FOREIGN RELATIONS: New Deals for the Big Ditch

One of the most protracted and politically sensitive diplomatic disputes in American history is rapidly reaching a turning point. U.S. and Panamanian negotiators in Washington hope to initial the draft of the first major agreements on the Canal Zone since the U.S. extracted jurisdiction over the area in a treaty forced upon the fledgling Republic of Panama in 1903. Very soon, perhaps within the next two weeks, a new deal can be struck—if one final, formidable obstacle can be overcome. That issue is how much money the U.S. should pay Panama before relinquishing the last remnants of control over...