819.51A/4: Telegram
The Secretary of State to the Minister in Panama ( Price )
13. Your 22, February 21, 9 p.m.
Your report of interview with President Porras is difficult for us to understand. Our suggestions were dictated by the most disinterested concern in the interests [welfare]7 of Panama and in the sense [success]7 of the President’s administration. Our expression [Page 609] of concern arose from a report of a proposed step on his part which seemed to us to be distinctly a step backward and a return to practices from which Panama had already suffered acutely and been rescued with effort, not to say difficulty. We do not place our position solely or exclusively upon what we are advised is clearly the illegality of his course, although that, it would seem to us, should be controlling. We might add that the law in question was passed by the Panama Legislature in response to a special message from the President declaring the necessity for it and the demand for it in the public interest. The reported comments of the President upon your representations are wholly irreconcilable with the impressions that we have long entertained of him and with the indications and gratifying assurances he gave us on the occasion of his recent visit. We do not desire to go beyond an expression of genuine solicitude and earnest desire that he should pursue the right course in this matter. We think that if he realizes that we are carefully refraining from any suggestion of insistence, although we are deeply concerned that he shall adopt our suggestion, he will see the importance and wisdom of reexamining his proposed course in the light of what we say. We are thinking of Panama’s credit and of its solvency and of the expenditure of its public moneys under circumstances and accompanied by difficulties and guarantees that leave no room for speculation as to the propriety and integrity of its fiscal conduct. The Department considers it of the utmost importance that the fiscal agent to be appointed by President Porras should have no affiliations with local political parties and that Mr. Hord uniquely fulfills the requirements of the position from every standpoint, including experience and capacity. Furthermore, he would be in a position as fiscal agent to render invaluable service in the reorganization of the Banco Nacional. In addition, Mr. Hord would be in a position, by reason of his position as fiscal agent and his connection with the bank, to train up one or more men of Panama who would command general confidence as fiscal agents in the future and be worthy of this trust. This would be one of the tasks within Mr. Hord’s instructions and clearly one of the purposes with which he will undertake his duties.
We see no objection to your exhibiting this message to President Porras with the assurances of the friendly disinterestedness with which we urge upon his consideration the recommendation which we here repeat.