval between our meetings, the heads of sult closely with you on how it can be most our planning staffs or senior officials with beneficial to your needs. similar responsibilities should meet on a -Second, in science and technology. We regular basis to assess progress on a com­ want to improve our private and govern­ mon agenda. The principle of consultation mental efforts to make available needed tech­ on matters affecting each other's interests nology, suited to varying stages of develop­ should be applied to the fullest extent pos­ ment in such vital areas as education, hous­ sible. Specifically: ing, and agriculture. Private enterprise is -The United States is prepared to consult the most effective carrier of technology and adjust its positions on the basis of across national borders. But government,

10 while not a substitute, can usefully appraise ing." This is our most immediate need. We the overall needs and spur progress. The are not here to write a communique, but to United States therefore recommends that we chart a.course. Our success will be measured establish an inter-American commission on by whether we in fact start a journey. I technology. It should be composed of lead­ suggest we move ahead in three ways: ing scientists and experts from all the -First, let us make clear to our peoples Americas and report to governments on the that we do have a common destiny and a basis of regular meetings. modern framework for effective cooperation. -Third, in energy. This hemisphere, link­ -Second, let us agree on an agenda for ing oil-producing and oil-consuming coun­ the Americas, a course of actions that will tries, is uniquely situated for cooperative give substance to our consensus and inspira­ solutions of this problem. The United States tion to our peoples. is prepared to share research for the devel­ -Third·, let us define a program to bring opment of energy sources. We will encour­ that agenda to life. age the Inter-American Development Bank to adapt its lending and fundraising activi­ Mr. President, my distinguished col­ ties to cushion the current strains. Weare leagues, four centuries ago totally alien cul­ also prepared to explore ways of financing tures met for the first time near here. We oil deficits, including the removal· of remain­ are moving toward a world whose demands ing institutional impediments to your access upon us are nearly as alien to our experience to U.S. capital markets. as were the Spaniards and the Aztecs to -Fourth, in development assistance. The each other. U.S. Government in its executive branch is Today, if we are to meet the unprecedented committed to maintain our aid levels, despite challenge of an interdependent world, we rising energy costs. On the other hand, the will also have to summon courage, faith, development problem can no longer be re­ and dedication. The United States believes solved simply by accelerating official assist­ we can build a world worthy of the best in ance. We need a comprehensive review and us in concert with our friends and neighbors. recommendations on how all flows of capital We want future generations to say that in and technology-whether from concessional 1974, in Mexico, the nations of the Western assistance, world capital markets, or export Hemisphere took a new road and proclaimed credits--can contribute most effectively to that in the Americas and the world they have hemispheric needs. I recommend charging a common destiny. the inter-American body with these tasks. -Fifth, in reshaping the inter-American system. We must identify and preserve those TEXT OF DECLARATION OF TLATELOLCO aspects of the Rio Treaty and the Organiza­ Pre.. releue 67 dated February 24 tion of American States which have shielded the hemisphere from outside conflict and I helped preserve regional peace. At the request of President Nixon, Secretary of State Kissinger invited the Foreign Ministers and Some form of institutional structure for other representatives of Latin America and the peace and cooperation is clearly necessary. Caribbean attending the 28th Session of the United However, we must reinforce the formal Nations General Assembly to meet with him on Oc­ structure of the OAS by modernizing its tober 5, 1973. At that time the Secretary of State institutions and agreeing on the principles suggested the initiation of a new dialogue to .deal with matters of concern to the Americas. of inter-American relations. The United. Mindful of this important initiative, the Govern­ States is prepared to cooperate in creative ment of Colombia extended an invitation to Dr. adjustments to meet new conditions. Kissinger to participate actively and personally in such a dialogue at an opportune time. Dr. Kissinger A Spanish poet once wrote: "Traveler; immediately accepted this invitation. Thereafter, there is no path; paths are made by walk- the Government of Colombia convoked the "Confer-

11 ence of Foreign Ministers of Latin America for Con­ so often obstructed our dialogues in more tradi­ tinental Cooperation," held in Bogota from Novem­ tional forums. The participant.s met as equals, con­ ber 14-16, 1973. On that occasion the Foreign Minis­ scious that the policy initiated here may be of deep ters of Latin America and the Caribbean agreed it historical significance. But for it to be so we must would be advantageous to initiate a dialogue on the recognize that we are at a turning point and be following topics: prepared to dedicate ourselves to new horizons of understanding and cooperation. Cooperation for Development The Foreign Ministers agreed that the Americas . Coercive Measures of an Economic Nature have arrived at an historic moment-a time of un­ Restructuring of the Inter-American System Solution of the Panama Canal Question precedented opportunity for achieving the goals of justice, peace and human dignity which have for 80 Structure of International Trade and the Mone- lonp,' been the essential promise of the new world. tary System Transnational Enterprises They recognized that in the modern age the de­ mands of technology and the drive of human aspira­ Transfer of Technology tions make impossible the narrow pursuit of purely General Panorama of the Relations between Latin national interests. America and the United States of America They agreed·, as well, that interdependence has be­ In accordance with the agreement reached at the come a physical and moral imperative, and that a "Conference of Foreign Ministers of Latin Amer­ new, vigorous spirit of inter-American solidarity is ica for Continental Cooperation," and with the con­ therefore essential. currence of the Government of the United States of Relations between the countries of the Americas America, the Government of the United Mexican must be placed in the context of today's world; a States convoked the Conference of Tlatelolco. This world characterized by interdependence, the emer­ Conference took place in Mexico City from February gence onto the world stage of the developing coun­ 18-23, 1974. tries, and the need to overcome inequalities. The The agenda of the Conference of Tlatelo1co com­ existence of a modern inter-American system, the prised the eight items listed above, with the addi­ affirmation of the reality of Latin American unity, tion of two others suggested by the Secretary of and .the similarity of.the problems of Latin America State in accordance with the agreement reached in and those of other developing countries are the foun­ Bogota regarding "the willingness of the participat-· dation for a dialogue and a frank and realistic rela­ ing countries to discuss any other matters the United tionship with the United States. States of America wishes to propose." The topics Inter-American relations should be based on an suggested by the Government of the United States effective equality between states, on non-intervention, were "Review of the International Situation" and on the renunciation of the use of force and coercion, "The Energy Crisis." and on the respect for the right of countries to Attending the Conference of Tlatelo1co were the choose their own political, economic and social sys­ Foreign Ministers of Argentina, Bahamas, Barbados, tems. Inter-American relationships, thus redefined Bolivia, Brazil, Chile, Colombia, Costa Rica, the by an authentic political will, would create the Dominican Republic, Ecuador, El Salvador, Guate­ necessary conditions for living together in harmony mala, Guyana, Haiti, Honduras, Jamaica, Mexico, and working cooperatively for expanded and self­ Nicaragua, Panama, Paraguay, Peru, Trinidad and sustainin~ economic development. Tobago, the United States of America, Uruguay and The Foreign Ministers reaffirmed the principle Venezuela. that every State has the right to choose its own The Conference was held in two parts, one with political, economic and social system without foreign exclusively Latin American and Caribbean participa­ interference and that it is the duty of every State to tion from February 18-20 and the other from Febru­ refrain from intervening in the affairs of another. ary 21-23, with the participation of Secretary of The new opportunities for cooperative development State Kissinger. In the first phase of the Confer­ call for a revision of the concept of regional . secu­ ence of Tlatelolco, the Latin American and Carib- rity, which cannot, and should not, be based solely on . bean Foreign Ministers agreed on procedures for the political-military criteria, but must also encompass a initiation of the new dialogue, which Secretary Kis­ practical commitment to peaceful relations, coopera­ singer had proposed be founded on "friendship based tion and solidarity among states. on equality and respect for the dignity of all," and upon methods for delineating the "bases for a new To this end, inter-American cooperation should be dialogue between Latin America and the United supplemented by the establishment of a system of States." The Secretary of State agreed to these pro­ collective economic security that protects the essen­ cedures. tial requirements of integral development; that is to say, parallel progress in the social, economic and II cultural fields. The Conference took place in an atmosphere of By mandate of the United Nations General Assem­ cordiality, free from the old rigidities which have . bly, a group of countries representing diverse eco-

12 nomic systems is engaged in examining the possibili­ (4) In this spirit, the Foreign Ministers of Latin ties of restructuring international economic relations, America have taken due note and will continue to through the preparation of a draft charter on the examine the suggestion advanced by the Secretary economic rights and duties of states. This charter of State of the United States of America with re­ can create the general framework for facing speci­ spect to the controversies that may arise from mat­ fic problems through practical and fair regulations ters involving private foreign investment. and mechanisms. The Secretary of State of the United States pro- ' The Conference of Tlatelolco agreed that a just posed the establishment of a fact-finding or concilia­ application of the principles of the charter can foster tion procedure that would limit the scope of such the internal and external conditions necessary for controversies by separating the issues of fact from the American nations to satisfy their own needs and those of law. This could provide an objective basis ensure their full development on an equitable basis. for the solution of disputes without detriment to The Conference also recognized that peace and prog­ sovereignty. ress, in order to be solid and enduring, must always He further proposed the creation of an inter­ be based on respect for the rights of others, and the American working group to study the appropriate recognition of reciprocal responsibilities and obliga­ procedures that might be adopted. tions among developed and developing countries. (5) With regard to the problems of transnational corporations, the Foreign Ministers discussed the III different aspects of their operation in Latin America In the course of permanent dialogue that has been and have agreed to continue the examination of the successfully initiated at the Conference of Tlatelolco, matter at a later meeting. a continuing effort should be made to reach, as soon (6) The Foreign Ministers agreed on the need as possible, joint solutions to the pending questions for intensifying work on the restructuring of the included in the Bogota document, which served as inter-American system. the basis for this Conference, (7) 'fhe Foreign Ministers agreed that one of the principal objectives is the accelerated development IV of the countries of the Americas and the promotion The Conference goes on record as f'Ollows: of the welfare of all their peoples. In this regard, (1) The Foreign Ministers , recognized that the the United States accepts a special responsibility; success of the Conference of Tlatelolco emphasizes and the more developed countries of the Americas the value of the new dialogue of the Americas. Mind­ recognize that special attention shOUld be paid to the ful of the growing interaction between themselves needs of the lesser developed. a'nd the rest of the world and that their countries They further agreed that development should be have different needs and different approaches on integral, covering the economic, social and cultural foreign policy, the Foreign Ministers were neverthe­ life of their nations. less agreed that the relations between their coun­ (8) The United States oft'ered to promote the in­ tries, which history, geography and sentiment have tegral development of the region in the following produced and continued to sustain, call for an ex­ fields: pansion of the processes of consultation between their governments. Trade As an initial step in this continuing process of (A) Make maximum eft'orts to secure passage of consultation, they agreed to continue on April 17, the legislation on the system of generalized prefer­ 1974, at Atlanta, Georgia, in the United States of ences during the present session of Congress, and America, the dialogue initiated in Mexico. In the then work with the other countries of the hemi­ same spirit they agreed to consult with the view sphere to apply these preferences in the most bene- to seeking, as far as possible, common positions in ficial manner. ' appropriate international conSUltations, including (B) Avoid, as far as possible, the implementation multilateral trade negotiations. of any new measures that would restrict access to (2) The Conference 'welcomes the agreement the United States market. , reached in Panama City on February 7, 1974, by the Governments of Panama and the United States of Loans lor Development America, by which they established the guiding prin­ ciples for their current negotiations leading to a (A) Maintain, as a minimum, present aid levels new Canal treaty. The Conference holds that this despite ~owing costs. agreement is a significant step forward on the road (B) Cooperate throughout the region and in inter­ to a definitive solution of that question. national institutions to facilitate the flow of new (3) The Foreign Ministers agreed that, if prog­ concessional and conventional resources toward those ress toward a new inter-American solidarity is to be countries most aft'ected by. growing energy costs. made, solutions must be found not only to existIng (C) Examine with others in the Committee of differences, but means must also be provided for the Twenty and the Inter-American Development Bank solution of problems that may arise. all restrictions on the entry of hemispheric countries

13 to capital markets in the Uni~d States and other recipient country. Particular emphasis is to be industrialized countries. placed upon sharing knowledge and technology for (9) The Foreign Ministers further declare: development of new sources of energy and possible alternatives. (A) They reaffirm the need of Latin American and Caribbean countries for an effective participation of (10) The Foreign Ministers agreed that it would their countries in an international monetary reform. be desirable to establish an inter-American Com­ It was acknowledged that the net transfer of real mission of Science and Technology. They left over resources is basic, and that ways to institutionalize for later decision whether this Commission should be transfers through adequate mechanisms should be adapted from existing institutions or whether a new considered. body should be formed. It was reaffirmed that external financial coopera­ tion should preferably be channeled through multi­ lateral agencies and respect the priorities estab­ v lished for each country, without political ties or In adopting this document, the Foreign Ministers conditions. expressed their confidence that the spirit of Tlate­ (B) With respect to "transfers of technology," the lolco will inspire a new creative effort in their rela­ Foreign Ministers agreed to promote policies facili­ tions. They recognized that they are at the begin­ tating transfers of both patented and unpatented ning of a road that will acquire greater significance technical . knowledge among the respective countries through regular meetings and constant attention to in the fields of industry as weB as education, housing the matters under study. and agriculture, taking into account conditions pre­ The Conference expresses its satisfaction over the "ailing in each country and in particular the needs of fact that the mutual understanding which has pre­ the Latin American and Caribbean countries for vailed throughout encourages the hope that futUre introduction of new manufactures for greater utiliza­ conferences of a similar nature, within a permanent tion of the human and material resources available in framework devoid of all rigid formality, will pro­ each country, for increased local technical develop­ duce fruitful results for the benefit of the peoples of ment and for creation of products for export. It was the Americas. further agreed that transfers of technology should be on fair and equitable terms without restraint upon the TLATELOLCO DF, February 14, 1974.

Panama and the United States: A Design for Partnership

Address by Ambassador at Large Ellsworth Bunker Chief U.S. Negotiator for the Panama Canal Treaty 1

The reason that I am particularly pleased which demands the constant application by to be with you is that I could hardly hope both governments of: for a better audience before which to ven­ ture my first public thoughts on the matter -Reason rather than emotion; of a new treaty relationship between the -New ideas rather than old memories; United States of America and the Republic and of Panama. This audience will understand -The will to accommodate rather than that because the new relationship is a mat­ the wish to confront. ter of transcendence for the two countries­ All that makes it quite a difficult matter, and, in some measure, for the whole hemi­ possibly the most difficult I have yet ad­ sphere and the world community-it is one dressed as a negotiator. I should like you to have the background of it, then the foreground as I can perceive 1 Made before the Center for Inter-American Re­ lations at New York, N.Y., on Mar. 19. it.

14 We start from a treaty that is 70 years eration of the canal and the military bases old. In 1903 the newly independent Republic within the Canal Zone. of Panama granted to the United States­ -More than one-third of Panama's total in perpetuity-the use of a strip of land foreign exchange earnings in recent years 10 miles wide and 50 miles long for the has derived from U.S. payments for Pana­ construction, maintenance, operation, and manian goods and services used in the zone. protection of a canal between the. Atlantic -Perhaps as much as one-fifth of Pana­ and the Pacific. ma's employment nationwide is directly or Panama also granted to the United States indirectly attributable to the presence of all the rights, power, and authority to act the canal. within that strip of land as "if it were the -Panama has become a crossroads of the sovereign. " hemisphere and a center for banking, ship­ That the treaty favored the United States ping, transport, and communications; and was acknowledged promptly. John Hay, then it has prospects for accelerated development Secretary of State, told the Senate, in sub­ in the years to come. mitting it for ratification: " ... we shall have a treaty very satisfactory, vastly ad­ Today that country's per capita income vantageous to the United States and, we is the highest in Central America, the fourth must confess . . . not so advantageous to highest in Latin America as a whole, ex­ Panama." ceeded only by that of Argentina, Uruguay, To be sure, had the United States not and Venezuela. been offered so advantageous a treaty by For the United States, the benefits have Panama, it might well have built the canal been military as well as economic. It was elsewhere. the 7,000-mile, 66-day voyage of the U.S. Unmistakably, the construction of that battleship Oregon around Cape Horn during waterway was an astounding achievement. the Spanish-American War that led us to Consider the triumph over tropical diseases, build a trans-isthmian waterway. And it~ the gigantic engineering effort, the partici­ military value to the United States has not pation of people of many races and lands­ diminished, although it has changed. these are sources of extraordinary pride to Its strategic importance was demon­ our people. strated: -When the Japanese attack on Pearl Har­ bor left the United States without significant Incalculable Beneflts of the Panama Canal naval strength in the Pacific. Redeployment Weare no less proud of what the canal of elements of the Atlantic Fleet through has represented since it open~d. It has the canal saved more than two weeks' steam­ spurred the creation of major new interna­ ing time around the cape. tional markets. It has caused the creation -When during the Cuban missile crisis of entirely new sea routes. It has saved of 1962 mobilization orders found nearly all seafaring nations countless sums in terms landing craft concentrated on the west coast. of time, energy, and money. These--together More than 60 military vessels were rede­ with the safe, efficient, and inexpensive op­ ployed to gulf and east coast ports in less eration of the waterway-have provided than 10 days. Panama, the United States, and the entire world with benefits which obviously have Even today, when major elements of our been of incalculable value. defense system are intercontinental bombers Let me illustrate some of the benefits to and missiles-; the canal remain~ a vital line Panama: of communication. Despite limitations on -One-fourth of that country's gross na­ the size of vessels which can pass through it, tional product in recent years has been di­ it permits the majority of U.S. Navy ships rectly or indirectly attributable to the op- to move expeditiously between oceans. Per-

15 haps more important, it shortens supply area of 500 square miles in the continental lines from the United States to potential United States. trouble spots around the world. When all is said and done, however, that The Viet-Nam conflict, necessitating a presence rests upon the consent of the Pan­ rapid buildup of men and material in South­ amanian people. That is so because, were east Asia during the midsixties, is the most the level of consent to decline to zero but recent example of the logistical role the canal our presence remain, we would find ourselves plays for the United States. Because our in the position of engaging in hostilities production capacity is located mostly east with the people of an otherwise friendly of the Mississippi River and our internal American state, on its soil. If I do not mis­ transportation was insufficient, we were read the temper of the American people and forced to depend heavily on the canal to the times, that position would be unaccept­ transport equipment and supplies to our able. forces. So long as the consent of Panama to our As for economic benefits to this country, presence remains at a high level, the United they have unquestionably been great in the States can devote all its energies there to the past. But how great they are today is rela­ functions required for the efficient operation tive. For example, it is true that 16 percent of the waterway. But in proportion as the of the U.S. oceanborne trade passes through consent level declines, in that proportion we the canal. It is also true, however, that our must divert some of our energies to functions ,total foreign trade accounts for something not related directly to the waterway's opera­ less than 10 percent of this country's gross tion. And in that proportion the efficiency national product. of the operation declines-to the detriment Indeed, there are those who argue that of our critical interests. the value of the United States to the Panama For many years the level of Panama's con­ Canal far exceeds the value of the Panama sent has persistently declined. And by Pana­ Canal to the United States. The argument ma, I mean the Panamanian people of all derives from the fact that some 70 percent strata, not simply their government. Govern­ of the traffic through the canal is either ments in Panama may change. But I am bound for, or coming from, this country. persuaded that governmental change will Whatever the statistics, however, we know never again divert the Panamanian people intuitively that the waterway contributes from the course of legitimate nationalism importantly to the economic well-being of they are now pursuing. our people. Unfortunately, I must say that I consider the current level of consent to be unaccept­ U.S. Presence in the Canal Zone ably low. It began to be so 10 years ago, when events in the Canal Zone led to rioting that Where do the critical interests of our occasioned 24 American and Panamanian country now lie, and how may they best fatalities. be served? I suggest that they lie in the Why has it declined? The Panamanians continued operation and defense of the canal cite the following: by the United States for a further and rea­ sonably extended period of time. .-The United States occupies a 10-mile­ May I also suggest, however, that we can wide strip across the heartland of Panama's serve those interests adequately only if we territory, cutting the nation in two, curbing move to change-to modernize-the nature the natural growth of its urban areas. of the presence of the United States in the -The United States rules as sovereign Canal Zone. It is a quite uncommon pres­ over this piece of Panama's territory. It ence. Some 40,000 American citizens live maintains a police force, courts, and jails to and work in a 500-square-mile area very enforce U.S. laws, not only upon American much as they might live and work, in any but also upon Panamanian citizens.

16