PANAMA: $1,000,000 for Arms

A belated entrant and cheap plater in the world’s newest race to rearm, which the Munich deal starting gun set off month ago, is the little Latin American republic of Panama. Disturbed because neighboring Costa Rica suddenly abandoned plans to ratify a pact settling a long-disputed 150-mile border between the two States, Panama’s President, Dr. Juan Demostenes Arosemena, last week signed a hurriedly drafted bill providing $1,000,000 for national defense. Hitherto, defense has been an unknown item in Panama’s budget. Most of the money will be used to fortify the northern border, disputed since 1904 and over which Costa Rica and Panama fought a fierce, undeclared jungle war in 1921, which was halted by U. S. intervention.