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Panama Canal Treaty Negotiations: 1959-1974
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Panama Canal Treaty Negotiations: 1959-1974
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The original documents are located in Box 6, folder "Panama Canal Treaty Negotiations: 1959-1974" of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 6 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library PANAMA CANAL MATERIAL On June 3, 1976 Jim Connor said to hold here until further notice. Trudy Fry The President's News Con ference December 2, 1959 q 288 Public Papers of the Presidents Q. Marianne Means, Hearst Newspapers: Mr. President, in the in- terest of Latin American relations, is it possible that the United States will let Panama's flag fly beside the United States flag in the Canal Zone? THE PRESIDENT. This is one of the points that's been talked about for many years, since for 50 years the United States has recognized the titular sovereignty of Panama. There have been numbers of problems over the years that have come about because, first, of what the Pana- manians felt were injustices to them in the original treaties; and secondly, by the interpretations of treaties as revised in later years. These last problems of the differences were under study for the last few months, and we had already agreed with the Panamanians for methods of taking another look at them and trying to see whether we couldn't meet their requirements in this matter. So there has been a very conciliatory attitude toward governments, as far as I have known, and the one question of the flag has never been specifically placed before me, no decision has ever been made about it; but I do in some form or other believe we should have visual evidence that Panama does have titular sovereignty over the region. Merriman Smith, United Press International: Thank you, Mr. President. NOTE: President Eisenhower's one hun- from 10:32 to 11:02 o'clock on Wednes- dred and seventy-sixth news conference day morning, December 2, 1959. In at- was held in the Executive Office Building tendance: 261. 289 У Statement by the President Concerning Treaty Negotiations Between the United States and Japan. December 2, 1959 DURING the past months, we have been negotiating a new treaty and other security arrangements with Japan. We attach the greatest impor- tance to this new treaty with Japan which is being negotiated between equals for the mutual benefit and enlightened self-interest of both countries and is therefore in keeping with the new era in our relations with Japan enunciated following my talks with Prime Minister Kishi here in Washing- ton in June 1957. The timing of this new treaty with Japan is particularly opportune since I feel it is most essential at the present juncture in inter- national affairs for the free world to maintain its unity and strength. 794 I 277 Public Papers of the Presidents between missiles, by which we normally mean weapons, and space and the rocketry that will be useful in exploring the space. I cannot, for the life of me, see any reason why we should be using or misusing military talent to explore the moon. This is something that deals in the scientific field, and to give this to the Air Force or Army or Navy, it just seems to me is denying what really is a sort of a doctrine in America. You have given to the military only what is their problem and not anything else; the rest of it stays under civilian control. That is the reason for having this agency. Q. Warren Rogers, New York Herald Tribune: Last week, Dr. von Braun and Roy W. Johnson said that the Saturn project should be de- veloped on a crash basis to beat the Russians in space explorations. They said $140 million for fiscal '61 was not enough; it should be $100 million more. What do you think of that, sir? THE PRESIDENT. Well, of course, I haven't had the studies placed before me yet as to what our people believe to be the proper thing, but I will say this: I have never seen any specialist of any kind that was bashful in asking for Federal money. [Laughter] Q. Stewart Hensley, United Press International: You were speaking a moment ago about Cuba, and yesterday we had an attack on our Embassy in Panama. Now, so many of these nationalist eruptions that keep coming over the landscape down there take on an anti-American tinge. Do you have any idea of anything new the United States can do to try to rectify the situation? THE PRESIDENT. I think that no administration, supported by the Con- gress, I should say, has ever made more effort to develop better under- standing between all of the countries below the Rio Grande than this one; and I think by and large there has been a very great measure of success achieved. But there are in many of these countries an excitable group; people that are extremists and they start sometimes a mob action. Now, as you know, or I think you know-I think the State Department gave you the statement, the protest, that our Ambassador made to the government of Panama-so you know exactly what our feelings are with respect to that, and that we confidently hope that every, not only in Pan- ama, but every civilized government will make certain that law and order are preserved. 772 President's News uference November 4. 1959 Dwight D. Eisenhower, 1959 277 In a way it's a little bit puzzling to me. We have had some problems with Panama, and the treaty by which the canal was first built has been modified and revised a couple of times, each time giving a greater liberty or a greater degree or level of rights to the Panamanians. Right today, we have been for, oh, a good time, several months, work- ing with the Panamanians about the interpretations of the latest treaty, so that many problems that have come up to which they think they have not quite acquired all of the rights and privileges that they feel they should have, they have been studied in the effort to ameliorate all of the causes of these difficulties. I do not know why this fact has not been brought out more, so that the feeling that causes such extraordinary performances would not be so acute. Q. Paul Martin, Gannett Newspapers: Mr. President, I think you talked with Governor Rockefeller of New York for an hour and ten minutes last week and I believe that is the longest time you have spent in conversation with anyone since Khrushchev. [Laughter] The Governor said you talked about some politics. Could you tell us anything about it? THE PRESIDENT. Well, I would say this: this was a personal conversa- tion and this is the first time that I knew that anyone was keeping a stop watch on me whenever I had a visitor. It happens that I like Mr. Rockefeller. He served in my adminis- tration for a considerable time. And I will say this: I believe that a good portion of the time, I don't know whether more or most of it, but a good portion was about civil defense. It is a subject in which he and I have both been interested for a long time; and he, as Chairman of the Governors' Conference in this particular problem, wanted to talk to me about it. Now we talked politics all across the board. You couldn't expect any two people that have political office to avoid that subject completely, and I could not possibly now remember any kind of conclusion we reached. We just found it interesting, that's all. Q. John Scali, Associated Press: Mr. President, in discussions about a date for an East-West summit conference, the point has sometimes been made about the need to preserve the momentum resulting from your talks with Mr. Khrushchev. The Russians talk about the need to preserve the spirit of Camp David. 773 Cont Nov 4, 1959 Cooler Mostly cloudy and rather cool with high is the low 70g today. Northeast Must winds 10 to 18 mph. The Miami Herald Twin Double Nets $53,220 ****** see story on Page Saturday, January 11, 1964 No. 41 Florida's Most Complete Newspaper 54th Year 58 Pages 10 Cents Midnight A Latin American Edition to Published Daily CITY EDITION 73: Rainfall .00. Panama Moves to Evict U.S. After Bloody Street-Fighting U.N. Plea 3 GIs Among Plan OKd By Panama 27 Fatalities; Handling of Crisis By OAS Accepted Canal Open UNITED NATIONS, N.Y. Showing of the flag leads to death (UPI) Panama early today accepted a Brazilian suggestion # ho is sovereign in Canal Zone? for a U.N. appeal for an end to Profile of President Roberto Chiari the fighting in the Canal Zone Rundown on facts on Panama in order to leave the crisis to the Organization of American By Herald Wire Services States PANAMA CITY Panama formally severed But Panamanian Ambassador matic relations with the United States Friday night Aquilino Boyd accused the opened a campaign to drive It out of the Panama 0 United States of unprovoked. Zone after two days of bloody fighting between U.S. to armed aggression and demand- ed that the Panama Canal be and Panamanian civilians. ationalized or inter- President Roberto F. C nationalized already had ordered Am sador Augusto Guille U.S. Ambassador Addat E. Arango home from Wash Stevenson categorically de- ton in preparation for nied the aggression charge leveled by Boyd during an formal rupture. Arango emergency night session of reported standing by in W the Security Council. ington awaiting "the plane out." Boyd later accepted a Bra- The announcement of zillan suggestion that Couneil formal break was made by President Renan Castrillo Jus. 1964 Lyndon B. Johnson, 1963-1964 Sept. 28 [607] cher friends took and it takes determination, and it takes a so City to sell, and search for areas of common interest. one e stockyards said In the IO months since that fateful day to 1 waiting for the last November when tragedy cut our Presi- bidde ell me what is dent down, and on a moment's notice, I had really The , THE WHITE HOUSE WASHINGTON a Sheriff and to step in and pick up and try to carry on a Texa for him, first, if you will remember, some of many years, our soldiers were fired upon and killed in ran his and delib- Panama, and there were those that shouted erated, an ger is one "Move in with the paratroopers." that when hit him, Well, we went over to the Peace Corps he just kee must let and got one of our most skilled diplomats the rest of L e speak who had lived in Panama for years. We said softly, we can ve the to them, "We will not negotiate with a gun will and the de ever at our temple. We will not sign a blank hit us it is not & just check to a treaty, but we will treat you fairly going to keep CO1 and justly. We are a big Nation and you are Our military S se- a small one, and we are not going to take curity and it is V to our in- advantage of you. But you are not going to fluence. But it cai and it must not be take advantage of us." used to compel and to frighten all others And we were criticized for weeks. But into following our command and our every ultimately we reached an agreement on wish. Nor can it build the lasting frame- exactly the terms that I proposed the first day~ work of an enduring peace, because peace by telephone to the President of Panama. does not come from threats or intimidations, A few days later Mr. Castro decided to or humiliations, or overpowering. The only cut our water off at our military base at consequence of such a policy would be con- Guantanamo. We were paying him for that stant conflict, rising hostility, and deepening water, and we were employing some 3,000 tension. Cubans to do our work there. We were Force could not rebuild Europe. It took spending about $5 to $6 million a year with the vision and the statesmanship of the Mar- them. Suddenly and impetuously and im- shall plan, and the patient molding of the pulsively, and I think irrationally, he cut our NATO Alliances. water off. The shout went up, "Send in the Force will not bring democratic progress Marines." to Latin America. It will take many years I don't want the newspapermen to think of the Alliance for Progress to create free- I am quoting anybody now. But we let our dom's answer to false Communist promises. coffee cool a little bit and we decided, for The ancient enemies of mankind thrive better or for worse, that it was wiser to send in that area of this hemisphere-disease, il- in one admiral to cut the water off than it literacy, and ignorance. was to send in a regiment of Marines to turn Force will not bring an end to the arms it on. race. We cannot coerce others to negotiate. So we told Mr. Castro that we will make We can't even compel them to be reasonable this base self-sufficient; we will make our and wise. It takes skill and it takes patience, own water. We cut off about $5 million Remarks in Manchester 1163 Members of the New Hampshire Weekly Newspaper Editors ASSOCIATION [544] Aug. 29 Public Papers of the Presidents I seek it all the time. I am very happy that than to lose 200,000. For that reason we the men on this platform with me tonight have tried very carefully to restrain ourselves are the kind of men that I can counsel with and not to enlarge the war. We have had and I can trust. I have had advice to load a good many difficulties that could have our planes with bombs and to drop them on sprung into major events. We had four of certain areas that I think would enlarge the our soldiers killed in Panama, and some of war and escalate the war, and result in our our people thought I ought to send in para- committing a good many American boys troopers, and that we ought to launch a to fighting a war that I think ought to be strong force against the small group of folks fought by the boys of Asia to help protect that live in Panama. their own land. But we told them that they couldn't be- And for that reason, I haven't chosen to have this way, and that they would have to enlarge the war. Nor have I chosen to re- sit down and reason with us across the treat and turn it over to the Communists. table, that we could not make any precom- Those are two alternatives that we have mitments and we wouldn't sign a blank to face up to. The third alternative is check to a treaty that we didn't know what neutralization in Viet-Nam. We have said was in it, but that we would do what was that if anyone was willing to come forward fair, what was right, and what was just. and guarantee neutralization, in other words It took us 60 days to work out an agree- guarantee the independence of these free ment with them, but they finally came to us people and guarantee them security from and said, "We think that is fair enough," their neighbors who are trying to envelop and so we worked out an agreement. Now them, we would be the first to stand up to we have rather peaceful relations and we the table and say to them, "Show us that you are on the way to making amendments and can guarantee their independence and we modifications in the arrangements between will salute you and we will be very proud of the two nations that will be satisfactory. you." Mr. Castro sought to cut our water off at But there is no country that is willing to Guantanamo. He notified us in a hasty do that, that we know of, so neutralization moment in his own impulsive way that he is not very practical at this stage of the game. would not supply water to our base. I had There are three alternatives we considered. some military experts, some generals here The fourth alternative is to do what we and there, that hollered at me right loudly are doing, to furnish advice, give counsel, ex- and said, "Please send in the Marines im- press good judgment, give them trained mediately." counselors, and help them with equipment I didn't see any reason to send in the to help themselves. We are doing that. Marines to cut the water off. I just sent in We have lost less than 200 men in the last one admiral to turn it off and kept the several years, but to each one of those 200 Marines at home. I didn't start any war, men-and we lose about that many in Texas although I would like very much to see the in accidents on the 4th of July-to each one' free people of Cuba be able to govern them- of those 200 men who have given their life selves without the dictations of Mr. Castro. to preserve freedom, it is a war and a big We are going to do everything that we war and we recognize it. consistently can in our policies to see that But we think that it is better to lose 200 the people of Cuba are free people, and I022 Remarks: BArbacue in Stonewall, TeyAs Remarks Louisville, Ky, Breaksenst for Indinna And Krutucky State lenders Party Lyndon B. Johnson, 1963-1964 Oct. 9 [643] 1964 President Eisenhower came along, and months. We have had several test tubes during the period he was President I was run on us. They have put a thermometer Democratic leader. I looked at the record in my mouth several times. the other day, the last year of our service. One of the first experiences was that they I supported the Republican President more shot four of our men, our soldiers, in Pan- than 90 percent of the time in the field of ama, and they demanded we negotiate an foreign policy, and that was about four times agreement and sign a blank check. Well, as much as the Republican leader supported we didn't do it. We said we would make no him. He supported him about 25 percent precommitments; we would sit down and of the time. do what was right and just. In a period of Then after President Eisenhower came 2 months, they finally agreed to the terms we President Kennedy, and we had the Cuban submitted the first day of the meeting. missile crisis, and men like Senator Hicken- We had a little flare-up at Guantanamo, looper and others stood up with a Demo- at our base in Cuba. The bearded dictator cratic President and they presented a united went out one day and decided to cut the front. Khrushchev had to take his missiles water off for that base. I got a lot of advice, and load them on his boats and take them free advice, from specialized quarters, and out of the country, very much to his humilia- some of them said, "Rush in the Marines. tion. Send in the Marines." It is mighty easy to I am very sorry and I am saddened at what start a fight, get into a war mighty quick. has been said about that in recent days. I We got the recommendation of the Ma- sat in every one of those meetings on the rines, the Army, Navy, and the Air Force, Cuban missile crisis, 37. I never left home the Secretary of Defense and the Secretary in the morning that I was sure I would see of State, and we unanimously concluded my wife and babies when I got back that that instead of acting impulsively and send- evening. It was as tense a situation as I have ing in the Marines to turn the water on, it ever been in-I have been scared a lot of would be wiser to send in one little admiral times, from the time they took me snipe to turn it off, and to tell them we were going hunting on down. to make that base self-sufficient where we But through all that rather terrifying ex- wouldn't have to depend on them any more, perience, the coolest man that sat at either that we would make our own water. end of that table was our late beloved Presi- A lot of new nations have been born in dent John Fitzgerald Kennedy. And now this world. There are more than I20 of when he is not here to answer for himself, them now, and a lot of them are going and he can't speak up as he did so effectively through a perilous period. They are like in every State of the Union when he was children learning to walk. here, to have it said of him, your President Some of the nations, Khrushchev says, and your leader, that he manufactured all have grown up like children and now they this for political purposes, is sufficient in- are too big to spank. So he has a lot of dictment of the author of that statement to problems with some of his satellites. let everyone know who they ought to vote But we have a varying situation all over for for President. the world. During this period we have I have been in office a little less than II done our best to advance the cause of free- 1263 Lyndon B. Johnson, 1963-1964 Oct. 27 [726] At the end of the fiscal year, all the money [ We have had a good many momentary that had been appropriated had been allo- difficulties. We had our water cut off at cated. Red tape had been cut. Decisions Guantanamo, but we solved that without a were no longer being delayed. The watch- major debacle. We had some difficulties in word of the Administrator, Mr. Mann, who Panama, but with patience and judgment we had the authority of the White House and solved that without a major catastrophe. the State Department and the Alliance for We had problems in Brazil and now we are Progress all wrapped up under one hat, was working very closely with them to give them such that he could make a decision, and did. major assists. We had an election in Chile So we got out our allocations and made and that has been decided. Nowhere, really, our decisions. We proceeded on the premise have the Communists taken over any govern- that we could not really have a successful ments, or have any governments gone com- relationship that we could take great pride munistic since Cuba in 1959. in, unless we successfully attacked the ancient In retrospect, as we look over the I2 enemies of mankind in this hemisphere- months of our relations with our neighbors poverty, disease, ignorance, illiteracy, ill in this hemisphere, we can look at them with health, and so forth; that we must have land confidence, with respect, and with pride. reform; that we must have fiscal reform; we And now I am going to ask Mr. Mann to must have tax reform; we must have budget make a full and detailed report on these reform. developments to me quickly, shortly. We have watched with great interest the I am going to ask Dr. Sanz here with improvement that has been made in these CIAP to realize that we maintain an open various fields. But I also concluded-and door policy and that that door there to the my view, I think, was shared by Secretary President's office is always open to him and Rusk and Mr. Mann-that you could take all to his group for suggestions, for criticisms, the gold in Fort Knox and it would just go for ideas. Because we do have a very genu- down the drain in Latin America, unless the ine respect not only for the independence of private investor, upon which our whole our fellow men in this hemisphere but for system is based, free enterprise, could have their lofty and worthy desires to achieve for some confidence that he could make his their people a better standard of living and investment and it would not be confiscated a better way of life. and that he would have an opportunity to And because so many people helped us make a fair and a reasonable return. develop our economy and to become a strong So we worked very closely with a number and mighty nation politically and economi- of leading businessmen and we worked very cally and educationally, we feel a debt of closely with some of the great thinkers, some gratitude and we want to, in part, repay it of whom are represented here this morning, by working with our other neighbors. Be- in trying to make it possible to make private cause the stronger they are, the stronger investment increase and also make it safer. America is. In 1963 we made investments of around $60 Thank you very much. million in other countries. In 1964, at the NOTE: The President spoke about 2:15 p.m. in the rate we are going, it will be over $100 Rose Garden at the White House. During his re- million, almost twice as much. So, progress marks he referred to Thomas C. Mann, Assistant Secretary of State for Inter-American Affairs, United is being made. States Coordinator for the Alliance for Progress, and 1465 Remarks members of the Committee on the Alliance for Progress, oct 27, Lyndon B. Johnson, 1963-1964 Jan. 23 [143] Now if I may have your attention, I am Kennedy and other members of the family, thanked going to ask the very able junior Senator the President and the Members of Congress for "making this day possible," adding that the Cul- from Massachusetts to make a brief response. tural Center was "something extremely close to NOTE: The signing ceremony was held in the Cab- the President's heart and to Jackie's heart as well." inet Room at the White House at IO a.m. Senator The bill (S.J. Res. 136) as enacted is Public Law Edward M. Kennedy, on behalf of Mrs. John F. 88-260 (78 Stat. 4). 143 The President's News Conference of January 23, 1964 THE PRESIDENT. [1.] I want to take this lic of Panama. Both of these objectives can opportunity to restate our position on Pan- and should be assured by the actions and the ama and the Canal Zone. No purpose is agreement of Panama and the United States. served by rehashing either recent or ancient This Government has long recognized that events. There have been excesses and our operation of the Canal across Panama errors on the part of both Americans and poses special problems for both countries. Panamanians. Earlier this month, actions It is necessary, therefore, that our relations of imprudent students from both countries be given constant attention. played into the hands of agitators seeking Over the past few years we have taken a to divide us. What followed was a need- number of actions to remove inequities and less and tragic loss of life on both sides.¹ irritants. We recognize that there are things Our own forces were confronted with to be done and we are prepared to talk about sniper fire and mob attack. Their role was the ways and means of doing them. But one of resisting aggression and not commit- violence is never justified and is never a ting it. At all times they remained inside basis for talks. Consequently, the first item the Canal Zone and they took only those of business has been the restoration of public defensive actions required to maintain law order. The Inter-American Peace Commit- and order and to protect lives and property tee, which I met this morning, deserves the and the Canal itself. Our obligation to thanks of us all, not only for helping to safeguard the Canal against riots and van- restore order, but for its good offices.' For dals and sabotage and other interference the future, we have stated our willingness to rests on the precepts of international law, engage without limitation or delay in a full the requirements of international commerce, and frank review and reconsideration of all and the needs of free world security. issues between our two countries. These obligations cannot be abandoned. We have set no preconditions to the re- But the security of the Panama Canal is not sumption of peaceful discussions. We are inconsistent with the interests of the Repub- 2 The Inter-American Peace Committee of the 1 In defiance of an order of the Governor of Pan- Organization of American States, composed of Ar- ama to eliminate the flying of flags at schools, Amer- gentina, Colombia, the Dominican Republic, the ican students on January 7 hoisted their own flag at United States (in connection with this matter the Balboa High School. Two days later Panamanian OAS Council elected Chile to serve in place of the students attempted to display their flag and disorder United States), and Venezuela, was called upon followed. On January IO Panama broke diplomatic jointly by the two countries to study the U.S.- relations with the United States. (See also Items Panamanian dispute and to recommend measures 95, 104, II4. for its settlement. 219 [143] Jan. 23 Public Papers of the Presidents bound by no preconceptions of what they million in the bill by a 9 to 8 vote and then goin will produce. And we hope that Panama reported the bill to the Senate by a vote of it I can take the same approach. In the mean- 12to5. abo time, we expect neither country to either [3.] You are also writing some other N foster or yield to any kind of pressure with stories, I think, about an insurance policy tion respect to such discussions. We are pre- that was written on my life some 7 years ago, pared, 30 days after relations are restored, to and I am still here. issue sit in conference with Panamanian officials The company in which Mrs. Johnson and It to seek concrete solutions to all problems di- my daughters have a majority interest, along viding our countries. Each government will with some other stockholders, were some- be free to raise any issue and to take any what concerned when I had a heart attack position. And our Government will con- in 1955, and in 1957 they purchased insur- sider all practical solutions to practical prob- ance on my life made payable to the com- lems that are offered in good faith. pany. And the insurance premiums were Certainly solutions can be found which never included as a business expense, but are compatible with the dignity and the se- they thought that was good business practice curity of both countries, as well as the needs in case something happened to me, so Mrs. of world commerce. And certainly Panama Johnson and the children wouldn't have to and the United States can remain, as they sell their stock on the open market and lose should remain, good friends and good control of the company. neighbors. That insurance was purchased here in [2.] Q. Mr. President, before you go, I Washington, and on a portion of the pre- wonder if you could entertain another ques- miums paid, Mr. Don Reynolds got a small tion or so. For example, how do you think commission. Mr. George Sampson, the gen- things are going up on the Hill? eral agent for the Manhattan Insurance Com- THE PRESIDENT. Well, we signed the cul- pany, handled it and we have paid some tural bill this morning. We finished up the $78,000 in premiums up to date and there is appropriation bill before we went home another $11,800 due next month which the Christmas. We completed the education company will probably pay to take care of bills that were then in conference, and that insurance. signed them. [4.] There is a question also which has We had two big items that are high on the been raised about a gift of a stereo set that an agenda; the civil rights bill. employee of mine made to me and Mrs. We have the feeling and the belief of the Johnson. That happened some 2 years later, leadership that we will have that bill before some 5 years ago. The Baker family gave the House early in the month and that we us a stereo set. We used it for a period, and will have final action on it before they take we had exchanged gifts before. He was an a holiday for Lincoln's Birthday. employee of the public and had no business On the tax bill, Senator Byrd has called me pending before me and was asking for noth- within the hour and told me that they re- ing, and so far as I knew expected nothing versed the decision earlier made and today in return any more than I did when I had they took the language out, all repeal lan- presented him with gifts. guage, dealing with excises and restored $450 I think that is about all I know that is 220 Lyndon B. Johnson, 1963-1964 Jan. II [96] 95 White House Statement on the Events in Panama. January 10, 1964 THE President has this morning reviewed The President has noted President Chiari's the situation in Panama with his senior ad- appeal to the citizens of Panama to join in visers. He has ordered the Assistant Secre- the restoration of peace, and the President is tary of State, Mr. Mann, to proceed at once making a similar appeal to the residents of to the Canal Zone. The U.S. Government the Canal Zone. The path to a settlement greatly regrets the tragic loss of life of Pana- can only be through peace and understand- manians and Americans. The President has ing and not through violence. given most earnest instructions to General NOTE: This statement was read by the Press Secretary O'Meara, Commander in Chief, Southern to the President, Pierre Salinger, at his news con- Command (CINCSOUTH), to do all that ference held at the White House on January 10, 1964. is within his power to restore and to main- See also Item 104. tain peace and safety in the Canal Zone. 96 Remarks at a Reception for Members of the Democratic National Committee. January II, 1964 I KNOW that all of you have met her but I matters always on principles and never on want Lady Bird to say a word before I get personalities. opened up on a long speech. There are many things that divide our [At this point Mrs. Johnson spoke briefly, welcoming country, but we would do nothing to muffle the Committee members to the White House. She dissent. That is one of the great and pre- expressed her pleasure at seeing among them old friends she had met as she traveled "across the many cious things about this land and the freedom years and across the many States." The President that we enjoy; but we do think that we can then resumed speaking.] disagree without being disagreeable. We know how much you have sacrificed I had the good fortune to serve as leader of through the years in order that the convic- the Senate for 8 years-the longest period of tions that you possessed could be carried into time any leader ever served under the Presi- Government. We know how sorrowful the dent of another party. Although we fre- last 7 weeks have been for all of you. We quently did not see eye to eye on matters of meet tonight with heavy hearts because of governmental policy, we found that it was the loss of a fallen leader, but he left us many not necessary to indulge in personalities. good things to work for. We enumerated Not once that I recall did I ever make a some of those things in our State of the caustic personal criticism of President Eisen- Union Message a few days ago. hower, his wife, his children or his dogs. Above all, we are Americans before we are I think you will find that we will be able Democrats or Republicans. When I was to get through this campaign and any others talking to the Congress, I particularly ap- in which we may engage with the same pealed to the members of my own party to thought in mind that basically there are so put the interests of the country ahead many more things that unite us than divide of the interests of the party, to debate us. We have faith in this country and we I2I [113] Jan. 16 Public Papers of the Presidents 113 Memorandum on the Observance of Brotherhood Week. January 16, 1964 Memorandum for the Heads of Executive The Honorable Brooks Hays is on leave Departments and Agencies: to serve as the National Brotherhood Week I have accepted the Honorary Chairman- Chairman for 1964. He and the offices of ship of Brotherhood Week for 1964. the National Conference of Christians and Dedicated to the principle of "to bigotry Jews throughout the country will be glad to no sanction, to persecution no assistance," as assist you and your employees in observing expressed by our first President, Brotherhood this important week of dedication. Week is traditionally held during the week I hope that in its own way, each Depart- of George Washington's birthday. This ment and Agency throughout the country year it will be February sixteenth through will find it possible during this week to the twenty-third. commemorate and underscore the impor- This is a time of deep appraisal for all tance of implementing the principle of the Americans. In view of our recent national Brotherhood of Man under the Fatherhood tragedy, no better time exists for the search- of God. ing of our hearts and minds. LYNDON B. JOHNSON II4 White House Statement Concerning U.S. Readiness To Carry On Discussions With Panama. January 16, 1964 THE United States Government is ready culty between the two countries that it is time and willing to discuss all problems affecting for the highest exercise of responsibility by the relationship between the United States all those involved. and Panama. It was our understanding that the Government of Panama was also willing NOTE: This statement was read by the Press Secre- tary to the President, Pierre Salinger, at his news to undertake these discussions. Our position conference held at the White House on January 16, is unchanged. We feel in this time of diffi- 1964. II5 Statement by the President in Response to a Report on Immigration. January 17, 1964 THE REPORT of the Immigration and versity of its heritage. Its future has always Naturalization Service is an example of Gov- rested on the hopes of our forebears as they ernment with a heart. came to seek freedom and abundance. By applying existing immigration laws We can take renewed faith in the eager- with humanity, we are demonstrating that ness of people throughout the world to be- compassion and efficient administration go come citizens-to share with us in the build- hand in hand. ing of an even stronger country. We can America's strength has risen from the di- express that faith by passing and implement- 144 [103] Jan. 14 Public Papers of the Presidents 103 Telegram to Governor Sanford on His Attack on Poverty in North Carolina. January 14, 1964 I WANT to congratulate you on your initia- promises to make an exciting and important tive in mobilizing for an attack on poverty contribution to this deep-seated problem. I in North Carolina. Please convey to those want to assure you of the full cooperation of at your conference today my heartfelt wishes the Federal departments whose programs for the success of your efforts. As you know, contribute to the war on poverty. my State of the Union Message proposed an LYNDON B. JOHNSON all-out war on poverty in America. I am confident that the Congress will respond to [The Honorable Terry Sanford, Governor of North this challenge. The North Carolina Fund Carolina, Raleigh, North Carolina] 104 White House Statement Following Receipt of a Report on Panama. January 14, 1964 THE President received a full report on the cannot allow the security of the Panama situation in Panama from Mr. Mann. Mr. Canal to be imperiled. We have a recog- Mann emphasized that U.S. forces have be- nized obligation to operate the Canal effi- haved admirably under extreme provocation ciently and securely, and we intend to honor by mobs and snipers attacking the Canal that obligation in the interests of all who de- Zone. The President continues to believe pend on it. The United States continues to that the first essential is the maintenance of believe that when order is fully restored it peace. For this reason, the United States should be possible to have direct and can- welcomes the establishment of the Joint Co- did discussions between the two govern- operation Committee through the Inter- ments. American Peace Committee. NOTE: This statement was read by Andrew T. The United States tries to live by the Hatcher, Associate Press Secretary to the President, policy of the good neighbor and expects at the Press Secretary's news conference held at the White House on January 14, 1964. others to do the same. The United States 105 Remarks to Leaders of Organizations Concerned With the Problems of Senior Citizens. January 15, 1964 Mr. Celebrezze, ladies and gentlemen: Presidency: You have a variety of matters I am sorry that I have been delayed a little and you never get bored with just handling bit in getting in here this morning, but I am one problem. But I don't know any problem happy that you are here and that you have a that has ever faced all of our people that chance to come to this house that belongs to should concern us more than the one about all of us. which we meet this morning. There is one thing you can say about the The 20th century, in which we live, has 132 Lyndon B. Johnson, 1963-1964 Jan. 25 [150] Will you interpret for me? paper, dated 1870, founded by Mr. Crespi's family. This is a picture of the Acting Mayor of The President then resumed speaking.] Washington welcoming your President to It is a great honor to me and I appreciate the Blair House. Now pick me another. this beyond words, and I will always treas- This is a picture welcoming him at the ure it and have thoughts of a fine, aggressive White House. And this is for you. group of friends from Italy who came here Now will you pick me three of the girls. this morning. I believe I will give the Ambassador this Thank you very much. one. NOTE: The President spoke at 10:45 a.m. in the You have one of the finest Ambassadors Theater at the White House. In his opening re- and one of the loveliest ladies of any embassy marks he referred to Sergio Fenoaltea, Italy's Am- bassador to the United States. Later he referred to here in Washington. And tell them I am Jack Valenti, Special Consultant to the President, going to send that one to the Ambassador's U.S. Senator John O. Pastore of Rhode Island, and wife. U.S. Representative Peter W. Rodino, Jr., of New Jersey. [At this point Mario Crespi Morbio, co-owner of the The group, under the leadership of Mr. Crespi, Corriere Della Sera, presented the President with a was sponsored by the Corriere Della Sera. small bronze facsimile of the first page of the news- 150 The President's News Conference of January 25, 1964 THE PRESIDENT. So you know about your leaning over backwards to hold the appro- weekend plans, I am not going to Camp priation and authorization hearings together. David. I will be here and I will be working The schedule that the chairman of the Ap- all day. I may go out a time or two on lit- propriations Committee gave out was very tle personal matters, but basically I will be good, very orderly, and very well planned.² in the office. We are going to meet it. [1.] I have been working with McNa- I have been talking to Mr. McNamara mara some this morning on his presentation about that, as well as some other matters, to the committee.¹ We think we are mak- this morning. ing some real progress up there getting our [2.] I have also been talking to Mr. authorization measures up in January so Mann on the Panamanian situation, and we they can really get their teeth into these are working very hard on that along the things. All this delay has not been solely lines of my statement the other day.³ That attributable to Congress. I have said to statement is basically United States policy. these bureau people and agency and de- It is the same policy we enunciated to the partment people to get ready. That is why President when we first talked to him, and you are going to get your briefing on hous- it is the same policy that applies to all na- ing today. We have that scheduled for tions. That is the policy of being fair and hearing early in February. just and discussing any problem that arises People like Senator Russell are really 2 Schedule of the House Appropriations Commit- tee, printed in the Congressional Record, January 21, 1 Secretary of Defense Robert S. McNamara's mil- 1964, page 688. itary posture briefing before the Senate and House 3 For the President's statement on Panama, see Armed Services Committees. Item 143. 227 Remarks At the St.Louis Bicentennial Dinner [189] Feb. I4 ,964 Public Papers of the Presidents houses each year, many new schools, children can have the benefits of a whole- libraries, streets, utility lines, transport sys- some and a vital environment. tems, water and sewage facilities, and stores But it is not enough to build healthier and churches. local communities. America's larger task to- If by the year 1970 we are to fulfill the night is to help build a healthier world. ideals of our free society, we shall have to These objectives are very related: we cannot have ample housing for our low-income secure the success of freedom around the families, for our rural families, for our world if it is not secure for all citizens elderly families, and for the families of those in our cities; and no city in America can be who serve in our Armed Forces. certain of its safety until all the world is If by the year 1970 we are to save the vital- made safe for diversity. ity of our cities, we must make continued In the past 3 years that safety has steadily progress in eliminating slums, in rehabili- grown, thanks to the leadership of your own tating historic neighborhoods, in providing Senator Symington, and to Senator Long for the humane relocation of people that are and other members of your congressional displaced by urban renewal, in restoring the delegation. The vast and rapid increase in economic base of our communities, and in our nuclear and conventional military revitalizing our central areas. strength has enabled us to meet each new This is an agenda, but only a par- conflict and to face each new crisis-from tial agenda and only a partial answer. West Berlin to Cuba-with both courage If we of this generation are to do what and calm. It has likewise enabled us to must be done to preserve the quality and bargain for an end to arms from a position the character and the meaning of American of strength and conviction. life, we must, at home and in the world, The very progress we have made, to be make a basic choice. We must choose sure, brings problems in its wake. Many progress or we must choose decay. nations that are no longer frightened for Three weeks ago I sent to the Congress a their future now feel more free to press their Message on Housing and Community De- more narrow national interests. Disputes velopment,1 proposing a number of specific between our allies and our friends in Cyprus, ways in which the National Government can in Malaysia, in Africa or Kashmir or the work with citizens in localities throughout Middle East tend to weaken free world coop- the country to meet the crisis of the city. eration, and tend to invite Communist ex- Working together, strong civic spirit, strong ploitation. So it is in our interest not only as local and national leadership can meet these a world power but as a partisan of peace, to problems. work patiently with our friends on any of The Federal Government cannot act where these disputes where we can be helpful to local spirit and leadership are absent. But achieve a just resolution. the Federal Government tonight stands I would remind you that we did not ready to help every city that is determined to create these quarrels, but we can, and we become a place where children can grow up must and we should, help to end them. In in decent neighborhoods, where children the Panama Canal Zone we ourselves are can go to decent schools, where children can party to such a dispute and, too, here tonight play in decent parks and playgrounds, where we are working for a peaceful solution. It 1 Item 152. is a solution that is compatible with the inter- 300 Lyndon B. Johnson, 1963-1964 Feb. 14 [189] ests of both nations and with the principles by friend and foe, by the great and the small, of a good neighbor. will always do its full part to achieve in our Elsewhere in the world, particularly in time a world without war in a century of Southeast Asia, conflict continues between peace. those that are seeking to impose the Com- Thank you and good night. munist system by direct or indirect aggres- [Following applause the President resumed speak- sion and those who are seeking to protect ing.] their freedom of choice and their freedom Many years ago an inquiring friend asked of action. The United States is determined a great member of the Congress why the to help those free and peaceful peoples who delegation from his State was the ablest in need and seek our help. It is their land the Congress. He gave him a very fine and and their war, but we will never weaken frank answer. I think that I should like for our support for their effort, or we will never all the people of not just St. Louis and St. betray their trust in us. Louis County, but all the people of Missouri, All of these tense and troubled problems to hear that answer tonight, and to apply it require much of the American citizen-a to your own great delegation. steadiness of purpose, a sense of perspective He said, "Why does your State have the and, above all, enduring and persevering greatest delegation in Congress?" The an- patience. We cannot expect perfection in swer was, "Because we pick them young and an imperfect world, nor can we expect com- we pick them honest. We send them there, plete agreement among the world's free men. and we keep them there." Freedom prospers through the fair discus- And so to the people of Missouri, I must sion of honest differences, both at home and admit, with apologies to Congressman abroad. We invite and we welcome such Curtis, that if I had been picking them in discussions. the original instance, I might have confined But neither at home nor abroad is there them all to one party. That would have any need for twisted arguments that would perhaps been a most narrow viewpoint, be- damage the good name of our country. The cause we are going to have two parties in American people have little sympathy for this country for a long time. those abroad who seek political gain from All I say to you in Missouri is this, that baseless denunciation of the United States every day I sit in the White House and I because we have helped others and because see the decisions that Harry Truman made we are a leader for peace. And they will and didn't make. I see the men that he equally reject such tactics if they are em- hired and the men he fired. I see the ployed at home. strokes of genius that came from his pen dur- We are confident that our principles are ing those few troublesome years. I saw sound and that our progress is good; that the injection of new policy known as the those who distort the truth to alarm the peo- Truman Doctrine in Europe, and the Mar- ple, either at home or abroad, about either shall plan that saved the world from com- America's capacity or America's purpose, munism. I never cease to be grateful to do not serve their children or serve their the State of Missouri for giving us that good country, or serve freedom in the world. and wise man in that troublesome period. This Nation, more respected than ever, Although some of my party people might more respected than ever respected before not approve of this statement, I would say 301 Remarks 96th Charter DAY Observance of the Unio. of Calif. [192] Feb. 2I At has Angeles Public Papers of the Presidents (964 people of the United States, as Governor people who seek only to be left in peace. For Brown has told you, are proud of their en- IO years our country has been committed during friendship with our neighboring na- to the support of their freedom, and that tion, Mexico. commitment we will continue to honor. In the winning of our independence, in The contest in which South Viet-Nam is now the strengthening of our institutions, in the engaged is first and foremost a contest to be relentless quest of social justice and human won by the government and the people of rights, in the pursuit of a better way of life that country for themselves. But those en- for all of our peoplè, Mexico and the United gaged in external direction and supply would States have walked a common road. Others do well to be reminded and to remember walk that road today, and our experience, that this type of aggression is a deeply dan- Mr. President, enables us to understand their gerous game. hopes, for neither Mexico nor the United For every American it is a source of sad- States leaped into the modern world full ness that the two communities in Cyprus grown; we are both the products of inspired are today set against each other. America's men who built new liberty out of old op- partnership with Europe began with Presi- pression and, Mr. President, neither of our dent Truman's brave pledge of assistance revolutions is yet finished. to Greece and Turkey. Now the people of So long as there remains a man without Cyprus, closely tied to these two friends and a job, a family without a roof, a child with- allies, our partners in NATO, stand at the out a school, we have much to do. No edge of tragedy. Of course, the United American can rest while any American is States, though not a party to the issues, will denied his rights because of the color of his do everything we possibly can to find a skin. No American conscience can be at solution, a peaceful solution. So I appeal peace while any American is jobless, hun- for an end to the bloodshed, before it is too gry, uneducated, and ignored. late, to everyone in Cyprus and to all inter- Our "permanent revolution" is dedicated ested parties around the world. It is the to broadening, for all Americans, the ma- task of statesmanship to prevent the danger terial and the spiritual benefits of the demo- in Cyprus from exploding into disaster. cratic heritage. But while we pursue these Closer to home, we ourselves seek a settle- unfinished tasks at home, we must look also ment with our friends in Panama. We at the larger scene of world affairs. Our give assurance to the government and to the constant aim, our steadfast purpose, our un- people of Panama that the United States of deviating policy, is to do all that strengthens America is determined to be absolutely fair the hope of peace, and nothing will ever in all discussions on all our problems. We make us weary in these tasks. In our for- are prepared, calmly and without pressure, eign policy today there is room neither for to consider all the problems which exist complacency nor for alarm. The world has between us, and to try our dead-level best become small and turbulent. New chal- to find a solution to them promptly. What lenges knock daily at the White House, is needed now is a covenant of cooperation. America's front door. As we are patient in Panama, we are pre- In South Viet-Nam, terror and violence, pared at Guantanamo. We have dealt with directed and supplied by outside enemies, the latest challenge and provocation from press against the lives and the liberties of a Havana, without sending the Marines to 304 [201] Feb. 29 Public Papers of the Presidents great disservice, but we are keeping in close He served in the United States Army after touch with it daily. resigning from the Senate. He had con- We have Ambassador Lodge, who heads siderable military experience there. He our forces in that area. He is in constant served his country well at the United Na- communication with us. He makes recom- tions under the administration of President mendations from time to time. We act Eisenhower. He was selected by President promptly on those recommendations. We Kennedy upon the recommendation of Sec- feel that we are follqwing the proper course retary Rusk. He has been given full author- h and that our national interests are being ity to act as our top adviser in that area. He fully protected. had a long conference with me before he re- Q. Mr. President, do you see any rea- turned to Viet-Nam in November. son to fear that an extension of the fighting I am unaware of any political inclinations in South Viet-Nam might bring Communist he may have. I have seen nothing that he China or even the Soviet Union into the has done that has in any way interfered with fight? his work out there. I think that he has THE PRESIDENT. I know of no good pur- properly assessed the situation himself by pose that would be served by speculating on saying that since he is our Ambassador there the military strategy of the forces of the he cannot personally get involved in the cam- South Vietnamese. I think that too much paign plans that some of his friends may have speculation has already taken place-I think for him. that a good deal of it without justification. [6.] Q. Mr. President, do you see any I sometimes wonder if General Eisenhower, hope of reaching an agreement in Panama before the battle of Normandy, had been before that country's Presidential elections confronted with all the-if the world had all in May? the information concerning his plans that THE PRESIDENT. I would hope that we could they seem to have concerning ours in Viet- reach an agreement as early as possible. As Nam, what would have happened on that soon as I learned that the Panamanians had fateful day. marched on our zone and we had a disturb- So, I would answer your question merely ance there, and some of our soldiers had been by saying that I do not care to speculate on killed, some of the students had raised the what might happen. The plans that have flag and this disturbance had resulted, I im- been discussed in the papers are not plans mediately called the President of Panama on that have come to my attention, or that I the telephone and said to him in that first have approved. exchange, "I want to do everything I can to Q. Mr. President, Henry Cabot Lodge, work this problem out peacefully and your Ambassador to South Viet-Nam, was quickly. Therefore our people will meet your opponent for the Vice Presidency in with your people any time, anywhere, to 1960, and is a very strong potential Repub- discuss anything that will result in bringing lican nominee this time. Doesn't that make peace and stopping violence." conduct of your policy in South Viet-Nam The President asked me how long it awkward, if not difficult? would be before those discussions could take THE PRESIDENT. No, I don't think so. Mr. place, and I said we would have a team in Lodge had a brilliant career in the Senate. the air within 30 minutes. 324 The President's News Conforence of February 29,1964 Lyndon B. Johnson, 1963-1964 Feb. 29 [201] I designated Assistant Secretary Mann 3 to reached is carried out. We have expressed leave immediately. We have been pursuing our deep regret that it has not been. We those discussions ever since. We have are very hopeful that the interested govern- reached no agreement. One day you see ments will take the appropriate action to see speculation that an agreement is imminent. that the agreement is carried out. The next day you see speculation that we [8.] Q. Mr. President, you have said re- are very pessimistic. I think both reports peatedly that peace is the paramount issue have been wrong. on your mind. I wonder, sir, if during your There has been no meeting of the minds. first hundred days in the White House you We realize that treaties were written in 1903 have seen any encouraging signs along this and modified from time to time-that prob- road and, specifically, do you think a trend lems are involved that need to be dealt with of the modern world is towards coexistence and perhaps would require adjustment in and conciliation rather than to strife. the treaty in 1963 or 1964. THE PRESIDENT. We must be concerned not So we are not refusing to discuss and just with our foreign policy in the twentieth evolve a program that will be fair and just century but with the foreign policy of IIO to all concerned. But we are not going to or I20 other nations. We are today dealing make any precommitments, before we sit with serious problems in many places in the down, on what we are going to do in the way world that seriously affect the peace. When of rewriting new treaties with a nation that we solve these problems I have no doubt but we do not have diplomatic relations with. what there will be others that arise that have Once those relations are restored, we will be been in existence for centuries. glad, as I said the first day, and as we have It is going to be the course of this Gov- repeated every day since, to discuss anything, ernment to do everything that we can to any time, anywhere, and do what is just and resolve these differences peacefully, even what is fair and what is right. Just because though they are not of our own making. Panama happens to be a small nation, maybe There are few of these situations which have no larger than the city of St. Louis, is no rea- been brought about by anything that we son why we shouldn't try in every way to be have done, but they are age-old differences equitable and fair and just. We are going that have existed for centuries. to insist on that. But we are going to be I am an optimist. I spent 35 days in equally insistent on no preconditions. meetings with the Security Council in the [7.] Q. Mr. President, returning to Cuban missile crisis. I saw the alternatives southeast Asia, the Pathet Lao in Laos has presented there. I realized that we can, been stepping up its military activities in with the great power we have, perhaps de- violation of the '62 Geneva agreement. Is stroy 100 million people in a matter of min- the United States willing to concede that neu- utes, and our adversaries can do likewise. tralization is not the answer to Laos today? I don't think that the people of the world THE PRESIDENT. The United States has want that to happen and I think we are made the proper protestations and is doing going to do everything that we can to avoid everything we can to see that that agreement its happening. Now there are going 3 Thomas C. Mann, Assistant Secretary of State for to be some very serious problems that Inter-American Affairs. we have to resolve before we achieve peace 325 [182] Feb. II 1964 Public Papers of the Presidents no one was in here, they were all used, but standing. There are only six of them that when people got economy conscious and have a per capita income of as much as just started watching things like we used $80 a month. Yours has over $200 a month. to on the REA line when we had a minimum How long this Nation will endure and bill of $2.50 a month and we never wanted survive and meet the trials of leadership to go over the minimum. Things can be will depend largely on the quality of its reduced. public servants, their dedication, their hon- It has not all been due to our efforts. esty, their integrity, their enlightenment, Some of it came about for other reasons, their selflessness, their willingness to do but we hope that next month it will come unto others as you would have them do unto down another $500 a month. The people us. of the country, I think, will really appreciate We have problems in the world. We are when they realize you are saving $2500 a living in a frustrating period, an exciting month on electricity in the house in which period, a developmental period. I have seen you live. You go back home and see how times when the skies were grayer. But we much electricity you can save in the build- don't have on our hands this morning a mis- ing in which you work. See how many sile crisis in Cuba. We don't have Laos; we lights you leave on when you go out at night. don't have the conference in Vienna that we See how many people you have that are faced the first few months of President Ken- not living up to the most rigid standards. nedy's administration-the Bay of Pigs-all I have always said and thought that if I of those were major problems. could have a son I would like for him to be Relatively speaking, we don't have the a' preacher or a teacher or a public servant problem that Mr. Khrushchev has with Com- because I have observed that there comes to munist China, 800 million people there and those professions a sense of satisfaction out they are saying ugly things about each other. of doing a job that you never get from a And 800 million is a sizable number. When paycheck. Most of you men would in pri- they fall out among themselves it is some- vate life draw several times the salary that thing that must concern both of them. you draw now. We are concerned about Panama-that we Here is Secretary Dillon who has every- should have a dispute with any of our neigh- thing in the world that a man could want. bors. Our school children made a mistake He has wealth, he has prestige and he has in raising the United States flag without a lovely wife and a wonderful reputation, raising the Panamanian flag, but that does but his great satisfaction comes from work- not warrant or justify shooting our soldiers ing here in Washington and leading a group or invading the zone. like you, and spending several times more Our plane was off course over Berlin and per year than he earns in his salary, trying lost its communications system very like- to help other people. You are very for- ly, and was shot down. It should not have tunate to be one of those men who is not been in that territory. It would not have a preacher or teacher but a public servant, been if it had been able to follow our radar because you serve the greatest government instructions but it lost its communications; in the world. You serve the leader of the but we don't think that they were justified world, the 113 nations, and yours is out- in shooting it down. 288 Remarks Key Officials of the Internal Revenue Service Transcript of T.U. And Radio Interview Representatives of Major Brond east Services [218] Mar. 15 Public Papers of the Presidents 1064 and arrest an American chargé d'affaires. THE PRESIDENT. We have been very close But that does happen, and we have to be to agreement several times. I have no doubt prepared for those developments and try to but what agreement will be reached that understand them and try to provide leader- will, in effect, provide for sitting down with ship that will keep us from getting in deeper the Panamanian authorities and discussing water or more trouble, and that is what we the problems that exist between us and be- are doing. Sometimes our people become ing guided only by what is fair and what is very impatient. They cut the water off on us right and what is just, and trying to resolve in Cuba, and I got a good many recommen- those problems. Now, when that will come dations from all over the country as to how to about, I don't know. We are anxious and act very quickly. Some of them said-some willing and eager to do it any time it suits of the men wanted me to run in the Marines, their convenience. send them in immediately. Mr. Lawrence: What is the hitch right Well, upon reflection and evaluation and now, Mr. President? study, realizing not many people want more THE PRESIDENT. I think first, they have an war, and none of them really want more election on, and I think translating our appeasement, you have to find a course that language into their language, that some of you can chart that will preserve your dignity the agreements that we have to discuss these and self-respect, and still bring about the ac- matters, they perhaps feel that they would tion that is necessary. So instead of sending want stronger language than we are willing in the Marines to turn the water on, we to agree to, and we want a different expres- sent one admiral in to cut it off and arrange sion from what they want. It is largely a to make our own water, and we think things matter of trying to agree on the kind of worked out as best they could under those language that will meet their problems, and circumstances. that we can honestly, sincerely agree to. But there are going to be these demands We are not going to agree to any precondi- from time to time, from people who feel tions to negotiate a new treaty without know- that all we need to do is mash a button and ing what it is going to be in that treaty determine everybody's foreign policy. But and without sitting down and working it we are not living in that kind of a world any out on the basis of equity. We think that more. They are going to determine it for that language can be resolved and will be themselves, and that is the way it should resolved in due time. be. And we are going to have to come and [31.] Mr. Brinkley: Mr. President, what reason with them and try to lead them in- is your assessment now of General de stead of force them. And I think, I have no Gaulle's behavior in the last year or two? doubt but what for centuries to come that we What do you think about it? will be a leading force in molding opinion of THE PRESIDENT. Well, it is not for me to the world, and I think the better they know pass judgment on us the more they will like us. Mr. Brinkley: In relation to us, sir? [30.] Mr. Lawrence: Is there any prog- THE PRESIDENT. on General de Gaulle's ress, Mr. President, in the deadlock over conduct. My conversations with him have Panama and the absence of diplomatic rela- been very pleasant. I would like to see him tions with that country? more in agreement on matters with us than 372 Remarks Third Anniversary of the Alliance for Lyndon B. Johnson, 1963-1964 Mar. I6 [220] Progress self-help. Progress cannot be created by increased opportunity for us all. They 1964 are forming international organizations. Prog- the means for each to contribute his best tal- ress cannot be imposed by foreign countries. ents and each to contribute his best desires. Progress cannot be purchased with large They are the means to the full dignity of amounts of money or even with large man, for the Alliance for Progress is a recog- amounts of good will. nition that the claims of the poor and the Progress in each country depends upon the oppressed are just claims. It is an effort to willingness of that country to mobilize its fulfill those claims while at the same time own resources, to inspire its own people, to strengthening democratic society and main- create the conditions in which growth can taining the liberty of man. and will flourish, for although help can So, no matter how great our progress, it come from without, success must come only will lack meaning unless every American from within. Those who are not willing to from the Indian of the Andes to the im- do that which is unpopular and that which poverished farmer of Appalachia can share is difficult will not achieve that which is in the fruits of change and growth. Land needed or that which will be lasting. This reform, tax changes, educational expansion, is as true of my own country's fight against the fight against disease-all contribute to poverty and racial injustice as it is of the this end. Everything else that we must do fight of others against hunger and disease must be shaped by these guiding principles. and illiteracy-the ancient enemies of all In these areas-cooperation and self-help and mankind. social justice-new emphasis can bring us By broadening education we can liberate closer to success. new talents and energies, freeing millions At the same time, we must protect the . from the bonds of illiteracy. Through land Alliance against the efforts of communism reform aimed at increased production, tak- to tear down all that we are building. The ing different forms in each country, we can recent proof of Cuban aggression in Ven- provide those who till the soil with self- ezuela is only the latest evidence of those respect and increased income, and each intentions. We will soon discuss how best country with increased production to feed we can meet these threats to the independ- the hungry and to strengthen their economy. ence of us all. Fair and progressive taxes, effectively col- But I now, today, assure you that the full lected, can provide the resources that are power of the United States is ready to assist needed to improve education and public any country whose freedom is threatened by health conditions and the social structure forces dictated from beyond the shores of that is needed for economic growth. Meas- this continent. ures ranging from control of inflation and [Let me now depart for a moment from my encouragement of exports to the elimination main theme to speak of the differences that of deficits in public enterprises can help have developed between Panama and the provide the basis of economic stability and United States. growth on which our Alliance can flourish. Our own position is clear, and it has been The third area of emphasis is the pursuit from the first hour that we learned of the of social justice. Development and material disturbances. The United States will meet progress are not ends in themselves. They with Panama any time, anywhere, to discuss are means to a better life and means to an anything, to work together, to cooperate with 383 [220] Mar. 16 Public Papers of the Presidents each other, to reason with one another, to pirations of millions of farmers and workers, review and to consider all of our problems of men without education, of men without together, to tell each other all our opinions, hope, of poverty-stricken families whose all our desires, and all our concerns, and to homes are the villages and the cities of an aim at solutions and answers that are fair entire continent. and just and equitable without regard to They ask simply the opportunity to enter the size or the strength or the wealth of into the world of progress and to share in either nation. the growth of the land. From their leaders, We don't ask Panama to make any pre- from us, they demand concern and compas- commitments before we meet, and we in- sion and dedicated leadership and dedicated tend to make none. Of course, we cannot labor. begin on this work until diplomatic rela- I am confident that in the days to come we tions are resumed, but the United States is will be able to meet those needs. It will not ready today, if Panama is ready. As of this be an easy task. The barriers are huge. moment, I do not believe that there has been The enemies of our freedom seek to harass a genuine meeting of the minds between the us at every turn. We are engaged in a two Presidents of the two countries involved. struggle for the destiny of the American Re- Press reports indicate that the Govern- publics, but it was a great poet, William ment of Panama feels that the language Butler Yeats, who reminded us that there which has been under consideration for was doubt if any nation can become pros- many days commits the United States to a perous unless it has national faith. Our rewriting and to a revision of the 1903 treaty. Alliance will prosper because I believe we We have made no such commitment and do have that faith. It is not idle hope but we would not think of doing so before the same faith that enabled us to nourish a diplomatic relations are resumed and unless new civilization in these spacious continents, a fair and satisfactory adjustment is agreed and in that new world we will carry forward upon. our Alliance for Progress in such a way that Those of us who have gathered here today men in all lands will marvel at the power must realize that we are the principal of freedom to achieve the betterment of man. guardians of the Alliance for Progress. But Thank you) the Alliance is not here, and it is not in NOTE: The President spoke at 11:50 p.m. at the Pan office buildings and it is not in meeting American Union. His opening words "Mr. Chair- rooms in Presidential mansions throughout man" referred to Carlos Sanz de Santamaría, Chair- man of the Inter-American Committee on the Al- the hemisphere. The Alliance is in the as- liance for Progress. 22I Remarks to the Labor Advisory Council to the President's Committee on Equal Employment Opportunity. March 16, 1964 I AM glad to meet with you gentlemen and years ago, just after President Kennedy to express our pleasure over your agreement created the President's Committee which I to serve on this newly created Labor Ad- chaired. I said then that there was no more visory Council. Most of you met with us 3 important job in the world than the one we 384 [231] Mar. 20 Public Papers of the Presidents Council for Science and Technology will and best timing for efficient use in agriculture. It continue to give this area the attention re- assigned high priorities to research in ground water, including an infiltration process and soil-plant- quired to achieve and maintain effective in- water relationships; to socio-economic research; and teragency planning and coordination and an to research in water quality. adequate effort in water resources research. Dr. Donald F. Hornig served as Chairman of the Federal Council for Science and Technology, and Sincerely, LYNDON B. JOHNSON William C. Ackermann as Chairman of the Com- mittee on Water Resources. NOTE: This is the text of identical letters addressed On August I the White House announced a to the Honorable Carl Hayden, President pro further step in the field of water resources research. tempore of the Senate, and to the Honorable John W. A White House release of that date stated that the McCormack, Speaker of the House of Representatives. President met with his Science Adviser to discuss The letter was made public as part of a White plans for U.S. participation in the International House release announcing the transmittal to the Hydrological Decade-a worldwide effort to ad- Congress of the first progress report of the Com- vance knowledge of water. The program, beginning mittee on Water Resources Research of the Federal in 1965, would involve the establishment of stations Council for Science and Technology (Feb. 1964, and networks throughout the world to measure and 65 PP., Government Printing Office). track water in the hydrologic cycle from rain to the The report proposed an increase in expenditures underground water table and eventually back to the for water research from $71,473,000 in fiscal year atmosphere. The release stated that the President 1964 to $72,464,000 in 1965. It recommended pledged support of the International Hydrological studies ranging from highly theoretical research on Decade studies by Government agencies and that he the energy status of water molecules to such directly urged cooperation on the part of the universities and applicable matters as the amount of irrigation water scientific societies. 232 The President's News Conference of March 21, 1964 THE PRESIDENT. Is it all right with you folks and respect for the sovereignty of each, to if I monitor your press conference? 1 provide for the betterment of all.' [1.] I am sending this afternoon a state- "Under the many treaties and declarations ment to the President of the OAS which may which form the fabric of that system, we be of some interest to you. I will have copies have long been allies in the struggle to made of it as soon as we can complete them. strengthen democracy and enhance the wel- The statement reads: fare of our people. "The present inability to resolve our differ- "Our history is witness to this essential ences with Panama is the source of deep unity of interest and belief. Panama has regret. unhesitatingly come to our side, twice in this [At this point the President presented background century, when we were threatened by ag- material. He then resumed reading the statement.] gression. On December 7, 1941, Panama "Our two countries are not linked by only declared war on our attackers even before a single agreement or a single interest. We our own Congress had time to act. Since are bound together in an Inter-American that war, Panama has wholeheartedly joined System whose objective is, in the words of. with us, and our sister republics, in shaping the charter, 'through mutual understanding the agreements and goals of this continent. "We have also had a special relationship 1The President appeared unexpectedly during a with Panama, for they have shared with us news conference held at the White House by his Press Secretary, George E. Reedy. the benefits, the burden, and trust of main- 404 Lyndon B. Johnson, 1963-1964 Mar. 21 [232] taining the Panama Canal as a lifeline of shares this hope. For, despite today's dis- defense and a keystone of hemispheric pros- agreements, the common values and interests perity. All free nations are grateful for the which unite us are far stronger and more effort they have given to that task. enduring than the differences which now "As circumstances change, as history divide us." shapes new attitudes and expectations, we A copy of that statement will be sent to have reviewed periodically this special His Excellency Juan Bautista de Lavalle, relationship. Chairman of the Council of the Organiza- "We are well aware that the claims of the tion of American States. Government of Panama, and of the majority I will be glad to have any questions, if you of the Panamanian people, do not spring have any. from malice or hatred of America. They Q. Mr. President, sir, do you feel that the are based on a deeply felt sense of the honest American people outside the Washington and fair needs of Panama. It is, therefore, area back up your stand on- our obligation as allies and partners to review THE PRESIDENT. I am not going to make these claims and to meet them, when meet- any evaluation of the American people out- ing them is both just and possible. side the Washington area. I haven't con- "We are ready to do this. ducted any polls on it, and I don't know "We are prepared to review every issue what their opinion might be on any specific which now divides us, and every problem subject. which the Panamanian Government wishes Q. Mr. President, when you say his in- to raise. structions will not bar any solution which is "We are prepared to do this at any time fair, would that include, sir, a renegotiation and at any place. of the 1903 treaty? "As soon as he is invited by the Govern- THE PRESIDENT. This would mean just ment of Panama, our Ambassador will be on what the statement says. We will discuss his way. We shall also designate a special any problem that divides us in any way, and representative. He will arrive with full then we will come up with a solution that is authority to discuss every difficulty. He will fair. be charged with the responsibility of seeking Q. Has the Ambassador been chosen, Mr. a solution which recognizes the fair claims President or would that be Ambassador of Panama and protects the interest of all the Mann? American nations in the Canal. We cannot THE PRESIDENT. No, we would select a spe- determine, even before our meetings, what cial representative. form that solution might best take. But his Q. Mr. President, before you get around to instructions will not prohibit any solution issuing the statement, could we have that- which is fair, and subject to the appropriate to put it up on the bulletin board so we can constitutional processes of both our govern- dictate from it? ments. THE PRESIDENT. I may want to use it to "I hope that on this basis we can begin to answer any questions. resolve our problems and move ahead to con- Q. I mean when the conference is over. front the real enemies of this hemisphere- THE PRESIDENT. Surely. the enemies of hunger and ignorance, disease Q. Mr. President, I understood you to say, and injustice. I know President Chiari sir, that our position now is just where it was 405 [232] Mar. 2I Public Papers of the Presidents when you first talked to the President of Q. Mr. President, would you think that Panama. This is no new position? this statement might clear up any difference THE PRESIDENT. That is correct. Very of interpretation they have- shortly after the flag was not flown, and there THE PRESIDENT. I would not speculate on was a march on the zone, and some of our that. I am just making a statement and soldiers were killed, I called the President of sending it over to the President of the OAS. Panama and said that we have difficulties and What happens there, events will determine. problems, disagreements, obviously, and we I, of course, am hopeful that we can always are prepared to discuss those disagreements reason out differences together, and that is any time, anywhere, anyplace. one of the purposes of my expression. He said, "When would your people be Q. Mr. President, don't formal diplomatic prepared to meet with mine?" relations have to precede a discussion like I said, "They will leave here in 3° this? minutes." THE PRESIDENT. Obviously. He said, "Very well." [2.] Q. Mr. President, on another sub- Since that time, although we have made ject, can you give us your reaction to the very few public statements on it and we have release by the Russians today of one of tried and hoped that the OAS could work the American fliers shot down over East this out, and there have been a great many Germany? leaks back and forth, some of the stuff THE PRESIDENT. I don't think I have any you call news interpretation, news analysis, comment on that. Talk to the Department and various things, some of which really about that. took place and some of which was specula- [3.] Q. Mr. President, can you enlighten tion, I think it is very important that the us on what did go on last weekend involv- people of this hemisphere know that from ing the Panamanian negotiations? There the beginning, and now, just what this have been a lot of conflicting reports, as statement says: that we are willing and you mentioned earlier. ready to discuss at any time, with any of THE PRESIDENT. No, I am not sure that I their representatives, any problem, any dif- know all that went on regarding it. So ficulty, in a reasonable way, and to let only far as I know, our position at the beginning equity and justice determine what course was what I just stated, and it still is. Up to we would take, subject to the constitutional this point there has been no meeting of the processes. minds. Q. Mr. President, what is the reason for [4.] Q. Mr. President, were you at all issuing the statement today? disturbed, sir, that Mr. Salinger only gave THE PRESIDENT. No reason. I am sending you a few hours' notice of his resignation? it over there. I didn't think you would Second, do you agree with some- object to hearing it. THE PRESIDENT. Let me answer one at a Q. No, I meant-I mean to the OAS. time. What is the reason for sending the statement Q. I am sorry. to them now? THE PRESIDENT. No. The answer is no. THE PRESIDENT. So that we may reiterate That is, to the first question. What is the our viewpoint and in some detail. next one? I was not disturbed. 406 Lyndon B. Johnson, 1963-1964 Mar. 2I [232] Q. Some of the newspapers have inter- This is a statement to the President that he preted this as another sign that supporters of can use in his deliberations. I would hope John Kennedy and Robert Kennedy are that all of us realized from the beginning anxious to leave your administration. Do that the United States position was that we you agree with that, or have you seen any were willing to talk to anybody that they signs of that? designated at any time, anyplace, and review THE PRESIDENT. The answer is no to that all problems and all difficulties. question. I don't say discuss, because that is a sticky [5.] Q. Mr. President, can we have the word. Some of them do not quite under- Warren Commission open to the American stand what it means. But I say review. We public? Is there any reason why they are glad to do that. I made that clear that cannot be? day, and I have reiterated it. But I think it THE PRESIDENT. That is a matter for the is good that the President of the OAS can Commission to determine completely. have the details carried in this statement. [6.] Q. Mr. President, a rather sticky [8.] Q. Mr. President, do you expect any situation seems to have developed in Cuba major developments in the field of East-West over the helicopter flight of the two defectors, relations in the field of disarmament? and the slaying in the air. What is the U.S. THE PRESIDENT. Well, we always hope for position on that? the best. THE PRESIDENT. That is a matter you should [9.] Q. Mr. President, do you still feel talk to the Department about. We are now that there are remaining misinterpretations looking into it very carefully. I have talked about the statement last week on Panama? to the Secretary of State and the Secretary of THE PRESIDENT. I don't want to go into Defense about it this morning. I have no that, because announcement that will be made at this time. [At this point the President spoke off the record.] Of course, when there is an announcement, it will probably come from the Secretary of [10.] Q. Mr. President, your guidelines Defense or the Secretary of State. for holding the wage-price line have been [7-] Q. Mr. President, you said a mo- criticized by both labor and management ment ago, sir, that there was no reason for recently. Do you still think that these will the issuance of this statement. work, in view of this criticism? THE PRESIDENT. No, I didn't say that. THE PRESIDENT. We hope very much that Q. I am sorry. they will. We believe that both labor and THE PRESIDENT. I didn't intend to say there management can best solve their problems was no reason. I think I would not issue it, through collective bargaining, and we hope if there was no reason.- There is a reason, that that is the way.it will be done. We have but I thought his question was what was outlined what course we believe is best for the reason for giving it to them. I just America, all the people, and generally the thought you ought to be kept informed of criteria of that course is indicated by the what was happening in this field. guidelines. But in the wage negotiations Q. Are you trying to clear the air, sir? and the working conditions that must from THE PRESIDENT. No, I want everyone to time to time be examined, and new agree- know our position and I think this helps. ments reached, we hope that that will be 407 THE WHITE HOUSE WASHINGTON SECRET June 5, 1970 National Security Decision Memorandum 61 TO: The Secretary of State The Secretary of Defense The Secretary of the Army SUBJECT: Panama Canal I have reviewed the paper prepared in response to NSSM 86 and agency comments on the issues contained therein, and I have de- cided the following: J. We should be prepared to discuss with Panama our fundamental canal relationship and to negotiate new treaty arrangements if Panama asks US to do so and if there are reasonable prospects for achieving a satisfactory new treaty arrangement. 2. I authorize the Secretary of State to coordinate exploratory and preliminary ialks with the Panamanian government designed to determine Panama's views in more detail and to reach a judgment as to whether mutually satisfactory new treaty arrangements can be expected. It should be made clear to the Panamanians that these talks are preliminary and exploratory and not themselves negotiations. 3. I authorize the Secretary of State and Ambassador Anderson to coordinate consultations with the US Congress at such time as they deem advisable on the question of our future canal relationship with Panama. 4. Inter-agency recommendations should be submitted to me, based on what is learned as a result of the steps authorized by 2 and 3 above as to a) whether and when to open formal negotiations on new treatics and b) what our specific negotiating objectives should be. These recommendations should be coordinated and submitted to me by the Under Secretaries Committee. 5. If formal negotiations appear desirable, I would prefer, in the absence of overriding reasons 10 the contrary, that these not begin SECRET NSC 80086 DECLASSIFIED 12/30/80 By WHM HARS, Date 12/19/84 SECRET - 2 until early 1971 to permit receipt and evaluation of the Canal Study Commission report and soundings with the new Congress. These reasons may be used to explain to the Panamanian government why we suggest this time frame. 6. In any new negotiations three points are to be considered non- negotiable: a) effective US control of canal operations; b) effective US control of canal defense; and c) continuation of these controls for an extended period of time preferably open-ended. 7. In the exploratory talks our representatives should be guided by the following with respect to those issues raised by the NSSM-86 paper: a) On expanded cana] capacity, Indicate in any new negotia- tions we would expect to negotiate definitive rights (but with- out obligation) to build a new sea-level canal and/or enlarge the present canal. However, our final position in this regard would be formed after we have evaluated the Canal Study Commission Report. b) On control of canal operations. Test first Panamanian recep- tivity to a continuation of exclusive USG control of canal opera- tions and whether such a control pattern can be made palatable to Panama; if it is clear that Panama will not accept this, then agree to explore a pattern of joint US-Panamanian administra- tion, with US majority control, along the lines of the 1967 draft treaties or some similar arrangement. c) On defense. Indicate that in any new negotiations we would seck rights for unilateral defense of the canal and canal arcas. Defer for the time being discussion of the hemisphere defense issue in view of the pending Defense Department review of Southern Command status. d) On sovereignty and inrisdiction. Test first Panamanian recep- tivity to the idea of a markedly reduced Zone with continuance of USG control therein, but with negotiation for Panamanian jurisdiction over commercial and non-essential governmental functions (Option A of paper). If pursuing this course is clearly not fruitful, explore joint US-Panamanian jurisdiction along the 1967 draft treaty model (Option E). FORD SECRET SECRET - 3 - d) On duration. Our objective should be an open-ended arrangement; we should consider specific provision for periodic review. :) On economic benefits. Indicate the U.S. is prepared to seek ways to create substantial additional revenue for Panama. cc: Chairman, Joint Chiefs of Staff Director, Central Intelligence Agency Ambassador Robert Anderson, Special Representative for US/Panama Relations SECRET THE WHITE HOUSE WASHINGION SECRET /EXDIS June 24, 1971 National Security Decision Memorandum 115 TO: The Secretary of State The Secretary of Defense SUBJECT: Panama Canal Treaty Negotiations FORD LIBRARY I have reviewed Ambassador Anderson's letter of April 12, 1971, and the report of the NSC Under Secretaries Committee dated June 10, 1971, con- cerning United States goals and objectives for negotiations with Panama on canal treaty relations. On the basis of that review, I have decided to authorize Ambassador Anderson to undertake formal negotiations with Panama with a view to obtaining agreement on the text of a draft treaty this year. The principles set forth in NSDM 64 will continue to provide the basis for the United States position in the forthcoming negotiations, except insofar as they are modified or expanded by the following specific decisions. -- Recommendations B-3 through 7 contained in the June 10, 1971 report of the NSC Under Secretaries Committee are approved. With respect to Recommendation B-1 of the NSC Under Secretaries Committee report, concerning the duration of the treaty, I have decided that the United States negotiating objective should continue to be control of canal operations and defense for an open-ended period. Provision for review of this arrangement at some specific future date may be included in the U.S. position. Should Ambas- sador Anderson conclude, in the course of negotiations, that achievement of our major negotiating objective will require agree- ment to a fixed-term treaty, twill be prepared to consider promptly a revision of this objective. With respect to Recommendation B-2 of the NSC Under Secretaries report, concerning jurisdiction over the Canal Zone, I have decided that the initial United State's negotiating objective should be to per- mit U.S. jurisdiction to be phased out within a minimum of twenty years while protecting non-negotiable rights for U.S. control and SEGRET /EXDIS NSC 80086, DECLASSIFIED 12/30/80 By WHM NARS, Date 12/19/84 SEGRET/EXDIS 2 - defense of the canal for the duration of the treaty. However, Ambassador Anderson is authorized to negotiate a shorter time period for the phase-out of jurisdiction if, after initial negotia- tions, he deems such action necessary to achieve our non- negotiable objectives. Such a fall-back position should be the maximum that can be successfully negotiated with the Government of Panama consistent with an orderly transfer of jurisdiction to Panama, effective U.S. control and defense of the canal after such jurisdiction is phased out, and Congressional acceptance. -- Congressional consultations should be initiated as soon as possible to test support for a treaty along the lines outlined above. The NSC Under Secretaries Committee should submit to me by July 15, 1971, recommendations and/or options for U.S. policy toward Panama in the event treaty negotiations reach an impasse or must be broken off. Ambassador Anderson intends to remain in close consultation with the Secretaries of State and Defense during the period of negotiations and I have asked him to keep me closely and periodically informed as to the status of negotiations and Congressional consultations. CC: The Chairman, NSC Under Sccretaries Committee The Secretary of the Army The Chairman, Joint Chiefs of Staff The Director of Central Intelligence Special Representative for Interoceanic Canal Negotiations SEGRET/EXDIS THE WHITE HOUSE WASRINCTON September 13, 1971 Security Recision interendem 131 TO: The Secretary of State The Secretary of Defence SUBJECT: Panama Canal Treaty Negotiations Ihave reviewed Ambassador Anderson's letter of August 20, 1971, 80 well 28 the views of the Departments of State and Defense concerning modification of Ambassador Anderson's negotiating instructions 022 duration of a new treaty 0.8 set forth in NSDM 115. On the basis of that review, I have made the following decisions: -- Ambassador Anderson is authorized at the time he feels most appropriate to inform Panama that the U.S., while strongly preferring an opensended treaty, is willing to consider the possibility of it, termination formula, provided that the dura- tion negotiated is a long one and that other provisions of the treaty package are satisfactory to the U.S. If such a formula appears unobtainable, he is authorized to fall back to consid- eration of a treaty providing for a fixed date of termination. In either case, the U.S. negotiating objective should be a duration of at least fifty years, with provision for an addi- tional 30-50 years if Canal capacity 10 expanded. -- In addition, he should seek to obtain, as part of any new treaty providing a formula or specific date for termination, 8 joint U.S. -Panamanian guarantee that upon termination of the treaty, the Canal would be open to all world shipping without discrimination at reasonable to 11c and that Panama would take no action that would hamper the efficient opera- tion of the waterway. SECRET /EXDIS NSC 80086 DECLASSIFIED 12/30/80 By W HM NARS, Date 12/19/84 notests /ENDIS 10 2 to Congressional concultations should be continued to test support for is licaly along the lines outlined above. CC: The Chairman, NSC Under Secretaries Committee The Secretary of the Army The Chairman, Joint Chiefs of Staff The Director of Central Intelligence Special Representative for Interoceanic Canal Negotiations SECRET/L DIS Congressional Digest ANNUIT COEPTIB UNUM INOVUS MDCCLXXVI ORDO CLORUM (THE THE GREAT SFAL OFTHF OF THE UNITED UNITED STATES November, 1972 NOV RESEARCH 11 1974 SERVICE THE PRESIDENT HAS SEEN DUPLICATE Controversy Over Proposed Revision Of The Panama Canal Treaty Pro & Con Washington, D.C. The Congressional Digest Controversy Over Proposed FOUNDED AN INDEPENDENT MONTHLY FEATURING CONTROVERSIES IN CONGRESS, PRO & CON Revision Of The Panama 1921 NOT AN OFFICIAL ORGAN, NOT CONTROLLED BY ANY PARTY, INTEREST, CLASS OR SECT PUBLISHED BY THE CONGRESSIONAL DIGEST CORPORATION, 3231 P STREET N.W., WASHINGTON, D.C. 20007 Canal Treaty A. GRAM ROBINSON, President NORBORNE T. N. ROBINSON 3RD, Publisher JOHN E. SHIELDS, Editor He Who Decides a Case Without Hearing the Other Side NOVEMBER, 1972 VOLUME 51 Tho He Decide Justly, Cannot Be Considered Just-SENECA NUMBER 11 FOREWORD= page 264), a development which some ecologists argue would cause irreparable harm to sea life because of the CONTENTS = introduction of destructive marine predators from one S INCE June 1971 representatives of the United States ocean to the other. THE MONTH IN CONGRESS: and the Republic of Panama have been engaged in Meanwhile, close observation of the growing discord negotiations seeking to reach agreement on one or more with Panama and of the successive Johnson and Nixon Note: This section will be resumed with the First Session of the 93rd Congress which will convene in January 1973. treaties to replace the present basic agreement under Administration efforts to ameliorate it has been main- which the United States built and exercises jurisdiction tained by the U.S. Congress. As will be seen in the article THIS MONTH'S FEATURE: over the Panama Canal. on page 267, hearings before several subcommittees of the Similar efforts during the mid-1960's resulted in 1967 House of Representatives have been conducted in each of Controversy Over Proposed Revision Of The Panama Canal Treaty in agreement by negotiators on three treaties (see pages the past several Congresses on the subject of treaty nego- The Foreword 257 258, 265), but the instruments were never signed and tiations and on other major questions at issue between the 258 have since been declared unsatisfactory by Panama. In- United States and Panama. Events Leading to the Present Treaty Negotiations volved in the controversy which has long existed over The Panama Canal Zone: Facts & Figures 260 The position of the Nixon Administration-essentialy proposals to cede significant U.S. jurisdiction over the the same as that earlier enunciated by the Johnson Admin- A Profile of the Canal and Its Operation 262 Canal and the Canal Zone to the Republic of Panama are istration-has been to accommodate Panamanian objec- Present Economic Impact of the Panama Canal 263 a number of basic questions. These include that of basic tions to the present "perpetuity" provision governing U.S. Recommendations Concerning A New Sea Level Canal 264 sovereignty, the cession of certain U.S. properties to tenure in the Canal Zone, and to establish a joint Pana- Highlights of the Proposed 1967 Treaties With Panama 265 Panama, perpetuity provisions in the present treaty, the manian-U.S. administration of the Canal and the Zone. Action re Treaty Negotiations in the 91st & 92nd Congresses 267 U.S. defense role, the level of U.S. payment to Panama Additionally, plans for a sea level canal have been dis- (presently $1.9 million annually), and the right to con- cussed in terms of a definite date by which the United PRO and CON Discussion = struct an alternate canal at sea level, among others. States will turn the present canal completely over to United States negotiators, headed by former Secretary Panama. Should the U.S. Retain Its Present Basic Sovereignty of the Treasury Robert B. Anderson, have found their Opposing this position has been an active and influen- Over the Panama Canal Zone? negotiating task complicated by the fact that since the tial bloc in the Congress which opposes what it terms a 1964-67 treaty sessions the elected Panamanian govern- PRO= CON= U.S. "giveaway" of the Canal. Members who oppose the ment has been ousted in a military coup and replaced by Administration's approach have succeeded in focusing U.S. Senator Strom Thurmond 268 U.S. Senator Alan Cranston 269 an administration headed by General Omar Torrijos, the continuing attention on the progress of U.S.-Panamanian U.S. Representative Daniel J. Flood 272 Hon. Robert A. Hurwitch 275 nation's present leader. Recent statements by the latter negotiations and on provisions being advanced by negotia- U.S. Representative Leonor K. Sullivan 280 Hon. David H. Ward 279 have condemned the U.S. military presence in the Canal tors for both sides which they hold to be contrary to the Committee for Continued U.S. Control 284 Ambassador John C. Mundt 283 Zone, have claimed Panamanian sovereignty, and have long-range U.S. interest. intimated that outright Panamanian abrogation of the No predictions are presently being made as to when, existing basic treaty (see page 258) may be his country's SUBSCRIPTION RATES: 1 yr., $14.50; 2 yrs., $26; 3 yrs., $34. Foreign 55c extra per yr. Current single copy, $1.50. if at all, agreement will be reached with Panama on the CURRENT COPY BULK RATES: 5 @ $1.25 each; 10 @ $1 each; 25 and up @ 75c. Write for back copy information. response to unresolved U.S.-Panamanian differences over numerous sensitive subjects under negotiation. With talks the future status of the Canal. ADDRESS ORDERS and checks to: CONGRESSIONAL DIGEST CORP., 3231 P St., N.W., WASHINGTON, D. C. 20007. continuing, however, and a new U.S. Congress-the 93rd Further dimension to the controversy has been lent by -convening in January 1973, controversy over the ques- Second Class postage paid at Washington, D. C. and at additional mailing offices. Published monthly except July and August. simultaneous efforts to negotiate an agreement for U.S. tion of continued U.S. sovereignty is expected to continue Yearly index to each volume published with the December issue. Indexed in the Readers Guide and other indexing publications. Copyright 1972 by The Congressional Digest Corporation, Washington, D. C. Back volumes available in all standard microforms. rights to construct a sea level canal through Panama (see and to grow in intensity in the months ahead. 257 United States in perpetuity the use, occupation and control Treaty Revisions of 1936 and 1955 PANAMA CANAL Events Leading To The Present of a zone of land and land under water for the construc- In 1936 the Hull-Alfaro Treaty was signed; after pro- TREATY tion, maintenance, operation, sanitation and protection of tracted Congressional objection, its ratification was con- REVISION- Treaty Negotiations said Canal of the width of ten miles extending to the sented to by the Senate in 1939. At the request of Panama distance of five miles on each side of the center line of -which, after the ratification in 1922 of the U.S.-Colom- the route of the Canal to be constructed The Republic bia treaty felt that its independence was not endangered— of Panama further grants to the United States in perpetuity As S EARLY as the beginning of the 16th century the structing a canal in Nicaragua; when the French Canal Article I of the 1903 treaty, guaranteeing U.S. defense of the use, occupation and control of any other lands and world's major maritime nations were giving consid- Company accepted a U.S. offer of $40 million for its Panamanian independence, was abolished. The U.S. ceded waters outside of the zone above described which may be eration to the possibility of joining the Atlantic and Pa- rights and properties in Panama, however, the Commis- back certain rights to Panama in the 1936 treaty, includ- necessary and convenient for the construction, mainte- cific Oceans by canal across Central America. In 1523, sion presented a supplementary report favoring a Pana- ing that of intercession in Panamanian internal affairs. nance, operation, sanitation and protection of the said Charles V of Spain initiated the first investigation into manian route. On June 28, 1902, the U.S. Congress The 1903 treaty had provided for a U.S. one-time payment Canal or of any auxiliary canals or other works necessary the subject, and in 1534 ordered the Governor of Panama passed the Spooner Amendment, setting into motion the of $10 million in cash and for an annual payment for use and convenient for the construction, maintenance, opera- to make a formal survey of the route following the purchase from the French Canal Company and the begin- of the Canal Zone of $250,000. This amount was raised tion, sanitation and protection of the said enterprise Chagres and Rio Grande Rivers, the general course ning of U.S. canal construction. to $430,000 by the 1936 treaty. which the actual Panama Canal takes today. "Article III. The Republic of Panama grants to the In the years following World War II the effects of the Colombian and Panamanian Negotiations United States all the rights, power and authority within East-West cold war became manifest in Panama with Reaction to French Canal Building Efforts The territory in question was in 1902 a part of the Re- the zone mentioned and described in Article II of this "hate America" campaigns reportedly fomented by Pana- In January 1880 the first actual effort to build an public of Colombia, and the United States accordingly agreement and within the limits of all auxiliary lands and manian communists. In 1951 further efforts to subvert the isthmian canal was begun in Panama under Count Ferdi- negotiated a treaty with that nation conveying the needed waters mentioned and described in said Article II which loyalty of Panamanians working in the Canal Zone, this nand de Lesseps-who had successfully completed the rights to construct an isthmian canal and setting forth the United States would possess and exercise if it were time allegedly by President Juan Peron of Argentina, Suez Canal eleven years earlier-for the French Canal guarantees pledged by each nation to the other relative the sovereign of the territory within which said lands and prompted Panamanian efforts to secure further revision Company. Reflecting American views toward foreign en- to such a canal. waters are located to the entire exclusion of the exercise of the basic canal treaty. The Eisenhower-Remon Treaty terprises in the Western Hemisphere, shaped by the Mon- A fast-moving series of events followed. The Colombian by the Republic of Panama of any such sovereign rights, of 1955 which ensued transferred certain additional U.S. roe Doctrine, President Rutherford B. Hayes stated in power or authority." Senate refused to ratify the Hay-Herran Treaty, as it was rights and properties to Panama and increased the canal 1880: termed, whereupon separatist political forces in Panama- In 1914, the year in which the Canal was completed, annuity from $430,000 to $1.93 million. "The policy of this government is a canal under Amer- who favored the construction of a canal-revolted, assist- the United States negotiated a treaty with Colombia- ican control. The United States cannot consent to the sur- ed (it was later acknowledged) by the United States. On the Thomson-Urrutia Treaty-under which the U.S. of- Background of Latest Treaty Talks render of this control to any European power or to any November 3, 1903, creation of the independent Republic fered Colombia $25 million as compensation for this coun- Under the reported leadership of the Communist Party combination of European powers. Our merely com- of Panama was proclaimed. Three days later the United try's collusion in the Panamanian revolution. In return, of Panama, a series of disorders and attempted disrup- States recognized the new Republica, and within two Colombia recognized that title to the Panama Canal was mercial interest [in the Canal] is greater than that of all tions took place, beginning in 1958 with "Operation Sov- other countries weeks a basic treaty concerning the construction of a "now vested entirely and absolutely in the United States ereignty," a student-executed attempt to fly the Pana- The French effort failed, however, and nine years later canal-the Hay-Bunau-Varilla Treaty-was signed with of America." Former President Theodore Roosevelt de- manian flag over the U.S. Canal Zone. The program was the company was dissolved. A new French Canal Com- the new Panamanian Government. nounced the treaty, however, and succeeded in blocking successful in winning support of Panamanian President it in the U.S. Senate. It was not until 1922 that it finally pany was formed in 1894, but little work was accom- Ernesto de la Guardia. Destructive riots and other disrup- Major Treaties Involved received ratification. plished. tions, particularly in 1958 and 1964, led to successful Several years earlier the United States and Great Britain moves by Panama to make the U.S. role in that nation a Initial U.S. Canal Moves had negotiated the Hay-Pauncefote Treaty of 1901 which Construction of the Canal subject of discussion before the Organization of American Notwithstanding intermittent expressions of U.S. inter- recognized the exclusive right of the United States to con- After the United States secured the rights and proper- States, the United Nations, and other international forums. est in the idea of a canal during the closing years of the struct and deepen an isthmian canal. ties of the French Canal Company for $40 million, con- In 1964, U.S. President Lyndon B. Johnson agreed to 19th century, no official action was taken to assert an The Hay-Bunau-Varilla Treaty with Panama, which struction of the Panama Canal began and extended over begin negotiations for a new treaty. These resulted in three actual U.S. role. This passivity was shaken, however, by despite amendment on several occasions over the years the ten-year period from 1904 to 1914. Initially it was draft treaties initialed in 1967 (see page 265). The Presi- events arising from the Spanish-American War-in partic- remains the basic instrument of agreement defining the essentially a civilian undertaking. In the face of immense dent of Panama did not act to have these treaties ratified, ular, the two months required for the battleship Oregon U.S. and Panamanian roles, includes the following major problems-logistics, rampant disease, the sheer magnitude however, and no action was taken on them by the United to make the long voyage to Cuba from the Pacific by way provisions: of the "ditch-digging" and lock-building tasks-and, par- States. of Cape Horn at a time of military need. "Article I. The United States guarantees and will ticularly, of difficulties retaining key personnel, President After almost four years during which the proposed President William McKinley pointed out the necessity maintain the independence of the Republic of Panama. Roosevelt turned the project over to the U.S. Army in treaties were in limbo, and in which period the elected for a canal and, after Congress had passed enabling legis- [This article has been superseded by the 1936 treaty-see 1907. Under the direction of Col. George W. Goethals, Government of Panama was overthrown by a military lation, in 1899 appointed the first Isthmian Canal Com- below.] chief engineer, the Canal was finished and opened to traf- coup, the United States and Panama resumed negotiations fic on August 15, 1914. Total construction costs were mission. Initially, the Commission recommended con- "Article II. The Republic of Panama grants to the in June 1971 for a new treaty regarding the Panama Canal. $380 million. These continue at the present time. 258 NOVEMBER 1972 259 ABOG PANAMA CANAL The Panama Canal Zone: PANAMA OF BAY TREATY REVISION Facts Figures PANAMA VIEJO PANAMA T HE Panama Canal Zone is a strip of land extending capital stock were acquired in 1881 by the French in TOCUMEN (AIRPORT) NATIONAL CANAL ZONE AND VICINITY SCALE across the Isthmus of Panama from the Atlantic to conjunction with their attempt to construct a canal. The the Pacific Ocean, ten miles in width (five miles on each Isthmian Canal Commission acquired the shares owned by JUAN DIAZ HOWARD VERACRUZ side of the axis of the Panama Canal), and under juris- the French Canal Company for the United States as part diction of the United States by treaty with the Republic of the French assets purchased in 1904, and in 1905 pur- ARRAIJAN of Panama. Its area is 553 square miles, of which 371 chased the remaining outstanding shares from private are land. owners. Thus, since 1905 the Company has been wholly ALCALDE DIAZ owned by the United States Government. CUMBRES Population PANAMA ZONE CHORRERA NATIONAL In 1945 Congress enacted the Government Corpora- The population of the Canal Zone is approximately tion Control Act which prohibited the continued existence 47,500. About 39,400 of these are U.S. citizens, and most of any wholly owned Federal Government corporation PANAMA of the rest are Panamanians. Of the total population, created by or under the laws of any State. Accordingly, about 26,500 are military or civilian personnel of the in 1948 the Panama Railroad Company was reincorpo- BUENOS AIRES U.S. armed forces and their families, and about 10,400 rated under a Federal charter with authority to continue are employees of the Panama Canal Company and the its operations as before. Canal Zone Government and their families. Of the 11,000 non-U.S. citizens employed by the Company and the Gov- The 1950 Reorganization ernment, less than 2,000 (plus their families) live in the Under legislation enacted in 1950, a basic change in the SANTA Zone; the remainder live in the Republic of Panama. organizational structure of the canal enterprise became effective on July 1, 1951. One purpose of the reorganiza- Administration of the Zone tion was to separate the business operations of the canal CEMENTO Construction of the Canal was performed by the Isth- enterprise, including operation of the waterway, from mian Canal Commission (see page 258) under the pro- those functions normally associated with civil government. visions of the Spooner Act of June 28, 1902. As con- Thus, all the functions of the agency previously known struction approached completion, the President issued an as The Panama Canal except those relating to civil gov- BUENA VISTA Executive Order providing a permanent organization for ernment, health, and sanitation were transferred to the the completion, maintenance, operation, government and Panama Railroad Company which was renamed the Pan- The Panama Canal and Canal Zone, administered by the U.S. under terms of the 1903 treaty with Panama (as amended in 1936 and 1955). Map courtesy of The Panama Canal Company. For a profile view of the Canal showing locations and comparative elevations of its systems of locks, see diagram at bottom of page 262. sanitation of the Panama Canal and its adjunets and the ama Canal Company. The Panama Canal agency retained government of the Canal Zone pursuant to authority pro- its governmental functions and was renamed the Canal w vided by the Panama Canal Act of August 24, 1912. The Zone Government. These two instrumentalities comprise effect of the Panama Canal Act and the Executive Order today the basic agencies operative in the Canal Zone, was to establish The Panama Canal as an independent functioning as an integrated enterprise, but each an inde- government agency for operation and maintenance of the pendent agency of the United States. waterway and civil government of the Canal Zone. The Panama Canal Company The Panama Railroad Company The Panama Canal Company is "a body corporate REANURE E During the existence of The Panama Canal agency, and an agency of the United States for the purpose of many of the quasi-business enterprises relating to the maintaining and operating the Panama Canal and con- Canal operation (railroad, steamship line, commissaries, ducting business enterprises incident thereto and incident etc.) were conducted by the Panama Railroad Company. to the civil government of the Canal Zone." The Company was originally created in 1849 under the The United States, in its capacity as owner of the cor- laws of New York as a private corporation for the pur- poration, is represented by the President or such officer pose of constructing and maintaining a railroad across the as he designates, called the "stockholder." The President SEA CARIBBEAN Isthmus of Panama. Most of the shares of the Company's (Continued on page 288) 260 NOVEMBER 1972 261 PANAMA CANAL A Profile Of The Canal PANAMA CANAL Present Economic Impact TREATY TREATY REVISION- And Its Operation REVISION- Of The Panama Canal F IRST opened to world navigation in 1914, the Panama located in the center and side walls of the locks. From these, the water flows through smaller culverts which open T HE economic impact of the Panama Canal-both machinery and equipment, and chemicals and petrochem- Canal is approximately 51 miles in length, Atlantic worldwide and in terms of Canal Zone and Republic icals. deep water to Pacific deep water. Minimum width of the into the floor of the lock chambers. of Panama economies-is measurable in a number of navigable channel is 500 feet. From Cristobal to Balboa, To empty the locks, water is permitted to flow in the ways: tolls collected, cargo tonnage passing through the Republic of Panama the two terminal cities, airline distance is 36 miles. The opposite direction-through the openings in the floor of Canal, effect on the Panamanian gross national product, With 11,000 of the 15,000 persons employed by the Canal reduces the distance traveled by ships going from the chamber, into the lateral culverts, back into the main as well as others. Canal organization citizens of the Republic of Panama, New York to San Francisco by 7,873 miles. culverts, and down to the level below. with the volume of Canal-related services and products Canal Tolls Operation of the Locks: The Canal contains six double purchased in the Republic, and with the purchasing power Dimensions and Numbers: Each lock chamber is 1,000 locks which act as stairsteps to raise and lower ships over Tolls have been virtually unchanged since the Canal of the $120 million annual payroll (not including the U.S. fect in length, 110 feet wide, and 70 feet deep, with a the Continental Divide. Gatun Locks (see diagram below) opened on August 15, 1914. Levied on a net tonnage military establishment in the Canal Zone), the impact of minimum water depth in each lock of 40 feet. Fifty-seven on the Atlantic side form one continuous flight in three basis, and based on each 100 cubic feet of space usable the Canal on the nearby Republic of Panama is of major 55-ton locomotives (or "mules"), with four to eight used steps which raise and lower ships 85 feet. Miraflores for revenue purposes, the rates for merchant vessels are 90 proportions. on each ship, running on trackage beside the Canal, move Locks, nearest the Pacific entrance, have two steps and cents a ton for laden ships and 72 cents a ton for ships In 1970, of Panama's gross national product of ap- transiting vessels through the locks and their approaches. lift or lower ships 54 feet. Pedro Miguel Locks, also on in ballast. Ships of war and other floating craft pay at the proximately $992 million, nearly one-third was directly the Pacific side, raise or lower vessels 31 feet in one step. Gates of the locks require two minutes to open or close, rate of 50 cents a displacement ton. These tolls cover all or indirectly attributable to the Canal and its military Water required to operate the Panama Canal is stored and it requires eight minutes to fill or empty one lock normal transit charges, including pilot service, which is bases. Of Panama's total foreign exchange earnings from chamber. Approximately 30 minutes are required for in Gatun and Madden Lakes during the long rainy sea- required for all but small craft. U.S. Government ships export of goods and services in 1970 of $367 million, passage through the Pedro Miguel Locks, 45 through the are assessed tolls on the same basis as other vessels. sons. (The main channel of the Canal passes through $162 million (45 per cent) comprised direct payments Gatun Lake; Madden Lake lies to the northeast, and is Miraflores, and 60 through the Gatun. Average total tran- In Fiscal 1971 there were 15,348 transits of the Canal, from the Canal and its military bases. sit time through the Canal is seven to eight hours. connected to the Canal by separate channel.) These two producing a revenue from tolls of approximately $100 Of Panama's employment nationwide, nearly one-third water sources are also used for the generation of hydro- Water Consumption: Each lock chamber holds about million. Total transit revenues for the year, including tolls, is directly or indirectly due to the presence of the Canal. electric power and for municipal uses. credit for tolls of U.S. Government vessels, and harbor Within 30 miles of the Canal Zone, more than two-thirds 8,800,000 cubic feet of water and about 26 million gal- No pumps are used in filling or emptying the lock lons, a one-day supply for a large city, are used in each pilotage, tug, launch, and other services, was $114,421,- of the employment is Canal-oriented. Panama's per capita chambers. The principle involved is simply that of letting lockage. About twice this amount, or 52 million gallons, 519. The average vessel passing through the Canal pays income of $693 (in 1970) is the highest in Central water run downhill in either direction, since Gatun Lake is expended in one Canal transit. A total of 90.8 billion a toll of approximately $6,500. America and more than twice the average. It is the fourth is 85 feet above sea level. The water flows from one level cubic feet of water is used for Canal traffic in an average From 1914 through June 30, 1971, a total of 449,428 highest in Latin America as a whole, exceeded only by to another through large tunnels, 18 feet in diameter, year (based on recent averages of 38.5 transits per day). vessels of all types have transited, with 362,280-or 80.6 that of Argentina, Venezuela, and Uruguay. per cent of the total-being of the oceangoing commercial Additionally, Panama is paid an annual sum of ap- class. proximately $2 million for the canal-a form of compen- 554 GOLD sation established by the 1903 treaty (see page 258) and 500 HILL Cargo Tonnage increased to its present level over the intervening years. 400 In 1972 more than 116 million tons of cargo passed 312 300 through the Panama Canal. Principal user nations were, Impact of Canal Zone Internal Operations ELEVATION FEET GAMBOA GATUN 200 in descending order: Liberia (a maritime "flag of con- The payroll of approximately $120 million annually for venience" nation), Japan, United Kingdom, Norway, employees of the Panama Canal Company and the Canal 100 BALBOA CRISTOBAL 85 United States, West Germany, Panama (also a "flag of Zone Government is divided almost evenly between U.S. 0 convenience" nation), and Greece. and Panamanian personnel. For fiscal 1971, ranked by tonnages, the major com- During Fiscal 1971, the various consumer-oriented 100 modity groupings of Canal-transiting cargoes were, in facilities operated by the Panama Canal Company had NAOS PACIFIC MIRAFLORES PEDRO MIGUEL GAILLARD GATUN GATUN ATLANTIC BREAK- ISL. OCEAN LOCKS LAKE LOCKS CUT LAKE LOCKS OCEAN WATER descending order: coal and coke, petroleum and products, total sales of $31.4 million. Included on the Company grains, ores and metals, miscellaneous agricultural com- payroll, in addition to personnel concerned directly with 50 45 40 35 30 25 20 15 10 5 0 MILES modities, nitrogenous products, manufactures of iron and Canal operations, are employees of such service establish- HIGH TIDE +11.54 HIGH TIDE + 1.8 LOW TIDE -11.16 LOW TIDE -1.25 steel, lumber and products, canned and refrigerated food, ments. 262 NOVEMBER 1972 263 PANAMA CANAL Recommendations Concerning PANAMA CANAL Highlights Of The Proposed TREATY TREATY REVISION- A New Sea Level Canal REVISION- 1967 Treaties With Panama AT THE time the Panama Canal was built there was In the early 1960's, legislation adopted by the Congress authorized a new study of means for increasing the capac- T HREE proposed and interrelated treaties between the Defense and Status of Forces intense controversy over the questions of whether United States and the Republic of Panama were the A second draft treaty, consisting of 20 articles and to build a sea level or a lock canal and whether it should ity of the Panama Canal or construction of a new canal, subject of negotiations between the two nations over the two annexes, treats with the defense, security, continuity be located in Panama or Nicaragua. A sea level canal and provided specifically for a study of the feasibility of period of 1964-67. Copies of the draft treaties were not of operation, and neutrality of the Panama Canal; with had been recommended by the original Isthmian Canal a sea level canal to be conducted by an Interoceanic Canal officially released by the Executive Branch of the U.S. the status of U.S. armed forces and dependents; and with Commission, but-as will be seen in the article on page Study Commission. Government, but when ultimately made public in the press their use of designated facilities and areas utilized in Canal 258-the Congress ultimately enacted legislation express- and through publication by a committee of the Congress defense. The treaty would, among other provisions, end ly providing for the construction of a lock canal in Findings of the ICSC Study they provoked major controversy. the exclusive defense role of the U.S. in the Canal Zone Panama. On December 1, 1970, the Atlantic-Pacific Interoceanic In October 1968 the Panama National Guard staged a and would establish a joint Panamanian-U.S. security Nonetheless, the United States and Nicaragua in 1914 Canal Study Commission submitted its final report, which military coup to oust President Arnulfo Arias who had and defense force, although the U.S. would continue to concluded a treaty in which Nicaragua granted the U.S. included the following conclusions and recommendations: been inaugurated on October 1 following his election to act to ensure the defense of the Canal itself. Article II exclusive rights to construct a canal across its territory. "The United States should retain an absolute right to the Presidency. A military junta took over the Govern- of the draft treaty states: The rights were granted in perpetuity, but were finally defend the present canal and any new Isthmian canal sys- ment of Panama and has remained in control since that "(1) The Republic of Panama and the United States renounced by the United States in a convention signed in tem for the foreseeable future time. None of the treaties has been signed to date by of America shall provide jointly for the defense, security July 1970 which became effective early in 1971. "Constructing a third lane of locks for the present either nation, and the present Panamanian Government and continuity of operation of the Panama Canal and its canal would be a temporary solution without signifi- has indicated that it does not consider the negotiated draft appurtenant and supporting facilities and services and of Canal Enlargement Studies cant military advantages, and it would not relieve the treaties acceptable. the Canal Area. To this end and for its part, the Over the years, deliberations on whether to expand the problems in United States-Panamanian relations that Sea Level Canal Republic of Panama hereby makes available to the United capacity of the present canal by constructing a third set derive from personnel and defense requirements of the In a 17-article draft treaty with three annexes (explana- States of America the use of Defense Areas for Canal of locks have regularly revived the controversy over lock canal tory addenda) the Government of Panama would provide Defense and related security purposes. Pursuant to this whether a second canal should be built. Among earlier "A sea-level canal would provide a significant improve- the United States with the right to build a further canal, Treaty, the United States of America shall have the right studies of the feasibility of either of the above courses of ment in the ability of an Isthmian waterway to support as follows: to act to ensure Canal Defense. action have been those authorized by the Congress in military operations both in its lessened vulnerability to 1929, 1936, and 1945. Article II. "The Republic of Panama grants to the interruption by hostile action and in its ability to transit United States of America the right to construct in the Basic Canal Treaty In a 1947 report, the Governor of the Panama Canal large aircraft carriers that cannot now pass through the territory of the Republic of Panama a sea level canal By far the most controversial of the three proposed concluded that construction of additional locks to the Panama Canal. These military advantages of a sea-level connecting the Atlantic and Pacific Oceans. In the event treaties is that which would abrogate and replace the existing Panama Canal would meet anticipated require- canal, together with its capacity to meet the potential that the United States of America notifies the Republic of treaties of 1903, 1936, and 1955 (see page 258) with a ments of commercial traffic, but recommended construc- demand for transits over a much longer period, and its Panama within twenty years of the entry into force of the revised treaty setting forth a greatly modified basis for tion of a sea level canal because of security considerations. lesser operating costs, would more than counter-balance Treaty, of its intention to construct such a canal, the U.S.-Panamanian relationship with regard to the Canal Some 30 possible canal routes were identified, but it was the lower construction cost of augmenting the existing financing, construction, operation, maintenance and im- and the Canal Zone. The proposed treaty would transfer concluded that the most practicable solution was conver- canal with larger locks. provement of the sea level canal shall be carried out in from exclusive U.S. jurisdiction to joint or Panamanian sion of the existing canal to sea level. "The technical feasibility of the use of nuclear explo- accordance with the provisions of this Treaty." control a number of functions and activities performed Studies during the 1950's, after the reorganization of sives for sea-level canal excavation has not been estab- Further provisions of the draft treaty treat with details within the Canal Zone, and would remove significant ele- the Canal's administrative structure, resulted in 1960 in lished. Whether the technology can be perfected and the of construction, financing, location, conditions under ments of the Panama Canal organization and operations a report recommending improvements to the existing canal international treaty obstacles to its use removed are not which such a canal would be operated, U.S.-Panamanian from the purview of the U.S. Congress. and calling for planning leading to construction of a sea now predictable cooperation in its construction and operation, tolls and Consisting of 41 articles, the draft treaty includes the level canal using nuclear excavation methods. A board of "A sea-level canal in Panama constructed by conven- compensation, defense, neutrality of the canal, and estab- following provisions: independent consultants employed by the Congress subse- tional excavation is technically feasible. Route 10 is the lishment of a U.S.-Panamanian "Panama Interoceanic Article II. "1. The Republic of Panama and the quently recommended against undertaking a sea level most advantageous sea-level canal route. [Route 10, one Canal Commission" to oversee operation of the canal. United States of America hereby establish an international canal project in the near future, called for early comple- of a number considered, runs approximately parallel to The proposed treaty would continue in force for a juridical entity to be known as the joint administration tion of pending canal improvement projects, and advised the present canal, almost entirely out of the present Canal period of 60 years from the date the sea level canal is of the Panama canal [hereinafter referred to as the further studies concerning both nuclear and conventional Zone, lying about ten miles to the west of the present opened to traffic, provided that such period shall not "administration"] to operate the Panama canal and its ap- excavation methods. Panama Canal toward the Republic of Costa Rica.]" extend beyond December 31, 2067. purtenant and supporting facilities and services, maintain 264 NOVEMBER 1972 265 the Panama canal and such facilities and services, make "7. The director general shall be the chief executive improvements and additions thereto, and administer the officer of the administration PANAMA CANAL Action Re Treaty Negotiations canal area for the purposes of this treaty. Article V. "For the purposes of this treaty, the admin- TREATY "3. The Republic of Panama as sovereign over the istration shall have the right and power to: REVISION- In The ST 92ND Congresses canal area, guarantees to the administration the peaceful "1. Operate and maintain the Panama canal and its use and enjoyment of the canal area, consistent with this appurtenant and supporting facilities and services and treaty and the continuity of operation of the Panama canal. make improvements and additions thereto, and control Article III. "1. The Republic of Panama and the navigation in canal area waters U NDER normal circumstances negotiation involved in also with regard to findings of the Interocean Canal Com- the U.S. treaty-making process with another nation mission (see page 264) concerning possible routes for a United States of America, each to the extent of its inter- Article XV. "1. the administration shall, within is carried out exclusively by the Executive Branch. While new canal. Under the chairmanship of Rep. Leonor K. ests, grant to the administration, effective upon the date five years following its assumption of its full responsibili- the Legislative Branch, specifically the U.S. Senate which Sullivan, Mo., D., the Subcommittee additionally held the administration assumes its full responsibilities and ties and functions under this treaty, discontinue its opera- must consent to ratification before a treaty enters into hearings in 1970 on questions of Canal traffic projections, functions under this treaty, the use of the Panama canal tion of food stores; department stores; milk product plants; force, is frequently briefed on treaty provisions while nego- capacity, tolls, feasibility of a sea level canal, and issues and its appurtenant and supporting facilities and services bakeries; pastry shops; cafeterias or luncheonettes; thea- tiations are in progress, legislative hearings on the merits arising from the 1964-67 treaty negotiations. and the use of the areas of land and water which shall ters; bowling alleys and other recreational facilities for of such a treaty are generally restricted to those conducted In the 92nd Congress, with the Subcommittee under be known as the 'canal area.' the use of which a charge is payable; optical shops; such after a signed convention is presented for ratification. chairmanship of Rep. John Murphy, N.Y., D., hearings "2. The administration shall have and enjoy, subject hotels, laundries, dry cleaning plants, printing plants, The three proposed treaties with Panama negotiated have been held intermittently since November 29, 1971, to the terms of this treaty, the use of the Panama canal, automobile repair services, tire recapping services and over the period of 1964-67, revising U.S.-Panamanian on the treaty negotiations and general U.S.-Panamanian of the canal area and of all of the property which, on gasoline stations as are operated for the public; and relationships concerning the Panama Canal (see pages relations. the date the administration assumes its full responsibilities any other similar facilities or services. 258, 265), have given rise in the 91st and 92nd Con- A second House panel, the Subcommittee on Inter- and functions under this treaty, is being administered or Article XVIII. the administration shall have gresses to significant departure from this customary pro- American Affairs (chaired by Rep. Dante Fascell, Fla., used by the United States of America thru its agencies, the right and power to authorize the establishment of cedure. D.) of the Committee on Foreign Affairs, has cognizance the Panama Canal company or the Canal Zone govern- private business enterprises of all kinds in the canal area over treaties and other matters affecting relations between ment. and adopt, issue, and enforce regulations relating to their Role of the Senate the two nations. In the First Session of the 92nd Congress, "3. The administration shall assume, as of the date it establishment, conduct and discontinuance. In the U.S. Senate, matters affecting the Panama Canal on September 22 and 23, 1971, the Subcommittee held assumes its full responsibilities and functions under this Article XX. "1. The Republic of Panama grants to fall principally within the jurisdiction of two committees. hearings on several pending resolutions calling for reten- treaty, all of the assets, liabilities and commitments of the administration the right and power to provide for the Those relating to maintenance and operation of the Canal tion of full U.S. sovereignty over the Panama Canal and the Panama Canal company and Canal Zone government protection of persons and property in the canal area and defense of the Canal Zone come under purview of the Canal Zone. Advisory rather than legislative in nature as reflected in the final financial statements for the Panama "2. The administration shall provide for the protection the Committee on Armed Services. Those relating to because of the exclusive treaty responsibility assigned by Canal company and Canal Zone government. The unrecov- of the Panama Canal, the shipping therein, and its appur- broader questions of U.S.-Panamanian relations and treaty the Constitution to the U.S. Senate, the resolutions have ered investment of the United States of America in the tenant and supporting facilities and services. matters are the concern of the Committee on Foreign Rela- received no action to date by the full House of Represen- Panama Canal shall not be included in the liabilities "3. The administration may, if necessary, call upon the tions, and of its Subcommittee on Western Hemisphere tatives. assumed by the administration under this paragraph. armed forces of the Republic of Panama or of the United Affairs, chaired by Sen. Frank Church, Idaho, D. Among those resolutions under consideration, perhaps Article IV. "1. The governing body of the adminis- States of America for military assistance whenever it While the 1967 initialing of the three treaties has most representative was H. Res. 154, introduced early in tration shall be a board consisting of nine members; four deems such military assistance to be necessary in carrying received discussion on the Senate floor over the past sev- 1971 by Rep. Daniel Flood, Pa., D., who for many years of whom shall be appointed by the president of the Repub- out its responsibilities under paragraphs 1 and 2 of this eral Congresses, no formal hearings have taken place in has been an active champion of continued U.S. sovereignty lic of Panama and five by the President of the United article. the Senate on the substantive questions which the recently- in the Canal Zone. The operative portion of the Flood States. The members of the board shall be appointed for Article XXIII. "The Republic of Panama grants to renewed treaty negotiations have raised. resolution reads as follows: terms of six years, subject to removal for cause by the the administration the right and power to establish and House of Representatives Moves "Resolved by the House of Representatives, That it is President of the country by whom appointed maintain a police force, which shall have exclusive police the sense of the House of Representatives that the Gov- "3. The board shall elect a chairman, from among its authority in the canal area. Consistent therewith, officials In the House of Representatives the situation has been ernment of the United States should maintain and pro- members, who shall serve for one year. The chair- of the Republic of Panama shall have the right to exercise quite different, with proceedings undertaken by both of tect its sovereign rights and jurisdiction over said Canal manship shall alternate annually between a member ap- in the canal area functions authorized by laws of the the subcommittees principally concerned with Panama Zone and Panama Canal and that the United States Gov- Republic of Panama applicable in the canal area Canal matters. pointed by the president of the Republic of Panama and ernment should in no way forfeit, cede, negotiate, or trans- a member appointed by the President of the United States Article XXIV. "1. The laws of the Republic of Pana- The Subcommittee on the Panama Canal of the Com- fer any of these sovereign rights, jurisdiction, territory or of America. ma shall be applicable in the canal area except with mittee on Merchant Marine and Fisheries is the body with property to any other sovereign nation or to any interna- "5. There shall be a director general and a deputy respect to those subject matters enumerated or referred oversight responsibility for the operation and administra- tional organization which rights, sovereignty and jurisdic- to director general of the administration, one of whom shall [and] otherwise provided in this treaty. tion of the Canal and Canal Zone. In the 91st Congress tion are indispensably necessary for the protection and be a national of the United States of America and the "2.(a) The Republic of Panama grants to the admin- it received briefings in 1969 from State Department offi- security of the entire Western Hemisphere including the cials on problems arising from the treaty negotiations and canal and Panama." other a national of the Republic of Panama. (Continued on page 288) 1972 267 266 NOVEMBER PRO THURMOND, continued from page 268 CON CRANSTON, continued from page 269 As an artery of marine transportation, the Panama Canal enterprise became, Canal in 1903, that justification hardly remains in 1971. There is no question as and still is, a part of the coastline of the United States. As such its exclusive to the legality of our presence in Panama. It was fully agreed to by the Pana- control by the United States is just as necessary for national defense as the control manian government. For ten million dollars and $250,000 a year the United of the Chesapeake Bay or New York Harbor. States was leased the Canal Zone in perpetuity. It was a contract that fit perfectly In 1967, after three years of diplomatic discussion, the Presidents of the well into our quest for territorial expansion and influence at the turn of the United States and Panama announced the completion of negotiation of three new century. But one wonders if Panama, in its zeal for independence, struck a bargain I became convinced Canal treaties. As the negotiations drew to a close, I was alarmed by reports of with the United States which it probably never would have agreed to under one wonders if that continued U.S. control the forthcoming treaties and applied myself to a close study of the situation and quieter times. Panama struck a bar- depended upon maintain- the Canal problem. It was at this time that I became convinced that continued Secretary of State John Hay wrote, in a letter to a leading Senator of the gain which it probably ing our sovereignty in the U.S. control depended upon maintaining our sovereignty in the Canal Zone and time: "As it stands now, as soon as the Senate votes we shall have a treaty in never would have agreed Canal Zone modernizing the present works. the main very satisfactory to the United States, and we must confess not so to under quieter times." Frankly, I was amazed when I actually obtained copies of the treaties. Those advantageous to Panama. You and I know too well how many points there treaties would have surrendered U.S. sovereignty, control, and ownership of the are in this treaty to which a Panamanian patriot could object." Canal Zone and the Panama Canal, as well as any new canal built by our tax- In the years since John Hay wrote that letter, the United States has built what payers. The treaties provided for a nationalization by Panama of the Zone territory has become a colony of mostly white Americans who reside in the Canal Zone and for internationalization of the Canal itself under a bi-national canal author- year after year, and some, generation after generation. Most of the Americans ity. In the background, but not in the public discussions, was the objective of who live in the Canal Zone do not have any occupational association with the ultimate control of the Panama Canal through a multi-national agency, perhaps Canal itself. In fact, of the 15,000 workers employed in the Canal Zone, only under the authority of the U.N. 4,000 are Americans, and of that figure, only 1,289 work on the Canal. The other Such treaties were totally unacceptable according to the thinking of scores Americans are employed in support services which perpetuate community life of U.S. Representatives and U.S. Senators. The reaction, both in the U.S. and such as schools, movie theatres, bowling alleys, commissaries, golf courses and a Panama, was so hostile that those treaties were never signed and never submitted zoo. to the Senate. The Zone has nicely paved roads, lovely suburban homes, and 15 per cent It is discouraging, therefore, to see that negotiations are once again underway differential on top of an inflated pay scale to entice people to come down from with Panama, even though the present Government is a revolutionary regime the States. The Canal Zone is a far cry from the jungle swampland that Walter the State Department with little prospect of stability and with no procedures for ratifying a new treaty. Reed and his associates found in attempting to clear the land in the early part openly acknowledges that More discouraging still is the fact that the State Department openly acknowledges of this century. It is a haven of segregated little communities, with whites pretty the basis for negotiation is that the basis for negotiation is the surrender of U.S. sovereignty and the giving much having exclusive domicile of the towns of Balboa and Diablo Heights, and the surrender of U.S. up of our jurisdiction throughout most of the Zone. non-US Panamanians and Jamaicans living in the Latin communities of Pedro sovereignty In my judgment, it is a semantic trick to maintain that the U.S. can keep Miguel and Paraiso. It is nonsense for this Nation to perpetuate such an obvious control of the Canal and the capability to defend it if ever we give up our sovereign affront to the host country on the excuse that we are thereby better protecting the rights. The duration of a treaty is not the key issue when the treaty itself gives canal. up our basic rights. Such a surrender document would last too long if it lasted The fact is that the Canal Zone has little to do with protecting the canal from only one day. I believe that if a new treaty is necessary-and I am not yet con- invasion. According to Major General Donnelly P. Bolton of the Office of the the Canal Zone has vinced of that-then at a minimum we must maintain our sovereignty in the Zone, Deputy Chief of Staff for Military Operations, Department of the Army, "no little to do with protecting with the physical control which that implies; and we must maintain U.S. citizens significant Navy or Air Force high performance combat units are based in the the canal from invasion." in the policy-making and strategic areas of the Canal operation. It is a fallacy to Zone. Most Air Force activity is oriented toward supporting such activities as believe that we can control the Canal or keep our obligation to keep the Canal disaster relief or military assistance. Navy elements are engaged primarily in running if we allow foreign nationals to be in substantial control of the decision- administrative and strategic support activities." The Army forces in the Canal making and highly technical posts connected with the operation of the Canal. Zone consist of one infantry battalion on the Atlantic end of Zone, and one It is possible that certain disagreements and irritations can be solved through mechanized infantry battalion on the Pacific side. General Bolton continues, "Army negotiations with the Republic of Panama, but we can never agree to a treaty units located in the Zone can be broken down to 46 per cent in combat and which does not allow us to have the physical and actual capability of keeping combat support, and 54 per cent in combat service support, headquarters, or the Canal secure. It is for this reason that the sovereignty of the Canal Zone is military assistance activities." the key issue which must never be compromised. It is important to note that in case of an attack on the Canal Zone, General (PROS, continued on page 272) (Continued on page 273) 270 NOVEMBER 1972 271 PRO PROS, continued from page 270 CON CRANSTON, continued from page 271 by HON. DANIEL J. FLOOD Bolton says, "Reinforcement for the Zone would come from the pool of Army and United States Representative, Pennsylvania, Democrat Air Force units assigned to the U.S. Strike Command, MacDill AFB, Florida, and Marine and Naval elements assigned to the CINC, Atlantic Command in From testimony given on September 22, 1971, before the Subcommittee on Inter- Norfolk, Virginia." American Affairs of the House Committee on Foreign Affairs in the course of Clearly, the Canal Zone, and the forces residing there, do not provide signifi- hearings on resolutions concerning Panama Canal sovereignty and jurisdiction. cant protection for the Canal. The real muscle comes from forces based within the A ranking authority on matters affecting the Panama Canal, Rep. Flood has long continental United States. The Canal Zone-based forces provide little more than been a spokesman for the retention of full U.S. Canal Zone sovereignty. police protection in case of an invasion from within the Republic of Panama. How then can we justify our grand presence in Panama? How does the pres- .T HE Panama Canal enterprise consists of two inseparable parts: (1) the Canal ence of a colony of civilians help contribute to the stabilization of this area of the itself, and (2) its absolutely necessary protective frame of the Canal Zone world? Very little. On the contrary, it is my firm belief that the continuing exist- territory. The two great canal issues now before the Nation are: (1) the transcen- ence of the Canal Zone provides much fuel to the militant factions in Panama and now before the Nation dent key issue of retaining United States undiluted sovereignty over the Canal elsewhere in Latin America who point to the Canal Zone as a colonialistic out- the continuing exist- is the key issue of retaining Zone and (2) the important project of modernizing the existing Panama Canal rage, fenced apart from the horrible slums which neighbor alongside. ence of the Canal Zone United States undiluted by the construction of a third set of larger locks. provides much fuel to the I believe the United States should now relinquish its jurisdiction over the Zone. sovereignty over the Canal Unfortunately, the handling of the two principal issues has been greatly com- militant factions in The State Department and the President of the United States have recognized Zone plicated by radical Panamanian attacks on U.S. sovereignty over the Canal Zone Panama and elsewbere in that a new arrangement must be effected between our two governments-an Latin America " and the exhumation of the corpse of the old controversy over types of canal arrangement which is fair and equitable, and which does not jeopardize our secu- high level lake-lock versus sea level tidal lock. rity or commercial interests. I support these efforts for a new treaty, but I feel In the convention of November 18, 1903, Panama granted to the United that the negotiating team is not seeking to go as far as is necessary to eliminate States in perpetuity the "use, occupation and control" of the Canal Zone terri- the wrongful situation which continues to fester like an uncared-for wound. The tory for the "construction, maintenance, operation, sanitation, and protection" U.S. negotiating team now believes that the Canal Zone should be vastly reduced of the Panama Canal with full "sovereign rights, power and authority" within in size, with commercial interests in the Zone assigned to Panama. It does not the Zone to the "entire exclusion of the exercise by the Republic of Panama of propose, as has been alleged, to turn over the entire Canal Zone, including the any such sovereign rights, power or authority." This was the indispensable agree- Panama Canal, to Panama-nor do I propose such a step. The team has also ment under which the United States undertook the great task of completing the called for a gradual phase-out of American legal jurisdiction over cases involving construction of the Panama Canal and its subsequent operation and defense, which Americans in the area. is binding on the United States as fully as on Panama. The idea seems to be that more and more Americans will leave as Pana- The terms of this treaty were not accidental. Our leaders at that time had manians assume more jurisdictional control. I question the need for any continued studied the history of the Isthmus and understood the problems that would be American control over the affairs of civilian Americans in the Republic of Panama. " the United States involved in such undertaking in a land of frightful disease and endemic revolution. Does the United States exercise control of this nature in any other area of the could not accept responsi- They realized that the United States could not accept responsibility without world where Americans choose to work and reside? The answer-except in diplo- bility without complete complete authority. matic missions and on military bases-is no, not even within the Republic of authority." In addition to the grant of full sovereign rights, power and authority over the Panama. Why should Americans living in the Canal Zone and working on the Canal Zone, the United States obtained title by purchase of all privately owned Panama Canal be treated any differently? If an American chooses to work abroad land and property in the territory from individual property owners, making the elsewhere, he does so knowing that he must abide by the laws and live according Canal Zone the most costly territorial acquisition in the history of the United to the rules of the host country. States. The United States does not need the Canal Zone in order to operate the "The United States does Because of the economic support of the Panama Canal, the full effects of the Panama Canal. Because we permit unrestricted passage to countries of all political not need the Canal Zone in Great Depression of 1929 were not felt in Panama until 1932 when they stimu- allegiances, including North Korea and Communist China, it cannot be said of us, order to operate the lated agitations for a new treaty. With the change of administrations in the United as has been said of Egypt in the case of Suez, that we exclude our enemies. Panama Canal." States in 1933 our Government weakened as to the earlier official positions taken We should make clear to Panama that in giving up jurisdiction over the Zone by President Theodore Roosevelt, Secretaries Hay and Hughes, and negotiated we are not giving up our military bases, nor the right to defend the Canal from the Hull-Alfaro Treaty of 1936 with Panama. alien aggressors or from aggressors within the Republic of Panama, even if our Because of a strong opposition in the Senate it was not ratified until 1939 forces must cross over Panamanian soil to do so. Those rights should be an (Continued on page 274) (Continued on page 275) 272 NOVEMBER 1972 273 PRO FLOOD, continued from page 272 CON CRANSTON, continued from page 273 just before the start of World War II. In this treaty, the United States made inherent part of the new treaty, and it is a small price for Panama to pay. It important concessions to Panama, which included the construction of a Trans- will also assuage the fears of those who feel the United States will lose the Panama Canal by making such concessions. Isthmian highway in Panama extending through the Canal Zone to Colón, giving Panama jurisdiction over that highway in the Zone, renunciation of the In summary, I believe the United States should return all aspects of sovereignty right of eminent domain in the Republic of Panama for Canal purposes, and in the Canal Zone back to the Republic of Panama, and that the United States "I believe the United surrender of U.S. authority to maintain public order in the cities of Panama and should continue to own and operate the Canal as a world utility, retaining all States should return all Colón and adjacent areas. In a realistic sense this treaty was the start of our great rights to defend the Canal, even to the point of moving our armed forces into aspects of sovereignty in the Treaty of 1936 giveaway programs, causing serious difficulties in obtaining military bases in the Republic of Panama to do so. the Canal Zone back to the was the start of our great Panama for defending the Panama Canal in World War II and creating dangerous We in the United States might look toward our own country to seek an analogy Republic of Panama giveaway programs precedents. to the Panama Canal Zone situation. What if the British had built the Erie Canal By 1953 agitations were well underway in Panama for the Chapin-Fábrega in the early 1800's and set up a Zone of their own to run it? How then would the Treaty, which without adequate understanding or debate, was ratified in 1955. Americans of today feel toward a British Colony living alongside of Buffalo, The 1955 Treaty completed the withdrawal of the United States from Panama to New York, and Cleveland? Is the only difference really the fact that we Americans the boundaries of the Canal Zone but did not alter the basic sovereignty and are a vast world power, capable of removing such unwanted colonies, while the perpetuity provisions of the 1903 Treaty as regards United States exclusive sov- Panamanians are helpless to do anything about their own situation except make ereign control in perpetuity of the Canal enterprise, which includes the Zone. noises which are faint on the world scene? On May 2, 1958, there was an organized mob invasion into the Canal Zone If we are to behave as the greatest nation in the world-and we must-then called Operation Sovereignty. Red-led Panamanian University students planted we must set a proper example for nations large and small, rich and poor, around 72 Panama flags at various spots in the Zone, including some squarely in front the world. We must solve such frictions before they become major confrontations. of the Canal Administration Building. Instead of acting promptly to arrest and We must in effect initiate solutions before the guns are fired, and blood is drawn. punish the trespassers, our responsible authorities naively ignored the incidents Too often, we have been a Nation of reactors. Let us act in a preventive way, as youthful pranks. Instead of pranks they were probes of our Government's and gain friends who will know that it was the United States that took the first will power to stand up for the just and indispensable rights of the United States step forward-not a step backward in retreat. at Panama. On September 17, 1960, soon after adjournment of the Congress, President Eisenhower, without Congressional sanction and using emergency funds from the by HON. ROBERT A. HURWITCH Department of State, in a mistaken gesture of friendship, naively authorized the U.S. Deputy Assistant Secretary of State for Inter-American Affairs formal display of the Panama flag in one place in the Canal Zone at Shaler's From testimony given on November 29, 1971, before the Subcommitte on the Triangle as "visual evidence" of Panama's titular sovereignty over the Zone but Panama Canal of the House Committee on Merchant Marine and Fisheries in the did not define the term, which is of purely reversionary character. Also as pre- course of hearings on the subject of Panama Canal treaty negotiations. dicted, Panamanians took this display not as evidence of titular sovereignty, but as an official admission by the United States of its recognition of Panama's full sovereignty over the Zone Territory. T HE 1903 Convention and the agreements associated with it have formed the central core of our unique relationship with Panama ever since its founding The Panama flag display was extended by President Eisenhower's successors, and have constituted a built-in source of friction. The Canal Zone cuts through Presidents Kennedy and Johnson. They culminated in a massive Red led mob the center of Panama. On the Pacific side, Panama City, the capital, adjoins the a massive Red-led invasion of the Canal Zone during January 9-12, 1964, again requiring the use Zone, while the major city on the Caribbean is surrounded by the Zone. One mob invasion of the Canal of our armed forces to protect the lives of our citizens and the Canal itself. In cannot cross from the eastern to the western half of the country without transiting Zone in 1964 required retaliation, Panama broke diplomatic relations with the United States and brought the 10-mile-wide strip under U.S. jurisdiction. "One cannot cross from the the use of our armed charges against the United States of "aggression" against Panama. A host of specific issues relating to the Panama Canal and the Canal Zone eastern to the western half forces Here I would like to stress that not one United States soldier left the Canal have troubled U.S. relations through the years. In 1936 and 1955 we entered of Panama without transit- Zone but simply defended the lives of our citizens and the Canal with the result into supplementary treaties designed to resolve some of them, but many continued ing the 10-mile-wide strip that there was no interruption of transit despite the magnitude of the disorders. to rankle. Chief among these have been the U.S. treaty right to act as if sovereign under U.S. jurisdiction." This was the highest tribute to the wisdom of our policy of having United States in perpetuity, the amount (now $1.93 million) of annual direct compensation, citizens in security positions, and having a protective strip framing the Canal. and our possession of certain areas of land which Panama urgently desires for After President Johnson had an opportunity to get the necessary facts about economic expansion and does not consider essential to the operation and defense (Continued on page 276) (Continued on page 277) 274 NOVEMBER 1972 275 PRO FLOOD, continued from page 274 CON HURWITCH, continued from page 275 the Panamanian mob attack, on January 14, 1964, he took a strong initial stand of the canal. During 1962-63, representatives of Presidents Kennedy and Chiari for exercising United States sovereignty over the Canal Zone stating that our discussed points of dissatisfaction, but growing frustration and emotional national- country had a "recognized treaty obligation to operate the Canal efficiently and ism among Panamanians erupted in January 1964 in a four-day riot on the Canal growing frustration securely, and (that) we intend to honor that obligation in the interest of all who Zone borders in which 18 Panamanians and 4 American soldiers were killed, and emotional nationalism depend upon it." hundreds injured, and millions of dollars worth of property destroyed. Panama among Panamanians Unfortunately, after this initial policy statement he apparently fell into the broke off diplomatic relations with the United States, charging us with acts of erupted in 1964 in a four- clutches of Department of State miners and sappers and reversed his original aggression, and took her case to the United Nations and the Organization of day riot on the Canal Zone position. Consequently, on December 18, 1964, after restoration of normal rela- American States. In April 1964, the OAS announced that an agreement had been borders tions with Panama, President Johnson announced that the U.S. Government had reached between the United States and Panama to re-establish diplomatic rela- completed an intensive policy review with respect to the present and future of tions and to designate special Ambassadors with sufficient powers to seek the "President Johnson an- nounced that the U.S. had the Panama Canal and that he had reached two decisions: prompt elimination of points of dissatisfaction, without limitations or precondi- completed an intensive First, to press forward with Panama and other interested governments for a tions of any kind. President Johnson appointed the distinguished former Secretary policy review with sea level canal; and second, to negotiate an entirely new canal treaty for the of the Treasury and Secretary of the Navy, Mr. Robert B. Anderson, as the Spe- respect to the Canal existing Panama Canal. cal U.S. Representative, and three draft treaties resulted from the 1964-67 nego- tiations. In June 1967, President Johnson and President Marco A. Robles of Panama jointly announced that agreement had been reached on three proposed new canal During the years 1965-1970, Ambassador Anderson also headed the Atlantic- treaties as follows: Pacific Interoceanic Canal Study Commission. After more than five years of study and investigation, the Commission concluded, inter alia, that current U.S. The first, covering the operation of the present canal, would have (1) abro- canal policy should not be made in the expectation that nuclear excavation tech- gated the Treaty of 1903, (2) recognized Panamanian sovereignty over the Canal nology would be available for canal construction; that the construction of a sea- Zone, (3) made Panama an active partner in the management and defense of the level canal by conventional means is physically feasible; that the most suitable Canal, (4) increased toll royalties to Panama, and (5) eventually given to site for such a canal is on Route 10 in Panama a few miles west of the present Panama exclusive possession in 1999 if no new canal were constructed at U.S. canal; that its construction cost would be about $2.8 billion in 1970 prices; and expense or soon after opening of a sea level canal but not later than 2009 if a that amortization might or might not be possible from tolls, depending on a new canal were built. number of future factors. The second treaty for a canal of sea level design would have given the United The President of Panama did not act to have the 1967 draft treaties ratified, States an option for 20 years after ratification to start construction, 15 more years for construction and a majority membership in the canal authority for 60 years and no action was taken on them by our Government. Panamanian attention was after opening or until 2067, whichever was earlier. Additional agreements to fix largely concentrated on domestic developments for a few years. After a long and the specific conditions for its combinations would have to be negotiated when the bitter political campaign, Dr. Arnulfo Arias was elected President in May 1968 United States should decide to execute its option. and inaugurated on October 1st. On October 11, Dr. Arias was ousted by a coup -a fate he had also suffered during his two previous presidential terms-and a The third treaty for defense would have provided for the continued use of military junta took over the Government of Panama. Following a period of some military bases by U.S. Forces in Panama for 5 years beyond the termination date initial instability, the Provisional Junta Government established itself firmly in of the proposed treaty for the operation of the existing canal. If a new canal in power under the leadership of Brigadier General Omar Torrijos, Commandant of Panama were constructed the military base rights treaty would have to be the National Guard. After a study of the 1967 drafts, the Provisional Junta extended for the duration of the treaty for the new canal. Government rejected them and asked us to renew discussions for a new canal Although President Johnson did make a press release outlining the general treaty. aims of the treaties, the governments of both the United States and Panama The United States had no realistic choice but to agree to the renewal of nego- the proposed treaties withheld publication of the proposed treaties apparently with the hope that they tiations. The canal issue in Panama is just as emotional and nationalistic an issue aroused a storm of would be ratified by our Senate without adequate debate. Panama has some now as it ever was. In all fairness, it must be admitted that Panama has some protests Ferreted out through journalistic initiative, published, and later quoted in reasonable grievances in reasonable grievances in connection with the present situation. This Administration connection with the addresses to the U.S. Senate by Senator Strom Thurmond of South Carolina, they firmly believes that differences should be settled at the negotiating table if mutually aroused a storm of protests in both Panama and the United States as well as in present situation." satisfactory agreements can be reached. We fully recognize that the conditions Great Britain and Japan, which are large users of the Panama Canal. So strong which existed in 1903-and Panamanians were dissatisfied with some aspects of were these protests that the proposed 1967 treaties were never signed. the treaty even then-no longer exist in 1971, and that treaty provisions appro- One of the great purposes of United States policy of exclusive sovereign con- priate then may no longer be appropriate now. Treaties after all must bear a (Continued on page 278) (Continued on page 279) 276 NOVEMBER 1972 277 PRO FLOOD, continued from page 276 CON HURWITCH, continued from page 277 trol over the Canal Zone was the avoidance of the never ending conflicts and reasonable relationship to the environment in which they exist. It is our firm recriminations that always accompany extra-territorial rights. To speak so bluntly intention to secure essential U.S. objectives with respect to the right to operate as the gravity of the situation at Panama demands, the State Department in recent and defend the present canal and to provide additional capacity when needed years has been dominated by those who timidly accept as valid every major claim either by a third set of locks or by building a sea-level canal. At the same time, of Panamanian radicals for the surrender by the United States of its sovereignty it is our earnest desire to meet certain reasonable Panamanian aspirations with over the canal enterprise and its transfer to Panama. Such action would undoubt- the objective of contributing to a more enduring relationship between Panama and edly result in the immediate dominance of the Isthmus including the Canal Zone the United States and a more secure environment for the canal. In the modern by Soviet powers against which Panama could not cope. world, we can no longer look upon a sovereign enclave in the territory of another we can no longer look the State Department Though averring that the United States has "no intention of yielding control country in perpetuity as a secure environment in which to operate a canal, a canal upon a sovereign enclave view is that it is in U.S. and defense of the Canal to the threat of violence," the State Department view which is of incalculable value to our own security and commerce and a tremen- in the territory of another interest to demonstrate is that it is in United States interest to demonstrate again as in 1967 our "willing- dous service to world trade. country in perpetuity as a our willingness to make ness to make adjustments" which do not significantly weaken our rights to control In this connection, it should be noted that the Panama Canal is of great secure environment in adjustments' and defend the canal and that it would be difficult for the United States to "justify economic importance to many Latin American countries. More than 50 per cent which to operate a canal itself in world forums" in the event it is again forced to "commit" its armed of the total ocean-borne trade of three of them transits the canal, as does more " forces against "Panamanian incursion into the Canal Zone." Could there be any than 30 per cent of another five and over 20 per cent of one more. Those nations more obvious double talk? The United States did not commit its Armed Forces obviously have high stakes in the continuance of an efficient canal charging reason- against anybody. able tolls. At the same time, we believe they would like to see those conditions Such statements of policy are an expression of willingness to surrender in prevail under the aegis of a modern treaty mutually considered by the U.S. and advance. What could be more pusillanimous or unrealistic than this State Depart- Panama to be just and fair. We believe that such a treaty would be a contribu- ment pronouncement! No wonder the eyes of the world are watching us at tion to the peace of the hemisphere and would also enhance our position within Panama, for upon what we do there could well depend the freedom or the slavery the hemisphere. of the world. Shabby sentimentality has no place in the consideration of the problems of the Canal Zone and Panama Canal. As foreseen by the formulators of our major Isthmian Canal policies of site, by HON. DAVID H. WARD type and control, the Panama Canal is a part of the coastline of the United States. U.S. Deputy Under Secretary of the Army for International Affairs Its protection is just as vital to national defense as the protection of Delaware From testimony given on December 1, 1971, before the Subcommittee on the Bay or San Francisco Harbor. Panama Canal of the House Committee on Merchant Marine and Fisheries in the General plans for the major increase of capacity and operational improve- protection of the course of hearings on the subject of Panama Canal treaty negotiations. ments of the existing canal have been developed and are covered in pending legis- Panama Canal is just as lation but cannot proceed until the sovereignty issue is clarified and our undiluted vital as the protection of control and ownership of the canal and the Canal Zone fully understood and F UNDAMENTALLY, the United States is in Panama because of the Panama Canal. Delaware Bay or San The prime interest of the Department of Defense, and indeed of the United recognized, for the Canal can no more be separated from the Zone than boilers Francisco Harbor." States, is that the Panama Canal remain open to shipping bound to and from from a steam power plant. United States ports and to United States and allied naval shipping. In order to The present task before the House of Representatives is the transcendent one preserve this interest we must be concerned with the following means to that end: of clarification and reaffirmation of our sovereign control of the Panama Canal First, the Canal organization-this means the American and Panamanian enterprise. The resolutions now pending reflect the views of our best informed people who do the job of running the Canal, and the machinery and facilities Congressional leaders and specially qualified citizens from various parts of the which they employ in this task. Nation. Their adoption will serve notice in the world, especially to Soviet rulers, Second, our defense forces which defend the Canal, and the bases and military that the United States has the will to meet its treaty obligations at Panama and rights of these forces. that it will continue to do so and thus serve to regain the public image that our Third, our relationship with Panama whose territory is traversed by the Canal, great country has lost through weak and timid policies in recent years. It will many of whose citizens are employed in its operations and whose two principal open the way for the next great step by the Congress in the evolution of our "Panama is discontented cities border on ours at the two ends of the Canal. Isthmian Canal policy-the major modernization of the existing Panama Canal. with our treaty relation- These two steps together, sovereignty reaffirmation and modernization, should As is well known, Panama is discontented with our treaty relationship. An ship. An adjustment of this meet the canal situation for many years into the future. adjustment of this relationship is desirable, provided that it can be done without relationship is desirable weakening the organization by which we operate the Canal and without jeopardiz- (PROS, continued on page 280) (Continued on page 281) 278 NOVEMBER 1972 279 PRO PROS, continued from page 278 CON WARD, continued from page 279 ing our defense interests in the Canal Zone. It is also important that the United by HON. LEONOR K. SULLIVAN United States Representative, Missouri, Democrat States gain the right to build a sea-level canal so that that option will be available to us in the future. We are hopeful that an adjustment can be made which meets From a statement issued on July 15, 1971. For fourteen years Rep. Sullivan the most important concerns of both nations and it is to that end that negotiations served as chairman of the Panama Canal Subcommittee of the House Committee are being conducted. on Merchant Marine and Fisheries. Over a period of years Panama will assume responsibility for some of the governmental functions now carried out by the Canal Zone Government but it is "Over a period of years I AM gravely concerned over reports to the effect that the Administration is our particular care that this gradual evolution occur in a way consistent with the Panama will assume re- "I am gravely concerned taking active steps which may result in the reopening of treaty negotiations just expectations and concerns of our employees. We will negotiate ample treaty reopening of sponsibility for some of the over with the Republic of Panama. rights to cover our employees, facilities and operational prerogatives. treaty negotiations with governmental functions I have been associated with affairs in the Republic of Panama, and more the Republic of Panama." Defense interests are of course of vital importance to us in these negotiations. now carried out by the particularly in the Canal Zone, since the mid-1930's and officially since 1953. As As you will recognize, the Canal itself is a valuable defense asset and the bases Canal Zone Government past Chairman of the Subcommittee on Panama Canal, I have worked closely located in the Canal Zone play a significant role in our defense posture. At present with the Panama Canal Company, the people of Panama, and the people of the we have approximately 12,000 military personnel in the Canal Zone. We also Canal Zone. In light of this long association with the affairs of Panama and the have an extensive base structure. Canal Zone, I was amazed and dismayed to learn that the Administration has For the foreseeable future the United States must have unilateral rights to take sent Ambassador Robert B. Anderson to discuss the reopening of negotiations whatever action is necessary to defend the Canal and not be obliged to depend for new treaties with the Provisional Government of General Torrijos. Ambassa- upon the consent of any other nation to keep it in operation. This is fundamental. dor Anderson, of course, was the Special Representative who headed the team But this is not to say that Panama and its forces will not play an important role which negotiated the three treaties with the Republic of Panama between 1964 in keeping the Canal open. Since the Canal and our employees are not isolated and 1967. from Panamanian population centers we rely upon Panama to deal with civil It is a fact that the abortive 1967 treaties never came to fruition and ended disturbances in its own territory that may spill over into the Zone and in the on a very negative note. For example, copies of these draft treaties were never unlikely event of an attack by a third party, Panama would undoubtedly become made available to the Congress of the United States but apparently were being involved in common cause with us. circulated on the streets of Panama back in 1967. In addition, these proposed Although the negotiations will result in some land concessions to Panama we treaties evoked loud protest from the people of the United States and, more particu- fully intend that bases necessary for our vital defense interests be retained. This these proposed treat- larly, from the Congress. Indeed, the House of Representatives in the Ninety-first is one of the non-negotiable parts of our position. ies evoked loud protest Congress expressed itself as to the 1967 treaties blunder through the introduction In addition to the Canal defense mission, there are certain collateral military from the Congress." of some 105 resolutions declaring it to be the policy of the House of Representa- activities carried on in the Canal Zone which will continue. These benefit not only tives and the desire of the people that the United States should maintain its the United States but also Panama and its other Rio Pact allies. One example is sovereignty and jurisdiction over the Panama Canal Zone. In fact, since 1967, the military schools in the Zone which give extensive training to officers from the Provisional Government of Panama itself has made known its objections to Latin American military establishments. Over 1,300 members of the Panamanian the 1967 draft treaties in unmistakable terms. military have received training at these schools. Another example of activities From the standpoint of the U.S., there were a number of disabilities inherent unrelated to Canal defense is that of humanitarian assistance. Our military forces in those treaties. They would have, for example, resulted in the United States in Panama have on many occasions assisted Latin American nations, and Panama relinquishing its powers of sovereignty over the Canal and would have operated in particular, in times of natural disaster. in such a way that the United States would not be able to control effectively the It will be necessary for us to negotiate a Status of Forces Agreement for our Panama Canal or provide for its defense in a satisfactory manner. In addition, "It will be necessary for us forces in Panama. There is very substantial precedent for agreements of this type those treaties contemplated an unrealistic and unreasonable increase in tolls, to negotiate a Status of and our experience throughout the world is useful in developing the provisions rates and revenues and did not take into account the constitutional authority of Forces Agreement for our that must be included. Such an agreement would of course have to include appro- Congress over the disposal of United States property. Also, those treaties would forces in Panama." priate provisions regarding our Canal defense rights, freedom of access and move- have removed the Canal from the authority of the United States Congress. In this ment for our forces, and protection for the rights of individual members of the connection, it should be noted that under the 1967 draft treaty relating to the service in Panama. In our view it will be possible for us to fulfill our mission in present locks canal, control of the Canal would have passed from the Congress Panama while operating under a Status of Forces Agreement, as we do in other to the nine-man governing authority and the five American members would be parts of the world. appointed by the President subject to confirmation by the Senate and responsible (Continued on page 282) (Continued on page 283) 1972 NOVEMBER 281 280 PRO SULLIVAN, continued from page 280 CON WARD, continued from page 281 to the Executive, not to the Congress. This arrangement alone would tend to cast The question of expansion of Canal capacity is a major one in the treaty the treaties in an unfavorable light with respect to the Congress. negotiations. The logistical importance of the Canal is well known to this Com- Aside from the disabilities inherent in these treaties, they are based on a mittee, as is its usefulness for the transit of combat ships. The day can be expected number of erroneous premises. For example, at the time the 1967 treaties were to come when this same interest in the lock canal will dictate an expansion of these treaties are based on a number of erro- drafted and negotiated, it was thought that a sea-level canal was economically Canal capacity. The Interoceanic Canal Study Commission set up a National neous premises." feasible and could be built by nuclear excavation. It is clear from the Atlantic- Defense Study Group of which I was the Chairman at the time of issuance of Pacific Interoceanic Canal Study Commission Report that nuclear excavation has its report. The study group concluded, and the Department of Defense and the been eliminated for the foreseeable future. Absent nuclear excavation, it would Joint Chiefs of Staff agreed, that a new sea-level canal would represent a major cost approximately $2.5 to $3 billion (at 1970 estimate cost figures) to construct defense asset for the United States. Our conclusion was heavily based upon the a new sea-level canal on Route 10, as recommended by the Interoceanic Canal fact that a sea-level canal is less vulnerable to attack than a lock canal and that Study Commission. Testimony before our Committee has shown that based on such a canal would be wide enough to permit the passage of our aircraft carriers, traffic forecasts and the Canal Improvement program, the existing Canal should some of which are too wide for the present canal. Although the decision as to be able to handle the traffic to the end of the century. At the present time, it seems the construction of a sea-level canal or a third set of locks will probably not be clear that the Republic of Panama, or anyone else for that matter, cannot premise made for some time, the Department of Defense strongly supports the objective treaty negotiations on the assumption that Congress will authorize the construction of gaining definitive options to expand Canal capacity. of a new sea-level canal or enact legislation to transfer the existing Canal to any In conclusion, the Department of Defense is interested in an adjustment of "Department of Defense is other country. our treaty relationship with Panama which will remove at least some of the major interested in an adjustment If the 1967 proposals were unacceptable to the American people and to the causes of friction that might threaten the peaceful operation of the lock canal of our treaty relationship Congress, how much more unacceptable will new treaties be which go even and foreclose to us the option of building a sea-level canal. Our mission of defend- with Panama which will further than the last round of treaties in ceding American jurisdiction and sov- ing the lock canal, with its locks and dams and 52 miles of bank largely covered remove at least some of the ereignty in the Canal Zone? For the Government of Panama expressed its dis- with jungle, will be facilitated by good relations with the people of Panama. But major causes of friction satisfaction with the 1967 treaties in an August 5, 1970 letter to our Secretary of we must ensure that a new treaty fully protects our vital defense interests. It State and simultaneously released a 32-page document explaining the reasons for must also fully protect our interest in operating the Canal. And, finally, it is rejecting the 1967 draft treaties. In general, this document took an extreme posi- important that Canal expansion be clearly permitted by a new treaty. tion which, in effect, rejected U.S. control of the Canal, the right of the U.S. to maintain military forces on the Isthmus, and rejected the management of the Canal for the benefit of shipping rather than the enrichment of Panama. by AMBASSADOR JOHN C. MUNDT It seems to me that it is entirely improper and incorrect when so many priority Special Representative of the United States for Panama Treaty Negotiations problems are facing the country at this time, that we should be pressured into From testimony given on November 29, 1971, before the Subcommittee on the opening up negotiations on new treaties that will once again engender enormous Panama Canal of the House Committee on Merchant Marine and Fisheries in the reopening negotia- controversy and opposition. Undoubtedly, reopening negotiations on the type of course of hearings on the subject of Panama Canal treaty negotiations. tions on the type of treaties treaties anticipated will result in protest by the American people when they learn anticipated will result in the facts. P ANAMA has been discontented with the Treaty of 1903 since its inception and protest by the American The possibility of new treaty negotiations raises several basic questions in my "The United States ac- has pressed for more favorable terms with increasing intensity in recent years. people when they learn the mind: The United States acknowledged as early as 1905 that under the 1903 Treaty knowledged as early as 1. Why must we enter into treaty negotiations which give every indication 1905 that under the 1903 facts." Panama retained titular sovereignty over the Canal Zone. Treaty revisions were of being contrary to the best interests of the United States? made in 1936 and 1955. However, the most objectionable feature from Panama's Treaty Panama retained 2. Must we enter into treaty negotiations at this time which can only cause viewpoint-United States exercise of rights as if sovereign in the Canal Zone in titular sovereignty over the Canal Zone." further unrest in both the United States and Panama? perpetuity-remained unchanged. Neither did the increases in payments and other 3. Where has the United States failed in living up to its duties, obligations and economic benefits for Panama in the two revisions provide what Panama consid- commitments as set out in the basic 1903 treaty and its revisions of 1936 and ered a fair sharing of the benefits of the canal. Panama's discontent led to destruc- 1955? tive riots along the Canal Zone border in 1958 and 1964. I would be at least a little less apprehensive if someone in the Administration Following discussion of the Panama situation in the OAS, the UN, and in other could answer these questions for me. international forums, President Johnson agreed in 1964 to begin negotiations for a new treaty relationship. In reaching this decision, President Johnson had con- (Pros, continued on page 284) (Continued on page 285) 282 NOVEMBER 1972 283 PRO PROS, continued from page 282 CON MUNDT, continued from page 283 sulted with and obtained the support of Presidents Hoover, Truman and Eisen- by COMMITTEE FOR CONTINUED U.S. CONTROL OF PANAMA CANAL hower. From a memorial addressed to the 92nd Congress late in 1971. The Committee Three draft treaties were negotiated by the United States and Panama between was organized by Prof. Richard B. O'Keefe of George Mason College, the Uni- 1964 and 1967. The President of Panama did not act to have these treaties versity of Virginia, research consultant on the Panama Canal. ratified. Consequently, no action was taken on them by the United States. "The construction of The Government of Panama has changed twice since 1967, and the Govern- T HE construction by the United States of the Panama Canal (1904-1914) was the Panama Canal was the ment now in power is entering upon its fourth year. It is recognized by the United the greatest industrial enterprise in history. Undertaken as a long-range com- "President Nixon has greatest industrial enter- States. President Nixon agreed more than one year ago to renew treaty negotia- mitment by the United States, in fulfillment of solemn treaty obligations (Hay- tions and has established negotiating objectives similar to those set by President established negotiating ob- prise in bistory." Pauncefote Treaty of 1901) as a "mandate for civilization" in an area notorious Johnson in 1964, modified by developments since that time. United States objec- jectives similar to those set as the pest hole of the world and as a land of endemic revolution, endless intrigue tives and positions thus reflect a bipartisan approach toward treaty negotiations by President Johnson in and governmental instability, the task was accomplished in spite of physical and 1964 with Panama. health conditions that seemed insuperable. Its subsequent management and opera- The United States has three essential objectives: tion on terms of "entire equality" with tolls that are "just and equitable" have won the praise of the world, particularly countries that use the Canal. 1. That the U.S. control canal operations for a very long period to ensure that the canal remains available to our and the world's vessels on a non-discrimina- Full sovereign rights, power and authority of the United States over the Canal tory basis at reasonable tolls. Zone territory and Canal were acquired by treaty grant in perpetuity from Panama (Hay-Bunau-Varilla Treaty of 1903). In addition to the indemnity paid by the 2. That the United States have unimpaired rights to defend the canal from any United States to Panama for the necessary sovereignty and jurisdiction, all pri- threat, and to maintain its uninterrupted operation in peace or war. vately owned land and property in the Zone were purchased by the United States 3. That the United States have the right to expand canal capacity, either by from individual owners; and Colombia, the sovereign of the Isthmus before adding an additional lane of locks or by building a sea-level canal. Panama's independence, has recognized the title to the Panama Canal and Rail- The Government of Panama has indicated that it is willing to grant these road as vested "entirely and absolutely" in the United States (Thomson-Urrutia rights to the United States in a new treaty, but wishes to eliminate the causes of Treaty of 1914-22). The cost of acquiring the Canal Zone, as of March 31, 1964, conflict with the U.S. in Panama. totaled $144,568,571, making it the most expensive territorial extension in the There are many things that I could cite that are irritants to our relations history of the United States. Because of the vast protective obligations of the with Panama-U.S. occupation of land needed by Panama (that we do not need), United States, the perpetuity provisions in the 1903 treaty assure that Panama the presence of a U.S. Canal Zone Government in Panama, and the contrast in "The cost of acquiring the will remain a free and independent country in perpetuity, for these provisions bind Canal Zone made it the living standards between the Zone and nearby Panamanian communities. Suffice the United States as well as Panama. it to say that Panamanian resentments are sufficient that they have boiled over in most expensive territorial Starting with the 1936-39 Treaty with Panama, there has been a sustained extension in the history of destructive and bloody riots twice in recent years. It is in our interest to develop the United States." erosion of United States rights, powers and authority on the Isthmus, culminating in place of this a relationship that is based upon mutual needs and benefits and in the completion, in 1967, of negotiations for three proposed canal treaties that that is adhered to willingly on both sides. "It is in our interest to would: As I have already mentioned, a primary United States objective is the right develop a relationship 1. Surrender United States sovereignty over the Canal Zone to Panama; to administer, operate and defend the canal for an extended period of time. We that is based on mutual 2. Make that weak, technologically primitive and unstable country a senior are confident this can be negotiated. needs and benefits partner in the management and defense of the Canal; The United States seeks clear provisions which would permit the expansion 3. Ultimately give to Panama not only the existing Canal, but also any new one of canal capacity to meet world shipping needs by the construction of either a constructed in Panama to replace it, all without any compensation whatever and sea-level canal or third locks for the present canal. The Atlantic-Pacific Inter- all in derogation of Article IV, Section 3, Clause 2 of the U.S. Constitution. This oceanic Canal Study Commission reported that greater canal capacity will prob- Clause vests the power to dispose of territory and other property of the United ably be needed before the end of the century. A new treaty is needed to permit States in the entire Congress (House and Senate) and not in the treaty-making the construction of a sea-level canal and to ensure Panamanian acceptance of a power of our Government (President and Senate)-a Constitutional provision United States decision to expand the existing lock canal by addition of a third observed in the 1955 Treaty with Panama. set of locks. No decision has yet been made as to which alternative will be It is clear from the conduct of our Panama Canal policy over many years that adopted, and a decision is not likely until well after a new treaty has been ratified. policy-making elements within the Department of State, in direct violation of It is estimated that a sea-level canal, which would be less vulnerable to attack or (Continued on page 286) (Continued on page 287) 284 NOVEMBER 1972 285 PRO CFCUSC, continued from page 284 CON MUNDT, continued from page 285 sabotage, would cost about $2.8 billion to build and that a third set of locks the indicated Constitutional provision, have been, and are yet, engaged in efforts would cost about $1.5 billion. which will have the effect of diluting or even repudiating entirely the sovereign rights, power and authority of the United States with respect to the Canal and of Panama seeks the application of its laws to various activities in the present "Certain jurisdictional dissipating the vast investment of the United States in the Panama Canal project. Canal Zone. Certain jurisdictional rights and activities, including commercial rights and activities Such actions would eventually and inevitably permit the domination of this stra- operations, not necessary for the administration, operation and defense of the can be transferred to tegic waterway by a potentially hostile power that now indirectly controls the canal, can be transferred to Panama without adversely affecting the United States Panama without adversely Suez Canal. That canal, under such domination, ceased to operate in 1967 with interests. Panama today can provide nearly all the commercial services essential affecting the United States vast consequences of evil to world trade. to the health and welfare of the personnel who operate the Canal. Right now interests." some 5,000 U.S. citizens live in the Republic of Panama. Some are engaged in a "[These] efforts will Extensive debates in the Congress over the past decade have clarified and have the effect of diluting narrowed the key canal issues to the following: wide variety of private business activities and others commute daily to jobs in the Canal Zone. They are fully subject to Panamanian law and police jurisdiction or repudiating the sov- 1. Retention by the United States of its undiluted and indispensable sovereign and have experienced no significant difficulties. Throughout the world tens of ereign rights of the United rights, power and authority over the Canal Zone territory and Canal as provided thousands of U.S. Government employees live and work satisfactorily under the States with respect to the by existing treaties; legal jurisdiction of foreign governments. The United States will continue to have Canal 2. The major modernization of the existing Panama Canal as provided for in adequate protection of the rights of its canal employees under a new treaty, and the Terminal Lake Proposal. I assure you that we will not negotiate away legal rights essential to the operation Unfortunately, these efforts have been complicated by the agitation of Pana- and protection of the canal. Our military personnel will be protected by a Status manian extremists, aided and abetted by irresponsible elements in the United of Forces Agreement comparable with other such agreements elsewhere in the States, aimed at ceding to Panama complete sovereignty over the Canal Zone and, world. eventually, the ownership of the existing Canal and any future canal in the Zone Commercial activities currently conducted by the Panama Canal Company will or in Panama that might be built by the United States to replace it. gradually be phased into private operation as arrangements can be worked out In the 1st Session of the 92d Congress identical bills were introduced in both for their satisfactory conduct under Panamanian law. The U.S. will reserve the House and Senate to provide for the major increase of capacity and operational right to continue to conduct essential commercial services where satisfactory improvement of the existing Panama Canal by modifying the authorized Third private operation cannot be arranged. Military commissaries and post exchanges Locks Project to embody the principles of the previously mentioned Terminal will not be affected by the proposed changes. Some piers we plan to turn over to Lake solution, which competent authorities consider would supply the best opera- Panama outright as proposed in 1967, inasmuch as the U.S. now controls all tional canal practicable of achievement, and at least cost without treaty involve- deep-water port capacity in the Republic of Panama, and the U.S. needs for such ment. capacity will be greatly reduced with the termination of Canal Company commer- Starting on January 26, 1971, many Members of Congress have sponsored cial activities. Pier capacity for military and Canal Administration requirements resolutions expressing the sense of the House of Representatives that the United will be retained under U.S. control. States should maintain and protect its sovereign rights and jurisdiction over the The economies of many Central and South American countries are closely Panama Canal enterprise, including the Canal Zone, and not surrender any of its tied to the uninterrupted operation of the Panama Canal at reasonable tolls. powers to any other nation or to any international organization in derogation of There is considerable fear among canal users in Latin America and worldwide present treaty provisions. that, without continued U.S. control, the Canal might be operated to produce The Panama Canal is a priceless asset of the United States, essential for maximum revenues rather than as a utility serving world trade at reasonable tolls. interoceanic commerce and hemispheric security. The recent efforts to wrest its On the other hand, there is widespread support in Latin America for Panama's control from the United States trace back to the 1917 Communist Revolution and efforts to obtain greater practical exercise of its sovereignty and to terminate the conform to long-range Soviet policy of gaining domination over key water routes objectionable aspects of the U.S. presence in the Canal Zone, which is exactly the real issue at as in Cuba, which flanks the Atlantic approach to the Panama Canal, and as was one of the U.S. objectives in the current negotiations. Panama is United accomplished in the case of the Suez Canal, which the Soviet Union now wishes U.S. control and defense of a canal in Panama well into the next century is States control versus Soviet opened in connection with its naval buildup in the Eastern Mediterranean and not at stake in the current negotiations. We are seeking a treaty arrangement with "We can afford to make control." Indian Ocean. Thus, the real issue at Panama, dramatized by the Communist take- Panama that will ensure the continuation of the U.S. presence in tranquillity. This adjustments in our treaty over of strategically located Cuba and Chile, is not United States control versus means that this presence must not be imposed on an unwilling partner. It must be relations with Panama." Panamanian but United States control versus Soviet control. This is the issue that established on a mutually acceptable basis. We can afford to make adjustments should be debated in the Congress. in our treaty relations with Panama. 1972 287 286 NOVEMBER THE PANAMA CANAL ZONE HIGHLIGHTS OF PROPOSED TREATIES From page 260 From page 266 Organization of the Current, the 92nd Congress has designated the Secretary of the Army to act as stock- istration the right and power to adopt, by an absolute holder, specifying that in so doing he shall act as the direct majority vote of the board, statutes with respect to [spe- Duration: January 3, 1971-January 3, 1973. First Session convened Jan. 21, 1971; adjourned Dec. 17, 1971. representative of the President and not in his capacity as cified] subject matters, which shall comprise the statute Second Session convened Jan. 18, 1972; adjourned Oct. 18, 1972. head of the Department of the Army. for the canal area and shall be the applicable law in Management of the Company is vested in a board of the canal area, to the exclusion of any other statutory law. THE U. S. SENATE THE U. S. HOUSE OF REPRESENTATIVES directors, consisting of not less than nine nor more than Article XXXIII. "1. The administration shall operate Total Membership, 100: 54 Dem., 44 Rep., 1 Cons., 1 Ind. Total Membership, 435: 255 Dem., 177 Rep., 3 Vacancies thirteen members, including the Governor of the Canal the Panama canal both to provide the Republic of Panama PRESIDING OFFICER: The Vice President of the U.S. PRESIDING OFFICER: The Speaker of the House Zone and the stockholder, if he elects to serve. The other and the United States of America a fair return in the PRESIDENT OF THE SENATE: Spiro T. Agnew, Maryland, R. SPEAKER OF THE HOUSE: Carl B. Albert, Oklahoma, D. members of the board are appointed by and serve at the light of their contributions to the creation and mainte- PRESIDENT PRO TEMPORE: James O. Eastland, Miss., D. pleasure of the stockholder. The directors receive no nance of this interoceanic waterway and in the interest of salary but are paid a per diem allowance and transporta- FLOOR LEADERS: Majority Leader-Mike Mansfield, Mon- FLOOR LEADERS: Majority Leader-Hale Boggs, Louisiana, world commerce. tana, D.; Minority Leader-Hugh Scott, Pennsylvania, R. D.; Minority Leader-Gerald R. Ford, Michigan, R. tion expenses for travel in connection with their services "2. The administration may establish and apply new to the Company. rates of tolls and related charges for the transit of the PARTY WHIPS: Majority Whip-Robert C. Byrd, W. Va., PARTY WHIPS: Majority Whip-Thomas P. O'Neill, Jr., The powers of the Company, enumerated in its charter, D.; Minority Whip-Robert P. Griffin, Michigan, R. Mass., D.; Minority Whip-Leslie C. Arends, Illinois, R. canal by vessels and cargoes, in conformity with [speci- in general extend to operations directly involved in the fied] provisions movement of ships through the Canal and supporting Article XXXIV. "1. The Republic of Panama de- services. The latter include vessel repairs, harbor ter- clares the Panama canal to be neutral. minals, a railroad across the Isthmus, a supply ship oper- "2. The Republic of Panama and the United States of Recent Issues of The Congressional Digest ating between the United States and the Canal Zone, motor America agree that the neutrality of the canal, the en- 1972 Presidential Election Issues-Oct. '72 A Six-Year Presidential Term-Mar. '72 transportation facilities, storehouses, an electric power trances thereto, and the territorial seas adjacent thereto, system, a communications system, a water system, and Financing Public Education-Aug.-Sept. '72 National Health Insurance Proposals-Feb. '72 shall be maintained in accordance with the principles service activities essential to meeting the needs of em- which have governed since the canal was opened. The Future U.S. Space Program-Je.-Jy. '72 Federal Voter Registration by Mail-Jan. '72 ployees, such as living quarters, retail stores, etc. Article XXXVIII. "1. Upon the entry into force of Federal Role in Day-Care-May '72 U.S. Adoption of Metric System-Dec. '71 Under its charter the Company is required to be self- this treaty, all rights of the United States of America to sustaining, although appropriations are authorized to Expanding the Minimum Wage Law-Apr. '72 "Equal Employment" Enforcement-Nov. '71 real property in the territory which constituted the Canal cover any operating losses or for capital improvements. Zone but which is not included in the canal area and in Appropriations for operating losses are required to be the areas described [in the proposed Panama Canal de- repaid. Since the 1950 reorganization, all operating ex- fense treaty] shall become the exclusive rights of the Congressional Digest in Microform: 1921-1971 penses and capital costs have been met from revenues. Republic of Panama, without cost. Tolls for the use of the Canal are established by the Complete annual volumes of the Congressional Digest since annual volumes or the complete set (priced at a discount) "3. Any rights of the United States of America and 1921 are available in three standard microforms-16 and may be ordered. Standing orders accepted. Annual index Company, subject to approval by the President of the of the administration to real property within the canal 35mm reels and microfiche. All film is positive. Individual set also available, 1921 to date. United States. The law requires that tolls be maintained area shall, upon the termination of this treaty, become Microfiche: 1 to 4 volumes @$7 each. at rates calculated to recover all costs of maintenance 5 or more, $6.50 each. 50-vol. set (1921-1971), $295. Index set, $4. the exclusive rights of the Republic of Panama, free of 16mm reels: 1 to 4 volumes $8 each. 5 or more, $7.50 each. 50-vol. set (1921-1971), $345. Index reel, $5. and operation of the Canal, including interest, deprecia- cost 35mm reels: 1 to 4 volumes $9 each. 5 or more, $8.50 each. 50-vol. set (1921-1971), $395. Index reel, $6. tion, and an appropriate share of the net cost of the Article XXXIX. "1. Upon termination of this treaty: Canal Zone Government. The remaining financial obliga- (a) The Panama Canal shall come under the exclusive tions of the Company are met through revenues derived operational control of the Republic of Panama and all Subscription Order Form from operation of the supporting activities. its appurtenant facilities and services and all property of THE CONGRESSIONAL DIGEST, Congressional Digest Building, 3231 P Street, N.W., Washington, D.C. 20007 the administration shall be the property of the Republic Canal Zone Government Please enter subscription for years beginning with issue. Payment enclosed Send bill of Panama; and (b) all rights to property granted to the The Canal Zone Government is an independent agency administration pursuant to the provisions of this treaty NAME of the United States charged with the performance of the shall be enjoyed exclusively by the Republic of Panama. various duties connected with the civil government of the No compensation shall be owed by the Republic of Panama ADDRESS ZIP Canal Zone. It is administered by a Governor of the because of the provisions of this paragraph. Canal Zone, who serves also in a dual role as President Article XLI. "1. This treaty shall enter into force SIGNATURE of the Panama Canal Company. He is appointed by the upon the exchange of instruments of ratification and shall RATES: 1 yr., $14.50; 2 yrs., $26; 3 yrs., $34; Current single copies $1.50 ea.; 5 @$1.25; 10 @$1; 25 and up @75c. President for a term of four years. remain in force until December 31, 1999." 288 Coming The Federal Spending Ceiling Controversy Pro & Con PRO The Congressional Digest &con FOUNDED 1921-PUBLISHED BY THE CONGRESSIONAL DIGEST CORPORATION $14.50 per year. $1.50 per copy. CONGRESSIONAL DIGEST BUILDING, 3231 P STREET, N.W., WASHINGTON, D.C. 20007 Richard Nixon, 1973 May 3 [141] this kind of dispute enjoys any real bene- phasized my concern by sending two rit. Indeed, both suffer because of the personal representatives, former Secretary resulting exacerbation of political, eco- of the Treasury Connally and Federal nomic, and security relations. Reserve Chairman Burns, to a number of The real point is not fishing rights or countries in Latin America. The detailed retaliation. Rather it is: what rules shall and perceptive reports I received from govern the use of the oceans? If countries these special envoys helped to keep me make unilateral claims over ocean space abreast of current problems and develop- without international agreement, conflict ments. This year, I will be consulting with over uses of the area and its resources are my fellow presidents in the hemisphere inevitable. We believe that the Law of the and with other knowledgeable Latin Sea Conference provides the appropriate Americans on our future course. I have forum for resolving outstanding law of the asked Secretary of State Rogers to visit ча problems. We intend to work with the Latin America to convey our intention to Latin Americans and all other nations to- continue to work closely with our neigh- ward achieving a timely and successful bors. And I plan to make at least one visit conference. to Latin America this year. [Another important unresolved problem At the same time, I hope Members of concerns the Panama Canal and the sur- the Congress will travel to the area and rounding Zone. U.S. operation of the see what is happening in this part of the Canal and our presence in Panama are world. Such visits could produce new in- governed by the terms of a treaty drafted sights into the complex problems we and in 1903. The world has changed radically our neighbors confront. They would pro- during the 70 years this treaty has been in vide an awareness of what able and dedi- effect. Latin America has changed. cated Americans are doing in those coun- Panama has changed. And the terms of tries. And it would create a base of knowl- our relationship should reflect those edge from which understanding legislative changes in a reasonable way. action might come. For the past nine years, efforts to work I urge the Congress to take a new and out a new treaty acceptable to both parties thorough look at existing legislation that have failed. That failure has put con- affects our relations with Latin America. siderable strain on our realtions with We need to study, for example, whether Panama. It is time for both parties to take various legislative restrictions serve the a fresh look at this problem and to develop purposes for which they were designed. a new relationship between us-one that Do they deter other governments from will guarantee continued effective opera- various actions, such as seizing fishing tion of the Canal while meeting Panama's boats? Or do they merely make the solu- legitimate aspirations. tion of such problems more difficult? I believe some current restrictions are en- LOOKING TO THE FUTURE tirely too rigid and deprive us of the flexibility we need to work out mutually I intend to underscore our deep interest beneficial solutions. in Latin America through expanded per- Similarly, we should inquire whether sonal involvement. Last year, I em- current limitations on military equipment 443 Transmitting Fourth Annual Report Message to Congress on United states Foreign Policy Third Annual Report to the Caugress Third Transmitting Annual [56] Feb. 9 Public Papers of the Presidents Report on US Foreign Policy generates into hostile confrontation, which discussion and fair settlements between tinued would be an obstacle to achievement, and sovereign nations are inconsistent with the fish thus self-defeating. national dignity. Peni and Our especially close relationship with The COMMUNITY, DIVERSITY, AND Mexico provides striking examples of legal de NATIONALISM problems resolved systematically by self- central respecting states who feel a preeminent in- conflict The hemisphere community took shape terest in good relations. The closeness which historically as an association of free repub- reflected in my several meetings in 1969 tions a lics joining together against domination and 1970 with Presidents Diaz Ordaz and mental and interference from tyrannies across the Echeverria resulted in specific agreements States ocean. This sense of unity was reinforced on such matters as narcotics control, that by the Second World War and was em- boundaries, civil air routes, agricultural sanction bodied in the new institutions and instru- imports, Colorado River salinity, joint therefo ments of the inter-American system. flood control projects, and the return of at least Our cohesion has served many other archaeological treasures. seizure common purposes since then. It has pro- In addition, in 1971 the United States the jur vided forums for multilateral considera- and Nicaragua abrogated the Bryan- the '97 tion of issues facing us all. It has afforded Chamorro Treaty, relinquishing canal- the Se mechanisms for peaceful settlement of dis- construction rights in Nicaragua which we interna putes within the hemisphere. It has en- no longer require. Presidential Counsellor reopen abled Latin Americans to express a Finch, visiting six Latin American nations Ecuado collective voice in discussions with the on my behalf in November 1971, signed cussed United States and the rest of the world. an agreement recognizing Honduran Majo In the 1970's, this cohesion is being sovereignty over the Swan Islands. We the pas tested by rapid and turbulent change- have entered new negotiations with States more intense nationalism, accelerating ex- Panama to achieve a mutually acceptable over pectations, new ideologies and political basis for the continuing efficient operation investm movements, a new diversity of political and defense of the Panama Canal. Inter systems and expanding ties between Latin Our mutual interest also requires that inatory American countries and the rest of the we and our neighbors address in this same public world. These new conditions are bound to cooperative spirit the two significant dis- able pr transform our political relationships. putes which flared up last year in our rela- effective Our task is to respond constructively tions with Latin America-the fisheries tually with a realistic set of objectives and princi- dispute and the problem of expropriation ments ples for United States policy. We have Let me state frankly the United States instand done so. view on these unsettled questions. been There are hemispheric questions on In 1971, Ecuador seized and fined a mate which our judgments differ from those of great number of U.S.-owned tuna boats been some of our partners. As I said in Octo- fishing within its claimed 200-mile terri- In ber 1969: "partnership-mutuality- torial sea. United States law required me achieve these do not flow naturally. We have to to suspend new military sales and credits these work at them." I do not believe that frank to Ecuador as a result; seizures have con- needs savings 262