US Secretary of State Marco Rubio warned Panamanian President Jose Raul Mulino on February 2 that Washington would "take necessary measures" if the country did not immediately move to end China's influence and control over the Panama Canal.
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| US Secretary of State Marco Rubio said Beijing could use ports to blockade the canal in the event of a conflict with Washington. (Source: Reuters) |
After talks with the US Secretary of State in Panama City, President Mulino said he would review agreements involving China and its businesses, and announced increased cooperation with Washington on migration issues.
However, Mr. Mulino stressed, Panama's sovereignty over the world's second busiest waterway is not in dispute.
According to US State Department spokeswoman Tammy Bruce, US Secretary of State Marco Rubio conveyed President Donald Trump's message that Beijing's presence through a Hong Kong (China)-based company operating two ports near the canal's entrances is a threat to this waterway and violates the US-Panama Treaty.
"Secretary Rubio asserted that the status quo is unacceptable and that if there is no immediate change, the United States will have to take the necessary measures to protect its interests under the Treaty," Mr. Bruce stated.
However, Mr. Rubio did not specify what procedures Panama would need to follow or what the US response would be.
In addition, on Sirius XM 's The Megyn Kelly Show last week, Secretary of State Marco Rubio, a politician with a hardline stance on China, stated that Beijing could use ports to blockade the canal - a vital route for the US shipping industry - in the event of a conflict with Washington.
According to President Mulino, the meeting with Mr. Rubio took place in an atmosphere of respect and kindness. The Panamanian leader expressed his willingness to review some Chinese businesses in the country, including a key 25-year concession contract with Hong Kong-based CK Hutchison Holdings (0001.HK).
The contract has been the target of criticism from US lawmakers and the government, who see it as part of a strategy to expand China's influence in Panama, going against the Neutrality Pact the two countries signed in 1977.
The Panamanian government and some experts reject this claim, arguing that the ports are not part of the canal's operational scope. The Panama Canal is currently operated by the Panama Canal Authority, a government-owned entity.
"We will consider the possibility of terminating this agreement earlier," Mr. Mulino said, adding that a direct meeting with President Trump was needed.
Shortly after returning to the White House, President Donald Trump threatened to regain control of the Panama Canal - a project built by the US in the early 20th century and handed over to Panama in 1999, on the grounds that the canal was under the operation of Beijing.
Mr. Trump also emphasized the possibility of using force against Panama, asserting that the country had violated the agreement and the US would regain control of the canal.
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