711.1928/475: Telegram

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

169. 1. Referring to Department’s telegram No. 65, October 25, noon. First meeting scheduled December 16.

With reference to paragraph 1–C of memorandum of points agreed upon by the President of the United States and President Arias, transmitted by the Department’s instruction No. 3, October 20, 1933,14 confirmation is requested of my view that the suggested surcharge would be based upon retail commissary prices to employees, which are, I am informed, identical to prices of quantity sales to ships. Canal Zone representatives have given reason for anticipating contention that basis of surcharge is not established and might equally refer to landed costs.

“Other articles” to which surcharge might apply are construed to be embraced in interpretation given in minutes of 14th meeting, paragraph 2. Referring first paragraph Department’s telegram of December 9, 7 [5] p.m.15 First meeting scheduled December 17, representatives of Commanding General but not of governor attending. Please refer to Legation’s despatch No. 51, April 25, 1935.15

Flexer