Foreign Relations of the United States, 1969–1976, Volume XXII, Panama, 1973–1976

31. Action Memorandum From Ambassador at Large Bunker to Secretary of State Kissinger¹

Washington, February 5, 1974

Proposed Letter to Canal Zone Governor

Problem:

There are approximately 5,500 American and 16,000 Panamanian U.S. Government employees working in the Canal Zone. Each time there is any indication of movement in treaty negotiations, Canal Zone employees become uneasy about their status. In order to forestall possible employee protest over the signing of the Statement of Principles, I propose to give a letter to the Governor of the Canal Zone, which he can use to reassure Canal Zone employees.

Background:

Canal Zone employees have been uneasy about their status since 1964 when the U.S. undertook to revise its treaty relationship with Panama. The Joint Declaration of Principles made by President Johnson and President Robles in 1964 contained a reference to the status of Canal Zone employees.² Negotiators of the draft 1967 treaties were attentive to their concerns also by periodically explaining the progress of the negotiations and assuring the employees that their interests had not been forgotten.³ In November when I visited Panama I also spoke to representatives of Canal Zone labor unions and civic councils to explain to them the purpose of my visit.⁴ I believe that it is important to acknowledge their concerns by informing them through Governor Parker of the meaning of the signing of the Joint Statement of Principles. Attached is a copy of a letter I propose to send to the Governor of the Canal Zone on your behalf to that end.

Recommendation:

That you approve the attached letter for my signature.⁵

Attachment

Draft Letter From Ambassador at Large Bunker to the Governor of the Panama Canal Zone (Parker)⁶

Undated.

Dear Governor Parker:

The signing of a Joint Statement of Principles by the Governments of the United States and Panama today is an important step for both countries in laying the basis for a new and modern treaty arrangement.

On behalf of the Secretary of State, I would like to take this opportunity to assure you that this action in no way changes the status of U.S. Government employees in the Canal Zone. The Principles are intended to provide a framework for future negotiation of a treaty which will be subject to congressional consultation and eventual ratification processes.

The Secretary and I fully recognize the vital contribution that employees of the Zone and Company are making to the continued efficient operation of the Canal, and are attentive to the need to treat these employees fairly and judiciously. Appropriate arrangements will be made to ensure that their rights and interests are safeguarded. Whatever the changes agreed upon in the final treaty that will affect employees, they will take place over a period long enough to obviate or minimize personal hardship.⁷

Sincerely,

Ellsworth Bunker

1. Source: National Archives, RG 59, Ambassador Bunker’s Correspondence, Lot 78D300, Box 4, Employees. Confidential. Drafted by Morris; Bell and Bowdler concurred.
2. See Foreign Relations, 1964–1968, vol. XXXI, South and Central America; Mexico, Document 421.
3. See Foreign Relations, 1964–1968, vol. XXXI, South and Central America; Mexico, Document 439.
4. An account of Bunker’s visit to Canal Zone labor unions is in Parker’s backchannel message PNA 708 to Koren, December 2, 1973. (National Archives, RG 185, Subject Files of 1979 Panama Canal Treaty Planning Group, Box 10, Action Plan Part 3 [Rush memo])
5. The Secretary initialed his approval on February 8. Beneath the recommendation is a note in an unknown hand that reads: “(Bunker signed on plane).”
6. No classification marking.
7. In backchannel message PNA 104 to Koren, February 12, Parker stated that “Ambassador Bunker’s meetings with our employees and his letters to me have been very helpful in maintaining employee morale. At the same time, however, I think we must start indoctrinating our employees with the idea that changes of some sort are coming in our relationships with Panama. The present arrangements cannot continue indefinitely, and I do not want our employees to have any forlorn hopes on this score.” (National Archives, RG 185, Subject Files of 1979 Panama Canal Treaty Planning Group, Box 5, Messages—Jan. to Jun. 1974)