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Kennedy Joint Communique Initiating Discussions of Points of Dissatisfaction, June 13, 1962*

The meetings of the President of the Republic of Panama and the President of the United States of America during the past two days have been marked by a spirit of frankness, understanding and sincere friendship. During their talks the two Presidents discussed general relations and existing treaties between their two countries, their mutual interests in the Panama Canal, and topics of world-wide and hemispheric concern. They emphasized the close and friendly ties on which has been established a mutually advantageous association through partnership in the Panama Canal enterprise, On the conclusion of these talks, they agreed to publish the following joint com munique.

They reaffirm the traditional friendship between Panama and the United States a friendship based on their common devotion to the ideals of representative democracy, and to their determination that both nations should work as equal partners in the cause of peace, freedom, economic progress and social justice.

The Presidents recognize that their two countries are bound together by a special relationship arising from the location and operation of the Panama Canal, which has played such an important part in the history of both their countries.

The President of Panama and the President of the United States agreed upon the principle that when two friendly nations are bound by treaty provisions which are not fully satisfactory to one of the parties, arrangements should be made to permit both nations to discuss these points of dissatisfaction. Accordingly, the Presidents have agreed to appoint high level representatives to carry on such discussions.29 These representatives will start their work promptly.

As to some of these problems, it was agreed that a basis for their solution can now be stated. Accordingly, the two Presidents further agreed to instruct their representatives to develop measures to assist the Republic of Panama to take advantage of the commercial oppor tunities available through increased participation by Panamanian private enterprises in the market offered by the Canal Zone, and to solve such labor questions in the Canal Zone as equal employment oppor tunities, wage matters and social security coverage.

They also agreed that their representatives will arrange for the flying of Panamanian flags in an appropriate way in the Canal Zone. In order to support the efforts of the Government of Panama to improve tax collections in order to meet better the needs of the people of Panama, President Kennedy agreed in principle to instruct his repreentatives to work out in conjunction with the Panamanian representa

*American Foreign Policy: Current Documents, 1962, pp. 480–481.

"White House press release dated June 13, 1962 (text as printed in the Depart ment of State Bulletin, July 9, 1962, pp. 81-82).

"The following Representatives were appointed: Ambassador Joseph Farland and Canal Zone Governor Robert Fleming for the United States and Foreign Minister Galileo Solis and Octavio Fábrega for Panama. The first meeting was held in Panama on June 28, 1962.

tives arrangements under which the U.S. Government will withhold the income taxes of those Panamanian and non-United States citizen employees in the Zone who are liable for such taxes under existing treaties and the Panamanian income tax law.

The President of Panama mentioned a number of other practical problems in relations between the two countries of current concern to his Government, including the need of Panama for pier facilities, and the two Presidents agreed that their representatives would over the coming months discuss these problems as well as others that may arise. The Presidents reaffirmed their adherence to the principles and commitments of the Charter of Punta del Este.30 They agreed on the need to execute rapidly all steps necessary to make the Alliance for Progress effective; they recognized that the Alliance is a joint effort calling for development programming for effective use of national as well as external resources, institutional reforms, tax reforms, vigorous application of existing laws, and a just distribution of the fruits of national development to all sectors of the community.

The two Presidents declared that political democracy, national independence and the self-determination of peoples are the political principles which shape the national policies of Panama and the United States. Both countries are joined in a hemisphere-wide effort to accelerate economic progress and social justice.

In conclusion the two Presidents expressed their gratification at this opportunity to exchange views and to strengthen the friendly and mutually beneficial relationship which has long existed between Panama and the United States. Their meeting was a demonstration of the understanding and reciprocal cooperation of the two countries and strengthened the bonds of common interests and friendship between their respective peoples.

Ferry Bridge at Balboa Heights, Canal Zone, October 12, 1962*

No one of us here this morning can be unaware that this indeed is the center of the New World. This is the point of conjunction-that dot on the earth's surface that marks the crossing of the paths from one great ocean to another and from one vast continent to another. This is the center of the New World-by the logic of geography, the precedent of history, the mandate of economic progress. Today we are dedicating a bridge, this massive yet graceful span of gleaming metal that now leaps from hemisphere to hemisphere. This bridge makes Panama more than ever a crossroads, and like so many other of the world's crossroads like Istanbul, like Suez, like Berlin-this confluence of world geography is also a confluence of world history: a relay post where destiny Echanges horses. ✶ ✶ ✶

Cooperation Between U.S. and Panama

I have said that this is truly a bridge of the Americas. It adds a new bond to the enduring partnership between our sister Republics. That partnership finds unique expression in treaty relations and in the Panama Canal.

The canal, as nced hardly tell you, is vital to the security of the whole free world. It has special meaning for the Western Hemisphere for it carries the commerce of all the American states. It has an even more direct value to Panama. It has made this country a transportation hub. It brings more than $70 million of income annually to the people of this great country. It provides jobs directly for 15,000 Panamanians and indirectly for many more.

Like the canal, this bridge will also serve the free world, the Western Hemisphere and especially Panama. Like the canal, it was built by United States funds. As a means of through transit it can be a boon for all the American states. And because it unites the two parts of this country once bisected by the canal, and affords easy access to Panama City and the Chiriquí region, it can be

of special benefit for agriculture and land development throughout Panama. Precisely because the canal and the bridge are so similar in origin and purpose, it seems especially fitting that we have with us today a man who has made a major contribution to the building of both the bridge and the canal-Maurice Hudson Thatcher.

The bridge, of course, will not be the end of special cooperation between the United States and Panama. Ours is an active partnership. It was underlined in the visit of President Chiari to Washington last June. It is further reflected in the present discussion being conducted here between representatives of President Chiari and President Kennedy. Arrangements have been made for flying the flag of Panama together with that of the United States at various sites in the Canal Zone. Foreign consuls who hold exequaturs issued by the Government of Panama will be authorized by the United States Government, in accordance with agreed procedures, to perform their functions in the Canal Zone. And I look forward to successful conclusions of the negotiations regarding the use of Panamanian postage in the Canal Zone post office. For these, too, are links in the partnership.

Joining of North and South

It is said that when Columbus first reached these shores an Indian sought to explain to him in sign language where he was and what Panama was. Stretching his arms forward, he drew a great circle in the air. Twice he did this, then laid his index fingers side by side between the two circles. He was telling Columbus, the legend says, that Panama is an isthmus (the joined fingers) between two oceans (the great circles). But I think the sign language can also be read to mean something else— the great circles are the northern and southern halves of our great hemisphere, and the connection between them is here at this bridge, this "bridge of the Americas."

*Department of State Bulletin, v. 47. October 29, 1962, pp. 645, 647-648.

'Ibid., July 9, 1962, p. 81.

tion Between the Two Countries, January and June 1963*

PANAMANIAN-UNITED STATES DISCUSSION OF POINTS OF DISSATISFACTION BETWEEN THE TWO COUNTRIES WITH REGARD TO THE CANAL ZONE: Interim Joint Communiqué Issued by the Two Governments, January 10, 1963 21

The representatives of the Governments of the Republic of Panama and of the United States of America, appointed to discuss points of dissatisfaction in United States-Panamanian relations with regard to the Canal Zone have periodically met during the last five months. Various aspects of pending questions have been discussed up to the present, with the following results:

First: It has been agreed that the flag of the Republic of Panama will be flown together with the flag of the United States of America on land in the Canal Zone where the flag of the United States of America is flown by civilian authorities. Private organizations and persons in the Zone are free to display flags at will over their places of residence or business. Other aspects of the flag question will be discussed later.

Second: Foreign Consuls, on the basis of exequaturs issued by the Government of Panama and, in accordance with procedures and understandings which have been agreed upon by the Government of Panama and the Government of the United States, may function in the Canal Zone.22 Subject to these procedures and understandings the United States Government will cease issuing documents of exequatur. Third: The representatives of both Governments have discussed labor problems relating to Panamanian citizens who work in the Canal Zone. Special attention has been devoted to the subject of wage scales, equal opportunities for Panamanian and United States citizens at all levels, and Social Security benefits. All these problems continue to be under discussion.

Fourth: The representatives of Panama submitted for discussion the question of using Panamanian postage stamps in the Canal Zone postal system. The U.S. Government has proposed the use of Panamanian stamps in the Zone in accordance with technical arrangements now under consideration and in conformance with international postal standards.

Fifth In accordance with instructions, the representatives have discussed Panama's need for pier facilities and have visited the present pier facilities in Cristobal. This subject continues to be under discussion.

The representatives of the Governments of the United States of America and of the Republic of Panama will continue their present

21

American Foreign Policy: Current Documents, 1963, pp. 293–296.

Department of State press release No. 17 (text as printed in the Department of State Bulletin, Feb. 4, 1963, pp. 171-172). The discussions had been agreed upon by President Roberto F. Chiari of Panama and President Kennedy during President Chiari's visit to Washington in June 1962. See American Foreign Pol icy: Current Documents, 1962, pp. 480-481.

An aide-mémoire elaborating on this point was made public on Jan. 10, 1963. Text in Department of State Bulletin, Feb. 4, 1963, pp. 172–173.

discussions aimed at finding solutions to other problems which remain unresolved.

The discussions are continuing in the spirit of the joint communique issued by the President of Panama and the President of the United States of America at the end of the visit which the President of Panama made to Washington in June of last year.

From time to time additional joint communiques outlining the progress of the discussions will be issued.

PANAMANIAN-UNITED STATES DISCUSSION OF POINTS OF DISSATISFACTION BETWEEN THE TWO COUNTRIES WITH REGARD TO THE CANAL ZONE: Final Joint Communiqué Issued by the Two Governments, July 23, 1963 23

The representatives designated by the Presidents of the Republic of Panama and of the United States of America to discuss points of dissatisfaction between the two countries with regard to the Canal Zone,24 in terminating their sessions, wish to make public that, since the issuance of the last communique on January 10, 1963,25 the following results have been obtained with the authorization of their respective Governments:

1. Agreement has been reached on the creation of a Bi-national Labor Advisory Committee, composed of representatives of Panama and of the United States, which will consider labor disputes which may arise between Panamanian employees and the authorities of the Canal Zone and will advise the Government of Panama and the Governor of the Canal Zone thereon.

2. The United States Government has prepared a draft bill for presentation to the Congress of the United States which would make available to Panamanian employees of the United States Government in the Canal Zone the same governmental health and life insurance benefits as are available to the United States citizen employees.

3. There has been full discussion of the steps taken by the Canal Zone authorities to implement treaty obligations with regard to equal employment opportunities. Various aspects of the wage scale have been discussed. The minimum wage in the Canal Zone, which was increased to 60 cents per hour on April 1, 1962, was increased again to 70 cents per hour on July 1, 1963, and will be increased to 80 cents per hour on July 1, 1964, together with proportionate increases in the entire wage structure for all employees. The Panamanian representatives have requested greater increases.

4. The United States has agreed to deduct, withhold and remit to the Government of Panama the sums owed for income tax by employees who are required to pay income tax to the Republic of Panama and who work for the Panama Canal Company or any other agency of the United States Government in the Canal Zone.

5. The Panamanian representatives, with the object that there may be continuous jurisdiction from the capital city to the rest of the terri

23 Department of State press release No. 384 (text as printed in the Department of State Bulletin, Aug. 12, 1963, pp. 246-247).

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See American Foreign Policy: Current Documents, 1962, pp. 480-481. 25 Supra.

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