The Secretary of Defense ( Forrestal ) to the Secretary of State
Dear Mr. Secretary: This is with further reference to your letter of 7 September 1948 concerning labor problems in the Canal Zone, and to my acknowledgment of 15 September. As I indicated in that letter, I felt it was necessary to obtain the recommendations of the Departments of Army, Navy, and Air Force, and of the Panama Canal, since all four agencies have a direct interest in this matter.
A complete report on this subject is not yet available, but I am forwarding for your information a copy of a memorandum dated 21 October 1948 from the Governor of the Panama Canal to the Secretary of the Army, which may be of interest. This gives, in a preliminary fashion, some indication of the action which is being taken and the consideration which is being accorded to these various questions. In transmitting this memorandum to me, the Secretary of the Army stated that he was expecting a complete report from the Canal Zone in the near future and would make this available as soon as it had been received.