Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

PM–18. Memorandum from the Acting Secretary of State to the President¹

Washington, July 11, 1959

SUBJECT

• United States Aide Memoire to Panama

On July 6 the Panamanian Foreign Minister informed our Chargé d’Affaires² and made a public announcement that he found unacceptable an Aide Memoire which had been presented to him by our Chargé.³ The Foreign Minister maintained that the Aide Memoire did not constitute a direct reply from you in response to a letter of March 7, 1959 from President de la Guardia⁴ objecting to certain features of the new merit system and wage scale procedure put into effect by Canal Zone authorities in February. Our Chargé reports that the Foreign Minister privately stated that the contents of the Aide Memoire appeared to offer little or no satisfaction to the Panamanian Government and the Chargé believes that objections were raised on procedural grounds solely in order to forestall criticism of the Government when the contents of the Aide Memoire are eventually made public.

I believe that the transmittal of your reply, dated April, 1959, to President de la Guardia⁵ and the subsequent delivery of the Aide Memoire were entirely correct and appropriate. However, rather than permit this incident to be further distorted out of proportion, I believe it advisable and would suggest that you approve the enclosed letter stating that the United States Government’s study of the points raised by the Panamanian Government’s memorandum has been completed and is being delivered in the form of an aide memoire through the usual diplomatic channels. If you approve this suggestion, I will instruct our Chargé, on presentation of the letter, orally to inform the Panamanian Foreign Minister that, although the Department regards the delivery of the Aide Memoire on July [illegible in the original] to have been correct diplomatic procedure, you are pleased to send another letter to President de la Guardia on this subject.

It is recommended that this letter, if approved, be released only on the initiative of the Panamanian Government.

Douglas Dillon
Acting Secretary

[Enclosure]

Suggested Letter to the President of Panama⁶

Dear Mr. President:

I stated in my letter of April sixth, 1959 that I would direct a study to be made by competent experts in my Government of the points raised in the Memorandum accompanying your letter of March seventh, 1959.

The results of this study are contained in an Aide Memoire which is being delivered through the usual diplomatic channels.

May I take this opportunity to reiterate the hope expressed in my letter of July twenty-fifth, 1958,⁷ that adoption of these new employment and wage practices will make a significant contribution to the mutual respect and friendship existing between our Governments and peoples. I firmly believe that any differences existing with regard to the implementation of the new system can be resolved by patient discussion and negotiation between your Government and the officials of the United States charged with the responsibility of administering it.

Please accept, Mr. President, my personal good wishes to you and to the people of Panama.⁸

Sincerely,

1. Source: Department of State, Central Files, 811F.061/6–1159. Drafted by Leggett on July 10 and transmitted to the President under cover of a memorandum dated July 11 from John A. Calhoun, Director of the Executive Secretariat, to Brig. Gen. Andrew J. Goodpaster, the President’s Staff Secretary.
2. John C. Shillock.
3. On June 24, the Department of State had transmitted the text of this Aide Memoire to Ambassador Harrington. (Airgram 211 to Panama City; 811F.061/3–3159)
4. For further information concerning the contents of President de la Guardia’s letter of March 7, see Rubottom’s memorandum of April 1 to the Acting Secretary of State, Document PA-11.
5. See Document PM–12.
6. Drafted by Leggett on July 10.
7. See Document PM–4.
8. In telegram 21 to Panama City, July 13, the Department of State informed Ambassador Harrington that he was to deliver the text of this letter from President Eisenhower to Panamanian Foreign Minister Moreno as soon as possible, and that he was to inform the Foreign Minister that the Embassy also had received instructions to resubmit the text of the Aide Mémoire of June 24. (611.1913/7–959) In telegram 30 from Panama City, July 15, Harrington notified the Department that he had delivered the text of the President’s letter to Moreno and had notified the Foreign Minister of his intention to resubmit the Aide Mémoire of June 24. (611.1913/7–1559) In telegram 39 from Panama City, July 17, Harrington reported that Moreno had urged the Embassy to make certain textual changes in the Aide Mémoire before its presentation to the Government of Panama. Harrington endorsed Moreno’s suggestions as a way to end the controversy surrounding the Aide Mémoire. (711.11–EI/7–1759) In telegram 30 to Panama City, July 17, the Department accepted Harrington’s recommendations concerning the Aide Mémoire. (711.11–EI/7–1759) In telegram 43 from Panama City, July 20, Harrington notified the Department that Moreno had accepted the revised Aide Mémoire. (711.11–EI/7–2059) The Embassy at Panama City transmitted the text of the Aide Mémoire to the Department for its information under cover of desp. 44, July 20, not printed. (611.1913/7–2059)