711.1928/476: Telegram
The Chargé in Panama (Flexer) to the Secretary of State
[Received 7:29 p.m.]
170. Referring to Department’s telegram No. 65, Oct. 25, noon.
1. Discussion held this morning in exceptional spirit of amity.
With reference to first numbered paragraph, Panaman representatives admitted that such sales facilities are now extended local merchants, Canal representatives pointing out that commissary employs no runners.
[Page 907]2. There was unanimity of agreement between Panamans and Canal Zone that bum-boating, or offering goods for sale from small craft alongside vessels in harbor or transiting, is undesirable.
There is as yet no agreement on delivery by private launches. Canal Zone representatives point out that few Panaman merchants have taken advantage of the present privilege of operating private launches because of the economy of use of Canal facilities, the same charge being made for commissary and private deliveries; moreover, it is contemplated to prohibit the operation of private commercial launches in Canal Zone waters. Panamans, while admitting equality of the present official launch rates, require relief from wharfage dues not assessed against Canal Zone launches and assurances for protection against possible future inequalities that operation of private launches for delivery will continue to be permitted.
3. Panamanian representatives have not been insistent and appeared impressed by percentage spread between landed costs and retail commissary prices charged on quantity sales to vessels. In the absence of Foreign Office pressure, it is hoped that agreement can be reached without surcharge on presentation of commissary statistics.
Referring to draft of section 7, article III, substitution of “arriving at terminal ports of the Panama Canal” for “transiting” was suggested.