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That Panama's ability to satisfy its heavy import requirements and, consequently, its
prosperity, is mainly dependent on factors beyond its control is, however, apparent.
3.
ECONOMIC STABILITY.
At the present time the Panamanian economy is relatively stable. Although US
expenditures in both the Zone and the Republic have declined appreciably since the
cessation of hostilities, the resultant slack has to some extent been absorbed by the
Panamanian Government's own public works program, much of which had been
adjourned for the duration of the war. Furthermore, the present administration has
made an attack upon the nation's continuing economic problems in a promising man-
ner, that is, by planning projects for Panama's economic and agricultural development.
There is reason to believe, too, that the policies embodied in the 1946 Constitution have
tended to encourage both US and Panamanian businessmen to expand their commer-
cial and industrial commitments.
SECRE
II-4
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