In accordance with your request of August 15, I am enclosing a suggested
reply to Senator Green for Mr. McCabe’s signature. Senator Green’s
letter is returned for your files.
[Enclosure]
SUGGESTED REPLY
Dear Senator Green:
Further to my letter of August fifteenth4 in reply to yours of August twelfth to the
President, concerning the program for the improvement of relations
between the United States and Panama which the President approved on
April nineteenth, I am pleased to be able to inform you of the
following actions which have been taken on each of the nine points
contained in the program.
Point 1. Provision was made for an increase effective May 1, 1960 of
10 percent in the wages of persons in the appropriate
categories.
Point 2. The apprentice training program was expanded by the
appointment of 27 Panamanian apprentices in July 1960, two more than
the number originally specified.
Point 3. The construction of 500 housing units in the Canal Zone is
scheduled in the Capital Budget program of the Panama Canal Company
beginning in FY 1960. The program
now developed provides for the construction of 100 units in each of
the fiscal years 1961, 1962, 1963, and 1964. Twelve units were begun
in FY 1960 and completion of the
program is scheduled in FY 1965 with
the construction of 88 apartments.
[Facsimile Page 3]
Point 4. Meetings have been and are being held here to consider the
various plans and proposals that have been developed for
construction and financing of 500 housing units in Panama for Canal
Zone employees. It is understood that the Development Loan Fund is
presently entertaining a proposal for a guarantee to private capital
interested in financing this project.
Point 5. The Panama Canal Company has advertised for bids for the
construction of a new water main and contracts will be let in the
near future, following the opening of the bids.
Point 6. Effective July 1 the rate at which water is sold to the
Government of Panama for distribution in the cities of Panama and
Colon was reduced from approximately [illegible] cents to 7.5 cents
for the first 100,000 cubic feet and to 7 cents for additional units
of this amount.
Point 7. Legislation enacted by the United States Congress was signed
by the President on July 14, 1960, granting $10.00 per month
increase in cash relief payments effective as of July 1, 1960.
Point 8. Salaries of teachers in the Canal Zone Latin American School
system were increased 10 percent effective May 1, 1960.
[Typeset Page 973]
Point 9. A continuing review at the highest levels of the list of
jobs reserved for citizens of the United States has been undertaken
by the U.S. agencies in the Canal Zone.
[Facsimile Page 4]
I hope that the foregoing information will satisfy your request as to
the progress which has been made on the President’s program.5
Kind regards,
Sincerely,
Edward A.
McCabe
Administrative Assistant to the
President
