819.51/289: Telegram
The Minister in Panama (Price) to the Secretary of State
[Received 11:57 p.m.]
10. Department’s 5, January 28, 5 p.m. Panaman President has ordered transfer of depositary July 1st without consulting Fiscal Agent. Secretary of Treasury claims he was not consulted. It is believed statement of latter as to resigning was made under irritation and will not be carried out unless forced by repetition of like unpleasant treatment. Better business element adverse to transfer. I have conferred with Ramon Arias who proposed that difference in salary of Fiscal Agent be raised by Panaman merchants. … Fiscal Agent says he doubts whether with propriety he could accept it if raised. Panaman President agreed in three conferences I had with him to renew contract of Fiscal Agent and then asked latter in writing to reconsider his intention to resign but apparently irrevocably refuses to pay 15,000 salary. Resignation of Fiscal Agent deemed final. Fiscal Agent opposed to transfer of depositary because International Banking Corporation better equipped, can keep deposits in more liquid state and is removed from political influences. Prompt action in selecting new Fiscal Agent deemed very desirable.