819.51/953: Telegram
The Chargé in Panama ( Flexer ) to the Secretary of State
[Received 11:40 p.m.]
109. Referring to Department’s telegram No. 57, October 20, 7 p.m., and No. 58, October 21, 7 p.m., concerning guarantee bond bill. The [Page 814] views expressed in the former telegram were promptly conveyed to the Comptroller General of the Republic in whose office the measure originated. They were reiterated to the Minister for Foreign Affairs10 this morning in discussing the matters instructed by the latter telegram. The Minister for Foreign Affairs stated that the Panaman Minister at Washington had not communicated concerning the October 18th conversation11 with the Under Secretary of State. He said that he had not familiarized himself either with the income tax or the guarantee bond bill and had not been present at the National Assembly on Thursday when, as I informed him, the Secretary of Finance and Treasury12 had altered the order of the day without notice and had obtained passage of the latter bill in second reading. He stated that he would at once seek an interview with the President at which he would present the Department’s views and its hope that opportunity would be given to the American banks for discussion of the situation.
The British Minister13 complied with similar instructions from the British Government in Canada at noon and I am informed that the Minister of Foreign Affairs shortly afterwards was received by the President. The joint statement of October 22nd of the American and Canadian banks was presented to the Secretary of Finance and Treasury late this morning.
Concerning the desirability of sending special bank representatives to Panama the Legation concurs with the local representatives that no advantage is to be gained through the interjection of home office talent. These local representatives have not been denied hearing, not having previously addressed the Government for the reasons given in their telegrams October 20th to their principals, as stated in the penult paragraph of the Legation’s telegram number 108, October 21, 10 a.m.