employed by them in relation to the total number of civilian employees will conform to the proportion established under Panamanian law.
Similarly, the terms, conditions and prerequisites for the employment of Panamanian personnel shall conform with the general principles contained in the labor laws of the Republic of Panama.
(3) All civilian employees of the United States Forces, except those who are nationals of the Republic of Panama or who have obtained permanent resident status therein, shall be subject to a system of periodic rotation which will limit their period of employment by the United States Forces in the Republic of Panama. The regulations providing for such rotation shall be provided to the Republic of Panama through the Joint Committee.
(4) With regard to wages, there shall be no 'discrimination on the basis of nationality, sex or race. Payments by the United States Forces of additional remunerations to persons of any nationality, including Panamanian citizens, who are recruited outside of Panama and must therefore change their place of residence, shall not be considered to be discrimination for the purposes of this Article.
(5) The United States Forces shall take the measures called for under the laws of the Republic of Panama with regard to the application
-of the tax and social security laws to their employees who are subject to Panama's taxation and social security system, including withholding of tax or social security payments from their salaries.
ARTICLE VIII
Acquisition of Panamanian Supplies and Services
(1) The United States Forces shall give preference to the
procurement of supplies and services obtainable in the Republic of Panama. Such preference shall apply to the maximum extent. possible
TIAS 10032

79-488 0 81 2