811F.504/198

Memorandum by the Assistant Chief of the Division of the American Republics (Finley) to the Chief of the Division (Duggan)

Mr. Duggan: Mr. Briceño, the Panamanian Chargé d’Affaires, telephoned to say that he has received instructions from his Government to make representations to us with regard to the failure to include provision in the now pending bill for new construction of works in the Canal Zone for the employment of Panamanians. He said Dr. Garay had received protests from the Panamanian Society of Engineers with regard to this.

I told Mr. Briceño that ten days or two weeks ago Mr. Dawson had discussed this matter with Dr. Garay at the request of Mr. Welles. It had been pointed out that in this second bill, we were not unmindful of our commitments to Panama in this regard. However, we did not wish to raise the labor question in connection with these new works and thus divert attention from the defense aspects of the measure. Mr. Dawson had assured Dr. Garay that following the passage through Congress of the present bill, another bill would be introduced to take care of the labor aspect.

Mr. Briceño said he would cable this to his Government and would not make formal representations until he had again heard from his Government.