Evening star., 1933-10-08
The President of Panama

the White House during the next few
davs to DR.. Harmodio Arias President
of Panama. The citizens of Washing
ton associate themselves with the OFF,
cial welcome which the Federal Gov
ernment extends to the scholarly chief
of the isthman republic.
| He comes here to discuss a series OF
long standing differences between his
government and our own, having con-
| cluded that frank close-range con-
+ sideration of them promises more prac-
tical results than could be achieved
through the ordinary channels Of diplo-
matte procedure.
Our relations with Panama date from
the treaty of 1903 supplemented by the
Taft agreement of 1904, whereby the
/ United States acquired the right to
construct the Panama Canal The TAFT
agreement was abrogated in June, 1924
and a commercial treaty supplanting 1t
was signed in July. 1926 The United
States agreed not to set up in the
Canal Zone any business which would
compete with the commerce of Panama
1t was further stipulated that sales of
goods by United States commissaries
would be restricted to canal employees.
While Panama has other grievances
against Uncle Sam, including the vast
array of competitive business activities
carried On by the Panama Railroad
Company the commissaries are expect
ed to bulk most conspicuously in Pres
ident Arias representations at Wash
ington. Operated by the United States
Government. they have developed into
thriving businesses. They cater to vir-
tually all the material needs Of the
forty thousand people who inhabit the
zone, and in addition to recognized
necessities" carry elaborate stocks Of
so-called luxury" goods. The commits
saries' gross receipts ranged between
$40 900 900 and s11, 900 900 for 1929 and
$780, and the net profit to the Amer
ican Government during each year was
about half million dollars
Panama on numerous occasions
made objections to the commissario
grounds Of both law and policy. g.
claims that they offer serious and un-
fair competition to Panaman trade.
In June, 1925, the Panama govern
ment declared that "the Canal Zone
authorities are using the inexhaustible
~ fIo Init faI ho
peculiar situation that country occupies
in Panama in such way as may
eventually bring about the humiliation
of Panamas commerce" Panama
argues that while the American COM
missaries may have been justified dur
ing the canal construction period, the
zone population today is fairly stable
and Panama merchants can supply its
needs. 1t is claimed that If only half
the commissary trade were diverted to
Panama the prosperity of the country
would be substantially promoted.
President Arias left his capital the
other day amid the fervent hopes Of
his people that personal contacts at
Washington would pave the way to
solution of at least the most important
of these pending differences with this
country. The republic over which DR..
Arias presides is not only our Canal
Zone next-door neighbor, but bound by
treaty to be our ally in war. For all
these reasons, the American people
share the desire of Panama that
ways and means may be discoverable
whereby its just claims can be met in
a spirit Of broad-gauge generosity and
of fairness to both sides.
President Arias is sure to find Presi-
dent Roosevelt in mood to exemplify
toward our Isthmian friends that good
neighbor" policy which is the pro-
claimed keynote Of his program for re-
lations with the sister Americas.