Foreign Minister Rubio Asks Panama To End China's Influence On The Canal Or Face US Actions

Panama Canal. (Wikimedia Commons/Stan Shebs)

JAKARTA - United States Secretary of State Marco Rubio on Sunday warned Panamanian President Jose Raul Mulino Washington would "take the necessary action" if Panama did not immediately take steps to end what President Donald Trump saw as China's influence and control over the Panama Canal.

President Mulino, after talks with top US diplomats in Panama, hinted at reviewing agreements involving China and China's business, announced further cooperation with the US on migration.

On the other hand, he reiterated that his country's sovereignty over the world's second busiest waterway cannot be discussed.

Foreign Minister Rubio conveyed a message from President Trump, the presence of China - through a Hong Kong-based company operating two ports near the canal entrance - a threat to the waterway and a violation of the US-Panama agreement, US State Department spokesman Tammy Bruce said in a statement.

"Minister of Foreign Affairs Rubio insists this status quo is unacceptable and that if nothing changes immediately, the United States must take the necessary action to protect its rights under the Treaty," Bruce said.

Foreign Minister Rubio did not explain in detail what steps Panama should take or what kind of retaliation Uncle Sam's country will be.

After returning to office, President Trump threatened to take over the Panama Canal, which was built by the United States in the early 20th century and handed over to Panama in 1999, claiming the canal was operated by Beijing.

He refused to rule out the possibility of using military force in Panama, which drew criticism from Washington's friends and enemies in Latin America.

On Sunday, President Trump said he said troops would not be required, but Panama had violated the agreement and the United States would take the sequence back.

"China manages the Panama Canal. It was not given to China, it was given to Panama, but they violated the agreement and we will take it back, or something very strong will happen," President Trump told reporters.

"I don't think troops will be needed in Panama," he added.

President Mulino said his meeting with Foreign Minister Rubio was respectful and friendly. He showed a willingness to review some Chinese businesses in Panama, including the 25-year main concession to Hong Kong-based CK Hutchison Holdings, which was updated in 2021 for port operations at both entrances to the canal, pending audit results.

The contract has been targeted by US lawmakers and the government as an example of China's expansion of Panama, which they claim contradicts a neutrality agreement signed by the two countries in 1977.

The Panamanian government and some experts rejected the statement, especially as the port was not part of the canal's operations. The canal is operated by the Panamanian Canal Authority, the autonomous body supervised by the Panamanian Government.

The broad agreement between Panama and China to contribute to China's Belt and Road initiative, which is the basis for the Asian state, expanded investment in Panama during the previous administration, will not be renewed, President Mulino said.

"We will study the possibility to end it early," he added.

"I don't feel any real threat at this time to the (netrality) agreement, its validity, and moreover the use of military force to make the agreement," President Mulino said, adding it was important to have face-to-face talks with President Trump.

Separately, China said it did not play a role in the operation of the canal, respecting Panama's sovereignty and independence over the waters.

"Child never interferes," Chinese Foreign Ministry spokesman Mao Ning said when asked about the US claims last month, adding China recognizes the canal as a "permanent neutral international water route."