Panama City
Casa del Istmo, Harvey Hotel Chain
June 16 1937
Even as fighting between American troops and Colombian militia were on going, the United States and leaders of the opposition of President Reyes of Colombia were meeting here in this hotel. The Casa del Istmo was the nicest hotels within the Panama Isthmus and as such it was only fitting that this meeting would be held here. Secretary of State Gray Underwood was currently here as the senior official of the United States Government. The other member nations of the American Alliance Treaty Organization also had members of their governments here as well. They didn’t have anyone as senior as Secretary Underwood as they were far smaller nations than the United States but still they all had important people within their government here in Panama City for this event.
The American Alliance Treaty Organization[1], or AATO for short, was the American led alliance of a few different alliance blocks around the world at the moment. Like the name implied this alliance was in the Americans only, well the main member did have holdings in Europe, the Pacific, and China, but well over of 95% of the alliance’s territory was in the Americas. Notably North and Central America and the Caribbean. The AATO was primary formed to try and check the growth of the Com Block as it was know and meant as a warning to the assholes who run Mexico City. Yet the AATO hadn’t been able to expand into South America for a number of reasons. Even without that the AATO was still a powerful force, well mainly because who led it.
When the US had decided to invade Colombia at first it was about getting rid of Reyes and form a government that could possible stand up to the Communist. Well the US had other goals in its invasion of Colombia mainly regarding the canal, but what was to be the stated goal was to be stop the Communist from overtaking all of Colombia. Yet the sudden start of a crisis between China and Japan had caused President Olsen to pull back on this. As it was all too clear that Japan was on the war path in China as the demands handed to the Central Government in China was clearly designed to give the Japanese a reason to go to war. So the idea of throwing the Communist back in Colombia was scaled way back.
It was also the reason there was a seventh flag here in Panama City that wasn’t the Colombian Flag. The flag itself was clearly a new flag that had never been flown before today. It was loosely based off the flag of the United States but with a different color set and stars being replaced by two half circles with a link between them. It was a flag for the nation that was being born in this hotel. The Republic of Panama was the new nation being created with the signing of this treaty. Based on the lessons from Rio Grande, Quebec, and the Maritime Federation, the treaty being signed here was of the same pattern but with lessons learned as well. The other AATO nations were here to sign their own treaties with the newly created republic, primary to create diplomatic and economic relations with the new nation.
Yet it was the United States-Panama Treaty that was being signed first. The US was the most important nation in the room and as such it when first. It created diplomatic relations between the two nations. Yet the southern border was currently undefined as they weren’t sure where the fighting would stop. The generals were debating where the best natural defensible border was or how far they could push before Washington tugged on their leashes. There were economic issues covered in the treaty as well. However, the big point for the United States was that of the Canal itself. The Panama Canal was the pride and joy of the United States and they wanted to make sure that they never lost control of it nor had a hostile power next to it.
As such the US had decided to annex the canal zone as per the terms of this new treaty they were signing with the new Republic of Panama. This included expanding the zone for a third set of locks[2] that the US were designing at the moment to take into account the rapid growth of naval vessels. Further the US annexed the Pearl Islands under the terms of this treaty to use them as fairly big military base to help with the defense of the canal. It gave the US the rights to base its military units in Panama itself along with setting up the understanding the US would defend Panama from Colombia and any other hostile nations. For this the US would help economically in the poor nation of Panama. With Reyes and his fools running Colombia money earmarked to building up the nation had a bad habit of going missing and into the Swiss bank accounts of Reyes and his ilk. This has caused Panama and other areas of Colombia to stay suck in the depression of 28. The US understood they needed to give the people in Panama where the final borders might be a reason to support democracy and not communist. As such they were given a large aid package to Panama to help build up the nation.
[1] The AATO is led by the United States as that when without saying. Other member nations include Quebec, the Maritime Federation, Rio Grande, Dominican Republic, Guatemala, and Nicaragua. The latter three joined of their own free will for their own reasons. The former through well they were all created as US puppets.
[2] I’m not sure on the size of this third set of locks yet, but I want it to be big enough that the USN doesn’t have to think about this for at least half of a century.