819.154/71: Telegram
The Minister in Panama ( Price ) to the Secretary of State
[Received February 17—11:35 a.m.]
17. Department’s 10, February 15, 7 p.m. Newspaper and other criticism was aroused by decree and amended decree was issued ordering road funds to be kept with other Treasury funds in bank to be selected by Panama President, checks on same to bear joint signature of president of Road Commission and Fiscal Agent. Provision requiring deciding arbitrator to be Panaman was annulled. While largely restoring powers of Fiscal Agent amended decree leaves Secretary of the Treasury ignored. President of Commission is Secretary of Public Works and pliable to wish of Panaman President.
Resignation of Secretary of the Treasury today gave bad health as the reason. Real cause, well known, is treatment like this and his disagreement with Panaman President regarding fiscal agency and such policies.