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Politically, human rights under Torrijos are no better than they were under Hitler during the 1930s and yet by supporting this Treaty, our United States Government is propping up a dictatorship. Worse yet, our government is forcing Americans to live under totalitarian rule and abide by its laws and decrees. That's what World War II was all about.

The pressures the White House can bring are enormous as all of us know. The resources at the President's disposition almost defy our collective imagination. The recent Treaty signing festivities were an example of Presidential style and substance. We in the Legion, while recognizing the awesome power of the Presidency and the Executive bureaucracy, also believe that the ultimate power in the United States resides with the people-with people like our members.

I will close with one question-if this Treaty is basically good for the United States, why does the Administration have to make such an effort to prove to Americans that it is in our national interest? Those of you in the House who return to your districts every two years, know what the people back home are thinking. You know the Legion Posts and grass roots opinion runs about 80 percent against the giveaway.

We believe this proposed Treaty will ultimately be decided by the people. We believe this is one defeat the United States can avoid. It is a loss we need not accept and you can count on The American Legion Posts to stand firm.

59TH NATIONAL CONVENTION OF THE AMERICAN LEGION, DENVER, COLO.,
AUGUST 23-25, 1977

Committee: Foreign Relations.
Subject: "Panama Canal."

RESOLUTION NO. 445

Whereas, the United States is the rightful and legal owner of the U.S. Canal Zone and the Panama Canal, having acquired this U.S. property through court tested treaties and agreements and mutually agreed upon payments to Colombia, Panama and the individual land and property owners; and

Whereas, the United States Supreme Court has ruled that the United States is legally entitled to sovereignty and ownership of the U.S. Canal Zone for the purpose of building, operating, protecting and maintaining a canal across the Isthmus; and

Whereas, the United States has lived up to its obligation under the Treaty to the letter of the law; and

Whereas, the political, economic and the military factors offer conclusive evidence that it is in the vital national interest of the United States to retain sovereignty and ownership of the U.S. Canal Zone and Canal; and

Whereas, over three-fourths of our American citizens consistently voice their opposition to any kind of "giveaway" or dilution of U.S. sovereignty over this territory; and

Whereas, the United States as leader of the free world has a moral obligation to remain fair, firm and strong when faced with political blackmail; and Whereas, surrender of the U.S. Canal Zone would be tantamount to a major military defeat with enormous consequences for evil; now, therefore, be it

Resolved, by The American Legion in National Convention assembled in Denver, Colorado, August 23. 24, 25, 1977, that we reiterate and reaffirm our continuing and uncompromising policy in opposition to any new Treaties or Executive Agreements with Panama, relating to the U.S. owned Panama Canal and its protective frame of the U.S. Canal Zone as expressed and set out in separate resolutions adopted consecutively at each annual American Legion National Convention since the Miami Convention in 1960; and, be it further Resolved, that we strongly urge all elected members in the U.S. Congress to oppose any new treaty with the government of Panama which: (a) in any way dilutes full U.S. sovereignty, ownership and control: (b) cedes U.S. territory or property; (c) surrenders any jurisdiction and control which would threaten the economic and security interests of the United States: and, be it further

Resolved, that The American Legion rejects the actions of the Executive agencies of the federal government in attempting to by-pass the Constitution of the United States, and we fully support Article IV. Section 3. Clause 2, of the Constitution which provides that only the Congress has the authority to dispose of U.S. Territory.

THE AMERICAN LEGION, Washington, D.C., August 15, 1977.

THE PRESIDENT,

The White House,
Washington, D.C.

DEAR MR. PRESIDENT: AS 25,000 members gather here in Denver for the 59th National Convention of The American Legion, the most urgent issue before us as citizens is the threatened give-away of the Panama Canal. I have seen a copy of your telegram to Members of Congress asking approval of the "conceptual agreement" with Panama. You emphasize your interest in the public's attitude. We in The American Legion believe that such an agreement is contrary to our national interest.

Mr. President, no conceptual agreement serves the public's interest when it gives the U.S. Canal Zone to the government of a dictator whose tenure is tenuous and whose methods are arbitrary. You know, as do our members, that once you give away sovereign ownership and control in any new Treaty, Gen. Torrijos can do as he wishes. The way would be open to nationalization of the Zone and the Canal. Torrijos could then do as he pleases about changing tolls, about denying transit to individual ships or to individual nations, about changing defense agreements, and about changing his mind on any aspect of a voluminous Treaty.

The history of totalitarian regimes has taught us that dictators reserve the right to change their minds with or without the consent of the governed. Once we say Torrijos owns the Canal, the Treaty papers can be sent to the shredder. Furthermore, the record of the Torrijos government on such matters as human rights, fair labor practice, nationalization of American properties and financial stability, causes deep concern to our members.

According to judgments of the Supreme Court, the United States does have legal sovereignty for the purpose of building, operating, protecting and sanitating in perpetuity a canal across the Isthmus. The Supreme Court's language is precise. The U.S. Government and our taxpayers have fulfilled our obligations under the Treaty to the letter of the law and beyond, giving Panama the highest per capita income in all Central America.

Legionnaires are convinced that vital security interests of the United States will be sacrificed by the proposed treaties. Four former Chiefs of Naval Operations and one former chairman of the Joint Chiefs of Staff have cited the harm such an agreement could bring. Mr. President, the admirals' words are clear and unmistakable. They are based on four decades of strategic study and loyal service to our nation.

The 59th National Convention of The American Legion urges you to reconsider your decision to give this U.S. property to the Torrijos government. Such an action would threaten the military security of the United States, Latin America, and, indeed, all maritime nations.

Mr. President, the Panama Canal is one of the vital geo-political assets of the Free World, a world Gen. Torrijos and Fidel Castro view with contempt. To lose such an asset to such men would be the equivalent of a major U.S. military defeat with possible catastrophic consequences.

Mr. President, there is a solution for the Canal. Let us put aside political rhetoric and commission a major modernization of the Canal under full U.S. sovereignty to benefit the United States, all maritime nations and especially the people of Panama.

Sincerely yours,

WILLIAM J. ROGERS,
National Commander.

STATEMENT BEFORE THE SUBCOMMITTEE ON SEPARATION OF POWERS, COMMITTEE ON THE JUDICIARY ON THE HEARING ON PANAMA CANAL TREATY, WASHINGTON, D.C., SEPTEMBER 30, 1977

1

(Remarks by Herbert R. Haar, Jr., Port of New Orleans, on Behalf of the Gulf Ports Association, Inc., Mid-Gulf Seaports Marine Terminal Conference and the Port of New Orleans)

I am Herbert R. Haar, Jr., Associate Port Director, Port of New Orleans, and I am presenting this statement on behalf of the Gulf Ports Association, Inc. (GPA), the Mid-Gulf Seaports Marine Terminal Conference, and the Port of New Orleans.

Six states and twenty-three individual ports are represented by the Gulf Ports Association, Inc. Collectively these ports are moving 38 per cent of all waterborne commerce in the Nation-over $30 billion in world trade. These ports also export over one-half of all grain exported from the United States of which approximately one-third moves overseas via the Panama Canal. Additionally, the Port of New Orleans is the number one importer in the U.S. of iron and steel products and 87 per cent of these imports arrive via the Panama Canal, United States Customs revenues collected from Gulf ports amounted to more than $450 million in 1975. Telegrams sent to the President and all Members of Congress by the President of the Gulf Ports Association and the Chairman of the Mid-Gulf Marine Terminal Conference (Ports of Baton Rouge, Beaumont, Galveston, Gulfport, Houston, Lake Charles, Mobile, New Orleans and Orange) on September 28, 1977, in opposition to proposed increased tolls under the new treaty are attached for the record to this statement.

Considering the fact that the ports which belong to the Gulf Ports Association, Inc. have invested approximately one billion dollars in facilities to accommodate trade and United States revenue collections of such magnitude, it is deemed proper that these same ports should have a voice in the final terms approved for the new Panama Canal treaty.

It is not merely a local adverse economic impact with which we are concerned. We feel that new major increases in Panama Canal tolls will have an adverse financial impact on the interior of the country, on international business, on our balance of foreign trade and on our energy problems-all of which are of national concern. We, at the Port of New Orleans, and throughout the State of Louisiana are keenly aware of the adverse economic impacts which will accompany further Panama Canal toll increases because we sit at the crossroad of America's inland waterway system.

The Port of New Orleans, due to its geographical location near the mouth of the Mississippi River and at the crossroads of the Gulf Intracoastal Waterway services the mid-continent of North America. Historically, it has gathered the products of mid-America and shipped them overseas in deep draft bottoms and in return, distributed the products from overseas to the industries and cities of the mid-continent. Its geographical location makes it the natural gateway for the commerce of mid-America and also makes it logistically all important in times of war and imposes on it major defense responsibilities.

In order to put the Mississippi River System into perspective, let's look at some statistics. The U.S. port industry handles approximately 1.8 billion tons of commerce annually. The total tonnage of commerce moved on inland waterways is approximately 600 million tons annually. The net inland traffic on the main channels and all tributaries of the Mississippi, Illinois, Missouri, and Ohio Rivers is 300 million tons annually. Inland traffic on the Gulf Intracoastal Waterway, which connects with the Mississippi River at New Orleans, annually exceeds 100 million tons.

The inland waterway system described above connects to an oceangoing transportation system 200 miles from the Gulf on the Mississippi River at Baton Rouge, Louisiana. Below Baton Rouge the river has natural depths exceeding 120 feet 1 "The Nicaragua Canal Story" by Mr. Haar on p. 479.

and widths exceeding 2,000. In this stretch of the Mississippi River, we find the Port of Baton Rouge, fourth largest in the nation, and the Port of New Orleans, second largest in the nation. Traffic in this oceangoing segment of the Mississippi River System is intense. In 1975, traffic on the Mississippi River from Baton Rouge to but not including New Orleans totaled 201,600,768 tons and traffic on the Mississippi River from New Orleans to the mouth of passes (Gulf of Mexico) totaled 203,134,329 tons. Thus the total traffic on the oceangoing portion of the Mississippi River System in 1975 was 405 million tons, which is equivalent to twothirds (%) of the total U.S. inland waterborne commerce. In 1975, the value of the trade on the lower Mississippi was $19 billion. In 1975, there were 13,366 oceangoing vessels and over 90,000 barges moving on waterways through the New Orleans Area. The total value of all foreign trade in the lower Mississippi is $19 billion (export and import). The major commodities are grain, petroleum and petroleum products, iron and steel, machinery and paper.

The estimated $22 billion worth of agricultural commodities and products exported during the fiscal year ending June 30, 1976, is a tribute to the energy, sales ability and traditional trading spirit of the American agricultural community.

Exports provide markets for nearly 60 per cent of the U.S. annual wheat crop; 55 per cent of the rice; half of the soybeans; more than one-third of the cotton and tobacco; and one-fourth of the feed grains we produce.

About one-fifth of 1975 farm cash receipts resulted from agricultural exports. Production from nearly one out of every three harvested acres is sold abroad. Because of balance of payment requirements, U.S. land devoted to export crops and livestock is increasing by millions of acres annually.

The vast network of support and service companies and organizations that link American farms to consumers beyond our borders benefits from exports. Businesses that include agricultural machinery and chemicals manufacturers; the packaging and container industries; the transportation system; international banks; forwarders; brokers; and the small army of marketers, promotion specialists; and commercial representatives who travel the world probing for new or expanding markets for American farm products, all benefit from exports. Every additional billion dollars realized from an export sale generates 50,000 additional jobs here at home.1

Movement of a substantial portion of the total annual agricultural exports to world markets occurs via ports on the Gulf of Mexico.

It is strongly recommended that the Senate not ratify the new proposed Panama Canal treaty unless it is amended so that there will not be an adverse economic impact on American shipping and the American consumer. We strongly feel that our foreign trade and balance of payments cannot stand, without major adverse impacts to the national interest, the reported 30 per cent increase in tolls for the Panama Canal after ratification of the subject treaty. In event the Senate sees fit to ratify this treaty then we recommend that it does so with the stipulation that tolls will not be increased to pay the non-operations costs portion of the new increased annual payments to be made to the Government of the Republic of Panama.

MID-GULF SEAPORTS,
MARINE TERMINAL CONFERENCE,
New Orleans, La., September 28, 1977.

To: The President of the United States, The Members of the Congress, and the
Secretary of Commerce.

Mr. President, Congressmen and Madame Secretary: The members of the MidGulf Seaports Marine Terminal Conference, whose facilities handle annually over 13,600 ocean-going vessels engaged in international trade and commerce most strongly urge and request that the Panama Canal Treaty not be ratified until and unless provisions are made to limit tolls and charges at the Panama Canal to that level needed to defray operating, maintenance and capital costs of said facility, and that the Maritime Trade and Commerce of the United States of America not be burdened with the costs of international diplomacy, expenses that are completely unrelated to the economic cost of providing cross-isthmus passage of vessels and cargoes. The costs of payments to the Government of the Republic of Panama, if met by increased Panama Canal tolls, may well result in decreased

1 Source: Food and Agricultural Export Directory, USDA Foreign Agricultural Service, May 1976.

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