Eisenhower Library, White House Central files, Confidential file

Memorandum by the President to the Secretary of Defense (Wilson)1

confidential

On the occasion of the visit of President Remon of Panama last fall I issued jointly with him a statement on October 1, 19532 stating in part:

“We have equally agreed that inasmuch as the two countries have a mutual and vital interest in the work of the Panama Canal, the principle of equality of opportunity and treatment must have full effect in regard to the citizens of Panama and the United States employed in the Canal Zone as set forth in the exchange of notes of March 2, 1936 on this subject and that wherever circumstances should be found which in any manner interfere with the observance of that principle, appropriate measures will be taken by the United States.”

The Department of State informs me that prolonged consultation with the Department of Defense has failed to bring agreement. In order to give effect to the joint statement, and apart from the matter of the applicability of the note accessory to the 1936 Treaty, I believe that the Department of Defense should promptly take steps necessary to enable our negotiators to inform the Panamanians that we are prepared to give effect to the following objectives:

(1)
The merging of the present dual-wage systems into a single-wage scale and uniformity in treatment of non-American labor;
(2)
Have this new single scale and uniformity in treatment apply to all United States Government agencies operating in the Canal Zone; and
(3)
Have whatever retirement system finally adopted applied uniformly to non-American employees of all Government agencies in the Zone.

We should be in a position to make this announcement to the Panamanian Delegation prior to the opening of the Caracas Conference on March 1 st. If you have real objection to the formulation of such policies, please see me at once.

Dwight D. Eisenhower
  1. This memorandum was drafted by Mr. Kuppinger except for the last sentence, which was presumably added on by the President (memorandum by Under Secretary of State Smith to the President, dated Feb. 15, 1954, 611.19/2–1554).
  2. For complete text, see Department of State Bulletin, Oct. 12, 1953, p. 487.