From the balcony of his presidential palace, Panama's Roberto F. Chiari addressed a milling crowd of 3,000 demonstrators. There will be no diplomatic relations with the U.S., he cried, until the Americans promise to negotiate a new Panama Canal treaty. "I will not deviate one instant from that position." In Washington, Secretary of State Dean Rusk assured U.S. Senators that there would be no negotiations with Panama ''under pressure or threat of violence." Through the tense and confused week, neither side budged; an OAS mediation team could do little more than keep...
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