Marco Rubio issues Panama ultimatum over 'Chinese influence' on canal

US caput of authorities Marco Rubio demanded Panama instantly trim “unacceptable” Chinese “influence and control” implicit the Panama Canal arsenic scores of radical successful the Central American federation marched successful protestation against his visit.

In his archetypal official travel arsenic America’s apical diplomat, Mr Rubio said successful Panama that the US would enactment “to support its rights” nether a longstanding communal treaty.

He held talks with president Jose Raul Mulino, who said Panama’s sovereignty implicit the canal was not up for statement but suggested helium would reappraisal agreements involving Chinese businesses.

Mr Rubio was delivering the connection of president Donald Trump who has caused a diplomatic disturbance by saying Washington would instrumentality power of the Panama Canal.

"Secretary Rubio made wide that this presumption quo is unacceptable and that absent contiguous changes, it would necessitate the United States to instrumentality measures indispensable to support its rights nether the Treaty," US State Department spokesperson Tammy Bruce said successful a statement.

The Panama Canal is the world's 2nd busiest shipping route. Built by the US successful the aboriginal 20th century, it was handed implicit to Panama successful 1999 arsenic agreed nether a 1977 treaty. The Neutrality Treaty gives the US subject the close to support the canal if determination is simply a menace to its neutrality.

Mr Trump has objected to Chinese companies investing successful ports and terminals adjacent the canal. He has refused to regularisation retired the usage of subject unit against Panama, drafting disapproval from Washington's Latin American friends and foes alike.

Mr Trump claimed implicit the play Panama had violated the 1977 woody and reiterated that the US would instrumentality backmost the canal, but said helium did not deliberation subject enactment would beryllium necessary.

"China's moving the Panama Canal. That was not fixed to China, that was fixed to Panama, foolishly, but they violated the statement and we're going to instrumentality it back, oregon thing precise almighty is going to happen," Mr Trump told reporters. "I don't deliberation troops volition beryllium indispensable successful Panama.”

Mr Mulino said his gathering with the US diplomat was respectful and cordial but insisted that the canal “is operated by our state and volition proceed to be”.

He suggested a willingness to reappraisal immoderate Chinese businesses, including a 25-year concession to CK Hutchison Holdings, which is based successful Hong Kong.

Authorities successful Panama are carrying retired an audit of the Panama Ports Company, a subsidiary of CK Hutchison Holdings, that operates 2 terminals astir the canal. “We person to hold until that audit ends earlier we tin scope our ineligible conclusions and enactment accordingly,” Mr Mulino said.

Panama renewed the declaration for the institution to run a larboard astatine each extremity of the canal successful 2021. The declaration has been targeted by US politicians arsenic an illustration of China’s enlargement successful the Latin American country.

Mr Mulino said Panama would not renew a 2017 statement with China to articulation its overseas improvement inaugural known arsenic the Belt and Road, and hinted the woody could extremity early.

Panama would question to enactment with the US connected caller investments, the president said. “I deliberation this sojourn opens the doorway to physique caller relations,” helium added.

China has said it plays nary portion successful operating the canal and that it respects Panama's sovereignty implicit the waterway.

"Never ever has China interfered," overseas ministry spokesperson Mao Ning said erstwhile asked astir America’s claims past month, adding that China recognises the canal arsenic "a permanently neutral planetary waterway”.

Mr Rubio’s sojourn saw astir 200 radical marching successful protestation successful Panama City. The protesters shouted slogans of “Marco Rubio retired of Panama”, “Long unrecorded nationalist sovereignty”, and “One territory, 1 flag”.

Many burnt effigies of Mr Trump and Mr Rubio arsenic riot constabulary fired teardrop state to power the assemblage adjacent the statesmanlike palace.