From a report of the Panama Canal Commission on Dec. 16:

The Panamanian military has apparently embarked on a specific campaign aimed at all commission employees. For example, over the past few months, the defense forces have detained, without cause, one American and several Panamanian employees of the commission and held them without charges for periods up to seven days; illegally entered and ransacked the commission-assigned home of a commission official who is Panamanian; attempted to force the commission to discipline its Panamanian employees for off-the-job political activities; variously stopped, searched and harassed commission employees on their way to or from work; and created occasional roadblocks on the transisthmian highway on the pretext of searching vehicles for antigovernment propaganda materials.

The foregoing actions have had a negative effect on morale, have impeded commission employees from getting to their jobs on time, have required the commission to find alternate methods of transporting its key personnel across the isthmus and, in some instances, have resulted not only in heightened concern but a feeling of animosity by employees toward the defense forces. . . .

In spite of the aforementioned actions by the Panamanian military, the canal has continued to function efficiently and, thus far, without interruption throughout this unsettled period. There remains, however, the potential for serious disruption of canal operations should the present situation continue and certainly should it worsen to any appreciable degree.