5. The Panama Canal Company will proceed with the construction of a new water main at a cost of $750,000 to supply the rapidly expanding suburbs of the city of Panamá.

6. The Panama Canal Company will also substantially reduce the rate at which water is sold to the Government of Panama for distribution in the cities of Panamá and Colón.

7. The Panama Canal Company and Canal Zone Government will support legislation now pending in Congress to increase the gratuity paid to employees who previously were not within the Civil Service retirement system and who were terminated because of physical disability.

8. Teachers in the Latin American schools in the Canal Zone will receive a 10 percent pay increase.

9. All agencies in the Canal Zone have been directed by the President to review the list of jobs reserved for citizens of the United States with a view to placing more Panamanians in skilled and supervisory positions.

112. UNITED STATES AGREEMENT "TO HAVE THE PANAMANIAN FLAG FLOWN IN THE CANAL ZONE": Note From the American Ambassador at Panamá (Farland) to the Panamanian Acting Minister of Foreign Relations (Miró Grimaldo), September 17, 1960

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EXCELLENCY: I have the honor to refer to the desire heretofore expressed by the Government of the Republic of Panamá to have the Panamanian flag flown in the Canal Zone.

I am pleased to state that, after the highest consideration by my Government, I am instructed to inform you that as a further reflection of the genuine friendship existing between our two Governments and peoples, my Government has determined that as a voluntary act on the part of the United States, and in recognition of the titular sovereignty residing in the Republic of Panamá with respect to the Canal Zone, the Panamanian flag will hereafter be flown together with the United States flag on a daily basis in the area known as Shalers Triangle in the Canal Zone. This determination is in no wise to be considered as modifying in any way the Treaties and Agreements in force between the United States and Panamá.

Accept, Excellency, the renewed assurances of my highest consideration.

JOSEPH S. FARLAND

Attachment to White House press release dated Sept. 17, 1960 (text ibid., Oct. 10, 1960, pp. 558-559).

THE WEST INDIES

STAGE ONE OF THE CONFERENCE ON UNITED STATES BASES IN THE WEST INDIES, NOVEMBER 3-8, 1960: Communiqué Issued Simultaneously at London, Port-of-Spain, and Washington by Representatives of the United Kingdom, the Unit Territories of the West Indies, and the United States, November 8, 1960 6

STAGE TWO OF THE CONFERENCE ON UNITED STATES BASES IN THE WEST INDIES, NOVEMBER 28-DECEMBER 14, 1960: Report of the U.S. Delegation, Issued December 15, 1960 7

C. Measures Taken and Proposed for the Political and Economic Development of and Improved Understanding Among the American Republics

THE TREATY ESTABLISHING A LATIN AMERICAN FREE TRADE AREA AND ASSOCIATION (THE "MONTEVIDEO TREATY"), WITH RELEVANT PROTOCOLS AND RESOLUTIONS, Signed at Montevideo by Representatives of Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay, February 18, 1960, Entered Into Force, June 2, 19611

"I SHALL REAFFIRM TO OUR SISTER [SOUTH AMERICAN] REPUBLICS THAT WE ARE STEADFAST IN OUR PURPOSE TO WORK WITH THEM HAND IN HAND IN PROMOTING THE SECURITY AND WELL-BEING OF ALL PEOPLES OF THIS HEMISPHERE": Address by the President (Eisenhower) to the Nation, February 21, 1960 2

"Department of State press release No. 635; the Department of State Bulletin, Nov. 28, 1960, p. 822.

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Department of State press release No. 698; ibid., Jan. 9, 1961, pp. 44-45. 1U.N. doc. E/3333, pp. 32-42; also American Foreign Policy: Current Documents, 1961.

2 White House press release dated Feb. 21, 1960; Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1960-61, pp. 202-207; the Department of State Bulletin, Mar. 7, 1960, pp. 351-353. This address, carried by the principal radio and television networks, was made on the eve of the President's Feb. 22-Mar. 7, 1960, visit to four South American countries; see post, docs. 113-116.

113. BRAZILIAN-UNITED STATES AGREEMENT TO DEFEND CERTAIN PRINCIPLES: Joint Statement Issued at Brasilia by the President of Brazil (Kubitschek de Oliveira) and the President of the United States (Eisenhower), February 23, 1960 3

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The Presidents of the United States of Brazil and of the United States of America, Juscelino Kubitschek de Oliveira and Dwight D. Eisenhower, meeting together in the new city of Brasilia, soon to be the capital of Brazil, reaffirm the joint determination of the two nations to defend the following principles:

1. The democratic freedoms and the fundamental rights of man, wherein are included the fight against racial discrimination and the repudiation of any attempt against religious freedom and of any limitation on the expression of thought. These are inalienable conquests of civilization which all free men have the duty to protect, bearing in mind the sacrifices of the soldiers of both countries in the last war, and the need to prevent repetition of the causes which led to the loss of so many young and precious lives.

2. The belief that the aspiration of the peoples of the Americas to an ever-improving way of life, moral and material, presents one of the great challenges and opportunities of our time. This challenge should be met by joining together, ever more closely and harmoniously, the efforts of all countries within the inter-American community in order that, through coordinated action, there may be an intensification of measures capable of combating underdevelopment in the vast area of the American continents.

3. The full implementation of the principles of political and economic solidarity contained in the Charter of the Organization of American States and in the Mutual Assistance Treaty of Rio de Janeiro.R

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4. The recognition that economic advancement cannot be disassociated from preservation of peace and democratic rights, and that the effort of each nation must be complemented by hemisphere action helping all Americans to achieve the improved living standards which will fortify belief in democracy, freedom and self-determination of peoples. To this end, the Presidents reaffirm their solidarity with the principles approved by all the nations of America within the scope of Operation Pan America and assure their wholehearted support to the Organization of American States and to those other entities which already are formulating measures to help achieve these ends.

3 White House press release dated Feb. 23, 1960 (text as printed in the Department of State Bulletin, Mar. 28, 1960, p. 474).

President Eisenhower spent the period Feb. 23-26 in Brazil. He addressed a joint session of the Brazilian Congress Feb. 24; text ibid., pp. 474–477. 'Brasilia replaced Rio de Janeiro as the capital Apr. 21, 1960.

'Text in A Decade of American Foreign Policy: Basic Documents, 1941–1949, pp. 427-445.

Text in American Foreign Policy, 1950–1955: Basic Documents, pp. 789-796. See American Foreign Policy: Current Documents, 1959, pp. 393 ff.

This will pave the way to the realization of the inter-American ideals, economic as well as political.

Acknowledging that joint efforts of the American nations have already achieved much, but firm in the conviction that action still more fruitful should be taken, the two Presidents are confident that the hemispheric crusade for economic development will lead toward greater prosperity and harmony for all.

114. ARGENTINE-UNITED STATES AGREEMENT TO CONTINUE TO ATTEMPT TO ATTAIN CERTAIN INTERAMERICAN IDEALS: Joint Declaration Issued at San Carlos de Bariloche by the President of Argentina (Frondizi) and the President of the United States (Eisenhower), February 28, 1960

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The Presidents of the Argentine Nation and of the United States of America, having conferred on matters relating to peace, freedom and cultural and material opportunities for the peoples of the Americas, have decided to issue a joint declaration.

They reaffirm the determination of their respective governments to foster improved living standards for the peoples of the Americas. They agree that:

Improved living standards result from economic progress which in turn depends upon adequate economic policies, upon friendly international cooperation, and upon efficient utilization both of natural resources and of the talents and capacities of the individual citizen acting alone or in voluntary association with others.

Economic progress and improved living standards facilitate the development of strong and stable political institutions and enable countries to make a more effective contribution to international understanding.

Likewise whatever serves to reinforce democratic institutions contributes not only to political, economic and social progress but also to the improvement of relations among nations.

The inter-American system, an expression of the common experience of the peoples of the Americas, has proved itself an effective instrument for peace and for cooperative relations among countries.

Experience within the inter-American system has taught that nonintervention is the keystone of international harmony and friendship and that its corollary is mutual respect among nations, however large or small.

The efforts of the Government of the Argentine Republic and of the United States of America will continue to be directed to the attainment of these inter-American ideals.

"White House (San Carlos de Bariloche) press release dated Feb. 28, 1960 (text as printed in the Department of State Bulletin, Mar. 28, 1960, p. 480). President Eisenhower spent the period Feb. 26–29 in Argentina. He addressed a joint session of the Argentine National Congress Feb. 26; text ibid., pp. 477– 480.

115. CHILEAN-UNITED STATES EXCHANGE OF VIEWS ON "VARIOUS MATTERS OF COMMON INTEREST": Joint Statement Issued at Santiago by the President of Chile (Alessandri) and the President of the United States (Eisenhower), March 1, 1960 °

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The Presidents of the United States of America and of Chile, Messrs. Dwight D. Eisenhower and Jorge Alessandri, on the occasion of the visit to Santiago of President Eisenhower, from February 29 to March 2, 1960, exchanged views on various matters of common interest:

The Presidents discussed the collaboration of Chile and the United States of America in international organizations with a view to the realization of the common principles which guide the foreign policies of both countries.

In particular they exchanged ideas regarding the principal affairs of the world situation and, moreover, concerning measures which would make possible the strengthening of the inter-American system in accordance with the Declaration of Santiago, which was unanimously approved at the Fifth Meeting of Consultation of Ministers of Foreign Affairs, held in August 1959.10

They reaffirmed the urgency of seeking solutions for the problems of economic development and of improving living standards in America. They likewise reiterated that the inter-American system should be based on respect for human rights, the effective exercise of democracy, and non-intervention in the internal affairs of other States. Economic matters of common interest, particularly those of hemispheric scope comprehended in Operation Pan America,11 were also discussed. Similarly, special attention was given to the armaments problem in the continent and to Chile's initiative in proposing that the nations of the Americas give their urgent consideration to this matter, with the objective of reaching an appropriate equilibrium within a general policy of limitation on arms purchases.

The financing of economic development, both public and private, was also discussed, as was the formation of various regional trade zones, both in Europe and the Americas, and their possible effects on the economies of this hemisphere.

Finally, programs of cultural collaboration were reviewed, with emphasis on the importance of disseminating scientific and technical knowledge.

* White House (Santiago) press release dated Mar. 1, 1960 (text ibid., p. 483). President Eisenhower addressed a joint session of the Chilean National Congress Mar. 1; text ibid., pp. 480-483.

**Text in American Foreign Policy: Current Documents, 1959, pp. 361–363. " See ibid., pp. 393 ff.

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