61. Backchannel Message From the Governor of the Panama Canal Zone (Parker) to the Deputy Under Secretary of the Army (Koren)1

PNA 1035. Sub: Visit of Negotiators “Support Group”.

1. Negotiators “Support Group,” which is visiting here to discuss compensation and land use issues,2 has requested a great amount of detailed information on our employees. In order to further the spirit of cooperation between the Company and the Support Group, I have authorized that the Support Group be provided with the requested data. I am, however, dismayed by the inference of distrust in their requests, by the considerable workload required by their requests and, above all, by the implication of further inquiry and debate on our judgments on personnel policies.

2. Data which the Support Group has requested, and which we should have available for them by early next week, include computer print outs of alphabetical list of over 15000 employees, sequence listing by citizenship, sequence listing showing whether each employee receives tropical differential and complete copy of role and gang by citizenship. This comprises a print out package about one foot high containing the company/government’s complete personnel data. Request was made by AID technician accompanying support group. But initiative for information apparently comes from Group Chairman Wyrough who wants to obtain a better “feel” as to Canal Administration’s continuing need for U.S. employees and future requirement to pay U.S. employees in post treaty period additional retention incentives. Alternatively, we were requested to supply Support Group with master copy of our computer tape on employees (I am not prepared to authorize this request).

3. Essential issue is how much money might be saved by changing U.S.–non-U.S. employment mix and how these savings might affect compensation package we have developed here with Support Group. It is doubtful that data we are providing will allow Support Group to make meaningful judgments on these critical issues. Nor do I believe that it is proper for negotiators to involve themselves in judgments on the number of U.S. employees (and their pay) which the future Canal Administration will need in order to effectively run the Canal. Our [Page 170] present judgments on savings and costs, while we believe they are prudent and supportable, are not immutable. We will be refining our data during the coming weeks. But this data should not be questioned and debated in independent terms of financing the compensation package to Panama. As long as the U.S. has the responsibility for operating the Canal, these are managerial judgments which should be left to those with the experience and responsibility. Warm regards.

  1. Source: National Archives, RG 185, Subject Files of 1979 Panama Canal Treaty Planning Group, Box 5, Messages Jul to Dec 19 74. Confidential; Priority; Eyes Only.
  2. See Document 55.