Evening star., 1949-03-20

ationalist agitation in Panama, all
and police vigilance to prevent
plotting and sabotage from within
its own territory. Some Panama
mans are anxious to reopen nego-
tiations covering Rio Hato and
other military bases and have said
so in almost so many words. But
we are not anxious to raise the
question again and fire the propa-
ganda furnaces. There is every
reason to believe that the small
time politicians. the Nationalists,
and other trouble makers would
go on the warpath at once. At
any rate. any moves will have to
come from Panama and such
moves will have to be whole
hearted and backed up by public
opinion in the Isthmian Republic.
In May of last year. when he
arrived in Panama to take over
the post there, Ambassador
Monett B. Davis made this plain.
Following the action Of the
Panamanian National Assembly In
rejecting the defense site agree
ment. the United States Govern
ment," he said. has taken no
further steps with respect to de-
fense sites. and I have no in
structions to reopen negotiations"
The Ambassador has repeated this
statement on several occasions
since then.
Business Is Bad
Meantime all this brings on
other Worries for Panamanian
officials and responsible citizens
of the republic. Stores. shops, res
taurants and all commercial
establishments in Panama City
and Colon are languishing for
want of more customers. Busi-
ness is good only when there are
large numbers of United States
military personnel in the Zone
and on the Isthmus. If economic
conditions grow much worse,
there will be unrest among the
people. In that case the position
of the present administration Of
President Domingo Diaz Arose
mena would be very shaky and a
serious outcry might topple it over.
The merchants and business
people of Panama City and Colon,
who feel the economic pinch more
than any other group, are renew
ing their campaign against all
Canal Zone commercial activities,
particularly the commisSaries.
They know 1t would be unpopular
to admit that the political and
nationalistic furor within Panama
which resulted in the evacuation
of nearly all the air forces from
the area robs them Of much reve-
nue.. Now they are raising the old
and perennial cry that by oper-
ating it's own stores. which. as
they put it. sell everything from
grape nuts to Oriental rugs" the
Yankees are robbing Panamanians
of a livelihood. Panamanians
point out that the Canal Zone
commissaries pay no import taxes
or tariffs on the goods they sell,
and, therefore. merchants who
have to pay all these and other
excises cannot compete.
Treaty Made Concessions
Again the treaty of 1886, con-
cluded under the administration
of President Franklin D. Roosevelt,
made numbers of concessions along
this line. 1t forbade the commits
saries to sell to any but Canal
Zone employees and military per-
sonnel. No Panamanian or out
slider not directly employed by the
Canal Zone and its subsidiaries is
allowed to patronize the commits
saries' or any of the other COM
mercial establishments within the
Zone. But, merchants of Panama
argue, all Panamanian employees
of the Canal are free to trade in
the commissaries, and they buy
for their relatives and friends,
which again robs us of trade.
While every precaution possible
is taken against such practices. a
good deal of this sort of thing
does take place and it is unfortu-
nate. But Uncle Sam can hardly
use police methods to prevent en-
ployes buying and paying for a
little extra stuff here and there.
These complaints go back to the
early days when the Canal was
still under construction. In 1911
there was a hearing on the COM
missary question before the Inter-
state and Foreign Commerce Com
mission. Gen. Goethals himself
testified on the subject. The gen.
eral declared, 1.-The merchants of
Panama and Colon are not in the
position to supply the things that
are required for the employees Of
the Canal Zone"
Not Political Regime
1t is important to bear in mind
that while the Panamanian gov
ernment is a purely political setup
and can engage in outspoken po-
litical campaigns affecting all
matters having to do with United
States-Panamanian relations. the
government of the Canal Zone is
not a political organization.
Therefore, its officials are not In
a position to engage in open pub
lie discussion.
When all is said and done
banana and the Canal Zone are