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ID-80-30 1 (1980-05-15)

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BY THE COMPTROLLER GENERAL                                     I t49-



Report To The Congress


OF THE UNITED STATES



Implementing The Panama Canal Treaty

Of 1977--Good Planning But Many Issues

Remain

So far, progress has been good in implemer-
ting provisions of the Panama Canal Treaty, as
illustrated by the smooth transfer to Panama
of various port and railroad activities, certain
health and sanitation services, and other func-
tions. The Panama Canal Commission and the
Department of Defense have made substantial
progress in enacting important personnel
changes required by the Treaty or its imple-
menting legislation.

Several unresolved issues and problems hinder
full implementation of the Treaty; however,
the parties involved are working toward solu-
tions to problems in the following areas.

     --Termination of U.S. jurisdiction in the
     former Canal Zone.

     --Transfer to Panama of considerable
     property, port and railroad facilities,
     and certain public services.

     --Defense's assumption of certain func-
     tions previously performed by the Pa-
     nama Canal Company and Canal Zone
     Government.

 In addition, there is potential for better inter-
 agency coordination.


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                                                                      ID-80-30
    11ccobj                                                       MAY 15, 1980





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