Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
6283042
label
Panama Canal Treaty Negotiations: April 17, 1976 (1)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
6283042
sourceUrl
contentType
document
title
Panama Canal Treaty Negotiations: April 17, 1976 (1)
citationUrl
collections
White House Special Files Unit Files
Issue Decision Papers for the President
subjects
Panama Canal (Panama)
Treaties
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
6283042
coverageEndDate
day
16
logicalDate
1976-05-16
month
5
year
1976
coverageStartDate
logicalDate
1970-06-01
month
6
year
1970
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
e31027ec927d7d19
ocrText
The original documents are located in Box 6, folder "Panama Canal Treaty Negotiations:
April 17, 1976 (1)" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
NATIONAL ARCHIVES AND RECORDS SERVICE
WITHDRAWAL SHEET (PRESIDENTIAL LIBRARIES)
FORM OF
CORRESPONDENTS OR TITLE
DATE
RESTRICTION
DOCUMENT
1.
background book, Panama Canal, 4/17/76
Declassified 2/2/90
la. paper
status of the negotiations
3 pages
4/16/76
A
lb. paper
nature of the Torrijos government
Declassified with portions wempted 2 2/2/90 pages KSH
[4/17/76]
opened
A
sep WHM 11/24/9
le. options negotiating points pp. 8-10
3 pages
nd
A.
Declassified with partions exampled 7/3/90
KBH
FILE LOCATION
Special FIles, Issue Papers for the President
Panama Canal Treaty Negotiations, 4/17/76 (1) box 6
plc 4/13/84
RESTRICTION CODES
(A) Closed by Executive Order 12065 governing access to national security information.
(B) Closed by statute or by the agency which originated the document.
(C) Closed in accordance with restrictions contained in the donor's deed of gift.
GENERAL SERVICES ADMINISTRATION
GSA FORM 7122 (REV. 1-81)
THE WHITE HOUSE
WASHINGTON
THE PRESIDENT HAS SEEN
April 17, 1976
Mr. President:
Attached is the background book on the
Panama Canal which you requested. With
the exception of the section "Points for a
Presidential Statement, 11 -- which I do not
believe is particularly helpful -- I think the
material is generally useful.
Henry responded on a couple of occasions
in Phoenix yesterday to questions on the
Panama Canal. I should have a transcript
by late this afternoon.
B
Brent
THE PRESIDENT HAS SEEN
TABLE OF CONTENTS
I.
Background
A. History of the Negotiations
B. Present Status of Negotiations
C. Third Country and International Organizations Views
of the Negotiations
D. Military and Economic Significance of the Canal
E. The Torrijos Government
II.
The Current Situation
A. Points for a Possible Presidential Statement
B. Points to be Made by Others About Negotiations
C. Statements That Can Be Quoted
TABS
1. The Treaties of 1903, 1936, and 1955
2. The Principles of 1974
3. Presidential Instructions to Negotiators (NSDMs)
4. The Economic Value of the Canal
5. The Military Value of the Canal
6. The Sovereignty and Ownership Question
7. Statements of Support for the Negotiations from Americans
8. Statements of Support for the Negotiations from Latin Americans
9. Selected Statements of Opposition to the Negotiations
10. Representative Snyder Press Conference
I. BACKGROUND
I.A. History of the
Negotiations
CHRONOLOGY OF EVENTS SINCE 1964
General History and Negotiations
January 9, 1964. Rioting in the Canal Zone over display
of the U.S. flag. Dead: 21 Panamanians and 3 Americans.
President Johnson consults with former Presidents Hoover,
Truman and Eisenhower in his search for a new policy toward
Panama. Meanwhile, U.S.-Panamanian talks begin under OAS
auspices.
April 3, 1964. The OAS publishes a joint declaration by
Panama and the U.S. in which the two countries reestablish
diplomatic relations and designate Special Ambassadors to
seek prompt elimination of the causes of conflict between the
two countries.
September 24, 1965. Joint announcement by Presidents
Johnson and Robles calling for abrogation of the 1903 Treaty,
effective Panamanian sovereignty over the Canal Zone, fixed
duration, integration of Canal Zone with Panama, and respect
for employee's rights.
June 26, 1967. Presidents Johnson and Robles announce
agreement on the "form and content" of new draft treaties
covering 1) administration of the existing canal; 2) defense
and neutrality of the existing canal; and 3) possible con-
struction of a sea-level canal.
October 11, 1968. Panamanian National Guard overthrows
President Arnulfo Arias. Subsequently, Colonel (now Brigadier
General) Omar Torrijos, commander of the National Guard, assumes
leadership of Panama.
September 1, 1970. Panama notifies the U.S. that the
treaties are unacceptable as a basis for resuming treaty nego-
tiations.
June 29, 1971. The U.S. and Panama resume negotiations
under Ambassador Anderson. Talks are unsuccessful.
March 21, 1973. U.N. Security Council meets in Panama.
U.S. vetoes a resolution which would have guaranteed "full
respect for Panama's effective sovereignty over all of its
territory," contending that the treaty negotiations were a
DECLASSIMED
E.O. 12356, Sec. 3.4 'b)
CONFIDENTIAL
White House Guide Lines, Feb. 24, 1983
GDS
By
go
NARS,
Date
12/19/84
- 2 -
bilateral, not multilateral, matter. [13 in favor, 1 against
(U.S.), and 1 abstention (United Kingdom) ] The President
of the Security Council that month and the person who was
a prime force in planning the Panama meeting was Aquilino
Boyd, who has just recently been appointed Panama's Foreign
Minister.
September 13, 1973. Ambassador-at-Large Ellsworth Bunker
is sworn in to replace Ambassador Anderson as Chief Panama
Canal Negotiator.
February 7, 1974. Secretary of State Kissinger travels
to Panama to sign Joint Statement of Principles with Foreign
Minister Juan Antonio Tack.
June 1974. Negotiation of major issues under Joint State-
ment of Principles begins.
November 1974. Ambassador Bunker and Foreign Minister
Tack initial threshold agreements on canal defense, canal
operation and jurisdiction.
June 1975. The U.S. House passes by a vote of 246-164
proposed amendment by Congressman Gene Snyder (R.KY) to deny
State Department appropriations for treaty negotiations.
August 1975. President Ford issues NSDM 302 amending
existing guidance.
September 1975. Negotiations resume and continue with
meetings in November and December 1975, and February 1976.
September 26, 1975. The U.S. Senate rejects the Snyder
Amendment.
October 7, 1975. The U.S. House finally approves
acceptable compromise by 212-201.
April 1976. Panama Canal Subcommittee hearings, Snyder
leak and Reagan statements.
CONFIDENTIAL
GDS
I.B. Present Status
of Negotiations
STATUS OF THE NEGOTIATIONS
Guidance
Guidance for a new treaty is outlined in the February 1974
Joint Statement of Principles.
1. A new, fixed term treaty will supercede the 1903 treaty.
2. The Canal Zone shall be returned promptly to Panama's
jurisdiction. We shall have the areas needed for operation
and defense of the canal.
3. Panama shall share in the benefits derived from the
canal's operation.
4. We shall operate and defend the canal. Panama shall
participate in its administration and assume total responsibility
for its operation at treaty's end.
5. Panama shall participate with us in the canal's defense.
6. We shall agree on provisions to enlarge canal capacity.
What Has Been Agreed
1. We shall operate the canal during the treaty's lifetime.
-- We shall control essential installations, the transit
of ships, the setting of tolls, and relations with our employees.
-- Panamanians will participate growingly in preparation
for Panama's assumption of operating responsibility at treaty's
end.
2. We shall defend the canal during the treaty's lifetime.
-- We shall have the right to act -- unilaterally if
need be -- to defend the canal against any threat.
-- We will discuss with Panama before the treaty's end
arrangements and responsibilities for canal defense beyond the
treaty's lifetime.
CONFIDENTIAL
GDS
DECLASSIFIED
E.O. 12356, Sec. 3.4.
MR 89-37,#19 State ltr. 12/90
By KBH NARA, Date 2/1/90
CONFIDENTIAL
2
As in canal operation, Panama will participate in-
creasingly in canal defense during the treaty's lifetime.
3. The canal shall remain permanently neutral, and be
operated on a non-discriminatory basis. Thus, we shall be able
to protect our interests not only during the treaty period, but
after its expiration.
4. Panama will receive from us general jurisdiction over
the Canal Zone during the first three years of the treaty.
However, we will retain for the treaty's lifetime all the
rights and powers needed for canal operation and defense.
What Remains
The negotiations are now concentrated on the following
complex issues:
1. The rights and privileges of our canal employees.
We want to assure that US employees enjoy rights at least
comparable to those which other groups of US employees have
overseas. We want to encourage our employees to remain with
the canal organization.
2.
The duration of any new treaty. Panama has said
publicly that it wants our rights to terminate by the end of
the century. We desire a longer period.
3. The land and water areas for our use in operating and
defending the canal. Both sides now have a clearer idea of the
size and character of the areas each needs. We hope that we
can reach a mutually satisfactory arrangement on this subject.
4. The question of our right to expand the canal. Panama
has accepted our right to undertake such projects, but we have
not yet addressed the details.
5. The rules of permanent neutrality. We are seeking a
treaty formula which will assure that the canal will always
remain open for world shipping on a non-discriminatory basis
and at reasonable tolls.
CONFIDENTIAL
CONFIDENTIAL
3
6. The annual payment to Panama. Panama has long
felt that it should receive a higher return for the rights
it has granted us. It considers the $2.3 million which it
now receives annually as small by today's standards.
7. The nature of the organization which is to operate
the canal. We seek to retain maximum discretionary authority
for the US during the treaty's lifetime.
The most difficult of these unresolved issues concerns
the duration of the treaty.
We must first reach general agreement on these unresolved
issues. We will then begin drafting a proposed treaty.
In summary, we believe that the anticipated "treaty
package" will protect and defend our vital interests in Panama
more amply than does the existing treaty.
CONFIDENTIAL
April 16, 1976
I.C. Third Country
& International
Organizations
THIRD COUNTRY AND INTERNATIONAL ORGANIZATIONS
VIEWS OF THE NEGOTIATIONS
The Panamanians decided in 1973 that they could obtain more
leverage with the US in the Canal negotiations by seeking Latin American
and world support for a new treaty. Consequently, at every interna-
tional meeting a Panamanian delegate raises the question of the Canal
negotiations seeking a resolution by the conference supporting return
of the Canal to Panama. At first we were able to turn these resolutions
aside on the basis of the fact that the negotiations were underway, but
the number of countries sympathetic to the Panamanian position has
steadily increased so that Panama can now count on support for its
resolutions at most conferences.
The Panamanian delegate became President of the UN Security
Council in 1973. As a result of his efforts a special meeting of the Council
was held in Panama. Delegates were shown the variation in living
conditions between the Zone and Panama City, and the Panamanians
dramatized the issue with considerable success and support from the
Third World and communist nations. The eventual resolution was
supported by every country but Great Britain, which abstained.
Australia, Austria, and France voted for the resolution. It failed
only because the US exercised its veto by voting against it.
When Secretary Kissinger invited the nations of Latin America
to enter into the new dialogue in September 1973, the foreign ministers
of the hemisphere met to prepare an agenda in Bogota. One of the six
items included was a call for a new Panama Canal treaty. The agenda
was to be used for the meeting between the Secretary and Latin American
foreign ministers scheduled for March 1974 at Tlatelolco, Mexico City.
Prior to the conference, Secretary Kissinger traveled to Panama where
he signed the Principles with Panamanian Foreign Minister Tack. As a
result, the issue was passed over lightly at the conference which
included a unanimous resolution noting that negotiations were under-
way and expressing the hope that they would be successfully completed.
Subsequent meetings of foreign ministers and OAS General Assemblies
have, without exception, followed the same pattern with the foreign
ministers receiving a report and expressing their support for negotia-
tions. These friendly resolutions have resulted from the fact that the
Panamanian delegates have in all cases cooperated in seeking to avoid
a confrontation.
2
At meetings of the Universal Postal Union, Telecommunications
Union, and others, the US has only been able to avoid a resolution,
which would have transferred responsibility for mail or telecommunica-
tions to Panama, by agreeing to provisions which state that we recognize
the Zone to be Panamanian territory but continue to exercise responsi-
bility for delivery of mail under the authority of the 1903 Treaty. Support
for the Panamanian point of view in these meetings is extensive. While
the Western Europeans try to be helpful, they are generally unwilling to
support us and the best we can get is usually an abstention.
This year Panama was successful in obtaining support of the
other hemispheric nations for the Latin American seat on the Security
Council. It will undoubtedly raise the treaty issue for Council
consideration again if the Canal negotiations falter. The Latins will
view our success or failure to establish a new relationship with Panam
regarding the Canal as indicative of our attitudes toward the hemisphere
in general and of our willingness to seek to resolve longstanding and
difficult problems with them.
I.D. Military and
Economic
Significance
Economic and Military Value of the Canal
Independent studies of the economic value of the Panama Canal
conclude that, while it is indeed an important facility for world and
U.S. commerce, it is not of overwhelming or critical economic importance.
According to the reports, market conditions in origin and destination
countries exert a greater influence on commodity and product prices
than would, for example, increased Canal tolls or even a complete
closure of the Canal. There would, of course, be an interim period of
adjustment in trade routes and markets.
The U.S. is the major user of the Canal, and approximately 16
percent of total U.S. exports and imports by tonnage, and 8 percent by
value, pass through the Canal. However, many alternative trade routes
now exist for the most important products and commodities, and more
would become economically competitive should the Canal not be available.
The use of larger vessels which are unable to pass through the Canal and
shifts in market and supply sources have also affected the economic
importance of the Canal for the U.S. In fact, the than Canal is less important
to the economies of the U.S. and other nations/in earlier years. Its value
to user nations is expected to continue to decline as increasing advantage
is taken of alternate routes and means of transportation made possible by
technological advances.
Historically, the Canal has made an important military contribution
to the security of the U.S. and of the hemisphere. It remains a major
defense asset which enhances the capability of the U.S. to reinforce
and resupply U.S. forces rapidly in Asia and Europe during the periods
of conflict. Its strategic advantage lies in the economy and flexibility
it provides to accelerate the shift of military forces and logistic support
by sea between the Atlantic and Pacific oceans and to overseas areas.
The Department of Defense believes that the present canal or a new sea-
level canal will have continuing importance to national security. It also
believes that Panama has the capability to threaten the Canal itself although
the probability of such action is low at present. A potential threat also
exists with regard to the security of the longer alternate sea routes around
Africa and South America although the Soviet Union is considered the only
nation with sufficient capability to effect such a threat to U.S. forces.
Defense believes that to attempt to protect the Canal in a confrontation
with
Panama, /would which be probable should negotiations fail,
would
require deployment of thousands of U.S. troops to Panama with the loss
of lives on both sides likely. Further, this would not necessarily guarantee
the safety or effective use of the Canal itself. Defense therefore believes
2
that a new treaty relationship with Panama providing for Panamanian
participation in defense of the Canal will provide the most effective
means of assuring Canal security.
A new treaty relationship which provides for eventual assumption
of operating responsibilities by Panama, coupled with a program of
increasing participation of Panamanian management and full guarantees
for continued efficient, nondiscriminatory transit of U.S. ships at
reasonable tolls, will result in a partnership that best insures U.S.
strategic interests in the Canal.
I.E. Torrijos Government
SECRET
NATURE OF THE TORRIJOS GOVERNMENT
Panama's population (1.6 million) is the smallest of
mainland Latin American countries. Largely because of the
canal, the Panamanian people have exceedingly close ties
to the U.S. Panama's economy is well developed. It has
become a major financial center for Latin America. Its per
capital GNP is the third highest in Latin America.
Literally thousands of Americans live, work and visit
in Panama without unusual difficulties. Major United States
investors continue to enter the market in Panama in various
sectors. Texas Gulf, for example, joined Panama this year
in an $800 million copper venture.
Our relations with Panama continue to be remarkably
good. The only exception and major issue is Panama's long
standing complaint regarding the nature of our presence in
the Canal Zone under the 1903 Treaty. Since the 1964 riots
Panamanian acceptance of our presence has sharply declined.
All elements in Panama agree on the need to escape the 1903
Treaty.
Torrijos has exercised power since 1968 and enjoys
broad popular support. Some important characteristics of
his government are:
(1) It is nationalistic. Its aspirations are to become
a fully integrated nation with a certain place in the
affairs of the world.
(2) It is reformist. It asserts that two-third of
Panama's people should no longer be excluded from sharing
in the political process and in the benefits of economic
growth.
(3) It is pragmatic. It is a regime without an ideology.
This is clearly apparent in the private sector where foreign
investment is welcome and has a key role.
(4) It is authoritarian. It derives its power from
the military establishment but defies classification as
either a dictatorship or a democracy.
It will not permit its purposes to falter because of
opposition from the so-called privileged sector of society.
Neither will it permit radical leftist elements to disturb
the political balance and become dominant.
SECRET
WHM 11/24/00
GDS
SECRET
-2-
U.S. opponents of a new treaty relationship argue
that the Torrijos Government is communist or communist-
influenced and that a new treaty would lead to a takeover
of the canal. We have found no evidence to show real
communist influence. It is, instead, essentially
nationalist and pragmatic. While some leftists serve in
the present government, they are not predominant. The
communist party in Panama is small and not very effective.
Moreover, Torrijos recognizes that the successful
operation of the canal is vital to Panama.
While Panama has relations with countries of all
political ideologies, it is resistant to external influences
or subversion from the left and right. To date, Panama,
unlike other Latin American countries, has not established
diplomatic relations with the Soviet Union or China. To-
gether with other Hemispheric countries, Panama established
relations with Cuba in 1974, but the Panamanians have been
closely monitoring activities of the Cuban Embassy. The
Torrijos trip to Cuba in January 1976 and Cuba's adventure
in Angola have opened many Panamanian eyes about Cuba.
Whether the Panamanian Government is a dictatorship or
a democracy is largely irrelevant, since the rights we
obtain under a new treaty will go beyond the life of the
current regime. By removing the only major irritant in
our relations with Panama, we should be able to build on
strong past ties and cement a constructive relationship
which would go on after the fixed expiration date of any
new treaty.
SECRET
II. CURRENT
SITUATION
II.A. Points for
Presidential
Statement
POINTS FOR A POSSIBLE PRESIDENTIAL STATEMENT
-- The Canal is too important to become a subject of partisan
political debate.
-- Or to be discussed lightly with sweeping generalities and over-
simplifications.
-- We are engaged in delicate negotiations which are aimed at
preserving United States basic interests in the use and freedom of the
Canal, which is a vital waterway not only to the United States but other
nations of the world.
-- As history has shown us in this hemisphere and elsewhere,
issues of this kind can become highly charged emotionally and result
in great harm to important interests of major nations.
-- So I don't think we should get involved in name calling of foreign
heads of states with whom we are engaged in serious negotiations whether
we agree with them or not. The stakes are just too high.
-- Nor do I think we should overstate complicated issues. There is
a lot of legal opinion regarding the status of the Zone; there are court
cases on both sides. One thing is quite clear. The Canal Zone is not
the same as Louisiana and Alaska. The Zone just is not part of the Union.
US law does not treat it the same. For instance, someone born in the Zone
is not automatically an American citizen as in Alaska. For another thing,
we have international treaty commitments governing which Americans
can live in the Zone. Finally, the Supreme Court has found that for certain
purposes the Zone is foreign territory. The point is, this is a complicated
issue and should be treated as such.
-- Like my predecessors, I have to be concerned with our broad
foreign relations. Every nation in Latin America and most other foreign
nations have expressed themselves firmly in favor of these negotiations.
I do not think a responsible President can treat the weight of this opinion
lightly.
2
-- Anyone who proposes a different course of action must think
carefully about our vital interests in Panama and in Latin America and
about how he proposes to protect them. If there are to be military forces
involved, he has an obligation to say so and tell the American people
what kind of risks he wishes to run and for how long.
-- This is an issue where you can wave the flag, talk tough, sound
big and strong. It is a small country. But we would alienate everyone
in Latin America and possibly damage our access to the canal.
-- The present treaty does not ensure either a safe or secure Canal,
given Panamanian opposition to the present treaty. I am proposing to
negotiate one that does.
II.B. Points to be
Made by Others
POINTS TO BE RAISED BY OTHER ADMINISTRATION SUPPORTERS
-- Name calling of foreign heads of government is reckless, particu-
larly when the person you are calling names is in a position to hurt you.
It may promote a candidacy but at the expense of our national interest.
(Reagan called Torrijos a "tinhorn dictator" on April 14.)
-- For a candidate to deal with persons involved in trying to overthrow
foreign governments is dangerous business. (According to the New York
Times, Reagan met on November 3 in a hotel in Boca Raton with former
President of Panama, Arnulfo Arias, who has been accused of engaging
in illegal activities aimed at overthrowing the Torrijos Government.
-- We would like to know what kind of promises were made to Arias.
-- To talk about the Canal Zone being the same as Louisiana or
Alaska is absurd. It betrays an ignorance of the facts which is unworthy
of a presidential candidate. Just to name a few differences:
- It is not a part of the Union.
- Children born there are not automatically American citizens
or even nationals.
- A treaty with Panama limits which Americans can live there.
- We did not buy it because we continue to pay for it.
- The Supreme Court has called it foreign territory for certain
purposes.
-- With what military force and for how long would Mr. Reagan
propose to occupy the Zone to protect the Canal.
-- How would he propose to protect US interests elsewhere in
Latin America if a confrontation occurs in Panama.
II.C. Statements
That Can
Be Quoted
STATEMENTS THAT CAN BE QUOTED
President Johnson - December 1964
"The planning of a new Canal, and the negotiation of a
new treaty, are just such bold and prudent steps. II
The US Chamber of Commerce - November 1975
"The terms of the 1903 Treaty
no longer serve US
national interests as well as a modernized treaty which
would be based on the concept of partnership. "
US Catholic Conference - February 1975
"It is a moral imperative -- a matter of elemental social
justice -- that a new and more just treaty be negotiated. "
The President of the Council of the Americas - January 1976
"Successful conclusion of these negotiations
are
critical to future relationships, not only for the US
business community in Panama, but for trade and
business in all of Latin America. "
Senator Goldwater - December 1975
Expressed the view that the US must retain control of the
Canal for the present but noted there is peril in refusing
to look ahead to eventual relinquishment.
General George Brown - Late 1975
"I see our national security interests in Panama best served
by continuing the negotiations toward a satisfactory treaty
with the Republic of Panama. II
2
President Echeverria of Mexico - July 1975
"Latin America eagerly awaits a solution of the Panama
Canal problem and the establishment of new standards
of justice and reciprocal respect. 11
"Our historical experience moves us to solidarity with
Panama. If
Foreign Ministers of Twenty-Two Latin American Countries - April 1975
Unanimously expressed hope for "prompt and successful
conclusion" of the Canal negotiations.
President Perez of Venezuela - November 1975
Said that negotiation of a fair solution to the Canal problem
"would be a great triumph for United States democracy and
a tribute to the founders of a free nation. II
The Presidents of Colombia, Costa Rica, and Venezuela - Spring 1975
Reaffirmed "the full support of their respective peoples and
Governments for the just Panamanian aspirations on the
Panama Canal question. II
TABS
1. The Treaties of 1903, 1936, and 1955
2. The Principles of 1974
3. Presidential Instructions to Negotiators (NSDMs)
4. The Economic Value of the Canal
5. The Military Value of the Canal
6. The Sovereignty and Ownership Question
7. Statements of Support for the Negotiations from Americans
8. Statements of Support for the Negotiations from Latin Americans
9. Selected Statements of Opposition to the Negotiations
10. Representative Snyder Press Conference
The United A
of the Republico
B. PANAMA
1. Convention for the Construction of a Ship Canal (Hay-Bunau-
The Republic
Varilla Treaty), 1903
the use, occupatic
for the construct
Concluded November 18, 1903; ratification advised by the Senate February 23,
of said Canal of
1904; ratified by President February 25, 1904; ratifications exchanged Febru-
five miles on cael
ary 26, 1904; proclaimed February 26, 1904. (U.S. Stats., vol. 33.)
be constructed
ARTICLES
marine miles fro
I. Independence of Panama.
II. Canal Zone.
the Isthmus of
III. Authority in Canal Zone.
marine miles fre
IV. Subsidy rights.
V. Monopoly for construction, etc.
cities of Panamai
VI. Private property.
VII. Panama; Colón; harbors.
which are include
VIII. Panama Canal Company and railroad.
shall not be ind
IX. Ports at entrance of Canal.
X. Taxes. etc.
further grants to
XI. Official dispatches.
XII. Access of employees.
and control of
XIII. Importation into zone.
described which
XIV. Compensation.
XV. Joint cominission.
tion, maintenano
XVI. Extradition.
XVII. Ports of Panama.
Canal or of any
XVIII. Neutrality rules.
vehient for the
XIX. Free transport.
XX. Cancellation of existing treaties.
protection of the
XXI. Anterior debts, concessions, etc.
XXII. Renunciation of rights under concessionary contracts.
The Republic
XXIII. Protection of Canal.
XXIV. Change In government, laws, etc.
States in perpet
XXV. Coaling stations.
described and in
XXVI. Ratification.
Bay of Panama,
The United States of America and the Republic of Panama being
desirous to insure the construction of a ship canal across the Isthmus
of Panama to connect the Atlantic and Pacific oecaus, and the Con-
gress of the United States of America having passed an act approved
The Republic
power and auth
June 28, 1902, in furtherance of that object, by which the President
Article II of this
of the United States is authorized to acquire within a reasonable time
and waters ment
the control of the necessary territory of the Republic of Colombia,
United States
and the sovereignty of such territory being actually vested in the
the territory will
Republic of Panama, the high contracting parties have resolved for
entire exclusion
that purpose to conclude a convention and have accordingly appointed
such sovereign
as their plenipotentiaries,-
The President of the United States of America, John Hay, Secre-
tary of State, and
The Government of the Republic of Panama, Philippe Bunau-
As rights subsid
Varilla, Envoy Extraordinary and Minister Plenipotentiary of the
grants in perpete
Republic of Panama, thereunto specially empowered by said govern-
streams, lakes and
ment, who after communicating with each other their respective full
tion, the supply
powers, found to be in good and due form, have agreed upon and
the use of said rive
concluded the following articles:
thereof may be
(506)
tenance, operation
507
ARTICLE I
The United States guarantees and will maintain the independence
of the Republic of Panama.
ARTICLE II
The Republic of Panama grants to the United States in perpetuity
the use, occupation and control of a zone of land and land under water
for the construction, maintenance, operation, sanitation and protection
of said Canal of the width of ten miles extending to the distance of
five miles on each side of the center line of the route of the Canal to
be constructed; the said zone beginning in the Caribbean Sea three
marine miles from mean low water mark and extending to and across
the Isthmus of Panama into the Pacific ocean to a distance of three
marine miles from mean low water mark with the proviso that the
cities of Panamá and Colón and the harbors adjacent to said cities,
which are included within the boundaries of the zone above described,
shall not be included within this grant. The Republic of Panama
further grants to the United States in perpetuity the use, occupation
and control of any other lands and waters outside of the zone above
described which may be necessary and convenient for the construc-
tion, maintenance, operation, sanitation and protection of the said
Canal or of any auxiliary canals or other works necessary and con-
venient for the construction, maintenance, operation, sanitation and
protection of the said enterprise.
The Republic of Panama further grants in like manner to the United
States in perpetuity all islands within the limits of the zone above
described and in addition thereto the group of small islands in the
Bay of Panama, named, Perico, Naos, Culebra and Flamenco.
ARTICLE III
The Republic of Panama grants to the United States all the rights,
power and authority within the zone mentioned and described in
Article II of this agreement and within the limits of all auxiliary lands
and waters mentioned and described in said Article II which the
United States would possess and exercise if it were the sovereign of
the territory within which said lands and waters are located to the
or
entire exclusion of the exercise by the Republic of Panama of any
such sovereign rights, power or authority.
ARTICLE IV
As rights subsidiary to the above grants the Republic of Panama
grants in perpetuity to the United States the right to use the rivers,
streams, lakes and other bodies of water within its limits for naviga-
tion, the supply of water or water-power or other purposes, SO far as
the use of said rivers, streams, lakes and bodies of water and the waters
thereof may be necessary and convenient for the construction, main-
tenance, operation, sanitation and protection of the said Canal.
508
ARTICLE V
expiration of
works shall
The Republic of Panama grants to the United States in perpetuity
and Colón
a monopoly for the construction, maintenance and operation of any
inhabitants
system of communication by means of canal or railroad across its ter-
rates may be
ritory between the Caribbean Sea and the Pacific ocean.
system of
The Republi
ARTICLE VI
shall comply
preventive or
The grants herein contained shall in no manner invalidate the titles
in case the Go.
or rights of private land holders or owners of private property in the
force this comi
said zone or in or to any of the lands or waters granted to the United
tary ordinan
States by the provisions of any Article of this treaty, nor shall they
to the United
interfere with the rights of way over the public roads passing through
The same
the said zone or over any of the said lands or waters unless said rights
the maintena
of way or private rights shall conflict with rights herein granted to
and the territo
the United States in which case the rights of the United States shall
of Panama sh-
be superior. All damages caused to the owners of private lands or
to maintain SII:
private property of any kind by reason of the grants contained in this
treaty or by reason of the operations of the United States, its agents
or employees, or by reason of the construction, maintenance, opera-
The Republ
tion, sanitation and protection of the said Canal or of the works of
it now has or
sanitation and protection herein provided for, shall be appraised and
Canal Compan
settled by a joint Commission appointed by the Governments of the
transfer of son
United States and the Republic of Panama, whose decisions as to such
lic of Panama
damages shall be final and whose awards as to such damages shall be
Panama Canel
paid solely by the United States. No part of the work on said Canal
rights, privile,
or the Panama railroad or on any auxiliary works relating thereto
Railroad and
and authorized by the terms of this treaty shall be prevented, delayed
but the public
or impeded by or pending such proceedings to ascertain such damages.
II of this treat
The appraisal of said private lands and private property and the
prises and not
assessment of damages to them shall be based upon their value before
shall revert to
the date of this convention.
owned by 01 in
ARTICLE VII
Colón or the por.
The Republic of Panama grants to the United States within the
limits of the cities of Panamá and Colón and their adjacent harbors
and within the territory adjacent thereto the right to acquire by pur-
The United
chase or by the exercise of the right of eminent domain, any lands,
Canal and the
buildings, water rights or other properties necessary and convenient
the towns of
for the construction, maintenance, operation and protection of the
shall not be im
Canal and of any works of sanitation, such as the collection and dis-
age, lighthous
position of sewage and the distribution of water in the said cities of
or taxes of any
Panamá and Colón, which in the discretion of the United States may
or belonging
be necessary and convenient for the construction, maintenance, opera-
rectly. in conn
tion, sanitation and protection of the said Canal and railroad. All such
sanitation and
works of sanitation, collection and disposition of sewage and distribu-
upon the carge.
tion of water in the cities of Panamá and Colón shall be made at the
such tolls and
expense of the United States, and the Government of the United
use of the Car
States, its agents or nominees shall be authorized to impose and collect
posed by the
water rates and sewerage rates which shall be sufficient to provide
troduced for
for the payment of interest and the amortization of the principal of
and upon vessel
the cost of said works within a period of fifty years and upon the
do not cross the
509
expiration of said term of fifty years the system of sewers and water
works shall revert to and become the properties of the cities of Panamá
and Colón respectively, and the use of the water shall be free to the
inhabitants of Panamá and Colón, except to the extent that water
rates may be necessary for the operation and maintenance of said
system of sewers and water.
The Republic of Panama agrees that the cities of Panamá and Colón
shall comply in perpetuity with the sanitary ordinances whether of a
preventive or curative character prescribed by the United States and
in case the Government of Panama is unable or fails in its duty to en-
force this compliance by the cities of Panamá and Colón with the sani-
tary ordinances of the United States the Republic of Panama grants
to the United States the right and authority to enforce the same.
The same right and authority are granted to the United States for
the maintenance of public order in the cities of Panamá and Colón
and the territories and harbors adjacent thereto in case the Republic
of Panama should not be, in the judgment of the United States, able
to maintain such order.
ARTICLE VIII
The Republic of Panama grants to the United States all rights which
it now has or hereafter may acquire to the property of the New Panama
Canal Company and the Panama Railroad Company as a result of the
transfer of sovereignty from the Republic of Colombia to the Repub-
lic of Panama over the Isthmus of Panama and authorizes the New
Panama Canal Company to sell and transfer to the United States its
rights, privileges, properties and concessions as well as the Panama
Railroad and all the shares or part of the shares of that company;
but the public lands situated outside of the zone described in Article
II of this treaty now included in the concessions to both said enter-
prises and not required in the construction or operation of the Canal
shall revert to the Republic of Panama except any property now
owned by or in the possession of said companies within Panamá or
Colón or the ports or terminals thereof.
ARTICLE IX
The United States agrees that the ports at either entrance of the
Canal and the waters thereof, and the Republic of Panama agrees that
the towns of Panamá and Colón shall be free for all time SO that there
shall not be imposed or collected custom house tolls, tonnage, anchor-
age, lighthouse, wharf, pilot, or quarantine dues or any other charges
or taxes of any kind upon any vessel using or passing through the Canal
or belonging to or employed by the United States, directly or indi-
rectly, in connection with the construction, maintenance, operation,
sanitation and protection of the main Canal, or anxiliary works, or
upon the cargo, officers, crew, or passengers of any such vessels, except
such tolls and charges as may be imposed by the United States for the
use of the Canal and other works, and except tolls and charges im-
posed by the Republic of Panama upon merchandise destined to be in-
troduced for the consumption of the rest of the Republic of Panama,
and upon vessels touching at the ports of Colón and Panamá and which
do not cross the Canal.
510
The Government of the Republic of Panama shall have the right to
If any such art:
establish in such ports and in the towns of Panamá and Colón such
auxiliary lands
houses and guards as it may deem necessary to collect duties on impor-
of the Republic
tations destined to other portions of Panama and to prevent contraband
duties as like
trade. The United States shall have the right to make use of the towns
Panama.
and harbors of Panamá and Colón as places of anchorage, and for mak-
ing repairs, for loading, unloading, depositing, OF transshipping
cargoes either in transit or destined for the service of the Canal and for
As the price
other works pertaining to the Canal.
granted in this
States, the Go:
ARTICLE X
Republic of Pa
gold coin of the
The Republic of Panama agrees that there shall not be imposed any
convention and
taxes, national, municipal, departmental, or of any other class, upon
tion of two June
the Canal, the railways and auxiliary works, titgs and other vessels
coin, beginning
employed in the service of the Canal, store houses, work shops, offices,
The provisio
quarters for laborers, factories of all kinds, warehouses, wharves,
fits assured to
machinery and other works, property, and effects appertaining to the
But no delay
Canal or railroad and auxiliary works. or their officers or employees,
provisions of in
situated within the cities of Panamá and Colón, and that there shall
effect of this CO:
not be imposed contributions or charges of a personal character of any
kind upon officers, employees, laborers, and other individuals in the
service of the Canal and railroad and auxiliary works.
The joint COP
ARTICLE XI
as follows:
The Presider
The United States agrees that the official dispatches of the Govern-
the President
ment of the Republic of Panama shall be transmitted over any tele-
and they shall
graph and telephone lines established for canal purposes and used for
the Commission
public and private business at rates not higher than those required
sion) an umpir
from officials in the service of the United States.
render the deet
of a Commissio
ARTICLE XII
to act, his pla
in the manner
The Government of the Republic of Panama shall permit the immi-
Commission or
gration and free access to the lands and workshops of the Canal and
its auxiliary works of all employees and workmen of whatever nation-
ality under contract to work upon or seeking employment upon or in
any wise connected with the said Canal and its anxiliary works, with
The two Go
their respective families, and all such persons shall be free and exempt
agreement for
from the military service of the Republic of Panama.
delivery withi:
Republic of I
ARTICLE XIII
crimes, felonio
suit, capture.
The United States may import at any time into the said zone and
to the authorit
anxiliary lands, free of custom duties, imposts, taxes, or other charges,
commitment
and without any restrictions, any and all vessels, dredges, engines.
and anxiliary
cars, machinery, tools. explosives, materials, supplies, and other arti-
cles necessary and convenient in the construction, maintenance, opera-
tion, sanitation and protection of the Canal and auxiliary works, and
The Republi
all provisions, medicines, clothing, supplies and other things necessary
the ports of the
and convenient for the officers, employees, workmen and laborers in
vessels employ
the service and employ of the United States and for their families.
bound to pas
511
to
If any such articles are disposed of for use outside of the zone and
auxiliary lands granted to the United States and within the territory
of the Republic, they shall be subject to the same import or other
duties as like articles imported under the laws of the Republic of
Panama.
ns
ARTICLE XIV
for
As the price or compensation for the rights, powers and privileges
granted in this convention by the Republic of Panama to the United
States, the Government of the United States agrees to pay to the
Republic of Panama the sum of ten million dollars ($10,000,000) in
gold coin of the United States on the exchange of the ratification of this
convention and also an annual payment during the life of this conven-
tion of two hundred and fifty thousand dollars ($250,000) in like gold
coin, beginning nine years after the date aforesaid.
The provisions of this Article shall be in addition to all other bene-
fits assured to the Republic of Panama under this convention.
the
But no delay or difference of opinion under this Article or any other
provisions of this treaty shall affect or interrupt the full operation and
effect of this convention in all other respects.
the
ARTICLE XV
The joint commission referred to in Article VI shall be established
as follows:
The President of the United States shall nominate two persons and
the President of the Republic of Panama shall nominate two persons
and they shall proceed to a decision; but in case of disagreement of
for
the Commission (by reason of their being equally divided in conclu-
sion) an impire shall be appointed by the two Governments who shall
render the decision. In the event of the death, absence, or incapacity
of a Commissioner or Umpire, or of his omitting, declining or ceasing
to act, his place shall be filled by the appointment of another person
in the manner above indicated. All decisions by a majority of the
Commission or by the Umpire shall be final.
ARTICLE XVI
The two Governments shall make adequate provision by future
agreement for the pursuit, capture, imprisonment, detention and
delivery within said zone and auxiliary lands to the authorities of the
Republic of Panama of persons charged with the commitment of
crimes, felonies or misdemeanors without said zone and for the pur-
suit. capture, imprisonment, detention and delivery without said zone
to the authorities of the United States of persons charged with the
commitment of crimes, felonies and misdemeanors within said zone
and auxiliary lands.
ARTICLE XVII
The Republic of Panama grants to the United States the use of all
the ports of the Republic open to commerce as places of refuge for any
employed in the Canal enterprise, and for all vessels passing or
and to pass through the Canal which may be in distress and be
512
driven to seek refuge in said ports. Such vessels shall be exempt from
of the Canal und
anchorage and tonnage dues on the part of the Republic of Panama.
Lucien N. B. IVy
and any and all
ARTICLE XVIII
under or relating
The Canal, when constructed, and the entrances thereto shall be
the concessions to
neutral in perpetuity, and shall be opened upon the terms provided
or modification
for by Section I of Article three of, and in conformity with all the
grants to the Un
stipulations of, the treaty entered into by the Governments of the
property reserved
United States and Great Britain on November 18, 1901.
belong to Panami
nine years of the
ARTICLE XIX
tioned party and
now has or many
The Government of the Republic of Panama shall have the right to
property and rigi
transport over the Canal its vessels and its troops and munitions of
or otherwise, and
war in such vessels at all times without paying charges of any kind.
from or through
The exemption is to be extended to the auxiliary railway for the
property and rish
transportation of persons in the service of the Republic of Panama,
of time, forfeitin
or of the police force charged with the preservation of public order
under any contra
outside of said zone, as well as to their baggage, munitions of war
Panama Canal
and supplies.
New Panama C.
ARTICLE XX
The aforesaid
from any present
If by virtue of any existing treaty in relation to the territory of the
the title of the
Isthmus of Panama, whereof the obligations shall descend or be
templated purch-
assumed by the Republic of Panama, there may be any privilege or
Company, shall
concession in favor the Government or the citizens and subjects
excepting always
of a third power relative to an interoceanic means of communication
this treaty.
which in any of its terms may be incompatible with the terms of the
present convention, the Republic of Panama agrees to cancel or mod-
ify such treaty in due form, for which purpose it shall give to the
If it should be
said third power the requisite notification within the term of four
for the safety or
months from the date of the present convention, and in case the exist-
of the same, or 1.
ing treaty contains no clause permitting its modification or annul-
shall have the rie
ment, the Republic of Panama agrees to procure its modification or
and its land and
annulment in such form that there shall not exist any conflict with the
purposes.
stipulations of the present convention.
ARTICLE XXI
No change eith
the Republic of
The rights and privileges granted by the Republic of Panama to the
States, affect any
United States in the preceding Articles are understood to be free of
vention, or unde
all anterior debts, liens, trusts, or liabilities, or concessions or privi-
that now exists
leges to other Governments, corporations, syndicates or individuals,
this convention.
and consequently, if there should arise any claims on account of the
If the Republi-
present concessions and privileges or otherwise, the claimants shall
any other Govern
resort to the Government of the Republic of Panama and not to the
as to merge her
United States for any indemnity or compromise which may be
union or confeder
required.
vention shall not
ARTICLE XXII
The Republic of Panama renounces and grants to the United States
For the better
the participation to which it might be entitled in the future earnings
and to the end of
vation of its new
513
from
of the Canal under Article XV of the concessionary contract with
ama.
Lucien N. B. Wyse now owned by the New Panama Canal Company
and any and all other rights or claims of a pecuniary nature arising
under or relating to said concession, or arising under or relating to
the concessions to the Panama Railroad Company or any extension
11 be
or modification therof; and it likewise renounces, confirms and
vided
grants to the United States, now and hereafter, all the rights and
Il the
property reserved in the said concessions which otherwise would
f the
belong to Panama at or before the expiration of the terms of ninety-
nine years of the concessions granted to or held by the above men-
tioned party and companies, and all right, title and interest which it
now has or many hereafter have, in and to the lands, canal, works,
property and rights held by the said companies under said concessions
ght to
or otherwise, and acquired or to be acquired by the United States
ons of
from or through the New Panama Canal Company, including any
kind.
property and rights which might or may in the future either by lapse
or the
of time, forfeiture or otherwise, revert to the Republic of Panama,
nama,
under any contracts or concessions, with said Wyse, the Universal
order
Panama Canal Company, the Panama Railroad Company and the
of war
New Panama Canal Company.
The aforesaid rights and property shall be and are free and released
from any present or reversionary interest in or claims of Panama and
the title of the United States thereto upon consummation of the con-
of the
templated purchase by the United States from the New Panama Canal
(
Company, shall be absolute, SO far as concerns the Republic of Panama,
ile
excepting always the rights of the Republic specifically secured under
sub
this treaty.
nication
ARTICLE XXIII
as of the
or mod-
If it should become necessary at any time to employ armed forces
TO to the
for the safety or protection of the Canal, or of the ships that make use
of four
of the same, or the railways and auxiliary works, the United States
the exist-
shall have the right, at all times and in its discretion, to use its police
or annul-
and its land and naval forces or to establish fortifications for these
cation or
purposes.
with the
ARTICLE XXIV
No change either in the Government or in the laws and treaties of
the Republic of Panama shall. without the consent of the United
States, affect any right of the United States under the present con-
uma to the
vention, or under any treaty stipulation between the two countries
be free of
that now exists or may hercafter exist touching the subject matter of
or privi-
this convention.
dividuals.
If the Republic of Panama shall hereafter enter as a constituent into
unt of the
any other Government or into any union or confederation of states, so
ants shall
as to merge her sovereignty or independence in such Government,
not to the
union or confederation, the rights of the United States under this con-
h may
vention shall not be in any respect lessened or impaired.
ARTICLE XXV
ited States
For the better performance of the engagements of this convention
re
earnitas
and to the end of the efficient protection of the Canal and the preser-
vation of its neutrality, the Government of the Republic of Panama
514
will sell or lease to the United States lands adequate and necessary
for naval or coaling stations on the Pacific coast. and on the western
Caribbean coast of the Republic at certain points to be agreed upon
with the President of the United States.
ARTICLE XXVI
2. General T.
III
This convention when signed by the Plenipotentiaries of the Con
tracting Parties shall be ratified by the respective Governments and
Signed at Wash
the ratifications shall be exchanged at Washington at the earliest date
United State
possible.
July 26, 1939:
In faith whereof the respective Plenipotentiaries have signed the
Washington,
1939; proclain
present convention in duplicate and have hercunto affixed their
respective seals.
By TH.
Done at the City of Washington the 18th day of November in the
year of our Lord nineteen hundred and three.
JOHN HAY
[SEAL]
P. BUNAU VARILLA
SEAL
WHEREAS a
Republic of 11
cooperation In
mutually sati:
result of the
of Panama V.
tiaries at We
hundred and
English and
The United
mated by the
and cooperal:
stable and 1111
arisen as a re
the Isthmus
designated for
The Preside
Mr. Cordell
ica, and Mr. $
States of Ame
The Preside
The Honor:
Minister Plen
and The Hom
Minister Plen
Who, havin
other, which
upon the foll
Article I
superseded.
There shall
friendship In:
of Panama at
GERALD
2. General Treaty of Friendship and Cooperation Between the
United States of America and Panama, 1936
Signed at Washington, March 2, 1936; ratification advised by the Senate of the
United States, July 25, 1939; ratified by the President of the United States,
July 26, 1939; ratified by Panama, July 17, 1939; ratifications exchanged at
Washington, July 17, 1939; ratifications exchanged at Washington, July 27,
1939; proclaimed by the President of the United States, July 27, 1939
By THE PRESIDENT OF THE UNITED STATES OF AMERICA
1e
A PROCLAMATION
WHEREAS a Treaty between the United States of America and the
Republic of Panama to strengthen further the bonds of friendship and
cooperation between the two countries and to regulate on a stable and
mutually satisfactory basis certain questions which have arisen as a
result of the construction of the interoceanic canal across the Isthmus
of Panama was concluded and signed by their respective Plenipoten-
tiaries at Washington on the second day of March, one thousand nine
hundred and thirty-six, the original of which Treaty, being in the
English and Spanish languages, is word for word as follows:
The United States of America and the Republic of Panama, ani-
mated by the desire to strengthen further the bonds of friendship
and cooperation between the two countries and to regulate on a
stable and mutually satisfactory basis certain questions which have
arisen as a result of the construction of the interoceanic canal across
the Isthmus of Panama, have decided to conclude a treaty, and have
designated for this purpose as their Plenipotentiaries:
The President of the United States of America:
Mr. Cordell Hull, Secretary of State of the United States of Amer-
ica, and Mr. Sumner Welles, Assistant Secretary of State of the United
States of America; and
The President of the Republic of Panama:
The Honorable Doctor Ricardo J. Alfaro, Envoy Extraordinary and
Minister Plenipotentiary of Panama to the United States of America,
and The Honorable Doctor Narciso Garay, Envoy Extraordinary and
Minister Plenipotentiary of Panama on special mission;
Who, having communicated their respective full powers to each
other, which have been found to be in good and due form, have agreed
upon the following:
ARTICLE I
Article I of the Convention of November 18, 1903, is hereby
superseded.
There shall be a perfect, firm and inviolable peace and sincere
friendship between the United States of America and the Republic
of Panama and bet ween their citizens.
(515)
516
In view of the official and formal opening of the Panama Canal on
July 12, 1920, the United States of America and the Republic of
In order to enable
Panama declare that the provisions of the Convention of Novem-
the commercial
ber 18, 1903 contemplate the use, occupation and control by the United
the United States of
States of America of the Canal Zone and of the additional lands and
1) The sale to
waters under the inrisdiction of the United States of America for the
or purchased, produc
purposes of the efficient maintenance, operation, sanitation and pro-
of the United States
tection of the Canal and of its auxiliary works.
included in classes (a)
The United States of America WITH continue the maintenance of the
regard to the persons
Panama Canal for the encouragement and use of interoceanic com-
Section and member-
merce, and the two Governments declare their willingness to cooperate,
shall be made only
as far as it is feasible for them to do so, for the purpose of insuring the
Zone.
full and perpetual enjoyment of the benefits of all kinds which the
2) No person who
Canal should afford the two nations that made possible its construction
shall be entitled to resto
as well as all nations interested in world trade.
(a) Officers. employ
employ of the United
ARTICLE II
Panama Railroad Com
residing with them:
The United States of America declares that the Republic of Panama
(b) Members of the
has loyally and satisfactorily complied with the obligations which it
and members of their
entered into under Article II of the Convention of November 18,
(c) Contractors
1903, by which it granted in perpetuity to the United States the use,
workmen and labores
occupation and control of the zone of land and land under water as
(d) Officers, emply
described in the said Article, of the Islands within the limits of said
Section 5 of this Art
zone, of the group of small islands in the Bay of Panama, named
Perico, Naos, Culebra and Flamenco, and of any other lands and
(e) Persons engage
recreational and scient
waters outside of said zone necessary and convenient for the construc-
(f) Domestic sen
tion, maintenance, operation, sanitation and protection of the Panama
members of the famil
Canal or of any auxiliary canals or other works, and in recognition
actually residing with
thereof the United States of America hereby renounces the grant made
3) No dwellings
to It m perpetuity by the Republic of Panama of the use, occupation
of America or to the
and control of lands and waters, in addition to those now under the
the Canal Zone shall
jurisdiction of the United States of America outside of the zone as
in classes (a) to (e),
described in Article II of the aforesaid Convention, which may be
4) The Government
necessary and convenient for the construction, maintenance, opera-
to cooperate in all pro
tion, sanitation and protection of the Panama Canal or of any auxiliary
of Panama to prevent
canals or other works necessary and convenient for the construc-
of the Republic of i'
tion, maintenance, operation, sanitation and protection of the said
under the jurisdiction
enterprise.
Canal Zone or purch
While both Governments agree that the requirement of further
Government of the
lands and waters for the enlargement of the existing facilities of the
5) With the except
Canal appears to be improbable, they nevertheless recognize, subject
operation, maintenan
to the provisions of Articles I and X of this Treaty, their joint obliga-
as those engaged in
tion to insure the effective and continuous operation of the Canal and
or fuel, the Govern:
the preservation of its nentrality, and consequently, if, in the event
permit the establishn
of some now unforescen contingency, the utilization of lands or waters
prises other than the
additional to those already employed should be in fact necessary for
of this Treaty.
the maintenance, sanitation or efficient operation of the Canal, or
6) In view of the
for its effective protection, the Governments of the United States of
Panamá and of the
America and the Republic of Panama will agree upon such measures
States of America
as it may be necessary to take in order to insure the maintenance,
and upon the paymel
sanitation, efficient operation and effective protection of the Canal, in
ing from the ports
which the two countries are jointly and vitally interested.
517
ARTICLE III
on
of
In order to enable the Republic of Panama to take advantage of
em-
the commercial opportunities inherent in its geographical situation,
ited
the United States of America agrees as follows:
and
1) The sale to individuals of goods imported into the Canal Zone
the
or purchased, produced or manufactured therein by the Government
pro-
of the United States of America shall be limited by it to the persons
included in classes (a) and (b) of Section 2 of this Article; and with
the
regard to the persons included in classes (c), (d) and (e) of the said
com-
Section and members of their families, the sales above mentioned
rate.
shall be made only when such persons actually reside in the Canal
the
Zone.
the
2) No person who is not comprised within the following classes
ction
shall be entitled to reside within the Canal Zone:
(a) Officers, employees, workmen or laborers in the service or
employ of the United States of America, the Panama Canal or the
Panama Railroad Company, and members of their families actually
residing with them;
nama
(b) Members of the armed forces of the United States of America
ich it
and members of their families actually residing with them;
3r 18,
(c) Contractors operating in the Canal Zone and their employees,
e use,
workmen and laborers during the performance of contracts;
ter as
(d) Officers, employees or workmen of companies entitled under
said
Section 5 of this Article to conduct operations in the Canal Zone;
named
(e) Persons engaged in religious, welfare, charitable, educational,
S
recreational and scientific work exclusively in the Canal Zone;
st.
(f) Domestic servants of all the beforementioned persons and
maina
members of the families of the persons in classes (c), (d) and (e)
nition
actually residing with them.
made
3) No dwellings belonging to the Government of the United States
pation
of America or to the Panama Railroad Company and situated within
for the
the Canal Zone shall be rented. leased, or sublet except to persons with-
tone as
in classes (a) to (e), inclusive of Section 2 hereinabove.
nay be
4) The Government of the United States of America will continue
opera-
to cooperate in all proper ways with the Government of the Republic
xiliary
of Panama to prevent violations of the immigration and customs laws
nstrue-
ne said
of the Republic of Panama, including the smuggling into territory
under the jurisdiction of the Republic of goods imported into the
further
Canal Zone or purchased, produced or manufactured therein by the
Government of the United States of America.
of the
5) With the exception of concerns having a direct relation to the
subject
operation, maintenance, sanitation or protection of the Canal, such
obliga
nal and
as those engaged in the operation of cables, shipping, or dealing in oil
or fuel, the Government of the United States of America will not
10 event
permit the establishment in the Canal Zone of private business enter-
waters
sary for
prises other than those existing therein at the time of the signature
anal, or
of this Treaty.
states of
6) In view of the proximity of the port of Balboa to the city of
Panamá and of the port of Cristobal to the city of Colón, the United
States of America will continue to permit, under suitable regulations
tenance,
Fanal, in
and upon the payment of proper charges, vessels entering at or clear-
ing from the ports of the Canal Zone to use and enjoy the dockage
518
and other facilities of the said ports for the purpose of loading and
unloading cargoes and receiving or disembarking passengers to or
Article
from the territory under the jurisdiction of the Republic of Panama.
The Republic of Panama will permit vessels entering at or clearing
superseded
from the ports of Panamá or Colón, in case of emergency and also
The Rep:
under suitable regulations and upon the payment of proper charges,
destined to
to use and enjoy the dockage and other facilities of said ports for the
the jurisdic
purpose of receiving or disembarking passengers to or from the terri-
at Panama
tory of the Republic of Panama under the jurisdiction of the United
such vessels
States of America, and of loading and unloading cargoes either in
of Pananez
transit or destined for the service of the Canal or of works pertaining
continue dir
to the Canal.
ports of Par
7) The Government of the United States of America will extend
manian perso
to private merchants residing in the Republic of Panama full oppor-
by the Ren
Panama sh:
tunity for making sales to vessels arriving at terminal ports of the
Canal or transiting the Canal, subject always to appropriate adminis-
vessel using
trative regulations of the Canal Zone.
port under
passengers
also underst
ARTICLE IV
Panama up
The Government of the Republic of Panama shall not impose
at ports une
import duties or taxes of any kind on goods destined for or consigned
crew or pa.
to the agencies of the Government of the United States of America in
vessels which
the Republic of Panama when the goods are intended for the official
do not trai
use of such agencies. or upon goods destined for or consigned to per-
passengers.
sons included in classes (a) and (b) in Section 2 of Article III of this
The Rept.
Treaty, who reside or sojourn in territory under the jurisdiction of
sons or clas
the Republic of Panama during the performance of their service
be admitted
with the United States of America, the Panama Canal or the Panama
persons or
Railroad Company, when the goods are intended for their own use
from admiss
and benefit.
The Unit
The United States of America shall not impose import duties or
ama free of
taxes of any kind on goods, wares and merchandise passing from
tomhouses in
territory under the jurisdiction of the Republic of Panama into the
importation
Canal Zone.
merchandi.
No charges of any kind shall be imposed by the authorities of the
Republic of
United States of America upon persons residing in territory under
being under
the jurisdiction of the Republic of Panama passing from the said ter-
merchandise
ritory into the Canal Zone, and no charges of any kind shall be im-
Republic of
posed by the authorities of the Republic of Panama upon persons in
place only
the service of the United States of America or residing in the Canal
of the Reput
Zone passing from the Canal Zone into territory under the jurisdiction
of Panama
of the Republic of Panama, all other persons passing from the Canal
which the
Zone into territory under the jurisdiction of the Republic of Panama
of immigrati
being subject to the full effects of the immigration laws of the Republic.
all property
In view of the fact that the Canal Zone divides the territory under
To further
the jurisdiction of the Republic of Panama, the United States of Amer-
ognized, the
ica agrees that, subject to such police regulations as circumstances
for the pur
may require, Panamanian citizens who may occasionally be deported
whether pers
from the Canal Zone shall be assured transit through the said Zone,
points within
in order to pass from one part to another of the territory under the
admitted or
jurisdiction of the Republic of Panama.
gration office
access to
519
ARTICLE V
d
or
Article IX of the Convention of November 18, 1903, is hereby
a.
superseded.
The Republic of Panama has the right to impose upon merchandise
SO
destined to be introduced for use or consumption in territory under
es,
the jurisdiction of the Republic of Panama, and upon vessels tonching
the
at Panamanian ports and upon the officers, crew or passengers of
ri-
such vessels, the taxes or charges provided by the laws of the Republic
ted
of Panama; it being understood that the Republic of Panama will
"in
continue directly and exclusively to exercise its jurisdiction over the
ing
ports of Panamá and Colón and to operate exclusively with Pana-
manian personnel such facilities as are or may be established therein
end
by the Republic or by its authority. However, the Republic of
por-
Panama shall not impose or collect any charges or taxes upon any
the
vessel using or passing through the Canal which does not touch at a
inis-
port under Panamanian jurisdiction or upon the officers, crew or
passengers of such vessels, unless they enter the Republic; it being
also understood that taxes and charges imposed by the Republic of
Panama upon vessels using or passing through the Canal which touch
at ports under Panamanian jurisdiction, or upon their cargo, officers,
pose
crew or passengers, shall not be higher than those imposed upon
gned
vessels which touch only at ports under Panamanian jurisdiction and
in
fficial
do not transit the Canal, or upon their cargo, officers, crew or
passengers.
per-
The Republic of Panama also has the right to determine what per-
this
sons or classes of persons arriving at ports of the Canal Zone shall
or
be admitted to the Repnblic of Panama and to determine likewise what
persons or classes of persons arriving at such ports shall be excluded
from admission to the Republic of Panama.
n use
The United States of America will furnish to he Republic of Pan-
ama free of charge the necessary sites for the establishment of cus-
ties or
from
tomhouses in the ports of the Canal Zone for the collection of duties on
to the
importations destined to the Republic and for the examination of
merchandise, baggage and passengers consigned to or bound for the
of the
Republic of Panama, and for the prevention of contraband trade, it
under
being understood that the collection of duties and the examination of
aid ter.
merchandise and passengers by the agents of the Government of the
be im-
Republic of Panama, in accordance with this provision, shall take
sons in
place only in the customhouses to be established by the Government
Canal
of the Republic of Panama as herein provided, and that the Republic
sdiction
of Panama will exercise exclusive jurisdiction within the sites on
e Canal
which the customhouses are located SO far as concerns the enforcement
Panama
of immigration or customs laws of the Republic of Panama, and over
Republic.
all property therein contained and the personnel therein employed.
"V under
To further the effective enforcement of the rights hereinbefore rec-
of Amer
ognized, the Government of the United States of America agrees that,
mstance
for the purpose of obtaining information useful in determining
deported
whether persons arriving at ports of the Canal Zone and destined to
id
Zone.
points within the jurisdiction of the Republic of Panama should be
under in
admitted or excluded from admission into the Republic, the immi-
gration officers of the Republic of Panama shall have the right of free
access to vessels upon their arrival at the Balboa or Cristobal piers
FORD
GERALD
520
or wharves with passengers destined for the Republic; and that the
railroad, the corridor
appropriate authorities of the Panama Canal will adopt such adminis-
viaduct and will not
trative regulations regarding persons entering ports of the Canal Zone
the railroad right of
and destined to points within the jurisdiction of the Republic of Pan-
over Randolph Road
ama as will facilitate the exercise by the authorities of Panama of
by that highway and
their jurisdiction in the manner provided in Paragraph 1 of this Arti-
ary line of the Canal
cle for the purposes stated in Paragraph 3 thereof.
The Government of
any private titles
ARTICLE VI
cluded in the above-d
The stream and
The first sentence of Article VII of the Convention of November
corridor shall not
18, 1903, is hereby amended SO as to omit the following phrase: "or
of the existing streams
by the exercise of the right of eminent domain".
No other construction
The third paragraph of article VII of the Convention of November
relating to the construct
18, 1903, is hereby abrogated.
electric power, telephone
which will be conducted
ARTICLE VII
ing to the construction
and of power and common
Beginning with the annuity payable in 1934 the payments under
The United States 01
Article XIV of the Convention of November 18, 1903, between the
unimpeded transit aero:
United States of America and the Republic of Panama, shall be four
along the corridor.
hundred and thirty thousand Balboas (B/430,000.00) as defined by
established by the Gover.
he agreement embodied in an exchange of notes of this date. The
Government of the
United States of America may discharge its obligation with respect
such use of the corridor
to any such payment, upon payment in any coin or currency, pro-
connecting or intersecting
vided the amount SO paid is the equivalent of four hundred and thirty
ground power, teleph
thousand Balboas (B/430,000.00) as so defined.
drainage channels, on
shall not interfere with the
ARTICLE VIII
above.
In order that the citv of Colón may enjoy direct means of land
communication under Panamanian jurisdiction with other territory
In order that direct
under jurisdiction of the Republic of Panama, the United States of
accommodation for the
America hereby transfers to the Republic of Panama jurisdiction over
be provided under jurisder
a corridor, the exact limits of which shall be agreed upon and demar-
the Madden Dam to the
cated by the two Governments pursuant to the following description:
transfers to the United 7:
(a) The end at Colón connects with the southern end of the east
the limits of which shall
half of the Paseo del Centenario at Sixteenth Street, Colón: thence
suant to the following de
the corridor proceeds in a general southerly direction, parallel to and
A strip of land 200 II
east of Bolivar Highway to the vicinity of the northern edge of Silver
line of the Madden Road
City; thence eastward near the shore line of Folks River, around the
the center line of the M
northeast corner of Silver City; thence in a general southeasterly
taining an area of 105.8
direction and generally parallel to the Randolph Road to a crossing
which accompanies this
of said Randolph Road. about 1200 feet cast of the East Diversion:
the two countries and 111'11
thence in a general northeasterly direction to the eastern boundary
Beginning at the into
line of the Canal Zone near the southeastern corner of the Fort Ran-
Madden Road and the
dolph Reservation, southwest of Cativá. The approximate route of
ary line, said point being
the corridor is shown on the map which accompanies this Treaty,
ft. along said boundary
signed by the Plenipotentiaries of the two countries and marked
geodetic position of bone
"Exhibit A".
(b) The width of the corridor shall be as follows: 25 feet in width
9°07' plus 3,948.8 ft. and
thence N. 43°10' 1.
from the Colón end to a point east of the southern line of Silver City:
06.65 ft.;
thence 100 feet in width to Randolph Road, except that, at any
elevated crossing which may be built over Randolph Road and the
83-8770 72
521
railroad, the corridor will be no wider than is necessary to include the
viaduct and will not include any part of Randolph Road proper, or of
the railroad right of way, and except that, in case of a grade crossing
over Randolph Road and the railroad, the corridor will be interrupted
by that highway and railroad: thence 200 feet in width to the bound-
ary line of the Canal Zone.
The Government of the United States of America will extinguish
any private titles existing or which may exist in and to the land in-
cluded in the above-described corridor.
The stream and drainage crossing of any highway built in the
corridor shall not restrict the water passage to less than the capacity
of the existing streams and drainage.
No other construction will take place within the corridor than that
er
relating to the construction of a highway and to the installation of
electric power, telephone and telegraph lines; and the only activities
which will be conducted within the said corridor will be those pertain-
ing to the construction, maintenance and common uses of a highway
and of power and communication lines.
or
The United States of America shall enjoy at all times the right of
he
unimpeded transit across the said corridor at any point, and of travel
along the corridor, subject to such traffic regulations as may be
by
established by the Government of the Republic of Panama; and the
The
Government of the United States of America shall have the right to
ect
such use of the corridor as would be involved in the construction of
ro-
connecting or intersecting highways or railroads, overhead and under-
ground power, telephone, telegraph and pipe lines, and additional
drainage channels, on condition that these structures and their use
shall not interfere with the purpose of the corridor as provided herein-
above.
ARTICLE IX
and
ory
In order that direct means of land communication, together with
of
accommodation for the high tension power transmission lines, may
over
be provided under jurisdiction of the United States of America from
nar-
the Madden Dam to the Canal Zone, the Republic of Panama hereby
ion:
transfers to the United States of America jurisdiction over a corridor,
east
the limits of which shall be demarcated by the two Governments pur-
ence
suant to the following descriptions:
and
A strip of land 200 ft. in width, extending 62.5 ft. from the center
ilver
line of the Madden Road on its eastern boundary and 137.5 ft. from
the
the center line of the Madden Road on its western boundary, con-
terly
taining an area of 105.8 acres or 42.81 hectares, as shown on the map
ssing
which accompanies this Treaty, signed by the Plenipotentiaries of
sion:
the two countries and marked "Exhibit B".
dary
Beginning at the intersection of the located center line of the
Ran-
Madden Road and the Canal Zone-Republic of Panama 5-mile bound-
te of
ary line, said point being located N. 29°20' W. a distance of 168.04
reaty,
ft. along said boundary line from boundary momument No. 65, the
arked
geodetic position of boundary monument No. 65 being latitude N.
9°07' plus 3,948.8 ft. and longitude 79°37' plus 1,174.6 ft.;
width
thence N. 43°10' E. a distance of 541.1 ft. to station 324 plus
City;
06.65 ft.;
any
d the
83-8770 0-72-34
522
thence on a 3° curve to the left, a distance of 347.2 ft. to station
thence
327 plus 53.9 ft.;
tion 549
thence N. 32°45' E. a distance of 656.8 Lt. to station 334 plus
above-nb
10.7 ft.;
(All bearing
thence on a 3° curve to the left a distance of 455.1 ft. to station
The Gover-
338 plus 66.25 ft.;
private title
thence N. 19°05' E. a distance of 1,185.70 ft. to station 350
in the above-s
plus 01.95 ft.;
The streem
thence on an 8° curve to the left a distance of 650.7 ft. to SERETON
corridor shall
356 plus 52.7 ft.;
of the existing
thence N. 32°58' W. a distance of 636.0 ft. to station 362 plus
No other
88.7 ft.;
relating to the
thence on a 10° curve to the right a distance of 227.3 ft. to
electric power
station 365 plus 16.0 ft.;
which will
thence N. 10°14' W. a distance of 314.5 ft. to station 368 plus
ing to the
30.5 ft.;
and of power
thence on a 5° curve to the left a distance of 178.7 ft. to station
The Repul
370 plus 09.2 ft.
impeded train
thence N. 10°10' W. a distance of 4,250.1 ft. to station 412
along the eo,
plus 59.3 ft.:
lished by the
thence on a 5° curve to the right a distance of 720.7 ft. to sta-
of the Rephi
tion 419 plus 80.0 ft.
corridor as
thence N. 16°52' E. a distance of 1,664.3 ft. to station 436 plus
intersecting
44.3 ft.;
telephone, to
thence on a 5° curve to the left a distance of 597.7 ft. to station
on condition
442 plus 42.0 ft.:
with the pur;
thence N. 13°01' W. a distance of 543.8 ft. to station 447 plus
85.8 ft.;
thence on a 5° curve to the right a distance of 770.7 ft. to
station 455 plus 56.5 ft.;
In case of
thence N. 25°31' E. a distance of 1,492.2 ft. to station 470 plus
threat of agy
48.7 ft.;
lic of Panone
thence on a 5° curve to the right a distance of 808.0 ft. to
Government
station 478 plus 56.7 ft.;
Panama will
thence N. 65°55' E. a distance of 281.8 ft. to station 481 plus
may conside.
38.5 ft.;
Any measur
thence on an 8° curve to the left a distance of 446.4 ft. to station
essential to
485 plus 84.9 ft.:
tory under
thence N. 30°12' E. a distance of 470.6 ft. to station 490 plus
subject of ce.
64.5 ft.;
thence on a ii curve to the left a distance of 329.4 ft. to station
493 plus 93.9 ft.:
thence N. 13°44' E. a distance of 1,639.9 ft. to station 510 plus
The prov
33.8 ft.:
tions of eith
thence on a 5° curve to the left a distance of 832.3 ft. to station
now in for
518 plus 66.1 ft.
tation, defi
thence N. 27°53' W. a distance of 483.9 ft. to station 523 plus
rights and
50.0 ft.;
effect of nu
thence on an 8° curve to the right a distance of 469.6 ft. to
modification
station 528 plus 19.6 ft.;
previoustry
thence N. 9°41' E. a distance of 1,697.6 ft. to station 545 plus
17.2 ft.:
523
tion
thence on a 10° curve to the left a distance of 451.7 ft. to sta-
tion 549 plus 68.9 ft., which is the point marked Point Z on the
plus
above-mentioned map known as "Exhibit B".
(All bearings are true bearings.)
ation
The Government of the Republic of Panama will extinguish any
private titles existing or which may exist in and to the land included
1 350
in the above-described corridor.
The stream and drainage crossings of any highway built in the
amon
corridor shall not restrict the water passage to less than the capacity
of the existing streams and drainage.
2 plus
No other construction will take place within the corridor than that
relating to the construction of a highway and to the installation of
ft. to
electric power, telephone and telegraph lines; and the only activities
which will be conducted within the said corridor will be those pertain-
8 plus
ing to the construction, maintenance and common uses of a highway,
and of power and communication lines, and auxiliary works thereof.
station
The Republic of Panama shall enjoy at all times the right of un-
impeded transit across the said corridor at any point, and of travel
on 412
along the corridor, subject to such traffic regulations as may be estab-
lished by the authorities of the Panama Canal: and the Government
to sta-
of the Republic of Panama shall have the right to such use of the
corridor as would be involved in the construction of connecting or
36 plus
intersecting highways or railroads, overhead and underground power,
telephone, telegraph and pipe lines, and additional drainage channels,
station
on condition that these structures and their use shall not interfere
with the purpose of the corridor as provided hereinabove.
47
ARTICLE x
7 ft. to
In case of an international conflagration or the existence of any
170 plus
threat of aggression which would endanger the security of the Repub-
lic of Panama or the neutrality or security of the Panama Canal, the
.0 ft. to
Governments of the United States of America and the Republic of
Panama will take such measures of prevention and defense as they
481 plus
may consider necessary for the protection of their common interests.
Any measures. in safeguarding such interests, which it shall appear
o station
essential to one Government to take, and which may affect the terri-
tory under the jurisdiction of the other Government, will be the
490 plus
subject of consultation between the two Governments.
to station
ARTICLE XI
510 plus
The provisions of this Treaty shall not affect the right and obliga-
tions of either of the two High Contracting Parties under the treaties
to station
now in force between the two countries, nor be considered as a limi-
tation, definition, restriction or restrictive interpretation of such
523 plus
rights and obligations, but without prejudice to the full force and
effect of any provisions of this Treaty which constitute addition to,
69.6 fl. to
modification or abrogation of, or substitution for the provisions of
previous treaties.
n 545 plus
524
ARTICLE XII
The present Treaty shall be ratified in accordance with the consti-
tutional methods of the High Contracting Parties and shall take effect
immediately on the exchange of ratifications which shall take place
at Washington.
IN WITNESS WHEREOF, the Plenipotentiaries have signed this Treaty
3. Treaty of
in duplicate, in the English and Spanish languages, both texts being
Treaty with memor
authentic, and have herennto affixed their seals.
uary 25, 1955; Fill
DONE at the city of Washington the second day of March, 1936.
America, July III
America, August
CORDELL HULL
[SEAL]
exchanged at in
SUMNER WELLES
[SEAL]
of the United State
R. J. ALFARO
[SEAL]
23, 1955
NARCISO GARAY
[SEAL]
By THE Pm
AND WHEREAS the said Treaty has been duly ratified on both parts,
and the ratifications of the two Governments were exchanged in the
city of Washington on the twenty-seventh day of July one thousand
nine hundred and thirty-nine;
WHEREAS a The
Now, THEREFORE. be it known that I, Franklin D. Roosevelt, Presi-
between the United
dent of the United States of America. have caused the said Treaty
together with a
to be made public, to the end that the same and every article and
was signed at Page:
clause thereof may be observed and fulfilled with good faith by the
WHEREAS the
United States of America and the citizens thereof.
of Understanding
IN TESTIMONY WHEREOF, I have hereunto set my hand and caused
are word for word
the Seal of the United States of America to be affixed.
DONE at the city of Washington this twenty-seventh day of July
TREATY OF Mun
in the year of our Lord one thousand nine hundred and
THE UNITED ST.
[SEAL] thirty-nine and of the Independence of the United States
The President
of America the one hundred and sixty-fourth.
of the Republic of
FRANKLIN D. ROOSEVELT.
to demonstrate the
By the President:
countries and to
CORDELL HULL
between their re>p
Secretary of State.
their respective PM
The President 05
Selden Chre
tiary of the I
Panama,
The President of
Octavio Fáb
of Panama,
who, having comm
found in good and
sions of the Come
Treaty signed Ma:
except by mutual
Beginning with
ratifications of tin
of the Convention
consti-
effect
place
Treaty
3. Treaty of Mutual Understanding and Cooperation, 1955
being
Treaty with memorandum of understandings reached; signed at Panama, Jan-
uary 25, 1955; ratification advised by the Senate of the United States of
1936.
America, July 29, 1955; ratified by the President of the United States of
America, August 17, 1955; ratified by Panama, August 15, 1955; ratifications
EAL
exchanged at Washington, August 23, 1955; proclaimed by the President
EAL
of the United States of America, August 26, 1955; entered into force, August
23, 1955
EAL
EAL
By THE PRESIDENT OF THE UNITED STATES OF AMERICA
parts,
in the
A PROCLAMATION
busand
WIIEREAS a Treaty of Mutual Understanding and Cooperation
Presi-
between the United States of America and the Republic of Panama,
Treaty
together with a related Memorandum of Understandings Reached,
le and
was signed at Panamá on January 25, 1955;
by the
WHEREAS the texts of the said Treaty and related Memorandum
of Understandings Reached, in the English and Spanish languages,
are word for word as follows:
of July
TREATY OF MUTUAL UNDERSTANDING AND COOPERATION BETWEEN
ed and
THE UNITED STATES OF AMERICA AND THE REPUBLIC OF PANAMA
States
The President of the United States of America and the President
of the Republic of Panama, desirous of concluding a treaty further
VELT.
to demonstrate the mutual understanding and cooperation of the two
countries and to strengthen the bonds of understanding and friendship
between their respective peoples, have appointed for that purpose as
their respective Plenipotentiaries:
The President of the United States of America:
Selden Chapin, Ambassador Extraordinary and Plenipoten-
tiary of the United United States of America to the Republic of
Panama,
The President of the Republic of Panama:
Octavio Fábrega, Minister of Foreign Relations of the Republic
of Panama,
who, having communicated to one another their respective full powers,
found in good and due form, and recognizing that neither the provi-
sions of the Convention signed November 18, 1903, nor the General
Treaty signed March 2, 1936, nor the present Treaty may be modified
except by mutual consent, agree upon the following articles:
ARTICLE I
Beginning with the first annuity payable after the exchange of
ratifications of the present Treaty, the payments under Article XIV
of the Convention for the Construction of a Ship Canal between the
(525)
2,
3
526
United States of America and the Republic of Panama, signed Novem-
ber 18, 1903, as amended by Article VII of the General Treaty of
Subject to the PM
Friendship and Cooperation, signed March 2, 1936, shall be One
Article, the United
Million Nine Hundred Thirty Thousand and no/100 Balboas (B/1.
930,000) as defiined by the agreement embodied in the exchange of notes
granted in perpetuity
for the construction
of March 2, 1936, between the Secretary of State of the United States
munication by mean
of America and the Members of the Panamanian Treaty Commission.
the Caribbean Sea 1116
The United States of America may discharge its obligation with I'v.
tion signed Novem!
spect to any such payment in any coin or currency, provided the amount
date of this Treaty in
SO paid is the equivalent of One Million Nine Hundred Thirty Thou-
nance and operation
sand and no/100 Balboas (B/1,930,000) as SO defined.
by railroad within the
On the date of the first payment under the present Treaty, the pro-
of Panama.
visions of this Article shall supersede the provisions of Article VII
Subject to the
of the General Treaty signed March 2, 1936.
Article, the United
Notwithstanding the provisions of this Article, the High Contract-
establish roads acros:
ing Parties recognize the absence of any obligation on the part of
States as a result of
either Party to alter the amount of the annuity.
Railroad Company
force of this Treaty,
ARTICLE II
of roads within the
(1) Notwithstanding the provisions of Article X of the Convention
Panama.
In view of the vita
signed November 18, 1903, between the United States of America and
tection of the Canal.
the Republic of Panama, the United States of America agrees that the
Republic of Panama may, subject to the provisions of paragraphs (2)
such abrogation is
and (3) of this Article, impose taxes upon the income (including in-
inter-oceanic commun
come from sources within the Canal Zone) of all persons who are em-
tion of the Republic
ployed in the service of the Canal, the railroad, or auxiliary works,
be financed, construe:
whether resident within or outside the Canal Zone, except-
by a third country
(a) members of the Armed Forces of the United States of
High Contracting 15
America,
or operation would
(b) citizens of the United States of America, including those
The High Contract
who have dual nationality, and
contemplated by the
(c) other individuals who are not citizens of the Republic of
and operation of the
Panama and who reside within the Canal Zone.
in territory subject to
(2) It is understood that any tax levied pursuant to paragraph (1)
of this Article shall be imposed on a non-discriminatory basis and
shall in no case be imposed at a rate higher or more burdensome than
The second parage
that applicable to income of citizens of the Republic of Panama
November 18, 1903.
generally.
with, and enforcement
(3) The Republic of Panama agrees not to impose taxes on pensions,
and Colón, shall be
annuities, relief payments, or other similar payments, or payments by
into force of this Tre
way of compensation for injuries or death occurring in connection
with, or incident to, service on the Canal, the railroad, or auxiliary
works paid to or for the benefit of members of the Armed Forces or
The United State:
citizens of the United States of America or the lawful beneficiaries of
of legislation by the
such members 01' citizens who reside in territory under the jurisdiction
of Panama free of
of the Republic of Panama.
United States of A
The provisions of this Article shall be operative for the taxable
improvements in 11"
years beginning on or after the first day of January following the
Panama when and
year in which the present Treaty enters into force.
needed for the
527
ARTICLE III
ovein-
of
Subject to the provisions of the succeeding paragraphs of this
One
Article, the United States of America agrees that the monopoly
(B/1,
granted in perpetuity by the Republic of Panama to the United States
notes
for the construction, maintenance and operation of any system of coin-
States
munication by means of canal or railroad across its territory between
the Caribbean Sea and the Pacific Ocean, by Article V of the Conven-
re-
tion signed November 18, 1903, shall be abrogated as of the effective
Thou-
date of this Treaty in SO far as it pertains to the construction, mainte-
nance and operation of any system of trans-Isthmian communication
by railroad within the territory under the jurisdiction of the Republic
pro-
of Panama.
VII
Subject to the provisions of the succeeding paragraphs of this
Article, the United States further agrees that the exclusive right to
establish roads across the Isthmus of Panama acquired by the United
of
States as a result of a concessionary contract granted to the Panama
Railroad Company shall be abrogated as of the date of the entry into
force of this Treaty, in so far as the right pertains to the establishment
of roads within the territory under the jurisdiction of the Republic of
Panama.
and
In view of the vital interest of both countries in the effective pro-
t
tection of the Canal, the High Contracting Parties further agrees that
such abrogation is subject to the understanding that no system of
in
inter-occanic communication within the territory under the jurisdic-
em-
tion of the Republic of Panama by means of railroad or highway may
vorks,
be financed, constructed. maintained, or operated directly or indirectly
by a third country or nationals thereof, unless in the opinion of both
of
High Contracting Parties such financing, construction, maintenance,
or operation would not affect the security of the Canal.
those
The High Contracting Parties also agree that such abrogation as is
contemplated by this Article shall in no wise affect the maintenance
of
and operation of the present Panama Railroad in the Canal Zone and
in territory subject to the jurisdiction of the Republic of Panama.
(1)
and
ARTICLE IV
than
The second paragraph of Article VII of the Convention signed
November 18, 1903, having to do with the issuance of, compliance
with, and enforcement of, sanitary ordinances in the Cities of Panamá
by
and Colón, shall be abrogated in its entirety as of the date of entry
into force of this Treaty.
filiary
ARTICLE V
or
of
The United States of America agrees that. subject to the enactment
of legislation by the Congress, there shall be conveyed to the Republic
of Panania free of cost all the right, title and interest held by the
exable
United States of America or its agencies in and to certain lands and
the
improvements in territory under the jurisdiction of the Republic of
Panama when and as determined by the United States to be no longer
needed for the operation, maintenance, sanitation or protection of
2,
M
528
the Panama Canal or of its auxiliary works, or for other author ized
Thence following
purposes of the United States in the Republic of Panama. The lands
in Article VI of the
and improvements referred to in the preceding sentence and the
to monument "D"
determinations by the United States of America respecting the same,
N. 78° 30'
subject to the enactment of legislation by the Congress. are designated
the light hous
and set forth in Item 2 of the Memorandum of Understandings
Bay, called "M".
Reached which bears the same date as this Treaty. The United States of
at right angles
America also agrees that subject to the enactment of legislation by the
S. 00° 14' 30"
Congress, there shall be conveyed to the Republic of Panama free of
and 330 meters of
cost all its right, title and interest to the land and improvements in the
Panama Canal, 11.
area known as PAITILLA POINT and that effective with such
S. 78° 30' 30"
conveyance the United States of America shall relinquish all the
"D", which is a
rights, power and authority granted to it in such area under the Con-
of Limon Bay.
vention signed November 18, 1903. The Republic of Panama agrees
Thence following the
to save the Government of the United States harmless from any and
Canal Zone, as described
all claims which may arise incident to the conveyance of the area
signed September 2, 1911.
known as PAITILLA POINT to the Republic of Panama.
S. 78° 30' 307
ments Nos. 28 and
ARTICLE VI
monument "D", wi
being 159.96 feet
Article V of the Boundary Convention, signed September 2, 1914,
70.43 feet (21.467
between the United States of America and the Republic of Panama,
course;
shall be replaced bv the following provisions:
N. 74° 17' 35"
"It is agreed that the permanent boundary line between the City
centerline of Elever
of Colón (including the Harbor of Colón, as defined in Article VI of
24 and 23, which at
the Boundary Convention of 1914), and other waters adjacent to the
is an unmarked pern
shores of Colón, and the Canal Zone shall be as follows:
of Bolivar Avenue.
Beginning at an unmarked point called "E", located on the north-
91.02 feet (27.713
easterly boundary of the Colón Corridor (at its Colón extremity),
feet (48.360 meters)
the geodetic position of which, referred to the Panamá-Colón datum
from beginning of to
of the Canal Zone triangulation system, is in latitude 9° 21' N. plus
S. 15° 58' 00" E
0.00 feet (0.000 meters) and longitude 79° 54' W. plus 356.0 feet
terline of Bolivar
(108.536 meters).
and 19, which an
Thence from said initial point by metes and bounds:
"B", which is a by..
Due East, 2662.93 feet (811.632 meters), along North latitude
meters), 143.13 feet
9° 21' plus 0.00 feet (0.000 meters) : to an unmarked point in
326.77 feet (99,600
Folks River, called "F". located at longtiude 79° 53' W. plus
successively from 1.
3700.00 feet (1127.762 meters) ;
the point of beginning
N. 36° 36' 30" E., 2616.00 feet (797.358 meters), to an un-
between the United
marked point in Manzanillo Bay, called "G";
Panama regarding
N. 22° 41' 30" W., 1192.00 feet (363.332 meters), to an un-
through the Canal %
marked point in Manzanillo Bay, called "H";
Thence following the
N. 56° 40' 00" W., 777.00 feet (236.830 meters), to an un-
Canal Zone, to monument
marked point in Manzanillo Bay. called "I";
Convention referred 10
N. 29° 51' 00" W., 2793.00 feet (851.308 meters), to an un-
S. 15° 57' 40" E.,
marked point in Manzanillo Bay, called "J";
line of Bolivar Ave
N. 50° 56' 00" W., 3292.00 feet (1003.404 meters), to an un-
plug located at the
marked point in Limon Bay, called "K";
projected westerly,
S. 56° 06' 11" W., 4258.85 feet (1208.100 meters), to an un-
(413.364 meters) and
marked point in Limon Bay, called "L", which is located on the
(567.712 meters) :
northerly boundary of the Harbor of Colón.
529
Thence following the boundary of the Harbor of Colón, as described
'he
lands
in Article VI of the Boundary Convention signed September 2, 1914,
and
the
to monument "D", as follows:
the
same.
N. 78° 30' 30" W., 2104.73 feet (641.523 meters), on a line to
esignated
the light house on Toro Point. to an unmarked point in Limon
standings
Bay, called "M", located 330 meters or 1082.67 feet easterly and
States
of
at right angles from the centerline of the Panama Canal;
by
the
S. 00° 14' 50" W., 3074.46 feet (937.097 meters), parallel to
free
of
and 330 meters or 1082.67 feet easterly from the centerline of the
in
the
Panama Canal, to an unmarked point in Limon Bay, called "N";
rith
such
S. 78° 30' 30" E., 3952.97 feet (1204.868 meters), to monument
all
the
"D", which is a concrete momument, located on the easterly shore
the
Con-
of Limon Bay.
agrees
Thence following the boundary between the City of Colón and the
any
and
Canal Zone, as described in Article V of the Boundary Convention
the
area
signed September 2, 1914, to monument "B" as follows:
S. 78° 30' 30" E., 258.65 feet (78.837 meters) through monu-
ments Nos. 28 and 27 which are brass plugs in pavement, to
monument "D", which is a concrete monument, the distances
being 159.96 feet (48.756 meters), 28.26 feet (8.614 meters), and
2,
1914,
70.43 feet (21.467 meters), successively, from beginning of the
Panama,
course;
N. 74° 17' 35" E., 533.60 feet (162.642 ineters), along the
the
City
centerline of Eleventh Street, through monuments Nos. 26, 25,
VI
of
24 and 23, which are brass plugs in the pavement, to "C", which
to
the
is an unmarked point beneath the clock pedestal on the centerline
of Bolivar Avenue, the distances being 95.16 feet (29.005 meters),
he
91.02 feet (27.743 meters), 166.71 feet (50.813 meters), 158.66
feet (48.360 meters) and 22.05 feet (6.721 meters), successively,
ón
datum
from beginning of the course;
N.
plus
S. 15° 58' 00" E., 965.59 feet (294.312 meters), along the cen-
356.0
feet
terline of Bolivar Avenue, through monuments Nos. 23, 21, 20
and 19, which are brass plugs in the pavement, to monument
"B", which is a brass plug, the distances being 14.35 feet (4.374
latitude
meters), 143.13 feet (43.626 meters), 238.77 feet (72.777 meters),
point
in
326.77 feet (99.600 meters) and 242.57 feet (73.935 meters),
W.
plus
successively from beginning of the course. (Monument "B" is
the point of beginning referred to in Article I of the Convention
an
un-
between the United States of America and the Republic of
Panama regarding the Colón Corridor and certain other Corridors
an
un-
through the Canal Zone. signed at Panama on May 24. 1950.)
Thence following the boundary between the City of Colón and the
an
un-
Canal Zone, to monument "A", as described in Article I of the Corridor
Convention referred to in the next-preceding paragraph:
an
un-
S. 15° 57' 40" E., 117.10 feet (35.692 meters) along the center-
line of Bolivar Avenue to Monument No. A-8, which is a brass
to
an
un-
plug located at the intersection with the centerline of 14th Street
projected westerly, in North latitude 9° 21' plus 1356.18 feet
to
an
un-
(413.364 meters) and West longitude 79° 54' plus 1862.57 feet
on
the
(567.712 meters)
2,
530
N. 73° 59' 35" E., 172.12 feet (52.462 meters) along the center-
end of the Colón
line of 14th Street to Monument No. A-7, which is a brass plug
latitude 9° 21'
located at the intersection with the line of the west curb of
the City of Colón
Boundary Street projected northerly in North latitude 9° 21'
This Article
plus 1403.64 feet (427.830 meters) and West longitude 79° 54'
drawal by the I
plus 1697.12 feet (517.283 meters) :
of Colón known
Southerly along the westerly curb of Boundary Street and its
Area, with the
prolongation to Monument No. A-4, which is a brass plug located
except that it
at the intersection of two curves. in North latitude 9° 21' plns
of the instrume:
833.47 feet (254.042 meters) and West longitude 79° 54' plus
instruments of
980.94 feet (298.991 meters) (this last mentioned course passes
referred to in
through a curve to the left with a radius of 40.8 feet (12.436
meters) and the intersection of its tangents at point A-6 in North
latitude 90 21' plus 1306.23 feet (398.140 meters) and West longi-
tude 79° 54' plus 1669.37 feet (508.825 meters), and a curve to
The second
the right with a radius of 1522 feet (436.907 meters) with the
signed Septemi
point of intersection of its tangents at point A-5 in North latitude
the Republic of
9° 21' plus 958.14 feet (292.042 meters) and West longitude 79°
date of entry in
54' plus 1105.89 feet (337.076 meters) ;
The landing
Through a curve to the left with a radius of 262.2 feet (79.919
Manzanillo Is:
meters) and the intersection of its tangents at point A-3 in North
the second para
latitude 9° 21' plus 769.07 feet (234.413 meters) and West longi-
1914 between
tude 79° 54' plus 955.43 feet (291.216 meters) ; a curve to the
Government of
right with a radius of 320.0 feet (97.536 meters) and the inter-
force of the pr
section of its tangents at point A-2 in North latitude 9° 21' plus
673.38 fect (205.247 meters) and West longitude 79° 54' plus
836.40 feet (254.935 meters) : and a curve to the left with a radius
(a) The Rept
of 2571.5 feet (783.795 meters) and the intersection of its tangents
of maneuvers
at point A-1 in North latitude 9° 21' plus 302.15 feet (92.096
(Nos. SGN-7
meters) and West longitude 79° 54' plus 680.96 feet (207.557
and accompany
meters) to Monument No. "A". which is a 11/2 inch brass plug
of the Republi
located in the old sea wall. in North latitude 9° 21' plus 45.60
permit the
feet (13.899 meters) and West longitude 79° 54' plus 487.65 feet
encumbrances.
(148.636 meters) :
for a period
S. 21° 34' 50" W., 29.19 feet (8.897 meters), to an unmarked
agreed by the
point called #1;
access to, egn
Southeasterly, 23.26 feet (7.090 meters), along a curve to the
This utilizati
left with a radius of 2596.48 feet (791.409 meters) (the chord of
Panama, or t.
which bears S. 37° 28' 20" E., 23.26 feet (7.090 meters) to an
Republic over
unmarked point called #2, located on the southwesterly boundary
(h) The Un
of the Colón Corridor at North latitude 9° 21' plus 0.00 feet
families actual
(0.000 meters).
who, in an of
The directions of the lines refer to the true meridian.
Armed Fore
The above-described boundary is as shown on Panama Canal Com-
actually resid
pany drawing No. 6117-22, entitled "Boundary Line Between the
from all taxas
City of Colón and the Canal Zone", scale 1 inch to 600 feet, dated
subdivisions.
December 23, 1954, prepared for the Canal Zone Government, at-
(c) Prior
tached as an annex hereto and forming a part hereof.
and within
Article VIII of the General Treaty signed March 2, 1936. as
the right to
amended by Article III of the Convention between the United States
wise to disp
of America and the Republic of Panama regarding the Colón Corridor
installations
and certain other corridors through the Canal Zone, signed May 24,
structed or
1950, is hereby modified by removing from the Colón, or westerly,
behalf of the
quired to rein
531
the center-
end of the Colón Corridor the portion thereof lying north of North
L brass plug
'latitude 9° 21' and incorporating such portion within the boundary of
est curb of
the City of Colón as described above.
tude 9° 21'
This Article shall become effective upon completion of the with-
ude 79° 54'
drawal by the United States of America from the sections of the city
of Colón known as New Cristobal, Colón Beach and the de Lesseps
treet and its
Area, with the exception of the lots retained for consulate purposes,
plug located
except that it shall in no case become effective prior to the exchange
9° 21' plus
of the instruments of ratification of this Treaty and the exchange of
79° 54' plus
instruments of ratification of the Convention signed May 24, 1950,
course passes
referred to in the preceding paragraph.
fect (12.436
A-6 in North
ARTICLE VII
1 West longi-
id a curve to
The second paragraph of Article VII of the Boundary Convention
rs) with the
signed September 2, 1914, between the United States of America and
North latitude
the Republic of Panama, shall be abrogated in its entirety as of the
longitude 79°
date of entry into force of the present Treaty.
The landing pier situated in the small cove on the southerly side of
2 feet (79.919
Manzanillo Island, constructed pursuant to provisions contained in
A-3 in North
the second paragraph of Article VII of the Boundary Convention of
d West longi-
1914 between the two countries, shall become the property of the
curve to the
Government of the Republic of Panama as of the date of entry into
and the inter-
force of the present Treaty.
de 9° 21' plus
ARTICLE VIII
79°
plus
wi'
dius
(a) The Republic of Panama will reserve exclusively for the purpose
of it
gents
of maneuvers and military training the area described in the maps
5 feet (92.096
(Nos. SGN-7-54 and SGN-8-54, each dated November 17, 1954)
feet (207.557
and accompanying descriptions prepared by the Comisión Catastral
ch brass plug
of the Republic of Panama, attached as the Annex hereto, and will
21' plus 45.60
permit the United States of America, without cost and free of all
lus 487.65 feet
encumbrances, exclusively to utilize said area for the indicated purpose
for a period of fifteen (15) years, subject to extension thereafter as
an unmarked
agreed by the two Governments. This authorization includes the free
access to, egress from, and movements within and over, said area.
a curve to the
This utilization will not affect the sovereignity of the Republic of
(the chord of
Panama, or the operation of the Constitution and the laws of the
meters) to an
Republic over the mentioned area.
sterly boundary
(b) The United States Armed Forces, the members thereof and their
plus 0.00 feet
families actually residing with them. and United States nationals
who, in an official capacity, are serving with or accompanying the
Armed Forces of the United States and members of their families
ma Canal Com-
actually residing with them will be exempted within the said area
e Between the
from all taxation by the Republic of Panama or any of its political
600 feet, dated
subdivisions.
overnment, at-
(c) Prior to the expiration of the period envisaged in this Article
and within a reasonable time thereafter the United States shall have
ch 2, 1936. as
the right to remove from this training and maneuver area, or other-
e United States
wise to dispose of, without limitation or restriction all structures,
Colón Corridor
installations, facilities, equipment and supplies brought into, or con-
signed May 21.
structed or crected within this training and maneuver area by or on
ón, or westerly.
behalf of the United States. The Republic of Panama will not be re-
quired to reimburse the United States for any structures, installations,
2,
532
facilities, equipment and supplies not removed or otherwise disposed
the commissaries
of as provided herein.
the privilege of
(d) The United States shall be under no obligation to restore this
persons who are not
training and maneuver area or the facilities and installations thereon
members of the An
to their original condition upon the termination of this Article, except
actually reside in
for the landing strip which will be returned in at least as good condition
gories, of person-
as that obtaining at the time of couning into effect of this Article.
stood nevertheless
(e) The provisions of this Article shall in no manner terminate or
States of America
modify the provisions concerning the holding of military maneuvers
chase small articles
in the Republic of Panama established by the Notes ancillary to the
similar articles
General Treaty signed March 2, 1936 other than as provided herein
The United State
for this training and maneuver area.
ber 31, 1956, and
graph of Article I\
ARTICLE IX
Government of the
and other charges
The Republic of Panama hereby waives the right under Article XIX
than citizens of the
of the Convention signed November 18, 1903, to transportation by
Section 2 of Article
railway within the Zone, without paying charges of any kind, of per-
tory under the juri
sons in the service of the Republic of Panama, or of the police force
formance of their
charged with the preservation of public order outside of the Canal
agencies, even them
Zone, as well as of their baggage, munitions of war and supplies.
benefit.
ARTICLE X
The present Tre
The High Contracting Parties agree that, in the event of the dis-
ments of ratification
continuance of the Panaina Railroad, and of the construction or com-
into force on the de
pletion by the United States of a strategic highway across the Isthmus
tion.
lying wholly within the Canal Zone intended primarily for serving the
MEMOR
operation, maintenance, civil government, sanitation and protection
of the Panama Canal and Canal Zone, and notwithstanding anything
In connection will
to the contrary in Article VI of the Convention signed November 18,
of the United Stat
1903, the United States of America may in its discretion either pro-
have resulted in th
hibit or restrict the use, by busses or trucks not at the time engaged
the following unde
exclusively in the servicing of, or the transportation of supplies to,
On the part of the
installations, facilities or residents of the Canal Zone, of that portion
1. Legislation
of such highway which lies between Mount Hope, Canal Zone and the
the United States
intersection of such highway with the Canal Zone section of the
ing wage practices
Trans-Isthmian Highway referred to in the Trans-Isthmian Highway
(a) The bar
Convention between the United States of America and the Republic
for any emplo:
of Panama, signed March 2, 1936.
regard to who
Republic of 1:
ARTICLE XI
(b) In the
States, there
The Republic of Panama agrees, notwithstanding the provisions of
senting an OV
Article III of the General Treaty signed March 2, 1936, that the
ments, such
United States of America may extend the privilege of purchasing at
come of such
post exchanges small items of personal convenience and items neces-
a resident of
sary for professional use. to military personnel of friendly third coun-
(c) The em:
tries present in the Zone under auspices of the United States.
also be eligibh
ances because
ARTICLE XII
States for ren
employee's
The United States of America agrees that, effective December 31.
Legislation will
1956, there will be excluded from the privilege of making purchases in
uniformly applica
533
the commissaries and other sales stores in the Canal Zone as well as
the privilege of making importations into the Canal Zone all those
S
persons who are not citizens of the United States of America, except
n
members of the Armed Forces of the United States, and who do not
actually reside in the Canal Zone but who are included in the cate-
gories, of persons authorized to reside in said Zone; it being under-
e.
stood nevertheless that all personnel of the agencies of the United
States of America will be permitted under adequate controls to pur-
rs
chase small articles such as meals, sweets, chewing gum, tobacco and
no
similar articles near the sites of their jobs.
in
The United States of America further agrees that, effective Decem-
ber 31, 1956, and notwithstanding the provisions of the first para-
graph of Article IV of the General Treaty signed March 2, 1936, the
Government of the Republic of Panama may impose import duties
and other charges upon goods destined or consigned to persons, other
X
than citizens of the United States of America, included in class (a) in
by
Section 2 of Article III of said Treaty, who reside or sojourn in terri-
er-
tory under the jurisdiction of the Republic of Panama during the per-
rce
formance of their service with the United States of America or its
agencies, even though such goods are intended for their own use and
IES.
benefit.
ARTICLE XIII
The present Treaty shall be subject to ratification and the instru-
ments of ratification shall be exchanged at Washington. It shall enter
om-
into force on the date of the exchange of the instruments of ratifica-
mv
tion.
t)
MEMORANDUM OF UNDERSTANDINGS REACHED
tion
ing
In connection with the 1953-54 negotiations between representatives
18,
of the United States of America and the Republic of Panama, which
pro-
have resulted in the signature of a Treaty between the two countries,
aged
the following understandings have been reached:
to,
On the part of the United States of America:
tion
1. Legislation will be sought which will authorize each agency of
the
the United States Government in the Canal Zone to conform its exist-
the
ing wage practices in the Zone to the following principles:
away
(a) The basic wage for any given grade level will be the same
ublic
for any employee eligible for appointment to the position without
regard to whether he is a citizen of the United States or of the
Republic of Panama.
(b) In the case of an employee who is a citizen of the United
States, there may be added to the base pay an increment repre-
ons of
senting an overseas differential plus an allowance for those ele-
the
ments, such as taxes. which operate to reduce the disposable in-
ng at
come of such an employee as compared with an employee who is
a resident of the area.
(c) The employee who is a citizen of the United States will
also be eligible for greater annual leave benefits and travel allow-
ances because of the necessity for periodic vacations in the United
States for recuperation purposes and to maintain contact with the
or 31.
employee's home environment.
in
Legislation will be sought to make the Civil Service Retirement Act
uniformly applicable to citizens of the United States and of the Re-
2,
534
public of Panama employed by the Government of the United States
(c) With IV
in the Canal Zone.
Lesseps, Colón
The United States will afford equality of opportunity to citizens of
lots in the
Panama for employment in all United States Government positions
consulate puri
in the Canal Zone for which they are qualified and in which the em-
the gradual WE
ployment of United States citizens is not required, in the judgment of
fer to the Rep.
the United States, for security reasons.
interest of the
The agencies of the United States Government will evaluate, clas-
Company, in
sify and title all positions in the Canal Zone without regard to the
this process
nationality of the incumbent or proposed incumbent.
and/or its as
Citizens of Panama will be afforded opportunity to participate in
in such areas.
such training programs as may be conducted for employees by United
the lands and
States agencies in the Canal Zone.
severability
2. With reference to that part of Article V of the Treaty signed
consideration
today which deals with the conveyance to the Republic of Panama
tions of the
free of cost of all the right, title and interest held by the United States
ing water an
of America or its agencies in and to certain lands and improvements
supply, et
situated in territory under the jurisdiction of the Republic of Panama,
and Sewera
steps will be taken as provided in this Item.
Canal and 6
(a) Legislation will be sought to authorize and direct the transfer
(d) With
to the Republic of Panama of all the right, title and interest held by
city of Colé
the United States or its agencies in or to the following real property:
withdrawal
1. The J. N. Vialette and Huerta de San Doval tracts in the city
drawal from
of Panamá and the Aspinwall tract on the Island of Taboga.
Cristobal,
2. Las Isletas and Santa Catalina Military Reservations on the
have been 1.
Island of Taboga. This transfer will include the cable rights-of-
Panama fn
way which have a width of 20 feet (6.10 meters) and extend be-
States and
tween the Ancon Cove Military Reservation and the Santa Cata-
site and ste
lina Military Reservation, and between the El Vigia Military
in Colón, In
Reservation and the Las Isletas Military Reservation.
piers, will
3. The lot in Colón now reserved for consulate purposes.
(e) All
4. Certain lands on the westerly shores of the city of Colón
templated
described roughly as extending from the southerly boundary of
tion, will
the de Lesseps area (4th Street extended) to the Colón-Canal Zone
outstanding
boundary and bounded on the east by the east wall of the old
fully prote
freight house and, below that structure, by a line 25 feet (7.622
against an:
meters) west of the center line of the most westerly railroad
as a result
track. This transfer will include the certain improvements con-
(f) The
sisting of the old freight house and Colón Pier Number 3.
ject to legi
(b) Legislation will be sought to authorize and direct the Panama
Paitilla P.
Canal Company to remove its railway terminal operations from the
signed toda
city of Panamá and to transfer to the Republic of Panama free of cost
VI of said
all of the right, title and interest of the Panama Canal Company in and
3. Articl
to the lands known as the Panama Railroad Yard, including the im-
manufacts
provements thereon and specifically including the railway passenger
the Cana'
station: This action will also relieve the Government of the Republic
American
of Panama of its obligation under Point 10 of the General Relations
4. Refe.
Agreement between the United States of America and the Republic of
to the G.:
Panama signed May 18, 1942 to make available without cost to the
Republic
Government of the United States of America a suitable new site for
of good-
such terminal facilities.
United
effective
535
(c) With respect to those areas in the city of Colón known as de
Lesseps, Colón Beach and New Cristobal (with the exception of two
lots in the de Lesseps area which the United States intends to use for
consulate purposes), legislation will be sought to authorize and direct
the gradual withdrawal from these areas and the conveyance or trans-
fer to the Republic of Panama free of cost of all the right, title and
interest of the United States and of its agency, the Panama Canal
Company, in and to the lands and improvements thereon. Under
this process of gradual withdrawal the United States Government,
and/or its agencies, will not be obligated to install any new structure
in such areas and, as severable parts of the areas cease to be needed,
the lands and improvements would be conveyed or transferred. The
severability of parts of the areas depends upon a number of practical
considerations including those having to do with the present obliga-
tions of the United States, with respect to the subject areas, concern-
ing water and sewerage facilities, street cleaning and paving, water
supply, et cetera, as stipulated in the Instrument of Transfer of Water
and Sewerage Systems, executed between the Governor of the Panama
Canal and the Foreign Minister of Panama on December 28, 1945.
for
(d) With respect to the railroad passenger station and site in the
city of Colón, legislation will be sought to authorize and direct the
withdrawal from such site and structure at such time as the with-
drawal from the areas known as de Lesseps, Colón Beach and New
Cristobal, contemplated by the next preceding subparagraph, shall
have been fully completed, and the conveyance to the Republic of
Panama free of cost of all the right, title and interest of the United
States and of its agency, the Panama Canal Company, in and to such
ta-
site and structure. However, the railroad tracks and trackage area
in Colón, being required for switching purposes serving the Cristobal
piers, will be retained for such purposes.
(e) All transfers or conveyances of lands and improvements con-
templated by this Item, subject to legislative authorization and direc-
tion, will necessarily be made subject to any leases which may be
outstanding in the respective areas, and will also contain provisions
fully protecting the Government of the United States of America
against any claims by lessees for damages or losses which may arise
as a result of such transfers or conveyances.
(f) The transfers or conveyances contemplated by this Item, sub-
ject to legislative authorization, are in addition to the conveyance of
Paitilla Point as specifically covered by Article V of the Treaty
signed today, and to the transfer of real property effected by Article
VI of said Treaty.
3. Articles, materials, and supplies that are mined, produced or
manufactured in the Republic of Panama, when purchased for use in
the Canal Zone, will be exempted from the provisions of the Buy
American Act.
4. Referring to the exchange of notes dated March 2, 1936, accessory
to the General Treaty between the United States of America and the
Republic of Panama signed on that date, relative to the sale to ships
of goods imported into the Canal Zone by the Government of the
United States of America, the United States of America agrees,
effective December 31, 1956, and in benefit of Panamanian commerce,
536
to withdraw wholly from, and thereafter to refrain from, any such
the present Up
sales to ships, provided that nothing in this Item shall apply-
the sketch (No.
(a) to sales to ships operated by or for the account of the
panying deserio
Government of the United States of America,
Republic of Par:
(b) to the sale of fuel or lubricants, or
2. The Repul
(c) to any sale or furnishing of ships stores which is incidental
that the proper
to the performance of ship repair operations by any agency of
SGN-6-54, dat.
the Government of the United States of America.
prepared by the
5. Legislative authorization and the necessary appropriations will
front of the
be sought for the construction of a bridge at Balboa referred to in
the Bay of
Point 4 of the General Relations Agreement of 1942.
between 37th
6. The United States of America agrees, effective December 31,
park and not
1956, to withdraw from persons employed by agencies of the Govern-
3. So long
ment of the United States of America in the Canal Zone who are not
those provision
citizens of the United States of America and who do not actually
ing the import:
reside in said Zone the privilege of availing themselves of services
Republic of
which are offered within said Zone except those which are essential
import duty on
to health or necessary to permit them to perform their duties.
importation into
7. It. is and will continue to be the policy of the Panama Canal
4. In connect
agencies and of the Armed Forces in the Canal Zone in making pur-
States of Ameri.
chases of supplies, materials and equipment, SO far as permitted under
have free acce
United States legislation, to afford to the economy of the Republic
described in
of Panama full opportunity to compete for such business.
and maneuvers.
8. In general connection with the matter of the importation of
under the Const
items of merchandise for resale in the sales stores in the Canal Zone,
The provision
(it will be the practice of the agencies concerned to acquire such items
shall enter into
either from United States sources or Panamanian sources unless, in
of the Treaty się
certain instances, it is not feasible to do SO.
Republic of Pare
9. With respect to the manufacture and processing of goods for sale
to or consumption by individuals, now carried on by the Panama
Canal C npany, it will be the policy of the United States of America
to terminate such activities whenever and for SO long as such goods,
or particular classes thereof, are determined by the United States of
America to be available in the Republic of Panama on a continuing
basis, in satisfactory qualities and quantities, and at reasonable prices.
The United States of America will give prompt consideration to a
request in writing on the part of the Government of Panama concern-
ing the termination of the manufacture or processing of any goods
covered in this Item as to which the Government of Panama may
consider the criteria specified in this Item to have been met.
10. Prompt consideration will be given to withdrawing from the
handling of commercial cargo for transshipment on Canal Zone
piers SO soon as Panamanian port facilities are in satisfactory opera-
tion in Colón.
11. The United States agrees that the term "auxiliary works" as
used in the Treaty includes the Armed Forces of the United States of
America.
On the part of the Republic of Panama:
1. The Republic of Panama will lease to the United States of
America, free of all cost save for the recited consideration of one
Balboa, for a period of 99 years, two parcels of land contiguous to
83-877 0-72
537
ch
the present United States Embassy residence site, as designated on
the sketch (No. SGN-9-54, dated November 19, 1954) and accom-
he
panying descriptions prepared by the Comisión Catastral of the
Republic of Panama. attached hereto.
2. The Republic of Panama assures the United States of America
tal
that the property, shown and described on the attached map (No.
of
SGN-6-54, dated October 1954) and the accompanying description
prepared by the Comisión Catastral of the Republic of Panama, in
will
front of the United States Embassy office building site and between
in
the Bay of Panama and Avenida Balboa as it may be extended
between 37th and 39th Streets, will be preserved permanently as a
31.
park and not developed for commercial or residential purposes.
3. So long as the United States of America maintains in effect
ern-
not
those provisions of Executive Order No. 6997 of March 25, 1935 govern-
ally
ing the importation of alcoholic beverages into the Canal Zone, the
rices
Republic of Panama will grant a reduction of 75 percent in the
tial
import duty on alcoholic beverages which are sold in Panama for
importation into the Canal Zone pursuant to such Executive Order.
anal
4. In connection with the authorization granted to the United
pur-
States of America in Article VIII of the Treaty, the United States shall
nder
have free access to the beach areas contiguous to the maneuver area
ublic
described in said Article VIII for purposes connected with training
and maneuvers, subject to the public use of said beach as provided
on of
under the Constitution of Panama.
Zone.
The provisions of this Memorandum of Understandings Reached
items
shall enter into force upon the exchange of instruments of ratification
SS
of the Treaty signed this day by the United States of America and the
Republic of Panama.
r sale
nama
herica
goods,
tes of
nuing
prices.
n to a
neern-
goods
a may
om the
1 Zone
opera-
rks" as
tates of
tates of
of one
mous "
83-877 0-72-35
2
OF
PRINCIPLE
Joint Statement by the Honorable Henry A. Kissinger,
5. The Republic of Panama shall have a just and
Secretary of State of the United States of America, and His
equitable share of the benefits derived from the
Excellency Juan Antonio Tack, Minister of Foreign Affairs
operation of the canal in its territory. It is recognized
of the Republic of Panama, on February 7, 1974 at
that the geographic position of its territory constitutes
Panama.
the principal resource of the Republic of Panama.
The United States of America and the Republic of
6. The Republic of Panama shall participate in the
Panama have been engaged in negotiations to
administration of the canal, in accordance with a
conclude an entirely new treaty respecting the
procedure to be agreed upon in the treaty. The treaty
Panama Canal, negotiations which were made
shall also provide that Panama will assume total
possible by the Joint Declaration between the two
responsibility for the operation of the canal upon the
countries of April 3, 1964, agreed to under the
termination of the treaty. The Republic of Panama
auspices of the Permanent Council of the
shall grant to the United States of America the rights
Organization of American States acting provisionally
necessary to regulate the transit of ships through the
as the Organ of Consultation. The new treaty would
canal and operate, maintain, protect and defend the
abrogate the treaty existing since 1903 and its
canal, and to undertake any other specific activity
subsequent amendments, establishing the necessary
related to those ends, as may be agreed upon in the
conditions for a modern relationship between the two
treaty.
countries based on the most profound mutual respect.
7. The Republic of Panama shall participate with
Since the end of last November, the authorized
the United States of America in the protection and
representatives of the. two governments have been
defense of the canal in accordance with what is
holding important conversations which have permitted
agreed upon in the new treaty.
agreement to be reached on a set of fundamental
8. The United States of America and the Republic
principles which will serve to guide the negotiations in
of Panama, recognizing the important services
the effort to conclude a just and equitable treaty
rendered by the interoceanic Panama Canal to
eliminating, once and for all, the causes of conflict
international maritime traffic, and bearing in mind the
between the two countries.
possibility that the present canal could become
The principles to which we have agreed, on behalf
inadequate for said traffic, shall agree bilaterally on
of our respective governments, are as follows:
provisions for new projects which will enlarge canal
1. The treaty of 1903 and its amendments will be
capacity. Such provisions will be incorporated in the
abrogated by the conclusion of an entirely new
new treaty in accord with the concepts established in
interoceanic canal treaty.
principle 2.
2. The concept of perpetuity will be eliminated. The
new treaty concerning the lock canal shall have a
fixed termination date.
3. Termination of United States jurisdiction over
Panamanian territory shall take place promptly in
accordance with terms specified in the treaty.
4. The Panamanian territory in which the canal is
situated shall be returned to the jurisdiction of the
Republic of Panama. The Republic of Panama, in its
capacity as territorial sovereign, shall grant to the
United States of America, for the duration of the new
interoceanic canal treaty and in accordance with what
that treaty states, the right to use the lands, waters
and airspace which may be necessary for the
operation, maintenance, protection and defense of the
canal and the transit of ships.
2.
3
THE WHITE HOUSE
WASHINGTON
SECRET
June 5, 1970
National Security Decision Memorandum 64
TO:
The Secretary of State
The Secretary of Defense
The Secretary of the Army
SUBJECT:
Panama Canal
I have reviewed the paper propared in response to NSSM 86 and
agency comments on the issues contained therein, and I have dc-
cided the following:
1. 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 talks 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 to the contrary, that these not begin
SECRET
Nsc DECLASSIFIED 80086 12/30/84
By WHM NARS, 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 arc 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 canal 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 lincs of the 1967 draft
treaties or some similar arrangement.
c) On defense. Indicate that in any new negotiations we would
seek rights for unilateral defense of the canal and canal areas.
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 jurisdiction. 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 B).
SECRET
SECRET
- 3 -
c) On duration. Our objective should be an open-ended
arrangement; we should consider specific provision
for periodic review.
f) 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
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 Pabama
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
he 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 10 Recommendation B-2 of the NSC Under Secretaries
report, concerning jurisdiction over the Canal Zone, I have decided
that the initial United States negotiating objective should be to per-
mit U.S. jurisdiction to be phased out within a minimum of twenty
years while protecting non-regotiable ghts for U.S. control and
DEC: SIFIED
NSC 80086 12/30/84 12/19/84
SECRET /EXDIS
WHM
NARS, Date
ECRET /EXDIS
2
defense of the cana) 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 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 /EMDIS
SECRET - XGDS
THE WHITE HOUSE
WASHINGTON
August 18, 1975
National Security Decision Memorandum 302
TO:
The Secretary of State
The Secretary of Defense
SUBJECT:
Panama Canal Treaty Negotiations
After considering the views expressed by the Departments of State
and Defense concerning proposals for negotiating instructions on a
new United States-Panama Canal Treaty, I have decided to modify
the negotiating instructions contained in NSDMs 131 and 115 and to
supplement them as follows:
-- The negotiators are authorized to propose to the
Panamanians that the treaty duration applicable for defense be
separated from its application to operation of the Canal. With
regard to duration applicable to operation of the Canal, the United
States negotiators should seek to obtain the longest possible period,
to terminate not earlier than December 31, 1999. With regard to
duration applicable to defense of the Canal, they should seek to
obtain a minimum of 50 years, but are authorized to recede to no
less than 40 years. They should also make efforts to obtain a
right in principle for the United States to participate in Canal
defense, including a limited military presence in Panama, following
the expiration of the treaty period applicable to defense, such
participation to be of a nature and under terms to be agreed upon
between the parties not less than one year prior to the treaty's
expiration. As a fallback, if deemed necessary to achieve the
objective of an extended period for Canal defense or other critical
negotiating objectives, the Negotiators may offer a reduction of the
duration period applicable to Canal operation to a period of not less
than 20 years.
-- With regard to Canal expansion, the United States
Negotiators should seek to obtain the longest possible period up to
the termination of United States responsibility for operation for a
SECRET XGDS (3)
NSC DECLASSIFIED 80086 12/30/80
By WHM NARS, Date 12/19/84
SECRET - NGDS
2
United States option to exercise definitive and exclusive rights to
expand the Canal's capacity, whether by addition of a third lane of
locks or the construction of a sea-level canal. As a fallback, they
may seek to obtain -- either in lieu of or in combination with
definitive rights -- commitments that: (a) Panama will not permit
the construction of a sea level canal in its territory during the
period of United States control of the existing Canal unless it has
first offered to the United States the option to construct such a
canal. That option should be under terms and conditions which
would accord to the United States rights relating to operation and
defense commensurate with the due protection and enjoyment of a
United States investment of that magnitude; (b) no country other
than the United States or Panama shall have responsibility for
operation and defense of an interoceanic canal in Panama; and
(c) the neutrality guarantee applicable to the existing Canal will
apply to any new canal built in Panama.
-- With regard to land/water areas, the United States
Negotiators should seek to obtain Panama's acceptance of the United
States offer of January 18, 1975, modified by the addition of such of
the following areas as the Negotiators find necessary in order to
further our objectives:
- Cristobal Piers
- Land and Water Areas in Gatun Lake
GERALE FORD
- Fort Sherman jungle training area south of the
22nd grid
- Coco Solo, Fort Randolph and access to them via
Randolph Road
- Portions of the Albrook/Clayton Training Areas
If agreement is not possible on the basis of these offers, the United
States Negotiators should request further instructions from the
President.
SECRET NOT XGDS
SECRET XGDS
3
-- With regard to the negotiating process, the United States
Negotiators should seek to obtain Panama's agreement that the
negotiations will remain confidential so that the Panama Canal issue
will not be injected into the domestic political process in the United
States in 1976.
-- With regard to the resumption of negotiations, the United
States Negotiators should proceed promptly to continue their task.
-- With regard to the creation of a favorable national
environment for treaty ratification, the Departments of State and
Defense should join in regular consultations with the Congress on
the course of treaty negotiations and should initiate an effort to
build support for a new treaty with Panama.
Herald R.70rd
cc:
The Chairman, Joint Chiefs of Staff
The Director of Central Intelligence
The Chief Negotiator for the Panama Canal Treaty
SECRET XGDS
SECRET/EXDIS
8
State Fallback Position:
Ambassador Anderson should be provided flexi-
bility as regards: (1) the time period for the phase-
out of US jurisdiction in the Canal Zone; (2) the
specific jurisdictional rights that the US would retain
in the phaseout period and (3) the rights, privi-
leges and immunities that the US would retain for the
duration of the treaty after jurisdiction is phased
out. The United States position on these matters
should be the maximum that Ambassador Anderson can
successfully negotiate with the Government of Panama
consistent with an orderly transfer of jurisdiction to
Panama,
and Congres-
sional acceptance.
B
Approve
Disapprove
3. CONTROL
(a) The first negotiating objective should be
continued exclusive US control of cahal operations.
(b) The fallback US position should be an arrange-
ment whereby the US retains control of canal operations
with Panamanian participation in the canal organization.
Approve
Disapprove
4. DEFENSE
(b) Other Military Activities
SECRET/EXDIS
DECLASSIFIED E.O. 12356, Sec. 3.4
With PORTIONS EXEMPTED
E.O. 12356, Sec. 1.3 (a) (5)
MR 89.37,#21 State ltr. 6/1/90
By KBH NARA, Date 7/3/90
SECRET/EXDIS
9
Approve
Disapprove
5. AREAS
(a) Retention and Relinquishment of Areas
No specific areas will be advanced by the US as
being available. In response to Panama's statement
as to what areas it wishes to have, we will be as
forthcoming as possible in terms of what we regard as
essential for
operation of the canal,
its supporting facilities, and other agreed upon US
Government activities.
Approve
Disapprove
(b) Status of Base/Defense Areas
Approve
Disapprove
6. EXPANDED CANAL CAPACITY
a. Third Locks
The US negotiating objective should be to retain
the right, without obligation, to add a third lane of
locks to the existing canal.
Approve
Disapprove
SECRET/BXDIS
SECRET/BHDIS
10
b. Sea-level Canal
The first US negotiating objective should be
to obtain definitive rights, without obligation, to
construct, operate, and defend a conventionally ex-
cavated sea-level canal on Route 10.
Our fallback position should be that, in the event
Panama refuses to grant a definitive option for a sea-
level canal, we should re-evaluate our position in
light of other aspects of the negotiations existing
at the time.
Approve
Disapprove
7. ECONOMIC BENEFITS
There should be substantially increased income
for Panama from the canal operations, even though this
may involve a significant increase in tolls, and from
the opening up of commercial opportunities to Panama
in the canal area.
Approve
Disapprove
C. The Under Secretaries Committee recommends that
Congressional consultations be initiated as soon as possible
to test support for a treaty along the lines you approve.
Approve
Disapprove
D. The Under Secretaries Committee recommends that
you continue to be closely and periodically informed as to
the state of negotiations and Congressional consultations.
Approve
Disapprove
E. The Under Secretaries Committee recommends that
you forward to Ambassador Anderson the proposed reply to
his letter of April 12, 1971 (attached).
Approve
Disapprove
SECRET/EXDIS
THE WHITE HOUSE
WASHINGTON
September 13, 1971
National Security Decision demorandum 131
TO:
The Secretary of State
The Secretary of Defense
SUBJECT:
Panama Canal Treaty Negotiations
I have reviewed Ambassador Anderson's letter of August 20, 1971, as
well as the views of the Departments of State and Defense concerning
modification of Ambassador Anderson's negotiating instructions on
duration of a new treaty as set forth in NSDM 115. On the bacis 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 open-ended treaiy, is willing to consider the
possibility of a 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 is expanded.
In addition, he should seek to obtain, as part of any new
treaty providing a formula or specific date for termination,
a joint U.S. -Patamanian guarantee that upon termination of
the treaty, the Canal would be open to all world shipping
without discrimination at reasonable so 11a 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
WHM NARS, Date 12/19/84
SECRET/EXDIS
w 2 -
Congressional consultations should be continued to test support for A
treaty 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/I. DIS