PRESIDENT CHIARI'S HANDLING OF THE CRISIS WITH THE UNTED STATES AND POSSIBLE AC

Created: 1/17/1964

OCR scan of the original document, errors are possible

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INTELLIGENCE AOENCY

Intelligence Information Cable

LBJ LIBRARY

country Review

INFO.

SUBJECT

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1. THE FOLLOWING

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CONCERNING THE MANNER IN WHICH PRESIDENT ROBERTO F. CHIARI HAS HANOLEO THE PRESENT CRISIS BETWEEN THE UNITED STATES ANO PANAMA-

A. PRESIDENT CHIARI ACTEDHOROUGHLY UNPROFESSIONAL MANNER, NOT EVEN CONSULTING HIS FOREIGN RELATIONS COUNCIL WHEN HE BROKE RELATIONS WITH THE UNITEO STATES OVER THE CANAL ZONE BORDER INCIDENT. ALTHOUGH HE COULD NOT BE EXPECTED TO KNOW THE INS ANO OUTS OF DIPLOMACY HIMSELF, HIS PRINCIPAL ADVISORS SHOULD HAVE KNOWN BETTER. THESE ADVISORS WERE FOREIGN MINISTER GALILEO SOL 1S,

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LEGAL ADVISOR TO THE FOREIGN MINI STERY ELOY BENEDETTI, AND CHIEF OF THE ECONOMIC PLANNING COUNCIL DAVID SAMUOIO.

B. THE PRESIDENT PROBABLY DECIDED TO TAKE THIS RADICAL STEP BECAUSE HE BELIEVED THAT THE DEGREE OF VIOLENCE ON THE BOROER WAS SUFFICIENT TO FORCE. TO ACCEPT NEGOTIATIONEW TREATY. IN THIS REGARD HE TURNED TO THE MASSES FOR SUPPORT, BUT INSTEAD OF TAKING OVER THE MASSES, THE LATTER GOT CONTROL OF HIM, THUS PUSHING HIM TO THE POINT OF NO RETURN. CHIARI NOW FINDS HIMSELF IN AN UNTENABLE POSITION ECONOMICALLY AND POLITICALLY AND WILL BE LUCKY IF HE CAN REMAIN IN OFFICEAXIMUM OF TWO MORE MONTHS.

C. THE MAJOR POLITICAL PARTIES AND THE IR LEADERS WITH THE EXCEPTION OF THE PANAMANISTA PARTY OF ARNULFO ARIAS RALLIED BEHINDAFTER HE BROKE RELATIONS AND OFFERED SUPPORT AND ADVICE IN AN EFFORT TO HELP HIM EXTRICATE HIMSELF. SINCE THIS INITIAL CONTACT, HOWEVER, CHIARI HAS MADE NO EFFORT TO CONTACT THE PARTIES AND DISCUSS THE PROBLEM WITH THEM.

D. AS OF THE MOMENT, PRESIDENT CHIARI HAS ONLY THREE COURSES OF ACTION OPEN TO HIM:

PERSUADE. TO CHANGE ITS POSITION ON NEGOTIATION OF1 THE EXISTING TREATY.

CALLARGE REPRESENTATIVE GROUP FROM BUSINESS,

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