130. Memorandum of a Conversation, Department of State, Washington, April 12, 19561
SUBJECT
- Call of Governor Seybold
PARTICIPANTS
- Governor Seybold of the Canal Zone
- Mr. Holland, Asst. Secretary of State for Inter-American Affairs
- MID—Mr. Sowash
General Seybold, Governor of the Panama Canal, called upon Mr. Holland by appointment today. Since the Governor’s term expires next month, this was probably the Governor’s last official call at the Department.
After a few pleasantries, the Governor stated that, as his swan-song, he would like to urge the importance of making every effort to ensure submission of the draft legislation for the implementation of the 1955 agreements with Panama to the Congress in time for action during the current session. Mr. Holland declared that he fully agreed and said that he had talked to Assistant Secretary of the Army, Mr. Roderick, about it this morning and that Mr. Roderick had informed him that he hoped to obtain a final decision today on the position of the Armed Forces with respect to the manner of implementation of the labor provisions of the agreements. The Governor said that Mr. Roderick was surrounded by a variety of pressures in this matter and that the differences within the Pentagon on the subject could most effectively be resolved by pressure for a decision from without. He thought that Mr. Holland was in the best position to do this. Mr. Holland said, unless he heard from Mr. Roderick in the meantime, he would call Secretary Brucker2 in an attempt to expedite action.
The Governor, in an oblique reference to State’s recommendation of a wage increase for locally recruited workers adversely affected by the Treaty and to other related problems, urged that no changes be made in or amendments be added to the implementing legislation drafted by his office. He stated that the present language of the bill is sufficiently broad to permit the grant of a raise and other steps deemed desirable and that these matters should not be written into the legislation itself. He considers the timing of a wage increase most important and feels that it should not be granted until after the new system has been in effect for a time. It is important, in his view, that the timing be such as to make it clear that it is done [Page 267] as an act of grace on our part and not seemingly as an obligation or a correction of an injustice in the Treaty, otherwise Panama, and not the United States Government, will receive credit for obtaining the raise. Mr. Holland indicated his view that this was good advice.
Governor Seybold then congratulated Mr. Holland on his able handling of our relations with Panama. He expressed the opinion that these relations were now on a far more realistic basis than before, to the mutual advantage of the two countries. Mr. Holland said that he believed the Governor had made an important contribution in accomplishing this. Mr. Holland declared that he believes that this more realistic basis of our relations is now accepted by and is understood by the Panamanians.
After a brief discussion of the local political situation in Panama, the Governor took his leave.