711.1928/448a: Telegram

The Secretary of State to the Chargé in Panama (Flexer)

65. The Panamanian Commissioners have suggested three amendments to Section 7, Article III, of the General Treaty, in substance as follows:

(1)
That licensed Panamanian wholesalers and suppliers be permitted to board vessels transiting the Canal in order to secure orders for victualing vessels.
(2)
That duly authorized Panamanian launches be permitted to moor alongside vessels transiting the Canal for the purpose of offering goods for sale or delivering orders, and
(3)
That the Canal Zone authorities collect on sales to ships a surcharge of 25 percent over the prices at which goods are sold to employees of the Canal and the railroad by the commissaries.

It was agreed with the Commissioners that it would be a useful first step if these matters were discussed between the Legation and appropriate Zone authorities and the proper Panamanian officials, just as was the question of the boarding of ships by Panamanian immigration authorities. The Commissioners were informed, moreover, that it seemed preferable not to treat such details in the General Treaty but to handle them administratively in conformity with the broad principles already agreed upon and set forth in Section 7 of Article III. You should therefore be prepared to hold discussions when approached by the Panamanian authorities, endeavoring to work out a satisfactory agreement through administrative measures.

As to number 3 of the Panamanian suggestions, it was, of course, pointed out that the commissaries are already assessing surcharges on “sea stores” and “articles of other classes”.

Hull