With reference to item 8 of the first mentioned memorandum you are
informed that President Arias advised President Roosevelt that he would
fully consider the question of controlling radio in Panama by a joint
board similar to the Aviation Board after he returned to Panama. It is
therefore assumed that he will desire to discuss this matter with
you.
[Enclosure 1]
Memorandum of Points Agreed to by President
Roosevelt and President Arias
1. Restrictions on sales to ships by
commissaries.
- a)
- Sales of “tourist goods” for resale on ships will be
prohibited.
- b)
- Sale of articles required by shipping transiting the
Canal, such as fuel, food supplies, et cetera, will be
continued.
- c)
- Sale of other articles to ships will be prohibited, or a
reasonable surtax, such as, say 25%, will be placed on such
sales.
2. The question of measures to avoid sale at prices “below normal” of
such articles as cigarettes and beer, which do not pay excise taxes,
will be sympathetically studied in an effort to meet Panama’s
views.
3. Special instructions will be issued to take all possible measures
to prevent contraband activities on the part of those entitled to
commissary privileges.
Sales to contractors and their employees will be restricted to those
who operate exclusively in the service of the Canal, and who
actually reside in the Canal Zone.
4. The use of restaurants and clubhouses in the Canal Zone will be
limited to officers and employees of the United States Government
and of the Panama Railroad Company and their families.
5. Admission to moving picture houses in the Canal Zone will be
limited to officers and employees of the United States Government
and of the Panama Railroad Company and their families.
6. The clause binding lessees or contractors of the restaurants to
purchase their provisions from or through the commissaries will be
abrogated.
7. The services of the United States hospitals and dispensaries in
the Canal Zone will be restricted to officers and employees of the
United States Government and of the Panama Railroad Company and
their families, excepting only emergency cases.
8. Radio.
It is suggested that consideration be given to the creation by Panama
of a Radio Board on the lines of the present Aviation Board. This
Board would have, say, six members, of whom three would at all times
be designated by the United States Government, for appointment by
the President of Panama. This Board would issue regulations for the
licensing, inspection, et cetera, of radio stations in the Republic
of Panama. Appropriate measures would be agreed to for the
limitation of licenses to Panamanian and American companies, and for
appropriate safeguarding provisions to prevent endangering the
operation or defense of the Canal Zone. The United States, under
such conditions, would agree that no special restrictions be placed
on “ship to shore” service with the exception of that relative to
transiting the Canal.
[Page 867]
9. Assistance for repatriation of aliens who went
to the Isthmus attracted by the Canal work and have become a
charge on Panama.
The United States desires to lend its assistance to this end. The
Secretary of War has authorized the Governor of the Canal to submit
an estimate of appropriation for $150,000 for the purpose of giving
this assistance. Panama, on her part, will of course also give
financial assistance, and will enact the necessary measures to
prevent admission to Panama of aliens who would become a charge, and
also to prevent the readmission of such aliens as may be
repatriated.
10. The local delivery into the Republic of Panama and the Canal Zone
from “Hold for Orders” goods in the warehouses in the Canal Zone
will be suspended.
11. The request made by President Arias for the suspension by the
Panama Railroad Company of “all business transactions with persons
or concerns other than the United States Government or the Panama
Canal” is not clear. If specific points in this matter will be
submitted, the matter will be given careful consideration.
In the meanwhile, measures will be taken so that services offered by
the Panama Railroad Company such as the washing and pressing of
clothes will be restricted to officers and employees of the United
States Government and of the Panama Railroad Company and their
families.
12. Article IX of the Treaty of 1903 gives the Republic of Panama
“the right to establish in such ports and in the towns of Panama and
Colon such houses and guards as it may deem necessary to collect
duties on importations destined to other portions of Panama and to
prevent contraband trade”. The United States Government is prepared
to make the necessary arrangements to this end whenever the Republic
of Panama so desires.
13. Desire of the Republic of Panama to construct
links in the proposed trans-Isthmian highway.
The United States will make every effort to expedite its reply to
Panama on this question, and to find a way to comply with Panama’s
desire.
14. It appears that Title III of the Treasury and Post Office
Appropriation Act for the fiscal year ending June 30, 1934, approved
March 3, 1933, which requires the purchase of articles, materials
and supplies mined, produced, and manufactured in the United States,
with certain exceptions, has been interpreted in such a manner as to
prevent the purchase of some of the products of Panama.
Consideration will be given to the matter in order to determine
whether enough latitude does not exist, under the provisions of
Title III of the Act in question, so that the United States, through
administrative orders, could direct that purchases of considerable
quantities of Panamanian articles be
[Page 868]
made. If this does not prove to be the case,
consideration will be given to seeking appropriate remedial
legislation.
In addition to the foregoing specific points dealing with
administrative matters, the United States agrees to the statement of
certain general principles forming the bases for the relations
between Panama and the United States in so far as the Canal Zone is
concerned:
- 1.
- Now that the Panama Canal has been constructed, the
provisions of the Treaty of 1903 between the United States
and Panama contemplate the use, occupancy and control by the
United States of the Canal Zone for the purpose of the
maintenance, operation, sanitation and protection of that
Canal.
- 2.
- In view of that purpose the Republic of Panama is
recognized as entitled, as a sovereign nation, to take
advantage of the commercial opportunities inherent in its
geographical situation so far as that may be done without
prejudice to the maintenance, operation, sanitation, and
protection of the Panama Canal by the United States of
America, which is earnestly desirous of the prosperity of
the Republic of Panama.
- 3.
- The Government of the United States would sympathetically
consider any request which the Government of Panama might
make for the solution by arbitration of any important
question which might arise between the two Governments and
may appear impracticable of decision by direct negotiations,
provided that such question is purely economic in its nature
and does not affect the maintenance, operation, sanitation
and protection of the Canal.
