819.51A/1: Telegram

The Minister in Panama (Price) to the Secretary of State

14. Department’s 8, February 11, 6 p.m. Panaman Minister for Foreign Affairs has given me what he termed confidential information that he was preparing answer to my note of Saturday presenting name of Hord for Fiscal Agent, stating that Panama desired and intended now to select and appoint a Panaman to the position admitting there was no objection personally to Hord, a stranger to them. I expressed thorough surprise and argued at length, including interest of our Government in Canal indebtedness particularly, and effect on road building, only response being that after two years training they felt able to handle their own finances and interpreted Law 30 as giving Department State right of selection only when Fiscal Agent was to be a foreigner. I learn confidentially that Panaman President asserted above position at Cabinet meeting yesterday without submitting proposal to discussion or vote.

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Price