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of the proposed treaties and their minutes, notes and subordinate agreements would remain in full force and effect.

3. The treaties should be amended further to provide that Panama agrees that she will not grant or accord to any other nation any military, naval or air bases in Panama or in Panamanian waters and that she will not permit the stationing of naval, air or military forces or of quasi or paramilitary forces of any other nation in Panama or of such individuals or units, other than individual diplomatic personnel, except as agreed to by the United States during the transition period ending December 31, 1999.

4. Article XII, paragraph 2(b) should be deleted.

The United States should be free to negotiate for and build an Isthmian Canal if it so desires outside of Panama.

5. The neutrality treaty should be amended to make clear that the United States may take such measures as it believes necessary for the defense of the Canal at any time after the year 2000 and to this end as in the case with other friendly countries, Panama should in the mutual defense interest of the parties, provide after the year 2000 air, naval and military bases in order to give meaning to the defense of the Canal following its surrender at the start of the year 2000.

6. The treaties should be further amended for the payment of an increased annuity to Panama during the transition period but no other payments should be made. Accordingly, Article XIII, paragraph 4, should be deleted.

7. Specifically, the protocol of 1914 which provides the United States with treaty rights to deny belligerent ships of any class or nature, whether warships supporting logistic ships, maintenance ships, fleet trains, etc. the use of the waters of Panama and of the Canal, should remain in full force and effect. To this end, the treaty should be amended so as to strike the provisions by amending Article I, paragraph 1, as follows:

Strike the words "Upon its entry into force," and sub-
stitute there for "On January 1, 2000."

Strike Articles III, IV, V, VII, VIII, IX.

Amend Article X by striking paragraph 1 thereof and substituting therefor the following: "During the transition

period ending December 31, 1999, the United States agrees
to provide for an orderly phasing-in to all positions
of Panamanians so that as of January 1, 2000 all opera-
tions will be conducted by Panama and by Panamanian
employees or other personnel hired by Panama. To this
end, the United States will progressively establish
during the transition period employment and labor regu-
lations which will contain terms, conditions and pre-
requisites for all categories of employees of the Panama
Canal Company whose positions will be fully absorbed when
the Panama Canal Company ceases to exist on January 1, 2000."
The foregoing amendments necessitate in addition that the
following additional amendments be made in order that all
remaining provisions be compatible with each other:

Strike Paragraph 8 of Article X

Strike from Paragraph 9 of Article X the words "Panama Canal Commission" wherever it appears therein or elsewhere in the treaty and substitute "Panama Canal Company."

Strike Article XI

Strike Article XII

Strike Article XIII

8. Add an additional Article providing that all minutes, executive agreements, implementation agreements, letters of understanding and all other understandings associated with the pending treaties, including the agreements and implementation of Article III and Article IV are to be set forth in detail as an attachment to the proposed treaties and incorporated by reference in the Panama Canal Treaty so that any and all amendments to any of the foregoing will require the advice and consent of the Senate of the United States of America.

V. RECAPITULATION

A. While the treaty of 1903 was not signed by a Panamanian as
Torrijos stated during the signing ceremonies in the Pan
American Union on September 7, 1977, it was signed by a
duly appointed Minister Extraordinary and Plenipotentiary

designated by the government of the New Republic of Panama, namely Philippe Bunau-Varilla. The Panamanian government ratified the treaty December 2, 1903. The United States Senate did not ratify it until February 23, 1904.

B. Thereafter, Tomás Arias, the Secretary of the new government of Panama sent a note to the United States government:

"The Government of the Republic of Panama considers
that upon the exchange of ratifications on Febru-
ary 26, 1904 of the treaty for opening an inter-
oceanic canal across the Isthmus of Panama, its
jurisdiction ceased over the Zone."

C. As cited above, in 1907 the U.S. Supreme Court ruled that the Canal Zone was "ceded" and that the United States owned it absolutely.

D. The presence of the U.S. Naval forces off of Colon and Panama City were to prevent the landing of Colombian troops. No United States troops were landed. Panama was neither under duress nor coerced. It sought independence and avidly sought the treaty. In fact, some Colombian troops joined the Panamanians.

E. In 1936 and 1955, the 1903 treaty was expressly reaffirmed in further treaties which made certain minor adjustments to the treaty of 1903. The amendatory treaties were duly ratified.

F. One expects remarks from Torrijos such as he made during the September signing ceremonies that "United States recognized the need to correct an error instead of prolonging for an eternity an injustice and to correct an historical mistake." This is the kind of language he uses to fire up his people.

What error? What injustice? What historical mistake? Where would Panama be today were it not for the events of 1903? Probably still a part of Colombia. If thinking Panamanians were really aware of their history, they would feel gratitude toward the United States. Both Panama and Colombia have derived tremendous benefits from the Canal. So has the rest of the world.

G. Shortly after the Wilson Treaty with Colombia mentioned above which was not ratified until 1922, and sometime during 1923, Charles Evans Hughes, then Secretary of State, said

"It is an absolute futility for the Panamanian
government to expect any American administration,

no matter what it is, any President, or any
Secretary of State, ever to surrender any part
of these rights which the United States has
acquired under the treaty of 1903."

H. Closing Summary

Congress in 1902 in the Spooner Act empowered President Roosevelt to acquire from Colombia land across the Isthmus of Panama for a ship canal if Colombia would grant perpetual control.

A treaty for a 10-mile wide zone was negotiated by the
plenipotentiaries of Colombia and the United States but
the Colombian Senate rejected the treaty in August of
1903 for several reasons cited heretofore.
Later on,
when it was too late, Colombia wanted to accept it.

On November 3, 1903, Panama, a restless province of Colombia, started a revolution, wholly bloodless as it turned out. President Roosevelt, to protect the Panama Railroad and to protect American citizens from imminent violence, kept Colombian troops at a distance with a nearby show of gunboats and marines. No United States forces were landed. Some Colombian troops joined the revolution.

A new Panamanian government was formed on November 4, 1903.
Two days later, on November 6, 1903, Secretary of State
John Hay officially recognized the Republic of Panama.
No pressure whatsoever or of any kind had been put upon
Panama by the United States.

On November 18, 1903, Secretary Hay concluded and signed a treaty with the Panamanian Minister Extraordinary and Plenipotentiary in Washington, D. C. on substantially the same terms and on identical money terms previously offered Colombia. It guaranteed the independence of

Panama.

The treaty was unanimously ratified by the new Panamanian government on December 3, 1903; the U.S. Senate gave its advice and consent to the treaty on February 23, 1904.

The United States under the treaty paid $10 million
for the 10-mile wide zone across the Isthmus and an
annuity for the right to operate the Panama Railroad
(as explained heretofore not in any sense rent) of
$250,000. This annuity was increased in a 1955 treaty
to $2,300,000. The treaty describes the zone as
"lands granted" to the United States. Panama has
repeatedly stated that the zone was "ceded."

The U.S. Supreme Court in 1907 ruled the Canal Zone
was ceded and that the United States had perfect title.

Under Articles VI and XV of the 1903 treaty through
a Joint Commission, the United States bought the land
from the owners of the land within the Zone and
acquired title in all cases in fee simple. Substantial
amounts of money were paid to these owners.

Having first rendered the disease-infected Canal
Zone habitable by a three-year sanitation program
that conquered both the death-dealing yellow fever
and malaria (largely) the United States completed
the Canal in 1914 at a then cost of $366,650,000.
The first ship passed on August 3, 1915. The United
States has an investment there now of approximately
$6 billion.

In 1922, Colombia, the nation that felt aggrieved by the events of 1903, made a complete settlement fully adjusting all differences in a treaty negotiated during the Wilson administration and ratified in 1922 for which the United States paid Colombia $25 million.

Before closing, I comment on the report concerning the alleged bugging of the Panamanian negotiations. There was no finding that such did NOT occur. If it did and if pressure was applied by the Panamanians to Bunker and Linowitz upon discovery of the bugging by the Panamanians, who could be naive enough to suppose that either Bunker or Linowitz would reveal that they have been blackmailed into proposing the pending treaties and implementing agreements in their present form? Incidentally, the latter can

be freely amended so as to modify the treaties themselves once the treaties are ratified.

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