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PANAMA CANAL TREATY
(DISPOSITION OF UNITED STATES TERRITORY)

HEARINGS

BEFORE THE

SUBCOMMITTEE ON SEPARATION OF POWERS

OF THE

COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE

NINETY-FIFTH CONGRESS

FIRST SESSION

PART 3

SEPTEMBER 8; OCTOBER 13 AND 28;

NOVEMBER 3 AND 15, 1977

Printed for the use of the Committee on the Judiciary

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1977

20-266 O

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C. 20402

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COMMITTEE ON THE JUDICIARY

JAMES 0. EASTLAND, Mississippi, Chairman JOHN L. MCCLELLAN, Arkansas

STROM THURMOND, South Carolina EDWARD M. KENNEDY, Massachusetts CHARLES McC. MATHIAS, JR., Maryland BIRCH BAYH, Indiana

WILLIAM L. SCOTT, Virginia ROBERT C. BYRD, West Virginia

PAUL LAXALT, Nevada JAMES ABOUREZK, South Dakota

ORRIN G. HATCH, Utah
JAMES B. ALLEN, Alabama

MALCOLM WALLOP, Wyoming
JOSEPH R. BIDEN, JR., Delaware
JOHN C. CULVER, Iowa
HOWARD M. METZENBAUM, Ohio
DENNIS DECONCINI, Arizona

FRANCIS C. ROSENBERGER, Chief Counsel and Staf Director

SUBCOMMITTEE ON SEPARATION OF POWERS

JAMES B. ALLEN, Alabama, Chairman ROBERT C. BYRD, West Virginia

ORRIN G. HATCH, Utah
JAMES 0. EASTLAND, Mississippi

WILLIAM L. SCOTT, Virginia
QUENTIN CROMMELIN, Jr., Chief Counsel and Staff Director

Dr. JAMES MCCLELLAN, Minority Counsel

PAUL GULLER, Editorial Director
MELINDA CAMPBELL, Chief Clerk

ANN SAUER, Assistant Clerk
DEIRDRE HOUCHINS, Research Assistant

CONTENTS

Page

7

7

Allen, Chairman James B., opening statements.-

1, 191, 221, 299, 421
Crane, Hon. Philip M., a Representative in Congress from the State of
Illinois.

57
Roberts, Maj. Gen. J. Milnor, USAR, Retired, executive director, Reserve
Officers Association of the United States.---

83

Canada, Hon. A. Joseph, Virginia State Senator.

201

Bendetsen, Karl R., First Chairman, Panama Canal Company

253

Rice, Charles E., professor of law, University of Notre Dame

300

Berger, Raoul, author of “Executive Privilege” and “Government by

Judiciary"

342

CONTENTS—Continued

Page

18

MATERIAL SUBMITTED FOR THE RECORD

World Maritime Choke Points and United States and Soviet Fleets...

Letter to President Carter from Senator Jesse Helms, dated August 12,

1977, concern with State Department proposals. -

“Panama Canal Giveaway: A Latin American's View”, by Mario Lazo.-

Bulletin: The American Legion, National Security-Foreign Relations

Division, July-August 1977.

Fact Sheet: Department of State. Basic elements of the agreement in

principle on the new Panama Canal Treaties...

Proposed treaties: Treaty Concerning the Permanent Neutrality and

Operation of the Panama Canal.

Memorandum from Senator Hatch to the U.S. Senate Steering Committee,

in response to White House memorandum.

Resolution drafted by the Virginia Port Authority. Concern over the need

to protect the continued use of the Panama Canal for free world shipping-

Senate Joint Resolution 51, Virginia General Assembly. Expressed concern

over encroachments upon the sovereignty of the Panama Canal.---

Letters to the President of the United States, Members of Congress, and

the Secretary of Commerce, from Edward S. Reed, chairman, Mid-Gulf

Seaports Marine Terminal Conference, and Robert C. Engram, presi-

dent, Gulf Ports Association -

Chapter 5, Presidential Powers: Foreign Relations from Professor Berger's

book “Executive Privilege: A Constitutional Myth”.

Questions submitted by Chairman Allen to the State Department:

Herber J. Hansell, legal adviser to the Secretary of State-

Richard N. Cooper, Under Secretary of State for Economic Affairs -

Sworn statements of Leland L. Riggs, Jr., retired Special Agent in Charge

of the U.S. Drug Enforcement Administration, dated December 1, 1977-

PANAMA CANAL TREATY

(DISPOSITION OF UNITED STATES TERRITORY)

PART 3

THURSDAY, SEPTEMBER 8, 1977

U.S. SENATE,
SUBCOMMITTEE ON SEPARATION OF POWERS,
COMMITTEE ON THE JUDICIARY,

Washington, D.C. The subcommittee met, pursuant to recess, at 10 a.m., in room 1318, Dirksen Senate Office Building, Hon. James B. Allen of Alabama (chairman of the subcommittee) presiding.

Present: Senators Scott of Virginia and Hatch of Utah.
Also present : Senator Jesse Helms of North Carolina.

Staff present: Quentin Crommelin, chief counsel and staff director; Dr. James McClellan, professional staff (minority) ; Paul Guller, editorial director; and Melinda Campbell, chief clerk.

OPENING STATEMENT OF CHAIRMAN ALLEN

Senator ALLEN. The committee will please come to order.

The Subcommittee on Separation of Powers of the Judiciary Committee is convened this morning to continue the subcommittee's investigation of constitutional issues arising out of the new proposed Panama Canal Treaties. I am certain that most of those present this morning are aware of the central constitutional issue under investigation; however, perhaps I should again reiterate the proposition which is the focal point of this inquiry.

Article IV, section 3, of the Constitution of the United States provides that Congress "shall have power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the United States.” The power given to Congress in that clause appears to be exclusive and, if it is an exclusive power, then the Executive is prohibited from entering into a treaty disposing of U.S. territory except with express congressional authorization; that is, statutory authorization by both Houses of Congress in addition to separate Senate approval through the treaty ratification process.

Additionally, members of the subcommittee are also deeply concerned that the executive department has reached certain financial agreements with the Panamanians for substantial financial assistance outside of the context of the provisions of the treaty itself. These financial agreements, if not embodied in the treaty, will not be subjected to

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