Office of the Historian

PM–11. Memorandum from the Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Acting Secretary of State1

Washington, April 1, 1959

SUBJECT

  • Suggested Reply to Letter President Eisenhower Received from President de la Guardia of Panama

Discussion

The President of Panama, Ernesto de la Guardia, Jr., addressed a letter dated March 7, 1959 to President Eisenhower which was personally delivered by Ambassador Ricardo Arias of Panama on March 19, 1959, together with an attached memorandum. (Translations [Typeset Page 895] at Tab B)2 In his letter President de la Guardia refers to Item 1 of the Memorandum of Understandings Reached attached to the Treaty of Mutual Understanding and Cooperation of 1955, between the United States and Panama (Tab C)3 and expresses his concern and apprehension as to the manner in which the United States is implementing its provisions. President de la Guardia claims the administrative Regulations do not properly implement the provisions of Item 1 of the Memorandum and he specifically cites several points which he considers to be at variance with, and some even in violation of, the provisions of Item 1 of the Memorandum. In summary these are: 1) a dual wage scale system still prevails for Panamanian employees in certain categories and is discriminatory; 2) the merit system is incorrectly administered; 3) the unlimited use of the “security” concept unduly excludes Panamanian employees from positions classified as security positions, and 4) the establishment of other unauthorized exceptions violates the principles of equality of compensation, opportunity and treatment to Panamanian employees.

The memorandum attached to the presidential letter sets forth in some detail additional cases of alleged violations.

Because the substantive matters raised in the letter and memorandum require detailed study, a suggested reply has been prepared for President Eisenhower expressing his interest in the matters brought to his attention and assuring President de la Guardia that a reply will be made later through regular diplomatic channels after the specific problems have been studied and determinations made by this Government. The President’s letter of July 25, 1958 (Tab D)4 and de la Guardia’s reply of August 4, 1958 (Tab E)5 are attached.

Recommendation

That you sign the attached memorandum6 transmitting for the President’s consideration a suggested reply to President de la Guardia’s letter.7

  1. Source: Department of State, ARA/OAP Files, Lot 61 D 67, “Panama Relations March–May 1959.” Official Use Only. Drafted by Price.↩
  2. Not attached to the source text. Neither the letter nor its translation are printed, but the translation of President de la Guardia’s letter is filed in Presidential Correspondence, Lot 64 D 174. No copy of the memorandum attached to de la Guardia’s letter has been found.↩
  3. Not attached to the source text. Item 1 of the Memorandum of Understandings Reached outlined the wage practices and procedures the United States was willing to implement as part of the settlement negotiated in the Treaty of Mutual Understanding and Cooperation. For the text of Item 1, see the Department of State Bulletin, February 7, 1955, p. 241.↩
  4. Not attached to the source text, but see Document PA–4.↩
  5. Not attached to the source text, but see PM–6, footnote 2.↩
  6. Not attached to the source text. The memorandum, however, is filed under decimal number 911F.7301/4–259.↩
  7. For the text of President Eisenhower’s reply to President de la Guardia, see Document PM–12.↩