U.S. Concessions In Panama Canal Zone?

Press, Volume XCVIII, Issue 29068, 3 December 1959, Page 17

U.S. Concessions In Panama Canal Zone?

(Rec. 11 p.m.) WASHINGTON, December 2. The United States State Department is studying a Panamanian Government request that its flag be flown over the Canal Zone alongside the Stars and Stripes. ’ ” The announcement by a Slate Department spokesman, Mr Lincoln White, yesterday came on the heels of reports that the United States soon would announce important concessions to Panama, the scene of recent anti-American demonstrations.

The "New York Times” reported that the United Arab Republic legation was diplomatically the most active in Panama City, with Cairo Radio beaming programmes to Panama each night emphasising unfair United States treatment about the canal administration.

United Press International quoted informants as saying the United States was prepared to give Panama priority over other foreign countries in supplying Canal Zone commissaries and post exchanges and also to take steps to improve the wages' and conditions of Panamanian workers in the zone.

The proposal to fly both flags was reported to have been discussed with a deputy undersecretary, Mr Livingston T. Merchant, during his recent visit to Panama in an attempt to prevent any repetition of the violence. The ‘‘New York Times” report, from Mexico City, said that the trouble in Panama arising both from relations with the United States and from the country’s own internal problems, appeared far from over.

The newspaper’s correspondent in Mexico City said that there were stresses that would rock a far larger and older country. Panama was not politically or economically set to withstand these shocks without convulsions. The Administration was an uneasy coalition of several splinter parties and was facing its greatest fight for survival, the correspondent added. He also reported a conviction

among Panamanians that the State Department and the Canal Zone were not acting entirely in harmony, and that essentially diplomatic functions were being usurped by the zone. The United Arab Republic legation, the correspondent said, was known as the most active diplomatic mission In Panama City. It served as an information centre on canal management and the Minister, Mohamed el Tabei Wabb, was a regular visitor at Government offices. Two broadcasts were being beamed each night from Cairo to Panama and were dedicated almost wholly to the alleged unfair treatment Panama was receiving from the United States in respect to the canal. The paper reported that Cairo’s motives for this activity were obscure. A Pennsylvania Democrat, Mr Daniel Flood, charged yesterday that Panamanian press reports were quoting President Eisenhower’s brother. Dr. Milton Eisenhower, as saying that the United States would recognise Panama’s claim for sovereignty in the Canal Zone. This alleged statement "is adding fuel to the flame of an ugly situation,” Mr Flood said. He urged that the United States Congress take over the whole Panama question. United Press reported that President Eisenhower was considering a quick trip to Latin America early next year in an attempt to help snuff out antiAmerican feelings. Administration officials said the advisability of a goodwill trip by the President had been pointed up by the recent anti-American demonstrations in Panama and Cuba and by other signs of unrest in Latin America.