WASHINGTON, Jan 31 (Reuters) - China's presence near the Panama Canal is a national security concern that Panama's government must address, stated Mauricio Claver-Carone, the U.S. special envoy for Latin America, on Friday, ahead of the upcoming visit to the country by top U.S. diplomat Marco Rubio.
Rubio is set to embark on his first foreign trip on Saturday, including a planned tour of the canal and a meeting with Panamanian President Jose Raul Mulino, marking the initial dialogue since a prior threat by the President.
Additionally, Rubio will travel to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, with a primary focus on discussing the Trump administration's initiatives to repatriate migrants and halt migration to the U.S., as outlined by Claver-Carone during a briefing with reporters.
Claver-Carone noted that the encroaching presence of Chinese entities in the Canal Zone, spanning operations from ports and logistics to telecommunications infrastructure, posed significant concerns for both U.S. and Panamanian national security. He emphasized the necessity of addressing this issue during the upcoming discussions.
CK Hutchison Holdings, based in Hong Kong, has had a presence at the canal entrances for over two decades. Although the company is publicly listed and not directly linked to the Chinese government in terms of finances, it operates under government supervision due to its Hong Kong jurisdiction.
The expanding economic influence of China in Latin America has sparked apprehension in Washington that the region's valuable resources might gravitate towards Chinese interests instead of those aligned with the U.S.
Despite Panama's declarations that control of the canal has not been conceded to China, Rubio expressed firm conviction on Thursday that Beijing has contingency plans in the case of a conflict.
Mulino confirmed his forthcoming meeting with Rubio to discuss the canal.
Panama anticipates the findings of an audit examining CK Hutchinson's payments to the state, potentially providing grounds for adjustments to the concession agreement with the company.
Although relations with Panama, one of the U.S.'s closest partners in Latin America, have encountered challenges, R. Evan Ellis, a professor at the U.S. Army War College, believes both parties are likely seeking a prompt resolution.
I believe a resolution could be reached relatively swiftly," Ellis told Reuters. "Ultimately, President Trump is likely seeking a favorable agreement. The Panamanians are considering what concessions they can make without compromising their canal management.