811F.504/12–1244

Memorandum of Conversation, by Miss Bonnie Farber of the Division of International Labor, Social and Health Affairs

Participants: Mr. Samuel Lewis, Minister of Foreign Affairs of Panama.
His Excellency Don Enrique A. Jiménez, Ambassador of Panama.
Señor Don Mario de Diego, Director of Protocol of Panama.
Señor Don Narcisco E. Garay, First Secretary, Embassy of Panama.
Mr. Otis E. Mulliken, Chief of International Labor, Social and Health Affairs.
Miss Bonnie Farber—ILH.
Mr. Howard Wilson—CCA.

The Foreign Minister opened the conversation by stating that it was the earnest desire of his government that the relations between Panama and the United States continue on the usual friendly and cordial basis. For this reason he wished to discuss with us three problems concerning the Canal Zone which are of great importance to both governments:

(1)
Elimination of discrimination;
(2)
Elimination of “gold” and “silver” denominations; and
(3)
The lowering of the “silver roll” limit from 50¢ to 48¢ per hour.

Mr. Lewis mentioned that under the treaty agreement of 1936 between the United States and Panama, the Panamanians were entitled to equal treatment as compared with the Americans but that actually equal treatment was not always practiced. He felt that the same situation was true in regard to discrimination against Panamanians on the “gold roll”. It was mentioned that there are rumors in Panama to the effect that aliens, neither Panamanian nor United States citizens, seem to have preference over the Panamanians to the extent that over 800 to a 1000 are “gold roll” employees.

The Panamanians are now particularly concerned with reducing the “silver roll” limit from 50¢ per hour to 48¢ per hour. It was explained that the 50¢ per hour did not signify an increase in wage rates. Since the previous dividing line between the “gold” and “silver” roll had been the 48¢ per hour wage rate, raising it to 50¢ per hour meant that the number of Panamanians on the “silver roll” increased. The Panamanians viewed this development unfavorably.

It was pointed out, too, that the words “gold” and “silver” were particularly odious to the Panamanians. Mr. Mulliken inquired if [Page 1455] the cause of this irritation might be removed by changing the classifications to “skilled” and “unskilled” rather than “gold” and “silver”. The Panamanian representatives seemed to feel that any classification other than “gold” and “silver” would represent an improvement.

Mr. Lewis commented favorably on a conference which he had had with General Brett before leaving Panama, in which he felt that some important improvements had been accomplished. The points covered in that discussion concerned:

(1)
Vacations for “silver roll” employees, to be granted after thirty days of sick leave had been accumulated;
(2)
The establishment of an office of complaints; and
(3)
Overtime pay to be granted after eight hours of work, rather than after ten hours of work.

Other points mentioned at random during the conversation were:

(1)
The desirability of equality of opportunity;
(2)
The Panamanian representatives wished to have “gold roll” privileges extended to both white and colored Panamanians. Although the Foreign Minister, in an aside, mentioned that he doubted there could be any elimination of the color line itself; and
(3)
That the salary discrimination between United States citizens and Panamanians doing the same type of work was undesirable.

The Foreign Minister, in closing, reiterated the earnest wish of his Government to cooperate with this Government. He stated that it was in the mutual interest of both countries that these difficulties be adjusted.