around the Horn. Since the Canal runs at a $7 million deficit, we ask whether the American taxpayer is going to pay directly into the coffers of the new US Government Corporation that replaces the Canal Company? If such is to be the case, we have a case of a direct payment to Panama using the treasury of the Canal Corporation as a laundry or conduit. We should also examine the Inflationary Impact of increased Canal tolls on our own economy, which needs no Inflationary pressures, and those of our neighbors to the South who need inflation even less. frivolous. In summary, we find no good reason to give up the Canal and its Zone, and the pro-treaty arguments are unsound, fallacious or Finally, we wish to point out that this treaty appears to be a form of appeasement in phases. It appears to be appeasement to a conjured threat of a Panamanian Viet Cong; a threat which is more spectre than substance. We know, and the world knows, that appeasement, even the appearance of appeasement is too tempting a morsel to the hungry hounds of war. It is also particularly humiliating to the American public to appease anyone so soon after our misfortunes in Vietnam and Angola. We caution the Senate to examine carefully the exact wording of this treaty and the subtle nuances of the words used therein that describe our rights to keep the Canal open, accessible, efficient, and under our control. Senator ALLEN. We are now going to recess subject to further call by the Chair. We are going to hold additional hearings. We feel that the committee is an appropriate forum for the expression of views by leading citizens of our country for or against the treaty and on both sides of the constitutional issues. We invite any representatives of the country to make arrangements with the staff for possible appearance before the committee to express views for or against the treaty, for or against the proposition that the entire Congress, in addition to action by the Serrate on the treaty, take action with respect to the disposition of the property of the United States in the Isthmus of Panama. The administration has suggested that an educational campaign will be undertaken to sell the idea of the treaty to the American people. We feel that this subcommittee, as I have stated, is an appropriate forum for this educational effort. We do not know when the treaty is going to be presented to the floor of the Senate or when it will be acted on or when hearings will be held by appropriate committees. I understand the Committee on Armed Services has set hearings on the military aspects of the treaty. I am sure that the Committee on Foreign Relations at an early date will also set hearings. We believe that we cannot have too many forums for the expression of views by citizens on this important issue. So we do welcome expression of views on both sides of all of these important questions. Senator HATCH. Mr. Chairman, I certainly agree with you, especially on these constitutional issues. We have actually offered a challenge to anybody who can refute these constitutional points. We would like to hear from you. It is a matter of great importance. Also I second your statement, Mr. Chairman, that we would like to hear people on both sides of every one of these issues because it is going to help everybody concerned if we do. I have one other observation, Mr. Chairman. I am hoping that Mr. Solomon of the Treasury Department, who did not show up, will again be asked to appear before this subcommittee. Apparently we have not been able to get him. I think his testimony is crucial. Senator ALLEN. Very well. At such time as we have a quorum of the subcommittee present, this matter will be considered further. But in the meantime we will ask the staff to make a stronger effort to obtain the presence of this witness from the Treasury Department. Senator HATCH. I appreciate that and I think we should look into that. In the interest of presenting both sides of this issue I would ask unanimous consent that the August 15, 1977, Department of State factsheet containing the basic elements of the Panama Canal Treaty be incorporated in the record at this time, and that the proposed treaties be incorporated into the record at this time as well as the miriad accompanying documents. I also ask unanimous consent that a memorandum prepared by my office to the Senate Steering Committee concerning misrepresentations by the administration as to the Panama Canal be inserted into the record at this time. Senator ALLEN. Without objection, these insertions in the record will be made. Senator HATCH. Thank you, Mr. Chairman. Senator ALLEN. Thank you. The subcommittee will stand in recess subject to the call of the Chair. We will probably have another meeting within a week or 10 days. [Whereupon, at 2:55 p.m., the meeting was recessed.] [Aforementioned material was subsequently supplied for the record:] Department of State FACT SHEET August 15, 1977 Basic Elements of the Agreement, in Principle Defense and National Security. The United States will have primary responsibility for the Canal's defense during the basic Treaty's term (until the year 2000). Panama will participate, and at the treaty's end our military presence will cease. A Status of Forces Agreement similar to such agreements elsewhere will cover the activities and presence of our military forces. The United States will continue to have access to and the rights to use all land and water areas and installations necessary for the defense of the Canal during the basic treaty period. - In a separate treaty Panama and the United States will maintain indefinitely a regime providing for the permanent neutrality of the Canal including non-discriminatory access and tolls for merchant and naval vessels of all nations. United States and Panamanian warships will be entitled to expeditious passage of the Canal at all times without regard to the type of propulsion or cargo carried. Our continuing freedom of action to maintain the Canal's neutrality will not be limited by the Treaty. Canal Operations. - The United States will have responsibility for Canal operations during the period of the basic Treaty. It will continue to have access to and the rights to use all land and water areas and facilities necessary for the operation and maintenance of the Canal during the basic Treaty period. 20-266 - 78 - 7 It will act through a United States Government agency which will replace the Panama Canal Company. A policy level board of five Americans and four Panamanians will serve as the Board of Directors. Until 1990, the Canal Administrator will be an American and the Deputy Administrator a Panamanian. Thereafter, the Administrator will be, Panamanian and the Deputy, American. Panamanian board members and the Panamanian Deputy Administrator/Administrator will be proposed by Panama and appointed by the United States. Panamanians will participate increasingly in the Canal's operation at all levels. Economic Factors. The treaty's financial provisions involve no congressional appropriations. Instead, during the treaty's life Panama will receive exclusively from canal revenues: an annual payment from toll revenues of 30 cents (to be adjusted periodically for inflation) per Panama Canal ton transiting the Canal. a fixed sum of ten million dollars per annum and an additional 10 million per year if canal traffic and revenues permit. In addition the United States will cooperate with Panama outside the treaty to promote Panama's development and stability. To this end, the United States has pledged its best efforts to arrange for an economic program of loans, loan guarantees and credits which would be implemented over the next several years under existing statutory programs. This economic cooperation program would use up to $200 million in Export-Import Bank credits, up to $75 million in AID houşing guarantees, and $20 million in Overseas Private Investment Corporation (OPIC) loan guarantees. Panama will also receive up to $50 million in foreign military sales credits over a period of ten years,under existing statutory programs, to improve Panama's ability to assist in the Canal's defense. |