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1 The Defense and Neutrality of the Panama Canal under the New Treaties 1 (1977)

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The Depa'' ,,_rtment1o
              'i~iI~iz~D~1I~   ir'tirlentUIVE RSITY OIF,CALIORI N1DEG

of State                                                                                   _A
                                                           3 1822 02179  0241


SpeialReport


No. 37
November  1977


Bureau of Public Affairs
Office of Media Services


The  Defense and Neutrality of the Panama Canal

               Under   the  New   Treaties


     The new Panama  Canal Treaty and the Treaty
Concerning the Permanent Neutrality and Opera-
tion of the Panama Canal provide the framework
for the United States permanently to protect the
security of the Panama  Canal and to assure its
operation in accordance with the general principle
of transit by the vessels of all nations on a non-
discriminatory basis. The  arrangements under
which  the United States will assure the security
and neutrality of the Canal are in two forms: those
which  apply until 2000, while the United States
operates, maintains and defends the Canal, and
those which apply permanently thereafter.

Panama  Canal Treaty
     The arrangements in the Panama Canal Treaty
for the protection and defense of the Canal until
2000  are based on  the concept of a combined
defense with Panama. However, under Article IV
of the Treaty, the United States assumes primary
responsibility to protect and defend the Canal
throughout the period of United States operation
of it. Panama has agreed further in Article IV that
the United States may act unilaterally against a
threat to the Canal from any source.* While the
United States has undertaken in Article IV to
attempt to maintain its military force in Panama at
a level no greater than that in the Canal Zone at
the entry into force of the Treaty (at present

     *Each party shall actin accordance with its constitu-
tional processes, to meet the danger resulting from an armed
attack or other actions which threaten the security of the
Panama Canal or of ships transiting it.


approximately 9300), the United  States may in-
crease that force as it deems necessary for the
defense of the Canal. In addition, the Treaty and
its related agreements grant to the United States
the rights until the year 2000 to use the specified
defense sites and military installations necessary
for the protection and defense of the Canal.
     Article IV further provides for close coordina-
tion and cooperation between  the United States
Forces and the Panamanian  National Guard. This
will be carried out through the military Combined
Board  established in the Treaty. It is anticipated
that during the Treaty term the Panamanian Forces
will assume an  increasing degree of operational
responsibility in the combined plans the Combined
Board will develop for Canal defense.

Treaty Concerning the Permanent Neutrality and
Operation of the Panama Canal
     Assurance of permanent access to the Canal
for the United States after 1999 is provided by the
Treaty Concerning the Permanent Neutrality and
Operation   of  the  Panama  Canal  (Neutrality
Treaty). This Treaty enters into force simulta-
neously with the Panama  Canal Treaty and does
not terminate regardless of the termination of any
other treaty or agreement between the two coun-
tries. The United States and Panama, during their
respective periods as Canal operator, must operate
the Canal in accordance with the regime of neu-
trality which is established in the Treaty. Thus,
after 2000, Panama  is obligated to the United
States to afford access to the Canal to United
States vessels, in accordance with these same provi-