The U.S. and Panama were still at arm's length over the Canal Zone, though both sides seemed to be wearying of the six-week dispute. A new formula called for the two countries to resume diplomatic relations and then appoint negotiators with "full plenipotentiary powers" to discuss the 1903 treaty under which the U.S. operates the Panama Canal. The phraseology was intended to satisfy Panamanian demands for changes in the treaty, while not committing the U.S. in advance. By week's end Secretary of State Dean Rusk could only say: "There has not been an agreement yet."
The U.S. and Panama will probably...
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