<--PREV Doc #1354  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #1356 Document #1355; October 28, 1959 To Ernesto de la Guardia, Jr. Series: EM, AWF, International Series: Panama The Papers of Dwight David Eisenhower, Volume XX - The Presidency: Keeping the Peace Part VIII: "Friends and Foes"; September 1959 to February 1960 Chapter 19: Khrushchev in America   Dear Mr. President: Since receiving your letter of March seventh, I have given careful consideration to the course of relations between our two countries. I have been particularly encouraged to receive recent information that our representatives have been making progress toward reducing points of divergence in the application of the Treaty of Mutual Understanding and Cooperation of 1955.1 The pending issues between our two countries arising in the course of implementation of that Treaty have been and are under continuing study by the responsible officers of this government, including myself.2 It is clear to me by now that further discussion of the intent and meaning of certain aspects of our treaty undertakings is unlikely to bring about full agreement. However, I do not think that this should deter our efforts to achieve ever-increasing understanding between our two countries. For my part, accordingly, I have approved a number of revisions in operating policies of the Canal Zone authorities which resulted from a meeting of representatives of our two Governments in which you actively participated.3 I trust that these actions, the substance of which will be communicated to you by Ambassador Harrington, will redound to the benefit of the people of Panama.4 I am confident that it is your desire, as it is mine, that our two countries should continue their traditionally close cooperation to insure the efficient operation of the Panama Canal for the benefit of the entire world.5 Sincerely 1 In his letter of March 7, 1959, the President of Panama had charged that the United States had violated both the Treaty and the understandings reached by the two nations in January 1955 (for background on the Treaty see Galambos and van Ee, The Middle Way, no. 753). He alleged that U.S. officials had failed to implement a promised uniform wage scale, and had not eased the unnecessarily stringent security restrictions excluding Panamanian workers from skilled jobs (de la Guardia to Eisenhower, same file as document). On July 25, 1958, Eisenhower had ordered U.S. government agencies to conform to the treaty agreements (P.L. 85-550), and in December, he had issued new employment regulations by executive order (Howe to Goodpaster, Aug. 13, 1958; Congressional Quarterly Almanac, vol. XIV, 1958, p. 475; U.S. Federal Register, vol. 23, Nov. - Dec. 1958, p. 10974). De la Guardia, however, maintained that the new regulations only perpetuated the "old system of discrimination" against Panamanian workers and continued to deprive them of "equality of opportunity." Arguing that the deterioration in U.S.-Panamanian relations encouraged their common adversaries and threatened "the principles and ideals of democracy, equality, and respect for human dignity," he had threatened to take the matter to an international court (de la Guardia to Eisenhower, Mar. 7, 1959, AWF/I: Panama). For background on the wage issue see Galambos and van Ee, The Middle Way, nos. 1926 and 2020. In an initial response Eisenhower had assured de la Guardia that he was "deeply interested" in U.S.-Panamanian relations and that he would request a detailed government study (Eisenhower to de la Guardia, Apr. 6, 1959; see also Herter to Eisenhower, Apr. 2, 1959, AWF/I: Panama). Panama’s Foreign Minister had rejected the study’s proposals in July 1959 (Dillon to Eisenhower, July 11, 1959; Eisenhower to de la Guardia, July 13, 1959, ibid.). Secretary of State Herter had suggested that Eisenhower send this letter in the hope that it would provide a "written record of good faith in cooperating" should Panama carry out the threats to take its accusations to the International Court of Justice (Herter to Eisenhower, Oct. 28, 1959, AWF/I: Panama). On October 12, at an interdepartmental meeting, Eisenhower asked that steps be taken to improve the employment and wage system and to implement a housing loan project. Stressing that the Panama Canal had "deep impact" on foreign relations, he suggested that officials from the Army and State Department work closely together on resolving the issues of conflict (Memorandum for Record, Oct. 12, 1959, and Memorandum of Conference for Record, Oct. 13, 1959, both in AWF/D; see also Memorandum for S/S, Oct. 19, 1959, Herter Papers, Chronological Series). Also on October 12 the President had met with Ambassador Ricardo Arias of Panama and had told him that recent public criticism made by the Panamanians would not help relations. He had hoped Arias would not use his presidential campaign as a vehicle to attack the United States and suggested that another location for the canal might have to be found if satisfactory relations could not be maintained (Memorandum of Conversation, Oct. 12, 1959, AWF/D). For additional background see New York Times, December 2, 1959. 2 After ratification of the 1955 treaties, de la Guardia and other officials had complained that Panamanian business suffered unfair competition from Canal Zone sales outlets. They also pressed hard for an increase in Panama’s share of the profits from canal toll receipts and for the right to fly the country’s flag within the Zone (Walter LaFeber, The Panama Canal: The Crisis in Historical Perspective [New York, 1978], pp. 115 - 31; Thomas M. Leonard, Panama, The Canal and the United States [Claremont, Cal., 1993], pp. 73 - 84; and J. Michael Hogan, The Panama Canal in American Politics [Carbondale, Ill., 1986], pp. 69 - 75). For background see State, Foreign Relations, 1958 - 1960, vol. V, American Republics, pp. 908 - 10. 3 Eisenhower was referring to a September 1 meeting between Panamanian and American officials attended by de la Guardia. Herter had reported that Canal Zone authorities had begun to reduce purchases of goods from third countries and to limit the sale of duty-free luxury items. He suggested that this information could be conveyed orally to the Panamanian President when this letter was delivered to the Ambassador and that information on other issues could be communicated later (Herter to Eisenhower, Oct. 28, 1959, AWF/I: Panama; for developments see nos. 1380, 1443, and 1645). 4 Julian Fiske Harrington had been appointed U.S. Ambassador to Panama in 1955. 5 This letter was drafted by the State Department and approved by the President without any changes. The State Department had received the signed original on November 2, 1959, and transmitted it for delivery. On November 4, 1959, Ambassador Harrington had advised withholding the letter in view of the riots in Panama City the previous day. The State Department instructed the Ambassador to return the President’s letter to the Department via air pouch (Herter to Eisenhower, Oct. 28, 1959, AWF/I: Panama, State, Foreign Relations, 1958 - 1960, vol. V, America Republics Microfiche Supplement, P-22. For developments see no. 1380. Bibliographic reference to this document: Eisenhower, Dwight D. To Ernesto de la Guardia, Jr., 28 October 1959. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 1355. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/second-term/documents/1355.cfm <--PREV Doc #1354  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #1356

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