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1 Implementing the Panama Canal Treaties [1] (1979)

handle is hein.usfed/impct0001 and id is 1 raw text is: A quick reference aid on U.S. foreign relations Not a comprehensive policy statement BOREAU OF PUBLIC AFFAIRS * DEPARTMENT OF STATE February 1979 IMPLEMENTING THE PANAMA CANAL TREATIES Feray17 1. Background: In the spring of 1978 the United States approved the new Panama Canal Treaties. Under these treaties, the US is guaranteed a permanent right to protect the Panama Canal against any threats to the free passage of ships of all nations. The US will continue to operate the canal, with Panamanian participation, until the year 2000. The present US-administered Canal Zone will cease to exist on October 1, 1979, when the treaties come into effect, but the United States will retain the land and facilities necessary for operation and defense of the canal until the end of the century. 2. Implementing legislation: The basic framework for our new relationship with Panama was settled by the Senate's approval of the Panama Canal Treaties. Nevertheless, a new entity to manage and operate the canal must be authorized by Congress early in 1979 so that we can efficiently operate the international waterway during the remaining 21 years of our stewardship. In January 1979 President Carter sent Congress implementing legislation to establish a new canal administration. However, the treaties and our international obligations will come into effect whether or not the implementing legislation has been adopted. Important issues to be decided in the legislation include: - the structure and membership of the new self-sustaining entity, to be called the Panama Canal Commission; - new bases for setting tolls; - establishment of various US-Panama joint committees, including a committee on the environment, called for by the treaties; - the employment system that will cover Panama Canal Commission employees, including retirement conditions and other benefits; - phasing out the present Canal Zone court system and establishing arrangements to cover the initial 30-month transition period and subsequent years of US control; and - special provisions for the emigration to the US of long-term local employees. Congress will also have to appropriate funds to meet such costs as employee benefits and relocation of military and civilian installations. 3. US-Panamanian relations: While passage of the Panama Canal Treaties was controversial in the US and Panama, formal approval of the treaties by both nations has had a significant and favorable impact on US relations with Panama. The long simmering hostility toward the US in Panama, which could have jeopardized the efficient operation of the canal, has subsided.