the boundary arises. Since 1899 an enclave of 386 acres, known as Cordova Island and under the jurisdiction of Mexico, has jutted north of the river into El Paso. The transfer to Mexico of additional acres in a Chamizal settlement would have augmented the amount of territory under Mexican jurisdiction north of the river. The two Governments agreed therefore that in any settlement the Rio Grande should be relocated, completing the 1933 stabilization and restoring the river as the international boundary for its entire reach in the vicinity of El Paso.

The recommended terms of settlement to be incorporated in a convention would accordingly provide: There would be a net transfer to Mexico of 437 acres of territory now under the jurisdiction of the United States. Of this area, 366 acres would be from the disputed Chamizal zone and 71 acres would be from United States territory to the east adjacent to Cordova Island. Cordova Island itself, lying between these two areas, would be divided equally between the United States and Mexico in the process of the relocation of the river. The United States would transfer to Mexico for the 193 acres it would receive out of Cordova Island an equal acreage from the United States territory just east of Cordova Island. The Rio Grande would be relocated by channelization and reconstituted as the boundary between the United States and Mexico, thus eliminating the Cordova Island enclave.

Both Governments would acquire title to all the land and improvements in the areas which would be transferred, and each Government would receive the areas transferred without encumbrances of any kind, including any private titles. No payments would be made between the two Governments for the lands passing from one country to the other. The United States would, however, be paid by a private Mexican bank for the value to Mexico of the structures that would pass intact to Mexico. The two Governments would share equally the costs of actual construction of the relocated river channel, each Government bearing the costs of compensation for the value of the improvements destroyed in the construction process in the territory under its jurisdiction prior to the relocation of the boundary. The costs of constructing the bridges which would replace the existing bridges would be borne in equal parts by the two Governments. The citizenship status of persons who are or were residents of the areas being transferred would not be affected, nor would jurisdiction over or the applicability of laws to acts in or with respect to the area, including criminal or civil proceedings decided or pending at the time of transfer, be affected. Once the convention has been approved and comes into force and the necessary enabling legislation enacted, the International Boundary and Water Commission would agree upon a period in which to effect the acquisition of the properties. The relocation of the boundary line and the transfer of sovereignty would take place when the United States Commissioner on the Commission has certified that the acquisition of the properties and evacuation of the occupants have been completed and payment for the structures passing intact to Mexico has been received, and when the Commission has certified with

the approval of the two Governments that the new boundary line has been demarcated.

The Department believes that settlement of this longstanding controversy would be a notable achievement in inter-American relations and in the history of peaceful settlement of international disputes. The Department is convinced, despite the serious temporary inconveniences that it would cause for many people in El Paso and Ciudad Juarez, that the settlement would greatly benefit both communities in the solution of current municipal problems and in the planning and realization of their future development.

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CONVENTION

BETWEEN THE UNITED STATES OF AMERICA AND THE UNITED MEXICAN STATES FOR THE SOLUTION OF THE PROBLEM OF THE CHAMIZAL, Signed at Mexico City, August 29, 1963, Entered Into Force January 14, 1964 19

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"AS PRESIDENT KENNEDY PUT IT IN MEXICO CITY— GEOGRAPHY HAS MADE US NEIGHBORS, TRADITION HAS MADE US FRIENDS, AND ECONOMICS HAS MADE US PARTNERS": Address by the Assistant Secretary of State for Inter-American Affairs (Martin) Before the 14th Annual Conference on the Caribbean, Gainesville, Fla., December 6, 1963 20

PANAMA

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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

19 TIAS 5515; 15 UST 21.

20 Department of State press release No. 613; Department of State Bulletin, Dec. 29, 1963, pp. 959–963. For the full text of the speech by President Kennedy, see Public Papers of the Presidents of the United States: John F. Kennedy, 1962, pp. 520–522.

21 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.

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 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.

22 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.

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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 territory of the Republic, have requested that the jurisdiction over a corridor comprising Fourth of July Avenue, the bridge over the Canal and the road to Arraijan, be transferred to Panama. The United States representatives indicated that the United States is preparing

Department of State press release No. 384 (text as printed in the Department of State Bulletin, Aug. 12, 1963, pp. 246–247). "See American Foreign Policy: Current Documents, 1962, pp. 480–481. Supra.

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proposals to submit to Panama for consideration for an agreement covering this matter.

6. The Panamanian representatives have requested that piers 6 and 7 in Cristobal be licensed to the Colon Free Zone. The United States representatives have indicated that the United States Government is preparing the terms of an agreement for consideration by Panama.

C. Implementation of the Alliance for Progress, the Charter of Punta del Este, and Related Economic and Political Developments

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UNITED STATES EXTENSION OF SHORT-TERM CREDIT OF $30 MILLION TO BRAZIL REPAYABLE IN 90 DAYS: Statement Issued by the Department of State, January 7, 1963 1

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ARGENTINE-UNITED STATES CONVERSATIONS ON RELATIONS BETWEEN THE TWO COUNTRIES AND OTHER INTERNATIONAL MATTERS: Joint Statement Issued at Washington by the Secretary of State (Rusk) and the Minister of Foreign Affairs and Worship of the Argentine Republic (Muñiz), January 24, 1963 (Excerpt)2

The present international political situation suggests the need for strengthening even more the traditional ties of friendship between the United States of America and the Argentine Republic. The menace posed to the Free World by the activities of international communism in the Americas requires their mutual cooperation to cope with it vigorously in all fields."

Both governments reiterate their faith in the representative republican form of government as the only one compatible with the liberty and dignity of the individual. They are convinced of the need to promote by all available means the economic and social development of the countries of the Hemisphere to insure the well being of their citizens, to raise the standards of living of their peoples and thereby to help preserve the spiritual and material values of the Free World to which they belong.

1 Department of State press release No. 10; text in the Department of State Bulletin, Jan. 28, 1963, p. 144.

2

* Department of State press release No. 51 (text as printed in the Department of State Bulletin, Feb. 11, 1963, pp. 211-213). The Argentine Foreign Minister conferred in Washington from Jan. 20-24, 1963 at the invitation of Secretary Rusk.