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PANAMA CANAL FINANCES

HEARINGS

BEFORE THE

SUBCOMMITTEE ON PANAMA CANAL

OF THE

COMMITTEE ON
MERCHANT MARINE AND FISHERIES

HOUSE OF REPRESENTATIVES

NINETY-FOURTH CONGRESS

SECOND SESSION

ON

H.R. 12641

A BILL PROVIDING FOR THE TEMPORARY DEFERMENT OF PAY-
MENT TO THE TREASURY ON THE NET DIRECT INVESTMENT
OF THE GOVERNMENT IN THE PANAMA CANAL COMPANY

Impact of the Isthmian Events on the Operation of the

Panama Canal

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COMMITTEE ON MERCHANT MARINE AND FISHERIES

LEONOR K. (MRS. JOHN B.) SULLIVAN, Missouri, Chairman THOMAS L. ASHLEY, Ohio

PHILIP E. RUPPE, Michigan JOHN D. DINGELL, Michigan

CHARLES A. MOSHER, Ohio THOMAS N. DOWNING, Virginia

PAUL N. MCCLOSKEY, JR., California PAUL G. ROGERS, Florida.

GENE SNYDER, Kentucky JOHN M. MURPHY, New York

EDWIN B. FORSYTHE, New Jersey WALTER B. JONES, North Carolina

PIERRE S. (PETE) DU PONT, Delaware ROBERT L. LEGGETT, California

DAVID C. TREEN, Louisiana MARIO BIAGGI, New York

JOEL PRITCHARD, Washington GLENN M. ANDERSON, California

DON YOUNG, Alaska E (KIKA) DE LA GARZA, Texas

ROBERT BAUMAN, Maryland RALPH M. METCALFE, Illinois

NORMAN F. LENT, New York JOHN B. BREAUX, Louisi

M IEW RINALDO, New Jersey FRED B. ROONEY, Pennsylvania

DAVID F. EMERY, Maine
PAUL S. SARBANES, Maryland
BO GINN, Georgia
GERRY E. STUDDS, Massachusetts

ii
DAVID R. BOWEN, Mississippi
JOSHUA EILBERG, Pennsylvania
RON DE LUGO, Virgin Islands
CARROLL HUBBARD, JR., Kentucky
DON BONKER, Washington
LES AUCOIN, Oregon
NORMAN E. D'AMOURS, New Hampshire
JERRY M. PATTERSON, California
LEO C. ZEFERETTI, New York
JAMES L. OBERSTAR, Minnesota

ERNEST J. CORRADO, Chief Counsel

FRANCES STILL, Chief Clerk
W. PATRICK MORRIS, Chief Minority Counsel

SUBCOMMITTEE ON PANAMA CANAL

RALPH H. METCALFE, Illinois, Chairman ROBERT L. LEGGETT, California

GENE SNYDER, Kentucky THOMAS N. DOWNING, Virginia

MATTHEW J. RINALDO, New Jersey JOHN M. MURPHY, New York MARIO BIAGGI, New York

PHILIP E. RUPPE, Michigan, ex officio DAVID R. BOWEN, Mississippi CARROLL HUBBARD, JR., Kentucky

LEONOR K. SULLIVAN, Missouri,
ex officio

TERRENCE W. MODGLIN, Professional Staf Member
NICHOLAS T. NONNENMACHER, Minority Professional Staj

(11)

CONTENTS

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Hearings held-

April 6, 1976-

April 7, 1976.

April 8, 1976.

Text of

H.R. 12641..

Reports from—

General Accounting Office

Office of Management and Budget.

Panama Canal Company -

Treasury Department..

Statement of-

American Federation of State, County and Municipal Employees.

American Federation of Teachers, AFL-CIO.

American Federation of Teachers, AFL-CIO, Local No. 29.--

Bell, Minister S. Morey, Deputy Negotiator and Country Director

for Panama, Department of State--

Bunker, Hon. Ellsworth, Ambassador at Large, Department of State--

Cheville, Dr. Richard, Pacific Civic Council

Clark, Earl W., Co-Directors, Labor-Management Maritime Com-

mittee.

Coffey, William John, Secretary-Treasurer, American Institute of

Merchant Shipping, Washington, D.C.---
Constant, Thomas M., Secretary, Panama Canal Company -
Dolvin, Lt. Gen. Wellborn, U.S. negotiating team.-
Drummond, William R., president, Canal Zone Police Union and

director, Canal Zone Nonprofit Public Information Corp---
Duval, Miles P., Jr., Captain, U.S. Navy (Retired).
Frick, Gordon M., Personnel director, Panama Canal Company
Gaskin, Edward, business agent, NMU, in Panama-
Graham, Alfred J., president, Canal Zone Central Labor Union &

Metal Traders Council, AFL-CIO.
Heath, Glenn Richard, control house operator, supervisor, Gatum

Locks, Canal Zone; business manager for local union 677, IBEW

representing the Northern District of the Panama Canal.'-
Johnson, Eugene A., president of the Congress of Latin American

Civic Councils, Canal Zone..
Kane, Donald V., partner in the Washington, D.C., office, Arthur

Andersen & Co..
Koczak, Stephen A., director of research, American Federation of

Government employees, AFL-CIO.

Kozak, Michael G., attorney-adviser, Office of the Legal Adviser,

Department of State-

Kujawa, Leonard J., partner in Arthur Andersen & Co., certified

public accountants --
Lewis, Elwin E., national vice president, American Federation of

Government Employees, AFL-CIO.

Lioeanjie, Rene, regional representative of NMU in Panama-

Manson, Frank A., assistant director, National Security-Foreign

Relations Division, The American Legion--

Mauge, Saturnin, president, Local 900, American Federation of State,

County, and Municipal Employees ---

McElligott, Paul G., attorney for Sea-Land Service, Inc.-
McElyea, Stewart D., director Field Operations. Division, U.S. General
Accounting Office, Washington, D.C----

439
395
147
228

361

537

365
297

523

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