Evening star., 1934-04-29
GOOD.NEICHBOR PROMISE
FACES TEST In PANAMA
Situation Improves Slightly Since
President Arias' Visit in Washington.
Policy Also at Stake in Haiti.

by the circumstances and reassured
by the promise that it would not be
used in detriment Of the rights and
interests Of Panama-has been misin-
terpreted and misapplied by the
American authorities Of the Canal
Zone.
Permanent Threat.
As result a number of questions
have emerged which constitute a per-
manent threat to cordial relations be-
tween the two countries. Some of
these were laid personally by Presi-
dent Arias before President Roosevelt
and subsequently were restated in a
public message sent to Washington
with $4,000 signatures from Pana-
man citizens.
The more outstanding of these Pam
aman claims have already been
discussed here. Because Of the ap-
parently perpetual right of expropria-
ton given the United States by the
Canal treaty, no one in Panama
knows with any degree of certainty
whether some day his land will be-
come the property of the United
States Government. AL transient
commerce is being accumulated in
the hands Of the United States Gov
eminent, IS the manager of COM
mercial enterprises in the Canal Zone
which conduct mercileSs compe-
tition against local commerce. All
transient merchandise unloaded at
either of the terminal ports, Panama
City or Colon, only renders a benefit
to the Panama Railroad Co., an
American concern, which "monopol-
ICES all the profits of transit through
the Canal Zone, to the entire eX-
clusion of the Republic of Panama"
The absorbent action" of the COM
mlSSarleS OF the Canal Zone of the
post exchanges, restaurants, hotels,
clubhouses, mCvie-houses, etc, where
the Government Of the United States
carries on multiple commercial activi-
ties without paying import duties on
merchandise of any class, without
imposing on itself the burden of rents
for buildings or lands and without in
curing the expense of ordinary freight
costs, Is gradually reducing Pana-
man commerce ito misery and star
vation."
Reforms Pledged.
President Roosevelt, implicitly by his
adoption Of the ood-neighbor" policy
and explicitly by his pledge to Presi-
dent Arias, has placed on his adminis-
tration the responsibility for bringing
such unfair practices to an end. Re-
ports from Panama reveal that since
the visit to Washington of President
Arlas the situation has already be-
gun to improve, but there is, as yet,
a long way to go. Not until the alb
normal conditions still prevailing have
been entirely removed-more specifi-
cally, not until the cause for further
abuses or further differences has been
eliminated by a modification of the
uncertain treaty terrnS-will Latin
American opinion be satisfied that a
new deal' has been accorded Panama.
The case Of Haiti Is similar, and will
also play an important part in testing,
in the next few months, the policy
OF the good neighbor," which received
high praise last Pan-American day.
The chief executive of Haiti has also
been in Washington, only few days
ago. He, too, has worked out with
President Roosevelt an agreement on
general principles which promises to
improve considerably the unfortunate
circumstances which have governed
United States-H Haitian relations for the
past 19 years.
The details Of the agreement have
not yet been disclosed, but it is known
that its main objective is the suppress
sion of the control of Haitian national
finances by the Government of the
United States. This goal, long cher
lShed by Haitian leaders and only re-
Gently denied them because of the
"unescapable obligation" of the United
States Government to the holders of
Haitian bonds, seems to have been
made possible now by a financial
transaction which will transfer the
ownership of the Banque Rationale
de Ia Republique d'Haiti from the
National City Bank Of New York TO
the Haitian government.
Would End Supervision.
This would automatically end foreign
supervision and control of Haitian
finances. The fiscal representative,
appointed upon nomination by the
President of the United States, and all
the other foreign officials would cease
in their functions. There would be
no more American control Of the Gus
toms revenues, the laws relative
thereto, the internal revenue service,
the records of receipts and disburse-
ments, nor would there be any more
reports of such activities to the Secre-
tary of State at Washington.
The obligation of the United States
Government to the bondholders would
be taken over by the Foreign Bond
holders Association of New York,
which would appoint two representa-
tiveS to the administrative council of
the Banque Rationale dHaiti.
Although final judgment must await
the publication of the details of this
arrangement, it is evident that an
agreement in principle has already
been reached on certain steps neceS-
sary for the elimination of United
States financial control of Haiti,
not altogether bright page In inter-
American history which Navy admirals
and blue jackets of the United States
helped to write
The promptness with and the man.
ner in which these steps will be taken
in the months to come will thoroughly
test President Roosevelt'S "good-neigh-
Dor" policy before another Pan-Ameri-
can day is here.
(Copyright, 1a34)