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I am wondering what progress you are making in devising an overall wage system that makes sense?
Mr. McAULIFFE. First of all, Mr. Chairman, the new wage system to which you refer, the Panama area wage base, which was pegged at the U.S. minimum wage that was in effect when the treaty took effect and would increase 2 percent per annum thereafter, that wage system is in effect.
We find that it is reasonably competitive with other wages for similar skills in the country of Panama, although there is some question that, at the rates of pay under that system for the more skilled craftsmen, for example, the degree of competitiveness is narrowing considerably. It is something that we are going to have to keep our eye on in the future.
In terms of steps that we are taking toward resolving the wage issue, we have recently placed into effect a compromise wage for certain specific skill categories that can be recruited in Panama, but if there are insufficient numbers available there, can also be recruited in the United States.
So, within certain specific skill categories, I have been authorized to put into effect a compromise wage rate which I think will help out in this matter of remaining competitive in hiring in the skilled areas.
AMERICAN BUSINESS INTEREST IN PANAMA
Senator LEVIN. How have American businesses been doing since the implementation legislation went into effect and the treaty went into effect? Are they generally satisfied with the relationship?
Mr. McAULIFFE. You refer to American businessmen?
Senator LEVIN. The business community in Panama.
Mr. McAULIFFE. They seem to be doing fairly well, although the rather seriously depressed economy of Panama is giving problems to all businessmen there, whether they be American or Panamanian or third country.
One thing that many of the businessmen have commented on to me is the fact that since the treaties have gone into effect, they have been able to count on a certain stability within the country, and even though the economy is depressed, the stability resulting from the assurance that the United States and Panama worked out an accommodation is beneficial to the business interests.
Senator LEVIN. I have a number of other questions which we will be submitting to you for the record. I hope that we can mark this bill up as expeditiously as possible. The chairman did want to drop by to say hello. He might have some comments whbQwe can mark it up.
There may be other members of the committee who will have questions for the record.
We thank you for coming by and for your work.
Is there anything else you want to add before we adjourn?
PANAMA CANAL BOARD MEMBERS
Mr. BLUMENFELD. No, sir. We much appreciate the tremendous help which you have given in shepherding through the nominations of the Panama Canal Commission Board members and your work in