Viewing page 118 of 129

This transcription has been completed. Contact us with corrections.

-116-

[[underlined]]Panama Agreement[[/underlined]]

For many years the Smithsonian Tropical Research Institute (STRI), in addition to its operations in the Canal Zone, has carried out research activities in the Republic of Panama.  On June 6, 1974, after two years of negotiation between Smithsonian and Panamanian representatives and consultation with the Department of State, the Government of Panama approved a proposed contract between its Ministry of Health and STRI, which would give STRI official recognition and a number of specific benefits such as tax and customs exemptions in the Republic of Panama.  In 1975, a proposal by the Department of State for an exchange of notes between the U. S. Ambassador and the Foreign Minister of Panama on behalf of STRI (in lieu of the unexecuted contract) was rejected by the Government of Panama.  Extended discussions with the Department recently led to an understanding that the contract would be signed, and that prior thereto, in December, Embassy officials would advise the Government of Panama that the agreement between STRI and the Ministry of Health would not affect the legal prerogatives of the State Department under international law.

As required by the contract, STRI registered in Panama as a nonprofit educational organization, and on December 2, 1976, this registration was accepted by the Government of Panama.  On January 5, 1977, the Minister of Health called Dr. Rubinoff, Director of STRI, to