QUSER not authorized when calling sp

Ok, I'm stumped. I'm getting an an sqlstate=08004, sqlcode= -30060 User is
not authorized to relational database when calling a stored procedure on a
remote IBM i.

Here's the scenario. Both IBM i systems are at V7R3M0 and were brought up
to date on PTFs last week.
I have an external sp on the DEV box (mylib.INSERT_REC) and it's failing
when running an INSERT statement
exec sql INSERT INTO mylib.tableA
SELECT * FROM prod.lib.table WHERE ....

If I call the sp on the DEV machine it works perfectly. I print to qprint
after the sql runs and it prints

In iACS Run Sql Scripts
CALL INSERT_REC;

Produces output:
PREPSTMT: INSERT INTO mylib.tableA
SELECT * FROM prod.lib.table WHERE ...
SQLSTATE: 00000
SQLCODE: 0
SQLERROR: 1 rows inserted in TABLEA in mylib
User: QUSER (from psds)

If I call the sp on the PROD machine it fails. When calling on the PROD
machine it is called in an RPGLE program using three part naming
Exec sql CALL dev.mylib.INSERT_REC;

Produces output
PREPSTMT: INSERT INTO mylib.tableA
SELECT * FROM prod.lib.table WHERE ...
SQLSTATE: 08004
SQLCODE: -30060
SQLERROR: User is not authorized to relational database.
User: QUSER (from psds)

I've spent all day trying to figure this out but haven't had any luck.
Does anyone have an idea what I am doing wrong or don't understand?

Thanks for all thoughts...

Rob