819.51/298
The Secretary of State to the Minister in Panama ( Price )
Sir: The Department acknowledges the receipt of your despatch Number 2903 dated February 17th,9 relative to the order of the President of Panama that Panaman Government funds be transferred on July 1st next, from the International Banking Corporation to the Banco Nacional.
The Department has given careful consideration to the report on the Banco Nacional, submitted by the Assistant Fiscal Agent to the Secretary of the Treasury, which accompanies your above mentioned despatch. It is believed that the interests of the Panaman Treasury would be served in the most adequate manner by postponing the transfer of Panaman Government funds to the Banco Nacional until the reorganization of this bank has been effected. The Department deems that in addition to measures of internal reorganization intended to introduce up-to-date methods of management and accounting, [Page 611] there appears to exist a need for safeguards that will insure the complete severance of the bank management from local political influence. Until these reforms have actually been introduced, the transfer to the Banco Nacional of Panaman Government funds now deposited with the International Banking Corporation is liable to affect adversely the flourishing condition in which the Panaman Treasury has found itself for some time past, as a result of the cooperation of an American Fiscal Agent.
In view of these considerations, the Department desires that you avail yourself of an early opportunity to discuss the matter with President Porras, in order to bring the Department’s views to his attention, in doing which the Department desires that you remind him once more of the deep interest which this Government has always entertained in all matters affecting the welfare of his country.
I am [etc.]
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